Standard Chartered gave 01683-HK an investment rating that outperformed the market and gave it a target price of HK $10.

Standard Chartered pointed out that International Coal Machinery has a strong customer base, its shearer business has a leading market share in the mainland, and the number of orders is expected to stabilize in 2011-12, so it is included in the study for the first time.

Standard Chartered pointed out that International Coal Machinery has a larger customer base than its competitors, of which the top 50 coal producers in the mainland are all their customers, so they can consolidate their leading position in the industry by maintaining a good relationship with existing customers. Standard Chartered continued to point out that although the market still expects the shearer business's market share to decline, even affecting profits this year, the bank believes that International Coal Machinery has initially succeeded in defending its existing market share.

International Coal Machinery rose 0.80 per cent to HK $6.30 yesterday.