01898 Overview

Global Energy Supply Risks: The situation in Iran has heightened global energy supply risks, potentially leading to an increase in coal prices, as noted in a CICC report.

Strategic Importance of Coal: Coal is becoming increasingly significant for China as a key energy source and raw material for chemicals, with potential for enhanced valuation of high-quality coal assets.

Stock Recommendations: JPMorgan recommends stocks such as YANKUANG ENERGY, YANCOAL AUSTRALIA, CHINA COAL ENERGY, and SHAANXI COAL IND, anticipating strong performance in coal and aluminum sectors.

Short Selling Data: The report includes short selling data for the recommended stocks, indicating varying levels of short interest across these companies.

Coal Production and Sales Decline: In 2025, China Coal's commercial coal production decreased by 1.8% year-over-year to 135 million tons, while sales dropped by 10.2% to 256 million tons.

Self-Produced Coal Sales: The sales of self-produced commercial coal also saw a slight decline of 0.9% year-over-year, totaling 136 million tons.

Board Recommendation: The Board of CHINA COAL has recommended the appointment of Gao Shigang as the executive director, pending shareholder approval.

Appointment Details: Gao will also serve as the president, with his term starting from the Board's approval until the new senior management is appointed.

Gao's Background: He is currently the Deputy Secretary of the Party Committee and General Manager of China National Coal Group Corporation, bringing extensive experience in the coal industry.

Market Information: The stock quote for CHINA COAL is delayed by at least 15 minutes, with short selling data indicating a significant amount of short interest.

Citi's Forecast Update: Citi has raised its earnings forecasts for CHINA COAL (01898.HK) for 2025-2027 by 28%, 39%, and 32%, projecting earnings of RMB16.2 billion, RMB15.2 billion, and RMB13.8 billion respectively.

Target Price Adjustment: The target price for CHINA COAL has been increased from HKD8.6 to HKD10.7, while maintaining a Neutral rating on the stock.

Production Decline: CHINA COAL reported a 7.4% year-over-year decrease in commercial coal production, totaling 11.17 million tons in November 2025.

Sales Volume Drop: The company's commercial coal sales volume fell by 15.7% year-over-year, amounting to 21.74 million tons, with self-produced sales down by 5.2% to 11.67 million tons.

Market Performance: The Hang Seng Index (HSI) fell by 16 points (0.1%) to close at 25,935, while the Hang Seng Tech Index (HSTI) dropped 32 points (0.6%) to 5,785, with a total market turnover of $238.82 billion.

Active Heavyweights: Notable movements included Meituan rising by 1.3% to $101.2, while Ping An and HKEX saw declines of 0.968% and 0.470%, respectively.

Constituents on the Move: Tingyi experienced a significant increase of 4.3% to $11.86, while New Oriental fell by 3.2% to $44.42, reflecting varied performance among HSI and HSCEI constituents.

Noteworthy Stocks: Transthera-B surged by 26.3% to $228.6, and China East Air rose by 4.6% to $4.35, both hitting new highs, while Hao Tian International dropped by 10.6% to $0.178.