Citigroup has issued a research report indicating that CHINA SHENHUA (01088) reported a first-quarter net profit of RMB 11.9 billion, representing an 11% year-on-year decline and an 8% decrease quarter-on-quarter. These figures account for 20% and 21% of the bank's and the market's full-year forecasts, respectively, falling short of expectations. The underperformance was primarily attributed to lower-than-expected profit contributions from associates and a higher proportion of minority interests. Excluding one-off items, core net profit is estimated at RMB 11.9 billion, down 8% year-on-year but up 25% quarter-on-quarter. The bank has maintained a "Buy" rating on Shenhua with a target price of HK$54.7. Citigroup noted that following the acquisition of parent company assets, Shenhua has raised its 2026 commercial coal production and sales guidance by 55% and 42% to 513.4 million tons and 618.1 million tons, respectively. The power generation guidance has also been increased by 29% to 288.1 billion kWh.