The Zhitong Finance App learned that UBS released a research report stating that the net profit attributable to shareholders of China Shenhua (01088) for the first nine months of 2026 was 47.3 billion yuan, an increase of 2.1% over the previous year. Based on data re-listed for the same period in 2025, it is equivalent to about 78% of the bank's profit forecast for the full year 2026. Net profit attributable to shareholders for the third quarter was RMB 16.3 billion, up 2.6% year on year, slightly lower than the bank and market expectations. The bank maintains a “neutral” rating and a target price of HK$48.
The bank pointed out that despite the company's limited exposure to high spot coal prices in the third quarter, the coal business performance was still strong. According to the bank's calculation, the average sales price of coal in the third quarter was 417 yuan per ton, an increase of 10% over the previous year; the long-term agreement price increased by only 5% during the same period, while the spot price of 5,500 kcal thermal coal in Qinhuangdao rose 31%. The unit cost of its own coal mine was well controlled. It was 159 yuan per ton, a decrease of 2% over the previous year. The company's output remained roughly flat, with production of 381.9 million tons in the first nine months, reaching 74% of the annual target.
The company's outlook and guidelines remain unchanged, and a post-performance conference call will be held on October 30. The bank expects that investors' reactions to the results will be neutral to slightly negative, as third-quarter earnings were slightly lower than market expectations. According to the bank's profit assumption, China Shenhua H shares currently have an implied dividend yield of about 5.8%, and the bank continues to regard it as a resilient high-yield stock during periods of market fluctuations.