Guolonghui on October 28th: HTSC released a report stating that China Shenhua Energy achieved a third-quarter revenue of 85.82 billion yuan, a year-on-year increase of 3.4%; a net income of 16.57 billion yuan, a year-on-year growth of 10.5%, exceeding the bank's expectations. The growth in quarterly profit on both a yearly and quarterly basis was mainly driven by the increase in gross margin resulting from cost reduction in the coal sector. The company's coal sector gross margin in the third quarter increased by 3.7 percentage points year-on-year. The bank pointed out that the company's electrical utilities sector saw an increase in electricity sales volume to a record high in the third quarter, with the sector's total profit increasing by 54% quarterly. The bank expects the bottom of coal prices in the fourth quarter to remain relatively solid under the support of peak winter demand, and the company's high ratio of long-term coal sales combined with an integrated operation model of coal and electricity, and port and shipping, is expected to help the company maintain stable profitability and a high dividend payout ratio. The bank maintains a "buy" rating with a target price of HK$43.1.