Morgan Stanley has released a research report updating the risk-reward assessment for CHINA COAL (01898), noting that its profit performance has demonstrated greater resilience than expected, benefiting from cost control measures and a recovery in its coal chemical business. The firm anticipates that mainland coal prices in 2026 will see a slight increase compared to 2025, supported by expectations of overseas supply disruptions and rising import prices. The report also suggests that ongoing tensions in the Middle East are contributing to elevated oil prices, which in turn is driving up chemical product prices, thereby enhancing the profit contribution from CHINA COAL's coal chemical operations. Following the incorporation of actual financial results, Morgan Stanley has adjusted its earnings per share forecasts for CHINA COAL downward by 3% for the current year and 2% for the next. Despite these revisions, the firm maintains an "Overweight" rating on the stock and has increased its target price from HK$17.50 to HK$17.70.