Coal stocks extended their gains in late trading. As of press time, KINETIC DEV (01277) rose 5.76% to HK$1.47; CHINA COAL (01898) gained 4.37% to HK$9.8; E-COMMODITIES (01733) increased 3.45% to HK$0.9; and CHINA SHENHUA (01088) advanced 2.91% to HK$38.92.
Zheshang Securities issued a research report stating that it expects coal companies' overall performance in Q3 2025 to see a narrowed year-over-year decline and quarter-over-quarter improvement. The firm noted that looking ahead to Q4, with the heating season approaching, power plants and heating companies are set to replenish inventories, with rising long-term contract prices supporting spot prices. Coal prices are expected to increase in mid-to-late October.
On the policy front, "anti-involution" policies are expected to continue driving industry self-discipline, leading to coal supply contraction and further supporting steady coal price increases. Capacity replacement limits capacity scale, with production capacity potentially being reduced due to capacity indicator constraints. The firm maintains an "optimistic" rating for the sector.