Investment Rating - The report maintains a "Buy" rating for Yancoal Australia (3668 HK) with a target price of HKD 40.00, indicating a potential upside of 33.3% based on the current price of HKD 30.00 [4][6][17]. Core Insights - Yancoal Australia's FY24 operational performance is largely in line with expectations, with a 10% year-on-year increase in equity coal production to 36.9 million tons, slightly above the company's guidance of 35-39 million tons [1]. - The average selling price for thermal coal in FY24 decreased by 24% year-on-year to AUD 160 per ton, while metallurgical coal prices fell by 22% to AUD 276 per ton [2]. - The recent change in CEO is not expected to significantly impact the company's operations, as the new acting CEO has over 20 years of experience in coal mining operations and management [3]. Summary by Sections Operational Performance - FY24 equity coal production reached 36.9 million tons, a 10% increase from the previous year, exceeding the forecast of 35.7 million tons by 3% [1]. - Thermal coal sales increased by 15% to 32.5 million tons, slightly below the forecast of 32.9 million tons [1]. - Metallurgical coal sales rose by 10% to 5.2 million tons, surpassing the forecast of 4.6 million tons by 14% [1]. Pricing Trends - The average selling price for thermal coal in FY24 was AUD 160 per ton, down 24% year-on-year but 1% higher than the forecast [2]. - The average selling price for metallurgical coal in FY24 was AUD 276 per ton, which is 5% lower than the forecast [2]. Financial Projections - Revenue for FY24 is projected at AUD 6.798 billion, reflecting a 12.6% decrease from FY23 [5]. - Shareholder net profit is expected to decline by 28.6% to AUD 1.298 billion in FY24 [5]. - The earnings per share (EPS) for FY24 is forecasted at AUD 0.98, with a price-to-earnings (P/E) ratio of 6.0 times [5]. Market Position - Yancoal Australia is supported by its parent company, Yancoal Energy, which provides effective backing for its operations [3]. - The company has a market capitalization of approximately HKD 39.61 billion, with a circulating share ratio of 15.23% [6].

Investment Rating - The report initiates coverage on Yancoal Australia (3668 HK) with a "Buy" rating and a target price of HKD 40.00, implying a 21.6% upside potential [1][4][47] Core Views - Yancoal Australia is a Chinese state-owned coal mining company with operations in Australia, producing both thermal coal for power generation and metallurgical coal for the steel industry [1] - The company is well-positioned to benefit from the rebound in demand, particularly from China, as trade cooperation between China and Australia strengthens [1][16] - Thermal coal prices are expected to remain supported due to ongoing geopolitical risks, increasing thermal power generation in China, and stable demand from other Asian regions [1][22] - Metallurgical coal prices are expected to follow the recovery in the steel market, supported by recent government measures to stabilize the real estate sector in China [2][27] - The company is expected to see a rebound in earnings by FY26, driven by higher thermal and metallurgical coal prices and increased thermal coal sales [3][37] Financial Performance and Forecasts - FY24 revenue is expected to decline by 12.6% to AUD 6.8 billion due to lower coal prices, with net profit attributable to shareholders expected to drop by 28.6% to AUD 1.3 billion [3][37] - FY25 net profit is forecasted to decline by 6.1% to AUD 1.2 billion, but a rebound of 5.4% is expected in FY26 to AUD 1.3 billion, driven by higher coal prices and increased sales [3][37] - Thermal coal sales are expected to grow at a CAGR of 6.8% from FY23 to FY26, reaching 34.6 million tons, while metallurgical coal sales are expected to recover slightly in FY25 and FY26 [31][34] - The company's unit cash operating cost (excluding royalties) is expected to increase from AUD 92/ton in FY24 to AUD 98/ton in FY26 [38] Sensitivity Analysis - A 1.0% change in thermal coal prices in FY24 would result in a 2.44% change in net profit, while a 1.0% change in metallurgical coal prices would result in a 0.62% change [3][40] - In FY25, a 1.0% change in thermal coal prices would impact net profit by 2.73%, and a 1.0% change in metallurgical coal prices would impact net profit by 0.65% [41] - For FY26, a 1.0% change in thermal coal prices would impact net profit by 2.66%, and a 1.0% change in metallurgical coal prices would impact net profit by 0.62% [41] Dividend Policy - The company has maintained a high dividend payout ratio, with FY22-23 payout ratios of 45.2% and 50.5%, respectively [42] - The dividend payout ratio is expected to remain at 49.8% for FY24-26 [42][43] Valuation and Peer Comparison - The company's FY25 P/E ratio of 7.0x is below the peer