The Zhitong Finance App learned that China's Shenhua (01088) rose nearly 3%. As of press release, it had risen 2.5% to HK$43.46 to HK$325 million.

According to the news, recently, China's Shenhua revealed a profit forecast. Damo pointed out that the company expects net profit to increase 7% to 21% year-on-year in the first half of 2026, reaching 26.3 billion to 29.8 billion yuan, which is superior to the bank's forecast of 26 billion yuan. This means that its net profit for the second quarter will be between 15.6 billion yuan and 19.1 billion yuan, up 23% to 51% year over year, better than expected.

Damo believes that China's Shenhua's initial performance was good, mainly reflecting the same relatively high coal prices (especially in the second quarter), as well as an increase in profit contributions from the coal chemical, railway, and port businesses. Although coal prices have recently recovered due to falling daily power plant consumption and high port inventories due to rainfall in many places, as the rainy season ends, the peak daily consumption and the release of demand for power plant restocking, and supply still limited in major coal-producing provinces, will continue to support thermal coal prices. Damo expects the company's profit to remain steady in the third quarter.

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