HK Stock Market Move | KINETIC DEV (01277) rose nearly 3% in the morning, with institutions pointing out that the company's profits from South African coal mines are relatively reliable.

In the early trading session, KINETIC DEV (01277) rose nearly 3%, and as of the time of publication, it was up 2.42% to 2.12 Hong Kong dollars, with a trading volume of 7.9228 million Hong Kong dollars. On the news front, overseas coal prices have risen more than domestic prices due to the impact of the US-Iran conflict. Guotou Securities pointed out that regional fragmentation and structural mismatch in the global coal market supply and demand have intensified price fluctuations, with reduced production in Indonesia, limited production capacity in Australia, and saturated transportation capacity in Russia collectively weakening the elasticity of seaborne coal supply. China's import arbitrage space locks in the upper limit of coal prices, and Middle East conflicts raise the demand for gas-to-coal conversion, potentially triggering a new round of competitive bidding for peak summer coal reserves. Changjiang noted that by comparing companies in South Africa such as Exxaro and Thungela, it can be seen that the ton profit of South African coal companies in 2024 is generally around 200-300 yuan/ton, with a profit margin of about 15-20%. In addition, the nearby Grootegeluk coal mine (belonging to Exxaro) near the Makado coal mine also has income. It can be seen from this that the company's profits from South African coal mines are relatively reliable.