According to the HSBC report, the Mongolian coking coal company lowered its 2012 profit forecast to 60 million US dollars, to a loss of 27 million US dollars, mainly to reflect that interest expenses related to the railway project were higher than expected, and that about 500,000 tons of inventory needed to be written off, leading to a loss of 20-25 million yuan. At the same time, the bank lowered the company's profit forecast for this year and next two years by 51% and 2% to reflect clean coal sales and the lower return of Mongolia's UHG coal mine, offsetting the profit from slightly higher coking coal prices, downgraded to “reduced holdings”, and the target price dropped from 4.3 yuan to “reduced holdings” Yuan, the decline was 30.2%

According to HSBC, the downgrade was also due to the company's coal mine development progress being slower than expected. Coupled with the sufficient supply of coking coal last year, this year's coal price is about 179 US dollars per ton, and is expected to rise to 188 US dollars per ton in 2014-15, but the overall outlook is poor, mainly due to adverse effects such as poor local weather conditions and company strikes. In addition to the increase in coking coal exports from Australia and the US, it is difficult for the company to record profits without large-scale supply constraints in the coking coal market. (