HK Stock Market Move | SHOUGANG RES (00639) rose over 4% in the afternoon; the supply of coking coal remains tight in the second half of the year, and the price center is still expected to maintain a high level.

SHOUGANG RES (00639) rose over 4% in the afternoon, reaching a gain of 3.74% as of the time of this report, valued at HKD 2.775, with a trading volume of HKD 36.8495 million. On the news front, SHOUGANG RES announced a positive profit forecast, expecting a profit of approximately HKD 550 million to HKD 600 million for the first half of the year, representing a year-on-year increase of 36% to 49%. Guoyuan International pointed out that the midpoint is approximately HKD 575 million, a year-on-year increase of 42.3%. Based on this midpoint, the projected profit for the first half of 2026 is equivalent to 91% of the total net profit attributable to shareholders for 2025, which is HKD 632 million, indicating a significant release of profit elasticity. The firm noted that under the current context of tightened safety regulations in Shanxi, continuously tight supply of high-quality coking coal, and the difficulty of fully substituting imported coal, the price midpoint of coking coal in the second half of the year is likely to remain supported. As a platform for scarce coking coal resources with low leverage and high dividend characteristics, if subsequent profits continue to recover and the high dividend policy is maintained, the dividend yield for 2026E-2027E is expected to rise to 7% or above, making its high dividend attribute attractive for long-term investment.