According to the Wisdom Wealth app, coal stocks continue to decline. As of the time of writing, Yancoal Aus (03668) fell 4.33% to HKD 34.25; Shougang Res (00639) fell 3.53% to HKD 2.73; China Coal Energy (01898) fell 2.56% to HKD 7.6; China Shenhua Energy (01088) fell 2.07% to HKD 33.05.

Huatai Securities previously pointed out that due to the slow release of demand after the heating season in mid-March, coal prices have entered a downward channel, and the second quarter is a traditional offseason for coal demand. The spot price of 5500 kcal power coal in North Port decreased month-on-month, and the long-term contract price decreased month-on-month. The price index of coking coal increased year-on-year, but decreased month-on-month, and the long-term agreement price index both declined month-on-month. Due to the downward trend in coal prices, the performance of the coal sector in the second quarter may be under pressure. Companies with a high proportion of long-term agreements may have a relatively small decline in profits, while companies in the coal and electricity business may be impacted by unexpected hydroelectric power generation in the second quarter.

It is reported that in the first half of this year, the loss range of coal enterprises has further expanded. Wind data shows that among the 33 component stocks covered by the coal index, 21 coal companies have announced their performance, with a collective decline in profits. In the first half of the year, 11 coal companies were able to maintain profitability, while the number of loss-making enterprises reached 10, accounting for nearly half. According to Hua Yu Bo Hua's statistics, as of July 15, 2024, except for Wintime Energy's counter-trend growth and a relatively small decline in China Shenhua Energy, the rest of the main bodies have announced severe declines in net profits, with a (upper limit of growth) year-on-year decrease approaching 50%.