average of 7.1x, suggesting potential for higher valuation given the expected earnings rebound and increased export opportunities to China [47] - The target price of HKD 40.00 implies an 8.5x FY25 P/E ratio and a 21.6% upside potential [1][47] Operational Highlights - Yancoal Australia operates 7 mines in Australia, with a total annual production capacity of 70 million tons of raw coal and 55 million tons of saleable coal [17] - Thermal coal accounts for 77.0% of the company's coal sales revenue in 1H24, while metallurgical coal contributes 21.4% [17] - China is the largest revenue contributor, accounting for 33.2% of coal sales revenue in 1H24, followed by Japan (23.4%), Taiwan (16.7%), and South Korea (15.1%) [17][20]

Investment Rating - The report maintains a "BUY" rating for Yancoal Australia with a target price of HK$42, indicating a potential upside of 36.1% from the current price of HK$30.85 [1][11][18]. Core Insights - Yancoal's sales volume in Q3 2024 increased by 21% year-on-year, with total attributable sales volume reaching 10.4 million tonnes, which is 73% of the full-year estimate of 37.3 million tonnes [1][2]. - The average selling price (ASP) for blended coal dropped by 14% year-on-year in Q3 2024, with metallurgical coal ASP decreasing by 28% year-on-year [1][2]. - The company reported a revenue of approximately A$1.78 billion in Q3 2024, reflecting a 5% year-on-year increase [1][2]. - Yancoal's financial position remains solid, with a gross cash balance of A$1.98 billion as of the end of September 2024 [1][2]. Sales Volume and Production - In Q3 2024, metallurgical coal sales volume increased by 17% year-on-year to 9 million tonnes, while thermal coal sales volume rose by 19% year-on-year to 27.3 million tonnes [1][2]. - The total marketable coal production for Yancoal in Q3 2024 was 12.4 million tonnes, a 2% increase year-on-year [2][3]. Financial Performance - For FY 2024, Yancoal is expected to generate revenue of A$7.138 billion, down from A$7.778 billion in FY 2023, reflecting a year-on-year decline of 8.2% [1][13]. - The net profit for FY 2024 is projected to be A$1.389 billion, a decrease of 23.7% compared to FY 2023 [1][13]. - The earnings per share (EPS) for FY 2024 is estimated at A$1.05, down from A$1.38 in FY 2023 [1][13]. Valuation and Assumptions - The valuation is based on net present value (NPV) calculated from future cash flows, with long-term thermal and metallurgical coal prices assumed at A$130/tonne and A$200/tonne respectively starting in 2027 [11][12]. - The report uses a weighted average cost of capital (WACC) of 6.7% for its valuation [11][12].

Investment Rating - The report maintains a "Buy" rating for Yancoal Australia with a target price of 38.2 HKD [3][6]. Core Insights - The company reported a strong recovery in coal production in Q3 2024, achieving an equity coal production of 10.2 million tons, a year-on-year increase of 10% and a quarter-on-quarter increase of 24% [1]. - The average coal price realized in Q3 was 170 AUD/ton, reflecting a year-on-year decrease of 14% and a quarter-on-quarter decrease of 6% [1]. - The company expects to maintain its production guidance of 35-39 million tons for the full year [1]. - Cash operating costs remain unchanged at 89-97 AUD/ton, with a cash balance increase of 430 million AUD in Q3 [1]. - The report projects EPS for 2024 and 2025 to be 0.78 AUD and 0.98 AUD respectively, with a 2025 P/E ratio of 7.5x [1]. Summary by Sections Production and Sales - Q3 equity production was 10.2 million tons, with sales of 10.4 million tons, showing a year-on-year increase of 10% and a quarter-on-quarter increase of 24% [1]. - The company expects Q4 production to continue at Q3 levels, with total equity production for the first nine months of 2024 at 27.2 million tons, a 15% increase year-on-year [1]. Pricing - The average sales price for coal in Q3 was 170 AUD/ton, with a significant drop in prices for both thermal coal (157 AUD/ton, down 29% year-on-year) and metallurgical coal (259 AUD/ton, down 22% year-on-year) [1]. - The report anticipates stable coal prices in Q4 due to balanced supply and demand dynamics [1]. Cost and Capital Expenditure - The cash operating cost guidance remains at 89-97 AUD/ton, with expectations for unit costs to decrease as production increases [1]. - Capital expenditure guidance is set at 650-800 million AUD, likely at the lower end of the range [1]. Dividend Policy - The company maintains a dividend policy of distributing at least 50% of net profit after tax or free cash flow, excluding non-recurring items [1]. Financial Projections - Revenue projections for 2024 and 2025 are 6.588 billion AUD and 6.919 billion AUD respectively, with net profit estimates of 1.030 billion AUD and 1.297 billion AUD [2][10].

