China Coal Energy (01898) Falls Over 2% Before Noon as Q3 Net Profit Misses Market Expectations; Output Decline Mainly Due to Stricter Safety Supervision

Stock News
Nov 02

According to Zhitong Finance APP, China Coal Energy (01898) fell more than 2% before noon, down 1.54% as of press time to HK$9.595, with turnover of HK$71.6812 million.

On the news front, China Coal Energy recently issued an announcement that for the nine months ended September 30, 2026, operating revenue was RMB 115.636 billion, up 4.6% year-on-year; net profit attributable to shareholders of the listed company was RMB 12.749 billion, up 2.1% year-on-year.

Citi said that after excluding impairment losses, it calculated recurring net profit for the first nine months at RMB 12.9 billion, up 2% year-on-year. It estimated third-quarter net profit at RMB 4.6 billion, down 4% year-on-year and up 7% quarter-on-quarter, below its expectations, due to higher-than-expected coal unit costs, selling and administrative expenses, and financial expenses. After excluding impairments, third-quarter recurring net profit was RMB 4.6 billion, down 2% year-on-year and up 3% quarter-on-quarter.

China Galaxy Securities noted that the company's commercial coal output in the first three quarters and the third quarter of 2026 was 93.38 million tonnes and 31.43 million tonnes, respectively, down 8.1% and 9.1% year-on-year, with the decline mainly due to stricter safety supervision. In addition, Q3 financial expenses were RMB 680 million (up 39.8% year-on-year), and administrative expenses were RMB 1.50 billion (up 15.4% year-on-year), which also dragged on overall Q3 performance.

Looking ahead to Q4, as supply-guarantee policies are introduced one after another, coal mine production is expected to gradually recover, and coupled with the peak winter season pushing up the central coal price level, the bank expects the company's overall performance to improve significantly.

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