BOCI Raises CHINA SHENHUA (01088) Target Price to HK$42.5, Reiterates "Hold" Rating

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Yesterday

CHINA SHENHUA (01088) reported a 6% year-on-year decline in Q3 net profit to RMB14.7 billion under IFRS, though sequentially up 13%, driven primarily by strong performance in its power generation segment. BOCI anticipates flat quarter-on-quarter earnings in Q4 2025, as rising costs and unfavorable shifts in coal sales mix offset benefits from higher coal prices.

Following the robust Q3 results, the bank raised its 2025–2027 earnings forecasts by 7–10%, maintaining a "Hold" rating while lifting the target price from HK$39.48 to HK$42.5.

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