Hong Kong Stocks Movement | Coal Stocks Rise Again with China Shenhua (01088) and Yankuang Energy (01171) Both Gaining Over 2%

Stock News
Jan 08

Coal stocks saw another uptick. At the time of writing, SouthGobi (01878) rose 5.34% to HKD 2.17; CHINA SHENHUA (01088) gained 2.16% to HKD 40.76; YANKUANG ENERGY (01171) increased 2.06% to HKD 10.88; and CHINA COAL (01898) was up 0.73% at HKD 10.99. On the news front, according to the Futures Daily, an informed source revealed, "Market rumors on the morning of the 7th suggested that the Yulin Municipal Government in Shaanxi Province announced in a relevant meeting that, based on a document jointly issued by the National Development and Reform Commission and five other ministries, 26 out of 52 coal mines that had their capacity increased were removed from the supply guarantee list and had their capacity reduced by 19 million tons due to inadequate implementation of the 2024-2025 power coal supply guarantee." Regarding this, multiple industry and sector insiders were consulted for verification. A source from a coal mine indicated that the aforementioned news is accurate but its actual impact on the market is limited. Shanxi Securities believes that the trend against internal competition remains unchanged, and there are still expectations for improved performance in the fourth quarter. If prices remain high over the long term, there is room for earnings recovery in 2026. The decline in stock prices has reinforced their dividend value, suggesting potential for accumulation on dips. Guohai Securities stated that looking ahead to 2026, with "warmth from the coal fire and a slight tilt of the balance," the industry's supply-demand dynamics are expected to improve. Coupled with policy support, the central price level of coal is anticipated to rise, with the estimated central price for thermal coal at northern ports around 750 yuan and the average price for coking coal at northern ports around 1,550 yuan. This is expected to lead to some recovery in the industry's profitability.

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