Financial Performance - For the six months ended June 30, 2024, total revenue from ordinary operations was 3,138 million AUD, a decrease of 21% compared to 3,976 million AUD for the same period in 2023[3]. - Profit before tax, excluding non-recurring items, was 571 million AUD, down 59% from 1,388 million AUD in the previous year[3]. - Net profit attributable to shareholders after tax, excluding non-recurring items, was 420 million AUD, a decrease of 57% from 973 million AUD in 2023[3]. - Basic earnings per share, excluding non-recurring items, was 31.9 AUD cents, down 57% from 73.7 AUD cents in the prior year[4]. - Operating revenue for the first half of 2024 was AUD 3,099 million, a decrease of 21% compared to AUD 3,924 million in the first half of 2023[42]. - The company's operating profit before interest, tax, depreciation, and amortization (EBITDA) was AUD 990 million, down 46% from AUD 1,821 million in the previous year[38]. - The company's net profit attributable to shareholders decreased by 57% from AUD 973 million in the first half of 2023 to AUD 420 million in the first half of 2024[40]. - The company's operating profit before tax was AUD 590 million, down 58% from AUD 1,410 million in the previous year[38]. - The company experienced a 64% increase in income tax expenses, rising from AUD 415 million in the first half of 2023 to AUD 151 million in the first half of 2024[38]. Dividends - The company declared a final dividend of 429 million AUD (32.50 AUD cents per share) for the year ended 2023, which was paid on April 30, 2024[5][6]. - The company did not propose or declare any interim dividends for the six months ended June 30, 2024[6]. - The company paid dividends totaling 429 million AUD during the period, compared to 924 million AUD in the previous half-year[78]. Production and Sales - The company expects stronger production performance in the second half of 2024, with an 18% increase in equity commodity coal production compared to the first half of 2023[11]. - The overall average selling price of self-produced coal dropped by 37% from AUD 278 per ton in the first half of 2023 to AUD 176 per ton in the first half of 2024, mainly due to a decline in global coal prices[20]. - The total sales volume of self-produced coal decreased by 26% to 2,980 million tons in the first half of 2024 from 4,003 million tons in the first half of 2023[42]. - Self-produced coal sales volume increased by 17% from 14.4 million tons in H1 2023 to 16.9 million tons in H1 2024, driven by an 18% increase in equity commodity coal production[43]. - The company's full-year attributable saleable coal production guidance is between 35.0 million tons and 39.0 million tons, with significant increases expected in H2 2024[24]. Costs and Expenses - The average cash operating cost per ton decreased from AUD 109 in the first half of 2023 to AUD 101 in the first half of 2024, primarily due to increased saleable coal production[21]. - The total production cost per ton of coal decreased from AUD 163 in H1 2023 to AUD 140 in H1 2024[49]. - Employee benefits expenses rose by 15% from AUD 348 million in the first half of 2023 to AUD 401 million in the first half of 2024, primarily due to redundancy provisions and increased pension contributions[53]. - Transportation costs increased by 3% from AUD 401 million in the first half of 2023 to AUD 412 million in the first half of 2024, while the cost per ton of coal transported decreased from AUD 25 to AUD 22[54]. - Government royalties decreased by 28% from AUD 365 million in the first half of 2023 to AUD 261 million in the first half of 2024, primarily due to a 26% drop in self-produced coal sales revenue[54]. Shareholder Information - As of June 30, 2024, the company’s directors and senior executives hold a total of 5,859,701 shares, representing approximately 0.44377% of the company[13]. - The largest shareholder, Yancoal Australia Ltd, holds 822,157,715 shares, accounting for 62.26% of the total shares[17]. - Cinda International HGB Investment (UK) Limited holds 101,601,082 shares, representing 7.69% of the total shares[17]. Environmental and Sustainability Initiatives - The company has spent AUD 35 million on purchasing Australian Carbon Credit Units (ACCUs) to meet regulatory obligations under the emissions reduction plan[29]. - Yancoal Australia is actively reviewing recommendations from the Task Force on Climate-related Financial Disclosures to incorporate into its sustainability strategy[28]. - The company is focusing on reducing Scope 1 emissions, particularly from diesel consumption and fugitive emissions, by identifying reduction opportunities at key mines[29]. - The 2023 sustainability report is available on the company's website, detailing progress on environmental, social, and governance (ESG) issues[28]. - The company is committed to improving its sustainability performance through strict governance processes and risk management frameworks[32]. Risk Management and Compliance - The company confirms that all directors complied with the share trading policy during the reporting period[15]. - The audit and risk management committee reviewed the interim financial statements for the six months ending June 30, 2024, which were not audited but reviewed by the auditors[17]. - The company has implemented necessary internal controls to ensure the financial statements are free from material misstatement due to fraud or error[147]. - The auditors did not find any matters that would indicate the half-year financial statements do not comply with the Corporations Act 2001[147]. Future Outlook - The company plans to focus on operational adjustments and cost management strategies to improve financial performance in the upcoming periods[39]. - The company is exploring potential acquisitions to enhance its operational capabilities, with a budget allocation of AUD 200 million for strategic investments[154]. - The company has initiated a long-term incentive plan aimed at aligning executive performance with shareholder interests, with a target of achieving a 20% return on equity by 2026[154].

