Jinwu Financial News | Coal stocks rose collectively. Mongolia Energy (00276) rose 4.41%, South Gobi (01878) rose 4.12%, Jinma Energy (06885) rose 3.2%, Mongolian coking coal (00975) rose 2.75%, South-South resources (01229) rose 2.67%, Yankuang Energy (01171) rose 1.67%, China Coal Energy (01898) rose 1.65%, and China Shenhua (01088) rose 1.26%.
Hualong Securities said that the coal industry has obvious characteristics of high dividends. After supply-side reforms, the operating conditions of the coal industry have been greatly improved, and coal companies have abundant cash flow and strong dividend sharing capacity. The profitability of the coal industry is relatively good, and high dividends highlight investment value. The valuation of coal stocks is currently at the bottom of history. PE valuations are mostly 5 or 6 times, while reasonable valuations are generally around 10 times, and the value of coal companies is undervalued. It is recommended that priority be given to underestimated leading companies. Maintain the industry's “Recommended” rating.
Guotai Junan said that the bottom of coal prices confirmed that the profits of coal companies are guaranteed, and that the value of high dividends and high dividend allocation from listed coal companies is highlighted, helping to reshape the valuation of the coal sector. Furthermore, as a procyclical industry, coal will benefit from economic recovery and rising demand, and can be fought back and defended. Recommended: 1) Changxie coking coal; 2) high-dividend thermal coal; 3) undervalued, with room for repair; 4) Growth & transformation.