Old-timer, let me ask you something. How to treat the coal industry in the capital market? Some people say that coal will be replaced by new energy sources, which will reduce production capacity and inventory. Coal stocks should be bought when the P/E ratio is high and sold when the P/E ratio is low. Now is not the best time to buy something. This is a cyclical industry, which is greatly influenced by macroeconomics, and its performance fluctuates every few years. Therefore, it is generally bought during the economic downturn, that is, when profits fall and price-earnings ratio rises. The coal industry is a mature industry, and it is unlikely to develop greatly. Buying it can only be used as a warehouse configuration. When I retire, I will buy some similar companies and prepare to eat dividends.

The overall performance of coal enterprises in the past 20 years is good, which is related to our rapid urbanization process. The demand for coal in fixed assets investment is huge. In the middle is the supply reduction caused by the closure of small and medium-sized coal mines accompanied by supply-side reform. You may not know the misery of the coal industry in the 1990s. At that time, selling soil was more profitable than selling coal. A large number of coal mines were closed and workers lost their jobs. It is impossible for our fixed assets investment to have such a large scale in the future, and it is impossible for the coal industry to make such a good profit again. Therefore, it can only be configured as a bottom bin.

Coal is unlikely to be replaced in the next few decades. More importantly, coal can not only be used to burn fire, but also extend a long industrial chain such as coal chemical industry, such as fertilizer and polyethylene. It is a bit worrying to say that it has been replaced by new energy. So he is a stable blue chip, used to allocate positions.

Personal opinion, for reference only.