CMBI released a research report indicating that YANCOAL AUS (03668) reported a 64% year-on-year decline in net profit for 2025 to A$440 million. This figure fell 15% short of market expectations but exceeded the bank's forecast by 20%, primarily due to earnings being highly sensitive to unit profit assumptions. The bank raised its target price for the stock from HK$31 to HK$38, maintaining a "Buy" rating. YANCOAL AUS declared a final dividend of A$0.122 per share, in addition to an interim dividend of A$0.062 per share, resulting in a full-year dividend payout ratio of 55%, which aligns with the company's dividend policy. Looking ahead to 2026, CMBI anticipates a 3% increase in YANCOAL AUS's equity sales volume. However, due to persistent raw material cost inflation, the bank forecasts a roughly 1% rise in unit cash costs. Regarding pricing, given signs of coal price stabilization observed year-to-date, CMBI has raised its coal price forecasts for 2026 and 2027 by 8% and 7%, respectively. Consequently, the bank has also increased its profit estimates for 2026 and 2027 by 26% and 10%, respectively.