Glonghui, April 29 | UBS published a research report showing that Shenhua's results for the first quarter of 2024 reached 29% of the market's consistent full-year forecast, while also reaching 31% of the bank's full-year profit forecast. Shenhua's profit for the first quarter beat expectations. The bank explained that it was mainly due to tax performance. The effective tax rate for the same period was 16%, below the normal range of 20% to 24%; the electricity business performance during the same period also beat the forecast. The first quarter recorded a 12.4% year-on-year increase in gross profit, mainly due to the contribution of the company's additional thermal power generation capacity. As for the performance of the coal mining business, which continues to remain stable, it is mainly due to its relatively high share of contract sales. UBS said that Shenhua's outlook and performance guidelines have not changed, and investors are still expected to respond positively to the company's first quarter results. Although the company's performance in the first quarter of this year was mainly due to preferential tax rates, compared to other coal mining peers, the bank believes that the market will be optimistic about Shenhua's profit resilience. UBS set Shenhua's target price at HK$28.5, with a “neutral” rating.