Morgan Stanley: China Shenhua's Q3 net profit broadly in line, keeps Overweight rating

Stock News10-26

Morgan Stanley has released a research report stating that China Shenhua (01088) recorded a 4% year-on-year increase in net profit for the first nine months of this year, reaching RMB 44 billion, which implies a 3% year-on-year rise in third-quarter net profit to RMB 15.7 billion, broadly in line with market expectations.

The bank maintains its Overweight rating and a target price of HKD 48.3. It expects the company's earnings to remain resilient in the fourth quarter.

Resumption of production at coal mines in Shanxi is still underway, but overall progress has been slow due to continued strict safety inspections and a shift in the mindset of coal mining enterprises.

In addition, with restocking demand ahead of the winter heating season and low inventory levels at power plants, thermal coal prices are expected to fluctuate at elevated levels in the near term, suggesting that China Shenhua's earnings will remain resilient through the end of the year.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment