HK Stock Market Move | Coal stocks all fell. Institutions pointed out that if the current US-Iran conflict eases, the space for coal price increases is relatively limited.

Coal stocks fell across the board, as of the time of writing, KINETIC DEV (01277) fell by 8.55% to HK$2.13; China Coal Energy (01898) fell by 5.45% to HK$13.53; Yankuang Energy Group (01171) fell by 2.79% to HK$15.66; China Shenhua Energy (01088) fell by 2.09% to HK$46.84. On the news front, the ceasefire between the US and Iran is temporarily holding. The Pakistani Foreign Minister believes that mediation will make "significant progress" in ending the US-Iran conflict. Founder points out that the coal sector is benefiting from the investment theme of the current energy crisis caused by geopolitical conflicts. If the US-Iran conflict eases this time and the blockade of the strait is short-lived, the upward potential for coal prices will be relatively limited; if the blockade lasts for a longer period or becomes normalized, the overall coal price center will move upward, and its position as the backbone of energy may be further consolidated. CITIC SEC also stated that by 2025, due to the continued decline in coal prices, sector profits will continue to decline, and companies' free cash flow will also significantly shrink; however, in the first quarter of 2026, some companies have shown improvement in performance compared to the previous quarter. They are optimistic about the performance of coal prices in the second quarter. Even if tensions in the Middle East ease, it will take time for energy supply to recover, combined with the impact of climate factors, domestic and foreign coal prices may resonate in the middle to late second quarter, and the effects of coal and chemical price increases are also expected to be fully reflected in the second quarter.