Group 1 - The core viewpoint of the article highlights the performance of the China Hong Kong 300 Resource Index, which has shown a 2.39% increase over the past month, a 22.23% increase over the past three months, and a 9.29% increase year-to-date [1] - The index is composed of securities from various industry themes such as banking, transportation, resources, infrastructure, logistics, and leisure, reflecting the overall performance of different thematic listed companies in the Hong Kong market [1] - The index's top ten holdings include China National Offshore Oil (29.27%), PetroChina (13.19%), Zijin Mining (10.84%), China Shenhua Energy (9.38%), Sinopec (9.08%), China Hongqiao Group (4.51%), China Coal Energy (3.47%), Zhaojin Mining (3.08%), Luoyang Molybdenum (2.86%), and Yanzhou Coal Mining (2.39%) [1] Group 2 - The industry composition of the index shows that oil and gas account for 51.92%, precious metals for 15.97%, coal for 15.72%, industrial metals for 14.86%, rare metals for 0.91%, and other non-ferrous metals and alloys for 0.62% [2] - The index samples are adjusted biannually, with adjustments implemented on the next trading day following the second Friday of June and December each year [2] - In special circumstances, the index may undergo temporary adjustments, such as when a sample company is delisted or undergoes mergers, acquisitions, or splits [2]

Group 1 - The Invesco Great Wall CSI National New Hong Kong Stock Connect Central Enterprise Dividend ETF (520990) closed up 1.05% on July 10, with a trading volume of 163 million yuan [1] - The fund was established on June 26, 2024, with an annual management fee of 0.50% and a custody fee of 0.10% [1] - As of July 9, 2024, the fund's latest share count was 4.955 billion, with a total size of 4.699 billion yuan, reflecting a year-to-date share increase of 32.27% and a size increase of 34.20% [1] Group 2 - The current fund managers are Zhang Xiaonan and Gong Lili, with Zhang managing since June 26, 2024, yielding a return of -1.91%, while Gong has managed since July 25, 2024, with a return of 10.03% [2] - The fund's top holdings include China Mobile, China Petroleum, COSCO Shipping, CNOOC, China Shenhua, Sinopec, China Telecom, China Unicom, China Coal Energy, and China Merchants Bank, with respective holding percentages [2] Group 3 - The top holdings and their respective percentages are as follows: - China Mobile: 11.04% - China Petroleum: 10.43% - COSCO Shipping: 10.25% - CNOOC: 10.01% - China Shenhua: 8.89% - Sinopec: 8.21% - China Telecom: 5.39% - China Unicom: 3.65% - China Coal Energy: 2.38% - China Merchants Bank: 2.33% [3]

Group 1 - The overall shareholding ratio of southbound funds in Hong Kong Stock Connect stocks is 17.83%, with 213 stocks having a shareholding ratio exceeding 20% [1] - As of July 9, southbound funds held a total of 4,482.29 million shares, accounting for 17.83% of the total share capital of the stocks, with a total market value of 51,131.42 million HKD, representing 13.50% of the total market value [1] - The highest shareholding ratio by southbound funds is in China Telecom, with 103.31 million shares held, accounting for 74.43% of the issued shares [1] Group 2 - Southbound funds with a shareholding ratio exceeding 20% are mainly concentrated in the healthcare, industrial, and financial sectors, with 43, 32, and 31 stocks respectively [2] - The top stocks with high shareholding ratios include China Telecom (74.43%), Green Power Environmental (69.92%), and China Shenhua (67.37%) [2][3] - A significant portion of the stocks with high southbound fund holdings are AH concept stocks, with 119 out of 213 stocks (55.87%) having a shareholding ratio over 20% being AH stocks [1]

