Zhītōng Cáijīng APP learned that Daiwa released a research report stating that it gives China Shenhua (01088) a "hold" rating. This year, the mainland's coal output and average selling price will begin to fall, but the risk of the stock price falling is limited, and the expected decline will be about 5% to 10%. The bank believes that when Shenhua's return on investment recovers to 7% in the 2024 fiscal year, investors seeking high returns may buy Shenhua again.

The bank pointed out that in addition to being supported by its performance, Shenhua continues to exceed its production targets. The company's coal production in the first five months of 2024 increased by 2.3% year-on-year, relative to an earlier business guidance that the company will reduce production by 2.6% in 2024. In addition, the coal price in the second quarter of this year has increased from RMB 800 per ton to RMB 850 per ton, reducing the market's disappointment in the company's August earnings performance. Daiwa reminds that Shenhua's mid-term profit forecast to be released next month will be a recent focus of attention.