The Zhitong Finance App learned that although the price of fuel coal in the mainland did not rise significantly in the summer, it is estimated that it will perform well for the rest of this year. The two major positive factors include increased demand and a slowdown in output growth. Low inventory levels give sellers better bargaining power. The bank slightly raised its coal price forecast, but until it saw more signs of improvement in demand, it maintained a “neutral” view on the industry. After considering dividend factors, China's Shenhua (01088) and Shougang Resources (00639) were preferred.

The bank believes that China Shenhua's profit quality is good, the dividend rate is high, and transactions are active. The dividend rate is predicted to be 9.6% this year. It is estimated that it will remain at the level of 8.9% to 9.2% for the next two years, raising the profit measurement for each year from 2023 to 2025 by 1% to 3%. Shougang Resources predicts that the dividend rate may reach 13.5% this year. Furthermore, the mid-term profit of China Coal Energy (01898) fell short of expectations, due to the price drop of fuel coal. The bank expects sales to increase by only 5% in the next two years, and predicts a dividend rate of 7.4% this year, which is relatively unattractive in a high-interest rate environment.