Group 1 - The A-share index closed mixed, with the Shanghai A-share index down by 0.13% at 3661.33 points, with a trading volume of 595.285 billion [1] - Over the past month, the Shanghai A-share index has increased by 3.32%, by 11.20% over the past three months, and by 4.34% year-to-date [1] - The index is composed of eligible A-shares listed on the Shanghai Stock Exchange, reflecting the overall performance of A-share prices in the Shanghai market [1] Group 2 - The top ten weighted stocks in the Shanghai A-share index include Industrial and Commercial Bank of China (3.81%), Agricultural Bank of China (3.56%), Kweichow Moutai (3.24%), China Petroleum (2.53%), and others [1] - The financial sector accounts for 28.18% of the index, followed by industrials at 18.36%, information technology at 10.73%, and materials at 8.19% [2] - The index includes stocks that have ranked in the top 10 by average total market capitalization in the Shanghai market after three months of listing, while other stocks are included after one year [2]

Group 1 - The core index, the China Securities Hong Kong 300 Upstream Index (H300 Upstream), reported a value of 2572.51 points, with a 2.22% increase over the past month, a 25.04% increase over the past three months, and a 9.20% increase year-to-date [1] - The index reflects the overall performance of theme securities listed on the Hong Kong Stock Exchange, selected based on the China Securities industry classification [1] - The top ten holdings of the H300 Upstream Index include China National Offshore Oil Corporation (28.81%), PetroChina Company Limited (12.85%), Zijin Mining Group (10.9%), China Shenhua Energy Company (9.29%), Sinopec Limited (8.93%), China Hongqiao Group (4.48%), China Coal Energy Company (3.4%), Zhaojin Mining Industry Company (3.06%), Luoyang Molybdenum Company (2.89%), and Yanzhou Coal Mining Company (2.35%) [1] Group 2 - The industry composition of the H300 Upstream Index shows that oil and gas account for 50.95%, precious metals for 16.02%, coal for 15.56%, industrial metals for 14.84%, oil and gas extraction and field services for 1.07%, rare metals for 0.89%, and other non-ferrous metals and alloys for 0.67% [2] - The index samples are adjusted semi-annually, with adjustments implemented on the next trading day following the second Friday of June and December each year, with provisions for temporary adjustments in special circumstances [2]

Investment Rating - The report maintains a "Positive" investment rating for the coal industry [10]. Core Insights - The current profitability of the coal industry is better than that before the supply-side reform in 2016, but coking coal profitability is lower than thermal coal, indicating a stronger necessity for reform [7][8]. - The "anti-involution" measures in the coal industry are expected to primarily involve production limits and capacity exits, which could raise the price baseline in a favorable demand environment. However, the current demand pressure is greater than in 2016 [6][7]. - Short-term price elasticity may be limited due to high inventory and suppressed demand, but unexpected demand improvements could lead to price rebounds [6][7]. Summary by Sections Market Performance - The coal index (Yangtze) increased by 1.67%, outperforming the CSI 300 index by 0.13 percentage points, ranking 11th out of 32 industries [21]. - As of July 4, the market price for Qinhuangdao thermal coal was 623 RMB/ton, a weekly increase of 3 RMB/ton [21]. Thermal Coal Analysis - Daily coal consumption in 25 provinces reached 573.3 million tons, a week-on-week increase of 3.3% [22]. - The inventory of power plants was 125.22 million tons, with a usable days count of 21.8 days, a decrease of 0.4 days week-on-week [22]. Coking Coal Analysis - The price for main coking coal at Jingtang Port was stable at 1230 RMB/ton as of July 4 [21]. - Coking coal inventory increased by 0.55% week-on-week, indicating a need to monitor supply recovery and seasonal demand [22][53]. Investment Recommendations - Recommended stocks include long-term stable profit leaders such as China Coal Energy, China Shenhua Energy, and Shaanxi Coal and Chemical Industry [8]. - Growth-oriented companies include Electric Power Investment and New Hope Liuhe, while flexible growth stocks include Yanzhou Coal Mining and Huayang Co [8].

