Zhitong Financial APP learned that Anxin International released a research report that maintained Yanzhou Coal Australia's (03668) "buy" rating, with an EPS forecast of A $2.38x1.97 in 2023 / 24, with a target price of HK $44.06, which is 36.6 per cent higher than the current share price. Recently, the company has been included in the Hang Seng Composite Index through the quarterly review of the Hang Seng Index, and "medium" companies have been included in the "energy" industry. With the further expansion of the Hong Kong stock market to eligible foreign companies, shares will be able to be traded through Hong Kong stocks from March 13. As the target of the scarcity of overseas coal port stocks, this inclusion will give domestic investors the opportunity to buy shares, usher in historical opportunities, and further enhance stock liquidity.

The bank noted that the company achieved an all-time high of A $3.58 billion in 2022, benefiting from high energy inflation and high international coal prices. However, this result is lower than we had expected, mainly in the income side and in the impairment, financing costs and other parts of the gap, the impact of the non-economic part is expected to be reduced in 2023. The final dividend declares a final dividend of A $0.7 per share, with March 15 as the dividend registration date. Combined with the company's interim dividend, the dividend yield for the whole of 2022 will reach 20%. It is worth noting that the final dividend is fully tax-free, and Hong Kong investors normally do not have to pay a 30 per cent dividend tax to the Australian government, which the bank believes is more attractive to investors.

In addition, thanks to a good cash position, the company's prepayment of US $2.26 billion in 2022, together with the US $500m repaid at the end of 2021, will save nearly A $300m in financing costs in 2023. The company will further repay its last external, interest-bearing loan in March, allowing the company to achieve zero interest-bearing debt and travel light.