RBS gave Monjo (00975-HK) a purchase investment rating. The target price rose slightly from HK$9.6 to HK$10.2. It was the bank's first choice among coal stocks. EV reserves expanded from 36% to 60% compared to global peers, making the valuation attractive.

According to RBS, Mongolia's Tavan Tolgoi project will not pose a threat to Mongolia in the next 1-3 years; due to lower raw coal sales this year and changes in the average unit price in 2012-13, its 2011-13 profit forecast was lowered by 9%-21%.

Montgio rose 0.94% throughout the day to close at HK$6.44.