Investment Rating - The investment rating for the coal mining industry is "Positive" [2] Core Viewpoints - The current phase is seen as the beginning of a new upward cycle in the coal economy, with a resonance between fundamentals and policies, making it an opportune time to accumulate coal sector investments [10][11] - The underlying investment logic of coal capacity shortages remains unchanged, with a short-term supply-demand balance and a long-term gap still present [10] - The trend of coal prices establishing a bottom and moving to a new platform is expected to continue, with high profitability, cash flow, return on equity (ROE), and dividends from quality coal companies [10][11] - The coal sector is viewed as undervalued, with overall valuation expected to improve, supported by high premiums in the primary mining rights market and a public fund allocation that is currently underweight in coal [10][11] Summary by Sections Coal Price Tracking - As of July 5, the market price for Qinhuangdao port thermal coal (Q5500) is 616 CNY/ton, a week-on-week increase of 2 CNY/ton [28] - The price for thermal coal from Shaanxi Yulin (Q6000) is 600 CNY/ton, up 5.0 CNY/ton week-on-week [28] - The international thermal coal price at Newcastle (NEWC5500) is 64.8 USD/ton, down 0.3 USD/ton week-on-week [28] Supply and Demand Tracking - The capacity utilization rate for sample thermal coal mines is 94%, an increase of 1.1 percentage points week-on-week [46] - The capacity utilization rate for sample coking coal mines is 83.82%, an increase of 1.3 percentage points week-on-week [46] - Coastal provinces' daily coal consumption increased by 18.80 thousand tons/day (+9.90%) while inland provinces' daily consumption decreased by 0.60 thousand tons/day (-0.16%) [47] Investment Recommendations - Focus on stable and robust performance companies such as China Shenhua, Shaanxi Coal, and China Coal Energy [11] - Consider companies with significant rebound potential like Yanzhou Coal, Electric Power Energy, and Guanghui Energy [11] - Pay attention to high-quality metallurgical coal companies such as Huabei Mining and Pingmei Shenma [11]

Investment Rating - The report maintains a "Buy" rating for key coal companies including China Qinfa, China Coal Energy, and AnYuan Coal Industry [3][6]. Core Insights - The global coal production is expected to reach a historical high of 924.2 million tons in 2024, with a year-on-year growth of 0.9%. The Asia-Pacific region continues to expand production, with India and Indonesia increasing output by 7% and 8% respectively [7]. - Global coal demand is projected to grow to 165.06 exajoules (EJ) in 2024, reflecting a year-on-year increase of 1%. However, demand in Europe is declining rapidly, with a decrease of 7% [7]. - The report highlights the stability of coal prices, with Newcastle port coal prices at $110.85 per ton, up 4.35 dollars per ton (+4.08%) from the previous week [34]. Summary by Sections Coal Mining - The report indicates that coal prices at European ARA ports have risen to $107.25 per ton, an increase of 3.90 dollars per ton (+3.77%) [34]. - The report emphasizes the importance of monitoring coal production and demand trends, particularly in the Asia-Pacific region, which is driving growth [7]. Investment Recommendations - Key recommended stocks include China Coal Energy, China Shenhua, and the turnaround story of China Qinfa. Other notable mentions are Shaanxi Coal and Energy, and Yancoal Energy, which show potential for growth [3][6]. - The report also suggests keeping an eye on AnYuan Coal Industry, which is undergoing significant changes in its shareholder structure and asset swaps [3]. Market Trends - The report notes that global coal trade volume is expected to reach 35.99 EJ in 2024, marking a year-on-year increase of 1.3%. Indonesia remains the largest coal exporter, accounting for 29.8% of total exports [7]. - The report provides a detailed analysis of coal price movements, indicating a stable trend in shipping coal prices [30].

