CITIC International lowered the target price for YANCOAL AUS to 31 yuan and continued to recommend "buy."

Zhao Yin International Research Report indicates that Yancoal Australia (03668.HK) saw a 9% year-on-year decline in production in the third quarter, affected by rainfall; however, sales increased by 3% year-on-year due to improvements in previously delayed shipments. The comprehensive average selling price during the period decreased by 18% year-on-year, generally in line with market trends. The firm estimates the company's revenue for the third quarter to be approximately AUD 1.48 billion, a 17% year-on-year decline but a 30% quarter-on-quarter increase.

The firm has lowered its earnings forecasts for Yancoal Australia for the fiscal years 2025 to 2027 by 54%, 49%, and 40%, respectively, mainly due to downward adjustments in the average selling price forecasts for thermal coal and metallurgical coal, although this was partially offset by a slight 2% increase in sales forecasts driven by increased equity from the Moolarben mine.

Although weak coal prices leave the stock lacking short-term catalysts, the firm maintains a "Buy" rating based on the group's robust balance sheet and ongoing dividend policy; the target price has been reduced from HKD 34 to HKD 31