HK Stock Market Move | China Shenhua Energy (01088) rises nearly 3%, expecting a net profit of up to 31.9 billion yuan in the first half of the year. Morgan Stanley predicts that the company's profitability will remain robust.

China Shenhua Energy (01088) rose nearly 3%, reaching 2.5% at the time of publication, at 43.46 Hong Kong dollars, totaling 3.25 billion Hong Kong dollars. On the news front, recently, China Shenhua Energy disclosed a profit joyful performance forecast. Morgan Stanley pointed out that the company expects net profit in the first half of 2026 to increase by 7% to 21% year-on-year, reaching 26.3 billion to 29.8 billion yuan, outperforming the bank's expectation of 26 billion yuan. This means that its second-quarter net profit will be between 15.6 billion and 19.1 billion yuan, an increase of 23% to 51% year-on-year, exceeding expectations. Morgan Stanley believes that China Shenhua Energy's preliminary performance is better, mainly reflecting the higher year-on-year coal prices (especially in the second quarter), as well as increased profitability contributions from coal chemical, railway, and port businesses. Although coal prices have recently pulled back due to lower power plant daily consumption and high port inventories caused by rainfalls in many areas, with the end of the rainy season, peak daily consumption and replenishment demand by power plants, coupled with limited supply in major coal-producing provinces, will continue to support thermal coal prices. Morgan Stanley expects the company's profits in the third quarter to remain robust.