Market Overview - The FTSE China A50 Index components showed a mixed performance with banking, liquor, semiconductor, and logistics sectors rising, while non-ferrous metals and chemical pharmaceuticals sectors weakened [1] - BYD's stock price fell over 1% [1] Sector Performance Banking Sector - Major banks like China Pacific Insurance, Ping An Insurance, and China Life Insurance reported market capitalizations of 382.98 billion, 357.30 billion, and 1,030.15 billion respectively, with trading volumes of 9.81 million, 36.96 million, and 7.85 million [3] Liquor Industry - Key players such as Kweichow Moutai, Shanxi Fenjiu, and Wuliangye had market capitalizations of 1,786.59 billion, 214.35 billion, and 467.31 billion respectively, with trading volumes of 40.87 million, 10.51 million, and 20.49 million [3] Semiconductor Sector - Companies like Northern Huachuang, Cambricon Technologies, and Haiguang Information had market capitalizations of 241.84 billion, 229.03 billion, and 315.09 billion respectively, with trading volumes of 24.36 million, 31.12 million, and 15.15 million [3] Automotive Sector - BYD, Great Wall Motors, and Beijing-Shanghai High-Speed Railway had market capitalizations of 1,818.73 billion, 186.84 billion, and 278.88 billion respectively, with trading volumes of 34.54 million, 4.39 million, and 5.94 million [3] Oil Industry - China Petroleum, Sinopec, and COSCO Shipping had market capitalizations of 239.78 billion, 688.67 billion, and 1,573.98 billion respectively, with trading volumes of 8.63 million, 6.43 million, and 7.64 million [3] Coal Industry - Major companies like China Shenhua and Shaanxi Coal and Chemical Industry had market capitalizations of 187.79 billion and 815.60 billion respectively, with trading volumes of 12.39 million and 6.45 million [3] Power Industry - Key players such as Yangtze Power and China Nuclear Power had market capitalizations of 360.33 billion and 737.96 billion respectively, with trading volumes of 20.49 million and 8.29 million [4] Food and Beverage Sector - Companies like Citic Securities, Guotai Junan, and Haitian Flavoring had market capitalizations of 409.94 billion, 340.96 billion, and 226.93 billion respectively, with trading volumes of 28.30 million, 3.94 million, and 16.84 million [4] Consumer Electronics - Industrial Fulian, Luxshare Precision, and Gree Electric Appliances had market capitalizations of 472.85 billion, 255.90 billion, and 242.55 billion respectively, with trading volumes of 30.57 million, 77.50 million, and 25.48 million [4] Chemical Products - Companies like Wanhua Chemical and SF Holding had market capitalizations of 239.20 billion and 271.34 billion respectively, with trading volumes of 12.28 million and 8.32 million [4] Construction and Engineering - China State Construction and Zijin Mining had market capitalizations of 532.88 billion and 166.95 billion respectively, with trading volumes of 27.26 million and 8.53 million [4]

Investment Rating - The report assigns a "Buy" investment rating for the company, marking its first coverage [8]. Core Insights - The company experienced a year-on-year revenue decline of 21.1% in Q1 2025, primarily due to decreases in coal sales volume and prices, as well as declines in electricity sales volume and prices [4]. - The company has completed the acquisition of Hangjin Energy, which adds significant coal reserves and production capacity, enhancing its integrated competitive advantage and long-term profitability [5][6]. - The company maintains a high dividend payout ratio, with a projected dividend yield of 5.2% for 2024, continuing its trend of high returns to investors since 2017 [6]. Financial Performance Summary - In Q1 2025, the company reported a coal production of 82.5 million tons, a slight decrease of 1.1% year-on-year, while coal sales volume fell by 15.3% to 99.3 million tons [4]. - The company forecasts net profits of 50.04 billion, 50.28 billion, and 50.51 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 16.5, 16.4, and 16.3 [7][8]. - The main revenue for 2025 is projected at 321.38 billion yuan, reflecting a decline of 5.0% from the previous year [10]. Cost and Expense Analysis - The sales expense ratio for Q1 2025 was 0.19%, a year-on-year increase of 0.07 percentage points, while the management expense ratio was 4.22%, up 1.14 percentage points year-on-year [5]. - The financial expense ratio increased to 0.23%, marking a year-on-year rise of 0.20 percentage points [5]. Asset and Resource Development - The acquisition of assets is expected to significantly enhance the company's operational efficiency and sales effectiveness, particularly in the eastern Mongolia region [5]. - The Tarang Coal Mine is projected to reach an annual production capacity of 10 million tons by 2029, which will substantially boost revenue and profitability [5].