M Stanley: YANKUANG ENERGY Preliminary 2Q Results In Line; Reiterates Overweight
I'm LongbridgeAI, I can summarize articles.M Stanley reiterates an Overweight rating on Yankuang Energywith a HKD15.6 target price, following preliminary Q2 results that aligned with forecasts. The broker expects H1 net profit to rise 53% YoY to RMB7.2 billion, driven by higher coal prices, resilient demand, and investment gains. Stronger performance is attributed to supportive thermal and coking coal markets amid supply constraints and inventory replenishment.
M Stanley released a report stating that YANKUANG ENERGY (01171.HK) +0.160 (+1.451%) Short selling $22.24M; Ratio 8.670% expects net profit for 1H26 to rise 53% YoY to RMB7.2 billion, in line with the broker's forecast of RMB7.16 billion. Excluding non-recurring gains and losses, recurring profit for 1H26 increased 2% YoY to RMB4.5 billion. This implies that net profit for 2Q alone rose 74% YoY to RMB3.2 billion.
The broker noted that the company's stronger performance in 1H mainly reflected higher coal prices supported by resilient demand, rising coal chemical prices affected by Middle East conflicts, and higher investment gains from the disposal of a 100% equity stake in Inner Mongolia Xintai Coal. Thermal coal prices recently received short-term support from potential increases in daily power plant consumption after rainfall in multiple regions and inventory replenishment demand. Meanwhile, coking coal prices are also expected to gain support as tighter safety inspections following mine accidents in late May restricted supply in major coal-producing provinces such as Shanxi. Improved coal prices and coal chemical margins will continue to support resilient earnings performance for YANKUANG ENERGY.
M Stanley reiterated its Overweight rating on YANKUANG ENERGY and maintained its H-share TP at HKD15.6. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-15 12:25.)