20230420-安信证券-固定收益主题报告_解码煤炭企业（九）_徐州矿务集团有限公司_14页_1mb

Summary of Xuankuang Group Report Analysis

Company Introduction

Xuankuang Group, a state-owned enterprise in Jiangsu Province, primarily engages in coal mining, trading, and power generation. Established in 1998 as a provincial government-owned company, it remains fully state-owned and serves as the sole provincial coal issuer in the region.

Business Operations

The company has a diversified business model with coal being the primary source of profit.

• Coal Business: Xuankuang manages significant coal resources, focusing on动力煤 (bituminous coal). Key assets are in Su Energy (苏能股份), which contributes about 80% of coal production. Coal production and sales have improved recently, with cost reductions and price increases leading to higher margins. New projects are planned to add capacity by 2025, targeted at increasing output significantly.

• Non-coal Business: Includes logistics, power generation, engineering, and other sectors. Logistics trade dominated revenue, but profitability declined. Power generation faced losses, and engineering showed some recovery. Non-coal segments exhibit varying performance, with some areas resilient and others struggling.

Credit Quality

The group's financial health has improved overall.

• Profitability: Driven by coal, but hampered by non-coal losses. Margins decreased due to non-coal drag but have edged up recently. Operating efficiency and reduced costs supported net profit growth.

• Debt Management: Short-term and long-term liabilities have been reduced. Cash-to-debt ratios improved, and debt-to-assets ratios fell from high levels, indicating better repayment capabilities.

• Funding: Costs decreased, and access to credit remains available, with low asset restrictions.

Bond Performance

As of April 2023, the company has minimal bond issuance, with a AA+ rating, and its existing bonds show compressed credit spreads in the secondary market.