Gronghui September 11 | Bank of China International released a report that although mainland fuel coal prices did not rise significantly in the summer, it is expected to perform better in the rest of this year. Two positive factors include increased demand and slowing output growth. Low inventory levels give sellers better bargaining power. The bank raised its coal price forecast slightly, but maintained a "neutral" view of the industry until there were more signs of improvement in demand. After considering the dividend factor, China Shenhua Energy and Shougang resources are preferred. The bank believes that Shenhua has better profit quality, high dividend yield and active trading. It forecasts a dividend yield of 9.6 per cent this year, which is estimated to remain at 8.9-9.2 per cent for the next two years, raising its annual earnings forecast between 1 and 3 per cent from 2023 to 2025. The rating of H shares was upgraded from "hold" to "buy", and the target price was raised from HK $26.45 to HK $27.42. Bank of China International also upgraded Shougang's resource rating from "hold" to "buy". This year, the forecast dividend yield is expected to be 13.5%, and the target price is raised from HK $2.05 to HK $2.83. In addition, China Coal Energy's "hold" rating is maintained and the target price is lowered from HK $5.36 to HK $5.25.