Shares of KINETIC DEV (01277.HK) climbed more than 5% during the afternoon trading session, with the stock last up 5.19% at HK$2.13, on turnover of HK$23.04 million.
The company recently released its interim results for the 2026 fiscal year, posting revenue of approximately HK$2.521 billion, a modest 0.4% increase year-on-year. Profit attributable to shareholders surged 36.82% to HK$768 million, with basic earnings per share of 9.11 HK cents and an interim dividend of 6.0 HK cents per share.
According to the company's announcement, the robust profit growth was primarily driven by improved performance in its coal mining segment, coupled with effective cost control measures across all operating divisions.
Analysts at Guosen Securities noted that benefiting from higher coal prices and reduced costs, the company's coal business pre-tax profit jumped 29.4% year-on-year to HK$1.202 billion in the first half of 2026. The segment achieved an impressive gross margin of 52.6% and a net margin of 30.0%.
Looking at future capacity expansion plans, management expects to increase annual production capacity to 2.2 million tonnes of coking coal and 1.8 million tonnes of thermal coal within the next two years.
On the equity front, between June and August 2026, the company subscribed for convertible notes issued by MC Mining and announced plans to initiate further capital injections and share expansions, opening up additional room for equity growth. The brokerage believes that with both volume growth and equity expansion moving forward in tandem, the South African project is poised to deliver incremental profit gains.
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