According to a report published by Daifuku, the international coal machine (01683-HK) was initially rated as a purchase, with a target price of HK$6.30, corresponding to the expected price-earnings ratio for fiscal year 2010 by 20 times.

Further integration and technological upgrading will be China's “12,” the report said. As for the development theme of the coal industry in the “5” plan, issues related to low market concentration, high accident mortality, and low productivity will decline. Based on the 2010 fiscal year revenue forecast of RMB 1,931 billion (up 27% year-on-year), the compound annual growth rate for the 2010-2012 fiscal year is expected to be 21%, which is equivalent to a compound annual growth rate of 31% in net profit for two years.

International Coal Machine closed at HK$5.98 yesterday.