HK Stock Market Move | SHOUGANG RES (00639) surged over 6%, with expected profit growth of 36% to 49% for the first half of the year compared to the same period last year. The supply of high-quality coking coal remains persistently tight.

SHOUGANG RES (00639) has risen over 6%, and as of the time of writing, it is up 5.93% at HKD 2.77, with a transaction volume of HKD 94.3799 million. In terms of news, SHOUGANG RES expects that in the first half of this year, the net profit attributable to shareholders will be approximately HKD 550 million to HKD 600 million, an increase of about 36% to 49% year-on-year. Guoyuan International pointed out that if calculated based on the midpoint, the earnings for the first half of 2026 are already equivalent to 91% of the full-year net profit attributable to shareholders for 2025, which was HKD 632 million. The company's performance growth in the first half of the year is mainly attributed to three factors: the market price of major premium coking coal products increased by about 20% year-on-year in the first half; the average selling price of self-produced premium coking coal increased by about 16% year-on-year; and the sales volume of self-produced premium coking coal increased by no less than 20% year-on-year, while continuous cost control also provided a positive contribution. Recently, the resumption pace of major production areas in Shanxi, including Jinzhong, Lliang, and Linfen, remains relatively slow, with a continuous tight supply of high-quality main coking coal. In addition, yesterday, two departments issued the "14th Five-Year Plan for the Development of the Coal Industry," aimed at promoting high-quality development in the coal industry. CITIC SEC believes that in the short term, ongoing safety regulation of coal mines will continue to impact production pace, with supply constraints for coking coal being particularly notable, coupled with the continued support for thermal coal demand during the peak summer season, suggesting that coal prices and the sector still have a basis for phase performance.