The Zhitong Finance App learned that Huatai Securities released a research report stating that maintaining the “buy” rating of Shougang Resources (00639), the company's coal conversion work between the upper and lower layers of the coal mine may have had some impact on 1Q24 production. The 24-year production forecast was slightly lowered, and the net profit for 24-26E was adjusted to HK$19.8/21.3/2.21 billion, with a target price of HK$3.3 billion. The bank said that although coking coal prices may face some pressure in an environment where downstream demand is weak in the short term, the supply side will still be affected by the reduction in production in major production areas, which will still strongly support coking coal prices during the year. In view of the efficient operation of the company's streamlined high-quality assets and the continued high percentage of dividends.

The report mentioned that the company's revenue for the full year of 2023 fell 28% year on year to HK$5.89 billion, and net profit to mother fell 30% year on year to HK$1.89 billion. The decline in performance was mainly affected by the decline in coking coal prices during the year. The company achieved steady production of 5.25 million tons of raw coking coal throughout the year, and production and operation remained stable; at the same time, cost control was effective, and raw coal cash production costs/refined coking coal processing costs decreased by 5%/6% year-on-year. The company continued its high-dividend policy for many years. The dividend for the full year of 2023 was HK28 HK cents/share, with a dividend ratio of 75%, corresponding to a dividend rate of 10.4%.