Morgan Stanley released a research report indicating that after incorporating the new regional fuel Coal and coking Coal price forecasts, it has updated its earnings predictions for YANCOAL AUS (03668.HK).
In this report, Morgan Stanley adjusts the regional fuel Coal price forecasts for 2024 to 2026 from $135, $120, and $115 per ton to $137, $135, and $125 per ton respectively; meanwhile, the regional semi-soft coking Coal price is adjusted from $189.7, $183.2, and $166.8 per ton to $168.9, $145.2, and $155.2 per ton respectively.
Additionally, Morgan Stanley adjusts the earnings per share forecast for YANCOAL AUS for the fiscal years 2024 to 2026 by -6.6%, +0.8%, and +3.4% respectively, while raising its Target Price from HK$37.71 to HK$39.93, assigning a 'Shareholding' rating. Morgan Stanley also anticipates that Coal prices will be supported by structural imbalances in the international market. However, due to rainfall issues, Coal production is expected to recover from last year's low base within the next 12 months.
