Mountain Coal International: comments on the assets injected into coal mine by major shareholders

Events: Mountain Coal international release of Non-public offering plans, to be used to raise funds to buy the holding shareholder coal group merger and integration of Shanxi Qinshui Deer Taishan Coal Co., Ltd. all mining rights and physical assets such as 8 mineral rights, and to the Taihang Shipping Co., Ltd. to increase capital. Analysis: 1. The background of this private offering is: Mountain Coal Group is the controlling shareholder of the International Mountain Coal, Shanxi province vigorously promote the integration of coal resources, Mountain Coal Group as the resource integration of the important merger and integration of the main body, through the reorganization of local small and medium-sized coal mines, in a relatively short period of time to control and master the rich coal resources.　　In order to avoid competition, the group made a promise in the process of listing, and will inject the merged coal mine into the listed company in due course.　　2. The total amount of funds raised by this non-public offering is not more than 5.5 billion yuan, after deducting the issue fees, all of which are used for: (1) to purchase all mining rights and physical assets of Shanxi Qinshui Deer Taishan Coal Co., Ltd. (2) to the coal group to buy its merged integrated Shanxi Pu County Coal Industry Co., Ltd., Shanxi Pu County Yang Po Coal Industry Co., Ltd. and its own Shanxi coal import and export group Leopard ditch coal mining rights and physical assets; (3) to the coal group to buy its merged integrated Zuoyun Changchun Hing Coal Mine, Shanxi Zuoyunzhou Coal Industry Co., Ltd.　　, Shanxi Zuoyun Coal Mine Limited liability company mining rights and physical assets of 51% rights and interests; (4) to the coal group to buy its merged integrated Zuoyun Water Kiln Township Road Slope Village Korea home WA coal mine, Zuoyun Mao Guan Tun Shan Coal International Energy Group Co., Ltd. Non-public issue of stock plans coal mining rights and physical assets of 51% rights and interests;　　(5) To purchase the coal mining group of the Zuoyun East Ancient coal mine and the real assets of the 51% rights and interests; (6) to the coal group to buy its merged integration of Shanxi Zo Guanxin Shun Coal Industry Co., Ltd. (including Shanxi Zuoquan Coal Co., Ltd. all mining rights and physical assets) mining rights and physical assets of 65% rights and interests;　　(7) to buy its merged and integrated Shanxi Zuoquan Coal Industry Co., Ltd. (including Shanxi Zuoquan Han Wang Coal Co., Ltd. all mining rights and physical assets) mining rights and physical assets of 65% Rights; (8) Purchase of 100% stake in Taihang Shipping Co., Ltd. and increase its capital to Shan Coal group. 3. The non-public offering of the assets to be purchased is conducive to the strengthening of the company's coal resources reserves, in addition, through the acquisition of Mountain Coal Group Holdings of Taihang Shipping Co., Ltd. 100% equity and to increase its capital, expand the company's coal shipping business, so that the company has integrated upstream coal resources supply,　　The ability of the middle reaches coal circulation service base and downstream marketing network to form the coal supply chain with the most complete meaning of "coal mine → railway → port → Sea (river) → coal Blending center → users". 4. The company's current stock price corresponding to 10-12 years PE is: 24x,19x,16x, recommended attention.