Jinwu Financial News | Coal stocks are improving collectively. Yankuang Energy (01171) rose 4.86%, Mongolian coking coal (00975) rose 4.72%, Yancoal Australia (03668) rose 3.54%, China Coal Energy (01898) rose 3.28%, and China Shenhua (01088) rose 2.71%.
Guotai Junan released a research report saying that the price of thermal coal continues to decline, with the bottom looking at more than 800 yuan/ton; the price of coking coal may have reached the bottom, and there is a possibility of a “V” reversal in 2024; there is no need to be pessimistic about real estate; the Zhengzhou New Deal may become an important new policy. The restructuring of the coal sector's valuation is underway. The reaction behind it is not only profound changes in the coal industry's supply and demand structure, gradual “utilitization,” but also reflects the problem of scarce high-dividend asset investment strategies under the downward trend in risk-free returns.
Open Source Securities believes that the coal sector is expected to welcome the starting point of a rearrangement, and has both high dividends and cyclical flexibility, which is expected to attract more capital allocation than in the previous round. The high dividend investment logic of coal stocks is still the main line, because in the current weak economy and low interest rate environment, capital pays more attention to the certainty of investment returns, and high dividends and sustainability of coal are in line with capital allocation preferences.