The Zhitong Finance App learned that China's Shenhua (01088) rose more than 3%. As of press release, it had risen 2.33% to HK$42.18, with a turnover of HK$177 million.
According to the news, recently, China Shenhua revealed its third-quarter results. Great Wall Securities indicated that China Shenhua 26Q3 revenue was 106.69 billion yuan, -10.3% month-on-month; net profit to mother was 15.69 billion yuan, -13.1%. The bank determined that the decline in self-produced coal production and sales offset the contribution of rising coal prices, or was related to stricter safety supervision in the third quarter after the mine accident; the 26Q3 investment income was 664 million yuan, -46.5% month-on-month, and the decline in revenue from power plants jointly invested with Guodian Electric Power dragged down profits. Looking ahead to 26Q4, the bank believes that guaranteed supply is expected to drive a recovery in coal production and sales. Combined with winter storage, it is expected to support an upward shift in coal prices, and net profit from the quarter to mother is expected to pick up.
According to a research report released by Damo, China Shenhua's net profit for the first nine months of this year increased 4% year on year to 44 billion yuan, which means that net profit for the third quarter increased 3% year on year to 15.7 billion yuan, which is generally in line with market expectations. The bank expects the company's fourth-quarter earnings to remain resilient. The resumption of production in coal mines in Shanxi is still progressing, but due to strict safety inspections and changes in the mentality of coal mining enterprises, the overall resumption of production is slow. Furthermore, demand for pre-heating storage and power plant inventories are low in winter, and thermal coal prices are expected to fluctuate at a high level in the short term, which means that China Shenhua's profit will be resilient before the end of the year.