Some coal stocks strengthened. As of press release, South Gobi (01878) rose 13.42% to HK$4.14; Yancoal Australia (03668) rose 6.53% to HK$28.55; and South-South Resources (01229) rose 5.76% to HK$0.147.
Zhitong Finance App learned that some coal stocks have strengthened. As of press release, South Gobi (01878) rose 13.42% to HK$4.14; Yancoal Australia (03668) rose 6.53% to HK$28.55; South-South Resources (01229) rose 5.76% to HK$0.147; and Mongolian coking coal (00975) rose 0.6% to HK$8.45.
Guojin Securities said that with the arrival of the peak winter season, the release of heating demand under cooling will drive up the daily consumption of power plants, and market prices are more sensitive to changes in coal demand in the power industry. On the non-electricity side, the chemical and building materials market was not booming in November, and demand for coal consumption continued to decline. Subsequent demand for non-electric coal may continue to be sluggish. Considering the rise in demand for heating coal in late winter, coal prices are expected to be strong in the short term and decline in the long term.
Guohai Securities, on the other hand, pointed out that it is expected that in the next few years, the coal industry will maintain a tight balance. The coal industry has high asset quality and abundant cash flow. Listed coal companies will show the five characteristics of “high profit, high cash flow, high barriers, high dividends, and high margin of safety”. It is recommended to reduce short-term fluctuations in coal prices, grasp the value attributes of the coal sector, and maintain the industry's “recommended” rating.