《The Daily Report》Morgan Stanley: Yanzhou Coal Energy (01171.HK) preliminary results at the start of the next quarter met expectations; reaffirmed the “Buy” rating

Morgan Stanley released a report stating that Yankuang Energy (01171.HK) rose by +0.160 (+1.451%); short selling amounted to $22.2 million, with a ratio of 8.670%. The bank expects that in the first half of 2026, net profit will increase by 53% year-on-year to RMB 7.2 billion, in line with its forecast of RMB 7.16 billion. After excluding non-recurring gains and losses, recurring profit in the first half increased by 2% year-on-year to RMB 4.5 billion. This implies that its second-quarter net profit, on a year-on-year basis for the quarter only, increased by 74% to RMB 3.2 billion.

The bank noted that the company’s better performance in the first half was mainly driven by higher coal prices supported by resilient demand, higher coal-chemical prices affected by the Middle East conflict, and higher investment returns resulting from the disposal of 100% of the equity interest in Inner Mongolia Xintai Coal. In the near term, thermal coal prices received short-term support because, after rainfall across multiple regions, power plants’ potential daily coal consumption may increase, and inventory replenishment demand has been released. At the same time, due to tighter safety inspections caused by a coal mine accident in late May, supply from major coal-producing provinces such as Shanxi was constrained, and coking coal prices are also expected to receive support. Favorable coal prices and coal-chemical profits will continue to deliver resilient earnings performance for Yankuang Energy.

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Morgan Stanley reiterated its “Buy” rating for Yankuang Energy, with the H-share target price maintained at HK$15.6 unchanged. (ad/da)(Hong Kong stock quotes delayed by at least fifteen minutes. Short-selling data as of 2026-07-15 12:25.)