Blue Flame Holdings (000968) Quarterly Report Comment: The first three quarters of performance growth and cash flow improved significantly

Blue Flame Holdings (000968) Quarterly Report Comment: The first three quarters of performance growth and cash flow improved significantly
The company’s profit in the first three quarters increased by ten years.9%, the cash flow has improved significantly. The company released three quarterly reports. The company achieved net profit attributable to its mother in the first three quarters of 20195.06 ppm, an increase of 5 in ten years.9%, EPS is 0.52 yuan.The company’s increase in profit in the first three quarters was mainly due to the company’s continued promotion of the old wells in the old blockchain and the transformation of old wells to achieve stable production and increase production.At the same time, the company strengthened its operation and management, and strived to increase revenues, reduce costs, and reduce costs and efficiency.The company’s other revenues recognized in the first three quarters of 2019 (mainly including subsidies for CBM sales and alternative tax refunds) were 2.24 ppm, a reduction of 0 per year.1.1 billion.The company’s net operating cash flow for the first three quarters of 2019 was 4.50,000 yuan, an increase of 61 in ten years.5%. In terms of quarters, the company achieved a single quarter net profit attributable to its parent in 19Q1-31.2.6 billion, 2.08 ppm and 1.7.3 billion, an increase of 16 in the first half of 19Q3.0%, down 16 from the previous month.9%. In the first half of the year, the company’s coalbed methane sales and tonnage increased by 5.7% and 13.4% coalbed methane sales business: CBM extraction in the first half of the year7.400 million cubic meters (previously +2.6%), sales of coalbed methane3.700 million cubic meters (decade +5.7%), the number of units is calculated according to the sales volume1.74 yuan / square (ten years +13.4%), unit cost is 0.95 yuan / square (ten years +15.5%), the unit gross profit is 0.79 yuan / square (ten years +11.1%).In addition, in the first half of the year, the company has temporarily confirmed the compensation for the development and utilization of coalbed methane based on the previous year’s standard1.3.9 billion, an increase of 0 every year.1.6 billion or 12.7%. Gas well construction engineering business: revenue in the first half of the year 1.81 ppm, a decrease of 1 per year.11 ppm or 38.0%, mainly due to the decline in the demand for gas well construction engineering construction business of related coal enterprises in the first half of the year, resulting in excessive reduction in engineering construction business volume. The subsidiary newly won the bidding of the Heshun Mafang East exploration block, and the commitment of the coal mining methane right of Jinmei Group has been completed. According to the interim report, the company won the bids of Liulin Shixi, Wuxiang South, Heshun Hengling and Heshun West in November 2017. 4Blockchains.As of July 31, 2019, geological mapping of 610 square millimeters and two-dimensional earthquakes of 369 were completed in four blocks.At 31 inches, 122 holes were drilled, 53 were fractured, and 19 wells were tested. According to the announcement of the Natural Resources Department of Shanxi Province, in the first half of this year, Shanxi Province conducted public tenders for 10 new exploration blockchain projects. 合肥夜网 Hongdong West Blockchain, Hongdong Blockchain, Linfen Blockchain, Linfen West Blockchain, LinfenThe South Blockchain and other five blockchain bidding units are less than three and do not meet the requirements of the Bidding and Bidding Law. The above five blockchain tenders will be reorganized in a timely manner, and the subsidiary Lanyan CBM has won the remaining five districts.Heshun Mafang East Blockchain (block area 253.82 square inches).According to the company’s announcement, on August 15th, the subsidiary Lanyan Coalbed Methane has gradually contracted with the Shanxi Provincial Department of Natural Resources for the exploration right.In addition, the controlling shareholder Jin Coal Group’s coalbed methane mining rights commitments have been completed, and Lanyan Coalbed Methane has obtained the Chengzhuang Coal Mine, Sihe Coal Mine (East District), Zhengzhuang Minefield’s coalbed methane mining rights, and Hudi Minefield’s coalbed methane exploration.Rights and resources security capabilities have been further enhanced. Profit forecast and investment advice The company has good internal epitaxy growth, reintegration of low-production wells, redevelopment of old wells to increase production, further improvement of gas pipelines, clear coalbed gas mining rights, etc. The company’s subjective and objective emptying rate will decline, and the sales gas volume is expected to gradually increase; Reorganization, the new successful bidding for blockchain exploration and development is progressing smoothly. As a state-owned enterprise in Shanxi Province, the company’s ability to acquire resources has been transferred, and its expansion can be expected.The company’s EPS for 2019-2021 is expected to be 0.78, 0.84 and 0.94 yuan / share, taking into account the company’s historical estimation of the hub and the company’s performance growth rate, given 19 times 18 times PE, corresponding to a reasonable value of 14.1 yuan / share, maintain “Buy” rating. Risk warning: the price of natural gas and coalbed methane will decrease; the preferential treatment will be reduced and the sales compensation policy will be changed;