Citigroup: Lowered the target price of China Coal Energy (01898) to HK$16.6 and maintained a "buy" rating.

Citigroup released a research report stating that China Coal Energy (01898) produced 30.17 million tons of commercial coal in the first quarter, a decrease of 3.18 million tons compared to the same period last year, mainly due to changes in mining faces and changes in geological conditions in some coal mines. Management expects the commercial coal production in 2026 to exceed 1.31 billion tons, lower than the actual production of 1.35 billion tons in 2025, taking into account the disturbances in the first quarter of this year, and expects production to gradually improve in future quarters. The target price was lowered from HK $18.2 to HK $16.6, maintain a "buy" rating. Citigroup adjusted its profit forecast for China Coal Energy in 2026 and 2027 by 5% and 2% respectively, to 17.6 billion and 16.2 billion yuan, in response to the latest guidance from management and the performance for the full year 2025 and the first quarter of 2026, while introducing a profit forecast of 16.8 billion yuan for 2028.