After Yonghui Coking Coal announced last year's annual results, CCB International published a report. It is expected that Yonghui will continue to grow rapidly in the next three years, so it gave it a “buy” rating first, with a target price of 6.98 yuan.

According to the CCB International report, Yonghui Coking Coal Company's main business is purchasing raw coal from Mongolia and other overseas coking coal production sites and transporting it to the mainland by land and water. From 2008 to 2010, the company sold 1,080,000 tons, 5.074 million tons, and 7.827 million tons of fine coking coal, respectively, reflecting the continuous rise in the company's business.

On the other hand, the Bank of China believes that China has entered a period of rapid growth in net coal imports, and market demand from coking coal importers will continue to expand. It is expected that the compound growth rate of profitability will reach 32.7% over the next three years, so it is optimistic about the company's prospects.

As a result, CBI expects Yonghui Coking Coal's net profit of $1,313 million and $1,763 billion (RMB, same below) for 2011 and 2012, with earnings of $0.346 and $0.465 per share.

Yonghui Coking Coal closed at HK$4.40 yesterday.