HK Stock Market Move | China Shenhua Energy (01088) rises over 5% with outstanding performance in the third quarter. The coal company has enormous hedging space.

China Shenhua Energy (01088) rose by over 5%, as of the time of publication, it rose by 5.53%, reaching 33.4 Hong Kong dollars, with a turnover of 8.9 billion Hong Kong dollars. In terms of news, China Shenhua Energy previously announced its third-quarter performance for 2024, with a revenue of 85.821 billion yuan, a year-on-year increase of 3.4%; the current period profit attributable to the company's owners is approximately 17.798 billion yuan, a year-on-year increase of 13.8%. A Citigroup research report pointed out that Shenhua's net income in the third quarter reached 17.8 billion yuan, a year-on-year increase of 14%, a quarterly increase of 19%, exceeding market expectations. The bank maintains a "buy" rating on the company's H shares, with a target price of 41.4 Hong Kong dollars. Shanxi pointed out that stock repurchase and increased loan refinancing have landed, providing coal companies with significant interest rate differential space. The interest rate differential space of SFISF depends on the relationship between the dividend yield, tender fee rate, and repo rate, with non-bank institutions having more incentive to buy up the price of pledged assets under the swap mechanism. Therefore, coal listed companies that have both stable high dividends and multi-index component characteristics benefit the most.