Understanding the Market | Some coal stocks continue to rise, and with stricter safety regulations, coal prices are expected to increase during the peak season. Institutions are optimistic about the dual logic of the coal cycle and dividends
Some coal stocks continue to rise, with KINETIC DEV up 5.19% and E-COMMODITIES up 4.6%. Analysts point out that with the end of maintenance on the Daqin Railway, expectations for coal supply are tightening, and coal prices are expected to rise after November. At the same time, most coal companies maintain a high dividend willingness, and the capital market's investment sentiment towards the coal sector is warming up, believing that now is the right time to position
According to Zhitong Finance APP, some coal stocks continue to rise. As of the time of publication, KINETIC DEV (01277) is up 5.19%, trading at HKD 1.62; E-COMMODITIES (01733) is up 4.6%, trading at HKD 0.91; China Coal Energy (01898) is up 2.63%, trading at HKD 11.71; and China Shenhua (01088) is up 1.3%, trading at HKD 41.98.
In terms of news, Shenwan Hongyuan stated that the maintenance of the Daqin Railway has ended, with the volume of coal transported increasing month-on-month, but still lower year-on-year. At the same time, the central safety production assessment inspection team will fully enter in November, and the safety supervision situation in major production areas is becoming increasingly severe, further strengthening market expectations for tightening supply. Looking ahead, it is expected that safety supervision will become stricter after November; rising freight rates will lead to shipping losses, resonating with the demand during the winter heating peak season, and it is anticipated that thermal coal prices will rise after adjustments.
Kuyuan Securities pointed out that most coal companies still maintain a high willingness to distribute dividends, with six listed coal companies announcing interim dividend plans in their mid-term reports (China Shenhua / Shanxi Coking Coal / Shaanxi Coal and Energy / Shanghai Energy / Yanzhou Coal Mining / China Coal Energy). In the context of high global political and economic uncertainty and expectations for stabilizing the economy domestically, investment behavior shows emotional impulses. The coal sector possesses both cyclical and dividend attributes, with current coal holdings at low levels, and the fundamentals have reached the right side of the turning point, making it the right time to position
