Some coal stocks rose. As of press release, Yankuang Energy (01171) rose 3.42% to HK$17.54; Yancoal Australia (03668) rose 3.17% to HK$29.25; and China Shenhua (01088) rose 2.35% to HK$32.6.
Zhitong Finance App learned that some coal stocks rose. As of press release, Yankuang Energy (01171) rose 3.42% to HK$17.54; Yancoal Australia (03668) rose 3.17% to HK$29.25; China Shenhua (01088) rose 2.35% to HK$32.6; and China Coal Energy (01898) rose 1.28% to HK$7.92.
According to the news, according to data from the National Bureau of Statistics, in January-February 2024, the country's regulated enterprises produced 705 million tons of raw coal, or -4.2% year-on-year, recording the first decline in the same period since 2020. Open Source Securities believes that as regulations pay more attention to coal mine safety production, the impact of stricter safety supervision on the country's coal production is already evident. Under the current trend of frequent coal mine accidents and continued strengthening of safety inspections, it is expected that the country's coal supply will be curtailed. The balance between supply and demand in the coal industry is expected to benefit from the support of safety supervision policies, and coal prices are expected to stop falling and stabilize.
The CITIC Securities Research Report pointed out that the net profit of the listed coal companies tracked in the first quarter fell by an average of 25% year on year, and the sector has now gradually absorbed expectations of declining performance. Although coal prices fell significantly in the early period, there is still support for high average price expectations throughout the year, and leading companies have value appeal in terms of valuations and dividend rate expectations. As pessimistic expectations are digested, compounded by expectations of improved demand in the middle of the second quarter, the short-term sector may pick up in the midst of shocks.