Citi's analyst rating is based on the expectation that while coal prices have increased, the share prices of China's coal-fired independent power producers have risen significantly due to tariff hikes, positive spillover from US power utilities, AI-related fund inflows, previous underperformance, and anticipated high dividend yields in 2025. However, the bank warns that margins are likely to narrow due to rising coal costs, and performance may weaken during the ex-dividend period, leading to Sell ratings for specific companies.
