Hong Kong Coal Stocks Lead Declines as Listed Coal Companies Report Widespread Annual Earnings Drop; Market Focuses on Energy Substitution Outlook

Stock News03-31

Coal stocks led the declines in the Hong Kong market. At the time of writing, CHINA COAL (01898) fell 7.19% to HK$12.90; CHINA QINFA (00866) dropped 6.72% to HK$3.33; YANKUANG ENERGY (01171) declined 6.06% to HK$14.41; and CHINA SHENHUA (01088) decreased 4.35% to HK$45.70.

Recently, 26 listed coal companies collectively released their 2025 performance forecasts. Due to shifts in industry supply and demand dynamics, coal sales volumes and average selling prices have decreased, leading to a year-on-year decline in the sector's overall performance. Among these companies, Panjiang Co., Ltd. and Huaihe Energy forecast profit growth. However, CHINA SHENHUA, Shanxi Coking Coal, and nine other listed coal companies anticipate profit declines. Yunnan Coal & Energy expects a reduction in losses, while Zhengzhou Coal Electric, Kailuan Co., Ltd., and ten other listed coal enterprises forecast losses.

Additionally, market attention is focused on the prospects for energy substitution. According to a report, Donald Trump informed aides of his willingness to end the war without reopening the Strait of Hormuz. Following this, international oil prices retreated in the short term, with both Brent and WTI crude oil futures falling over 1%.

Huatai Securities previously indicated that once the buffer of oil and gas inventories is depleted, the pressure to ensure power supply will compel Asia-Pacific countries to accelerate the substitution of oil and gas with coal for electricity generation.

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