The Zhitong Finance App learned that Citibank released a research report saying that China Coal Energy (01898)'s net profit for the third quarter fell short of expectations, and the bank maintained a “buy” rating, with a target price of HK$16.6.

China Coal Energy announced that net profit for the first nine months of this year calculated according to China's accounting standards was RMB 12.7 billion, up 2% year on year; net profit calculated according to IFRS was RMB 12.9 billion, up 15% year on year, equivalent to 68% of the annual market forecast and 73% of the bank's full-year forecast, respectively.

Excluding impairment losses, the bank calculated a recurring net profit of RMB 12.9 billion for the first nine months, an increase of 2% over the previous year. Net profit for the third quarter is estimated to be RMB 4.6 billion, down 4% year on year and up 7% from quarter to quarter. This is lower than expected due to higher coal unit costs, sales and administrative expenses, and financial expenses than expected. Excluding depreciation, recurring net profit for the third quarter was RMB 4.6 billion, down 2% year on year and up 3% quarter on quarter.

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