HK Stock Market Move | YANCOAL AUS (03668) rose nearly 3%. Institutions expect that the decline in coal prices may drag down the company's performance, but there is still hope to demonstrate some willfulness.

YANCOAL AUS (03668) rose nearly 3%, up 2.2% to 30.25 Hong Kong dollars, with a turnover of 97.193 million Hong Kong dollars as of the time of publication. GF Securities released a research report pointing out that Yancoal Australia's revenue in 2024 was 6.86 billion Australian dollars, a year-on-year decrease of -12%, with a net profit attributable to shareholders of 1.216 billion Australian dollars, a year-on-year decrease of -33%, and earnings per share of 0.92 Australian dollars. The decline in performance was mainly due to the fall in coal prices; the company's net profit attributable to shareholders in 2H24 was 796 million Australian dollars, a year-on-year/quarter-on-quarter decrease of -5.9%/+90%. The company's performance exceeded the bank's expectations, mainly due to the depreciation of the Australian dollar, with a year-on-year increase of 149 million Australian dollars in foreign exchange gains in other income. In addition, the bank believes that the company's profitability is affected by the decline in coal prices, but the dividend yield still has certain attractiveness. The bank continued to point out that since 2025 (as of Q2-21), the overall coal supply and demand has been relatively loose, with average NEWC thermal coal prices at 112 US dollars per ton, API5 thermal coal prices at 79 US dollars per ton, and main coking coal prices at 191 US dollars per ton, decreased by 12%, 15%, and 38% respectively compared to Q1 2024. The bank believes that considering the company's strong profit elasticity, the expected decline in coal prices may drag down the company's performance. However, if the company can achieve better production and cost performance, the company's performance still has the potential to show some resilience.