Bank of America Merrill Lynch believes that the price of coking coal has bottomed out because of reduced supply and increased demand, but the current price of Hengding has fully reflected the expectation of price recovery, and its own risk factors have been ignored, so it reiterated that the stock has outperformed the market rating. The target price has been raised by 14%, still only HK $1.6. It means that the Panzhihua Coal Mine in Sichuan Province has stopped production and will not resume production until the second quarter of next year at the earliest, which is estimated to result in a loss of RMB 39 million in the second half of Hengding. At the same time, the management has to choose between debt reduction and expansion.