HK Stock Market Move | Yanzhou Coal Australia (03668) closes up more than 5%, the increase in Australian coal prices may be the highest under energy substitution. The company is the largest pure coal producer in Australia.

Yancoal Australia (03668) gained over 5% at the close, rising 5.38% to 45.42 Hong Kong dollars with a turnover of 159 million Hong Kong dollars. On the news front, Trump stated that there will be very harsh strikes against Iran in the next two to three weeks. The ongoing US-Iran conflict further strengthens the logic of rising coal prices and opens up the ceiling for coal price increases. Public information shows that YANCOAL AUS is Australia's largest pure coal producer, with its equity commodity coal production accounting for 8.7% of Australia's total production by 2025. Huatai stated that their expectations for a rise in Australian coal prices driven by demand for coal substitution are more positive than the market's. They predict that there may not be a shortage in global coal supply overall, but due to the reliance of Japan, South Korea, China, and Taiwan on high-calorie Australian coal, and the relatively limited production capacity in Australia, Australian coal prices may rise the most. They estimate that in the short term, prices could reach $349 per ton, and the annual average in 2026 could fall to $165 per ton. Both the current price increase in Australian coal and the elasticity of company performance in 2026 are expected to exceed market expectations.