According to Zhitong Finance APP, coal industry stocks strengthened in the afternoon. $SOUTHGOBI (01878.HK)$ is up 26.2%, priced at 3.42 Hong Kong dollars; $CHINA SHENHUA (01088.HK)$ is up 6.32%, priced at 33.65 Hong Kong dollars; $CHINA QINFA (00866.HK)$ is up 3.85%, priced at 1.35 Hong Kong dollars; $CHINA COAL (01898.HK)$ Up by 3.45%, reported at 9.3 Hong Kong dollars.
In terms of news, southgobi performed outstandingly in the third quarter, leading the coal industrial concept(coal industry). Southgobi announced its performance for the first three quarters ending at the end of September this year, with a turnover of 0.319 billion US dollars (same below), a year-on-year increase of 31.2%. Net profit is 20.206 million US dollars, turning a profit from a loss of 23.428 million US dollars in the same period last year; earnings per share is 6.8 cents. In addition, a research report from Citic Sec indicated that Shenhua's net revenue for the third quarter reached 17.8 billion yuan, a 14% year-on-year increase and a 19% increase quarter-on-quarter, exceeding market expectations.
Citic Sec released a research report stating that the price of thermal coal fluctuated slightly in Q3 2024, while the quarterly long-term contract price of coking coal was adjusted downward in September. Under the backdrop of weak and stable coal prices, the performance of coal companies is varied, but some key companies outperformed expectations, leading to an improvement in the overall performance of the sector in Q3. Looking ahead to the later part of the fourth quarter, considering seasonal factors and policy expectations, coal prices are expected to remain stable, and combined with policy factors, it may further stimulate the dividend style, bringing the sector into a new round of rebound in the short term. Kaiyuan Securities believes that currently, both thermal coal and coking coal prices are at low levels; with the ongoing improvement in the supply and demand fundamentals, both types of coal will still have upward elasticity, and the potential for price increases is substantial.
