Coal Stocks Rise Broadly as YANKUANG ENERGY Gains Over 4% Post-Earnings, Plans 1.8 Billion Yuan Interim Dividend Distribution; Institutions Believe Coal Sector Has Reached Strategic Positioning Time

Deep News
Sep 01

September 1st - Hong Kong-listed coal stocks posted broad gains, with YANKUANG ENERGY surging over 4% following its earnings release, China Shenhua advancing nearly 3%, while South South Resources and China Coal Energy both climbed over 1%.

On the news front, YANKUANG ENERGY released its 2025 interim report on the evening of August 29th. During the reporting period, the company achieved operating revenue of 59.349 billion yuan and net profit attributable to shareholders of 4.652 billion yuan. Continuing its interim dividend policy, the company proposes a cash dividend of 0.18 yuan per share, totaling 1.8 billion yuan, representing approximately 40% of the first half 2025 net profit attributable to shareholders. Additionally, the company launched a share repurchase program, planning to spend 50-100 million yuan on A-share buybacks and 150-400 million yuan on H-share repurchases. Furthermore, controlling shareholder Shandong Energy made a "no reduction + timely increase" commitment, demonstrating confidence in the company's development prospects.

Looking ahead to the second half of the year, multiple positive factors are gradually emerging. From an industry perspective, since late June, domestic high temperatures have spread, leading to increased daily consumption at power plants and a rebound in coal prices from their lows. YANKUANG ENERGY stated that with government support for "anti-involution" policies and crackdowns on excess production, the coal market's supply-demand relationship is expected to improve marginally in the second half, with coal prices experiencing a restorative recovery.

Kaiyuan Securities believes that under the backdrop of high global political-economic uncertainty and domestic economic stabilization expectations, investment behavior exhibits emotional impulses in capital markets. The coal sector possesses dual attributes of cyclicality and dividends. With current coal holdings at low levels and fundamentals having reached the right side of an inflection point, it has reached the time for strategic positioning.

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