Coal stocks picked up collectively. As of press release, Yankuang Energy (01171) rose 4.11% to HK$16.72; China Coal Energy (01898) rose 3.28% to HK$7.87; China Shenhua (01088) rose 2.39% to HK$32.1; and Mongolian coking coal (00975) rose 2.04% to HK$8.
The Zhitong Finance App learned that coal stocks are recovering collectively. As of press release, Yankuang Energy (01171) rose 4.11% to HK$16.72; China Coal Energy (01898) rose 3.28% to HK$7.87; China Shenhua (01088) rose 2.39% to HK$32.1; and Mongolian coking coal (00975) rose 2.04% to HK$8.
Guosheng Securities pointed out that overall, the overall performance of the coal sector in the 2023 report was steady, and most companies' dividend rates increased; performance is expected to be under pressure in Q1 2024 due to a sharp drop in volume and price. Although demand for coal weakens seasonally, companies with a relatively high share of Changxie Coal are still performing steadily; if demand improves, coking coal prices are expected to rebound, maintaining the industry's “overrated” rating.
Minsheng Securities, on the other hand, said that it is expected that port thermal coal prices will bottom out and stabilize under the influence of shipping restrictions and low port inventories. The bank pointed out that due to continued weakness in downstream demand after the Spring Festival, coal prices lag behind previous years and have not yet entered the upward channel. We expect that with downstream demand improving marginally, thermal coal prices will show strong upward elasticity. The short-term coal price correction will not affect the pattern of tight supply and demand in the coal industry and the value of coal companies. We continue to be optimistic about the rising valuation market driven by the strong resource attributes of the coal sector.