On June 4, Guolong News | Daiwa released its report, stating that coal prices fell last week, signaling the end of the coal market's inventory-building activity in May. The weekly offshore price of Qinhuangdao 5500 Power Coal spot dropped by 1.4% to 874 yuan per ton, up 4.4% and 12.7% per month and year, respectively; The price of Qinhuangdao 5500 Power Coal spot prices rose 0.1% to 730 yuan per ton. However, the bank pointed out that the rebound in related data on an annual basis was due to the lower base in the same period last year. The price rise in just one week did not pose a significant challenge to the second-quarter profits of coal-fired power companies. However, the bank recommends that investors pay attention to the significant decrease in coal prices in the third quarter of 2023, which may cause the profit growth of coal-fired power companies in the third quarter of 2024 to remain stable. As for the first quarter of this year, China's domestic raw coal production fell 3.5% to 1.11 billion tons year-on-year, in line with market expectations of oversupply. For June, the bank expects that the upward space for mainland coal prices is limited due to the strong contribution of hydroelectric power and the end of summer inventory-building activity. The bank predicts that in the favorable market reform of the electricity market in June and July, China Huadian Power and China Resources Power will continue to outperform the market in June, with a rating of "buy" and "hold", respectively, while Shenhua will be rated "hold."