The Dropped Coal Price Improves the Profit Level of Luen Mei Holding and South China Layout Adds Performance Growth Impetus

The journalist learned from the National Clean Energy Development and Integration Forum held on May 13 that China's clean energy is developing rapid and maintains its global leading position. With the transformation and development of the energy industry in China, Luen Mei Holding (600167.SH), as a leading comprehensive energy service provider on the A-share market, is actively expanding the road of green industry development and expediting the national comprehensive energy strategic layout. Thanks to the favorable coal price decline, its profit level is expected to be significantly improved.

On May 10, Luen Mei Holding reached a strategic partnership for comprehensive energy investment, operation and maintenance with Cuiheng New Area of Zhongshan City, Guangdong Province, which marks the steady progress of Luen Mei Holding’s national comprehensive energy layout and further exploration of South China market. Luen Mei Holding will participate in the construction of energy stations in Cuiheng New Area, providing regional comprehensive energy services at the source, network, load, and storage ends, and providing more low-carbon and zero-carbon application scenarios for urban construction and operation in Cuiheng New Area.

With the decrease in coal costs, Luen Mei Holding’s profit level will be improved greatly under the precondition of ever-increasing heating area. In addition to the refined operational management, Luen Mei Holding is expected to unleash high performance flexibility and its investment value is further highlighted. The first quarterly report of 2023 shows that the net profit margin of Luen Mei Holding is 43.70%, with a year-on-year increase of 3.84 percentage points. Its profitability has gradually stabilized, and the performance of Luen Mei Holding will show an upward turning point.

In addition to the decline in the coal price and the improvement of profitability, Luen Mei Holding actively promotes the process of green environmental protection, coal conservation, and carbon emissions reduction to achieve a significant improvement in performance level.

Luen Mei Holding stated that it would continue to strengthen innovation in green, environmental, and energy-saving technologies based on the overall positioning of a comprehensive energy service provider, select various renewable energy technologies according to local conditions, explore the electric energy storage market and make the layout for the hydrogen energy industry, further expand the application of green and clean energy, and continue to support the national "dual-carbon" strategy. (Source: Stockstar)