The Zhitong Finance App learned that most coal stocks were higher. As of press release, China's Qinfa (00866) rose 12.94% to HK$0.48; South Gobi (01878) rose 8.47% to HK$4.61; Mongolian coking coal (00975) rose 5.32% to HK$9.11; and China Shenhua (01088) rose 2.49% to HK$30.85.
According to the news, the Q5500 thermal coal price at Qinhuangdao Port fell to 838 yuan/ton last week, down 27 yuan/ton from the previous month, or 3.12%. Prices stopped falling and stabilized starting Thursday. According to Open Source Securities, spot prices are expected to gradually stabilize as the operating rate of cement and steel mills continues to rise and steel inventories take a turn (2.78% month-on-month this week).
Cinda Securities believes that it is currently in the early stages of a new upward cycle of the coal economy. Fundamentals and policies resonate. At this stage, it is the right time to allocate the coal sector to the low. Currently, the coal sector has the attributes of high performance, high cash, and high dividends. Combined with the characteristics of high prosperity, long cycle, and high barriers, low valuation levels and inverted valuations at level 1 and 2, the coal sector has both offensive and defensive investment.