Coal stocks rose collectively. As of press release, Yankuang Energy (01171) rose 4.48% to HK$17.24; China Coal Energy (01898) rose 3.63% to HK$7.99; China Shenhua (01088) rose 3.27% to HK$33.2; and Yankuang Australia (03668) rose 1.25% to HK$28.4.
The Zhitong Finance App learned that coal stocks rose collectively early. As of press release, Yankuang Energy (01171) rose 4.48% to HK$17.24; China Coal Energy (01898) rose 3.63% to HK$7.99; China Shenhua (01088) rose 3.27% to HK$33.2; and Yankuang Australia (03668) rose 1.25% to HK$28.4.
Cinda Securities pointed out that overall, as downstream resumption of work and production improves, especially with the suspension of the resumption of infrastructure projects, non-electricity demand is expected to gradually improve. Combined with the contraction of domestic coal supply and the continued high level of overseas coal prices under continuous safety supervision, the decline in imported coal caused by continuous safety regulations. In particular, tight spot volumes and no obvious barriers to stocks or coking coal stocks are at a relatively low level during the same period. It is expected that short-term coal prices will steadily stop falling or fluctuate slightly. If power plants enter the peak of active inventory replenishment and non-electricity demand in early summer, prices will improve marginally. It is elastic, and the price of coking coal is expected to rebound more strongly.
The bank said that at present, it is necessary to objectively view normal fluctuations in coal prices during the low peak season. There is no need to pay too much attention to short-term price pullbacks and the level of performance of coal companies in the first quarter. More attention should be paid to the fact that the price center is expected to be at a relatively high level throughout the year, and high-quality coal companies are still expected to maintain high ROE levels. It is expected that as coal prices stop falling and rise steadily, the quarterly results of major coal companies may improve month-on-month, and the quarterly reports fall short of expectations or have fully reflected them. It is recommended to focus on bottom-line opportunities at this stage.