Huatai Securities Raises YANKUANG ENERGY TP to HKD22.46, Dual External and Organic Growth to Support Long-term Growth

Huatai Securities said in a report that YANKUANG ENERGY (01171.HK) -0.250 (-1.526%) Short selling $110.20M; Ratio 16.988% recorded revenue of RMB34.589 billion in 1Q26, up 1.83% YoY, while net profit attributable to shareholders reached RMB3.955 billion, up 42.14% YoY, in line with expectations. However, excluding the contribution from the disposal of Xintai Coal in Ordos, Inner Mongolia, recurring net profit was RMB1.06 billion, down 64.14% YoY and below expectations.Looking ahead to 2026, the company is expected to benefit from tightening energy supply-demand dynamics both domestically and overseas, with coal and oil price centers likely to rise in tandem. The company will fully benefit from two layers of earnings elasticity. First, ongoing Middle East conflicts continue to disrupt global energy supply, driving sustained increases in the price of high-calorific Australian coal. Yancoal Australia, controlled by the company, is a core spot coal producer in Australia and has significant earnings exposure to international Australian coal prices. Second, the company has established integrated coal chemical industry chains, including coal gasification and coal liquefaction, and owns the countrys first million-tonne indirect coal liquefaction demonstration facility. Its acetic acid production capacity ranks among the highest nationwide. Given the correlation between chemical product prices and crude oil prices, a widening oil-to-coal price spread is expected to enhance profit margins of the coal chemical segment.The broker added that the "US-Israel-Iran conflict" may lift the center of Australian coal prices, while a widening oil-to-coal price spread could further boost profits of the coal chemical segment. It maintained its forecasts for net profit attributable to shareholders for 2026 to 2028 at RMB19.311 billion, RMB15.016 billion and RMB15.835 billion, corresponding to EPS of RMB1.92, RMB1.50 and RMB1.58, respectively. Huatai raised its A-share TP for YANKUANG ENERGY (600188.SH) -0.320 (-1.381%) from RMB27.96 to RMB29.64, implying 14.53x 2026 PE. The H-share TP was lifted from HKD21.91 to HKD22.46. The "Buy" rating was maintained. (hc/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-30 16:25.) (A Shares quote is delayed for at least 15 mins.)This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.