BOC International has released a research report indicating that China Coal Energy's (01898) first-quarter 2026 net profit, calculated under International Financial Reporting Standards, decreased by 3% year-on-year to RMB 3.865 billion. The decline in profit was primarily due to rising per-unit coal production costs and a drop in coal sales volume, partially offset by an unexpected increase in realized coal prices. The firm has raised its target price from HK$10.78 to HK$11.76 but maintains a "Sell" rating, citing the company's unattractive dividend yield. BOC International anticipates that recent increases in coal and chemical product prices will be fully reflected in earnings, leading to improved profitability in the coming quarters. The bank has raised its profit forecasts for 2026 to 2028 by 9% to 10%, mainly driven by higher-than-expected realized coal prices.