China Coal Energy (01898) rose more than 4% in morning trading. At the time of writing, the stock was up 4.48%, trading at HK$14.22, with a turnover of HK$288 million.

The company reported its first-quarter 2026 results, with revenue of approximately RMB 34.189 billion, down 10.9% year-on-year. Net profit attributable to shareholders was about RMB 3.844 billion, a decrease of 3.2% compared to the same period last year. According to the announcement, the coal business generated revenue of RMB 26.390 billion in the first quarter, down 15.6% year-on-year. Within this segment, sales revenue from self-produced commercial coal was RMB 14.727 billion, a decline of 8.4% year-on-year. This was mainly due to an average sales price increase of RMB 4 per tonne, which added RMB 119 million in revenue, offset by a sales volume decrease of 2.98 million tonnes, which reduced revenue by RMB 1.462 billion.

Guosen Securities previously noted that in 2026, due to factors such as reduced coal production in Indonesia and geopolitical conflicts, the oil-coal price spread is expected to widen. This is likely to lead to significant improvements in profitability for both the coal chemical and coal businesses of the company. Furthermore, with the commencement of projects under construction from 2026 to 2027, production growth is anticipated. Shenwan Hongyuan Group expressed optimism that the high market activity in coal chemicals will contribute to enhanced company performance.