CITIC Securities comments on “coal”: coal prices are expected to continue to rise, the market is expected to continue to improve

　　CITIC SecuritiesReleased on August 26Research reportComment on “coal”: coal prices are expected to continue to rise, and the market is expected to continue to improve.

The main contents include: 1) The import reduction effect has accumulated, and the price of coking coal has repeatedly hit new highs. 2) The tight supply of thermal coal is difficult to reverse in the short term, and the price is expected to increase quarter by quarter. 3) Sector valuation is still attractive.

Risk factors: Macroeconomic fluctuations affect coal demand and coal prices; safety supervision is relaxed, and production becomes loose.

Investment strategy: Although the “guarantee supply” policy continues to be implemented, it is difficult to reverse the tight supply situation in the industry in the short term, and the overall coal price is expected to remain high. The supply gap of coking coal prices is obvious, and prices continue to hit new highs; the average price of thermal coal is likely to improve quarter by quarter.Plus short-term listed company interim reportsPerformanceFor the better, the valuation of high-quality companies is obviously attractive, and the cost-effective configuration is still there.We are optimistic about the continuity of the sector’s market and recommend good performance and growth logic in the medium termJinkong Coal、Shanxi Coking Coal,as well asShanxi Coking(The investment income of coking coal mines exceeds expectations),Huaibei Mining(Undervalued coking coal company), and long-term recommendation to benefit from the transformation of new energyHuayang shares(Sodium ion battery material),Meijin Energy(The layout of the hydrogen energy industry chain).

(Source: Daily Economic News)

Article source: Daily Economic News

Editor in charge: DF557

Original title: CITIC Securities commented on “coal”: coal prices are expected to continue to rise, and the market is expected to continue to improve