Morgan Stanley has released a research report updating the risk-reward assessment for China Coal Energy (01898), noting that its profit performance has demonstrated greater resilience than expected, benefiting from cost control measures and a recovery in its coal chemical business. The firm anticipates that domestic coal prices in 2026 will see a slight increase compared to 2025, supported by expectations of overseas supply disruptions and rising import prices. The report also suggests that ongoing tensions in the Middle East are contributing to elevated oil prices, which in turn are driving up chemical product prices, thereby benefiting the profit contribution from China Coal's coal chemical operations. Following the incorporation of actual financial results, Morgan Stanley has lowered its earnings per share forecasts for China Coal for the current and next year by 3% and 2%, respectively. The firm continues to assign an "Overweight" rating to the stock and has raised its target price from HK$17.5 to HK$17.7.