Morgan Stanley: Maintains China Coal Energy (01898) "in line with the market" rating. The target price has been increased to HK$9.12.

Morgan Stanley's research report stated that the target price of China Coal Energy (01898) was raised by 7.3%, from HK$8.5 to HK$9.12, maintaining a "market-perform" rating. Morgan Stanley also raised its net profit forecast for 2024-2026 by 9-11%, mainly due to increased operating profit from the coal chemical business. The forecast for this sector for 2024-2026 was raised from 3 billion RMB to 3.8 billion RMB. The company's basic assumption is that in the context of relaxed coal supply and demand balance, the domestic contract sales prices of thermal coal are expected to adjust by 3% year-on-year in 2025, while spot coal prices are expected to decrease by 12% year-on-year.