China Coal 1898

[winston]

not vested

DJ MARKET TALK: China Coal +2.8%; Strong Winter Demand To Support

1103 [Dow Jones] China Coal (1898.HK) is up 2.8% at HK$8.09, compared with a flat HSI, supported by news its Dong Po underground mine in Shanxi Province has resumed production after passing safety tests following a flood that killed at least nine miners.

The rebound so far remains modest, says Tanrich's investment manager, especially after the stock lost 20.7% on Sept. 19 after the mine suspension news was released.

"I think for long-term holders, China Coal still offers attractive value." He expects the stock could retest above HK$9.00 in 4Q11 given the strong seasonal demand for coal expected during winter.

Source: Dow Jones Newswire

[winston]

not vested

Valuation

We conservatively lift our target multiples due to the production resumption of coalmines.

Our target price is HK$8.1, which is equivalent to 10x 2011/ 7.6x 2012 leading PE, 1.1x 2011/ 1.0x 2012 PB and 7.0x 2011/ 6.5x 2012 current EV/ Estimated EBITDA.

Rating: Hold.


Risk
1. Ineffective and Inefficient cost control measures;
2. Lower than expected production volume;
3. Delay of production resume in major coalmines.
4. Stricter than expected price control indicated by NDRC.
5. Lower than expected spot sales proportion.
6. Uncertainty related to resource tax reform.


Source: Phillips

[winston]

not vested

China Coal Energy Co Ltd said it commercial coal production volume rose 7.7 percent year-on-year to 8.58 million tonnes, while coke production volume was down 11.8 percent to 150,000 tonnes.

Coal sales volume jumped 41.8 percent year-on-year to 14.22 million tonnes.

Source: Reuters

[winston]

not vested

CHINA COAL (01898.HK)'s coal sales volume up 20% YoY in May
2014-06-16

CHINA COAL (01898.HK) -0.020 (0.475%) Short selling $21.93M; Ratio 32.170% announced the operational production data in May.

Its commercial coal production volume increased 1.1% yearly to 10.36 million tons and coal sales volume increased 20% yearly to 14.78 million tons.

For the first five months, commercial coal production rose 1.2% to 50.08 million tons, and coal sales volume dropped 0.8% to 61.45 million tons.

Source: AAStocks Financial News

[winston]

not vested

CHINA COAL (01898.HK) expects to record 75%-85% decrease in net profit last year

CHINA COAL (01898.HK) 0.000 (0.000%) Short selling $27.57M; Ratio 30.740% announced that the company expected to record a 75% to 85% decrease in the net profit attributable to shareholders of the listed company for the year ended 2014 as compared to the same period of 2013.

The decrease was due to the downturn of coal market, substantial decline in the price of coal and decrease in the profit of coal enterprises.

Source: AAStocks Financial News

[winston]

not vested

July 11, 2016

<Positive Profit Alert>CHINA COAL Expects Swinging into Over RMB350M Interim Profit

CHINA COAL (01898.HK) issued a positive profit alert, predicting that in accordance with Chinese Accounting Standards for Business Enterprises, the net profit for the six months ended 30 June 2016 of the group is expected to range from RMB350 million to RMB520 million, whereas the net loss attributable to shareholders of the listed company for the same period of 2015 was RMB965 million.

The board considers that the expected turnaround is due to the company's scientific arrangements of coal production, optimization of product structure, strict control over costs and expenses, proactive disposal of certain assets not closely related to the principal business thereof with low profitability, as well as the steady recovery of coal price under the impacts of national policies including de-capacity and supply-side reform during the reporting period.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>BofAML Lifts CHINA COAL Target to $5;

Bank of America Merrill Lynch, in its report, cited information from Sxcoal.com, said the benchmark thermal coal price rose by 3.2% weekly to RMB415 per tonne.

The broker raised its China thermal coal price forecast by 8% to RMB410 per tonne for 2016, implying a 2H16 price of RMB435 per tonne, while keeping 2017/18 prices estimates unchanged at RMB400/RMB420 per tonne.

The broker remained positive on CHINA COAL (01898.HK) and raised the target price from $4.5 to $5.

Source: AAStocks Financial News

[winston]

not vested

China Coal (1898 HK)

Amid low coal prices to facilitate industry consolidation, and China’s supply-side reform policy to reduce output, we expect China’s coal prices to hit rock bottom and rebound next year.

China Coal, given its highest earnings sensitivity, and great exposure to the seaborne market, would benefit the most.

We maintain a BUY rating on China Coal with a target price of HK$5.00.

Source: UOBKH