Investment Rating - The report maintains a "BUY" rating for Yancoal Australia with a target price revised down to HK$42 from HK$45, indicating a potential upside of 17% from the current price of HK$35.90 [2][11]. Core Insights - Yancoal's 1H24 net profit decreased by 57% year-over-year to A$420 million, primarily due to higher-than-expected unit costs and a significant decline in blended coal average selling price (ASP) [2][3]. - The company has a strong net cash position of A$1.42 billion as of the end of June 2024, which may facilitate potential M&A activities [2][3]. - Despite the challenges, Yancoal maintains its full-year guidance for production and operating cash costs, with expectations for a unit cash cost reduction in the second half of 2024 [2][3]. Financial Performance - Revenue for 1H24 was A$3.1 billion, down 21% year-over-year, with coal sales volume growth of 16.9 million tonnes being offset by lower prices [2][3]. - The unit cash operating cost in 1H24 was A$101 per tonne, a decrease of 7% year-over-year but an increase of 17% quarter-over-quarter [2][3]. - The report projects a full-year revenue of A$7.138 billion for FY24, reflecting an 8.2% decline compared to FY23 [14]. Production and Cost Guidance - Yancoal's full-year production guidance remains unchanged at 35-39 million tonnes, with operating cash costs expected to be between A$89-97 per tonne [2][3]. - The report anticipates a 7% year-over-year reduction in unit cash costs in the second half of 2024, despite the current higher cost assumptions [2][3]. Market Conditions - The blended coal ASP fell by 37% year-over-year to A$176 per tonne, contributing to the decline in revenue and profit [2][3]. - The report highlights the potential for Yancoal to benefit from product diversification and long-term growth strategies, particularly in light of its strong cash position [2][3]. Valuation Metrics - The report provides a valuation based on net present value (NPV) with key assumptions including long-term thermal and metallurgical coal prices starting in 2027 at A$130 and A$200 per tonne, respectively [11][12]. - The projected P/E ratio for FY24 is 6.6, indicating a relatively attractive valuation compared to historical performance [14].

Investment Rating - The report maintains an "Accumulate" rating for Yancoal Australia [3][10]. Core Views - The company's production continues to recover in H1 2024, but sales prices have decreased year-on-year, impacting profit performance. Looking ahead to H2 2024, sales volume recovery is expected to accelerate, and the impact of price year-on-year comparisons is anticipated to diminish [3]. - Total revenue for H1 2024 was AUD 3.138 billion, a decrease of 21.08% year-on-year, while net profit attributable to shareholders was AUD 420 million, down 56.83% year-on-year, which was below market expectations. Consequently, net profit forecasts for 2024-2026 have been revised down to AUD 1.285 billion, AUD 1.570 billion, and AUD 1.722 billion, reflecting changes of -5.18%, +2.41%, and +0.89% respectively [3]. - The average selling price for coal in H1 2024 was AUD 176 per ton, a year-on-year decrease of 37%. The average price in Q2 was around AUD 180, down 20% year-on-year, but this decline has narrowed compared to Q1's 48% drop. It is expected that the year-on-year price decline will continue to narrow in H2 2024 [3]. Production and Sales - The company's coal production rights in H1 2024 reached 16.9 million tons, a year-on-year increase of 17%, with thermal coal production at 14.9 million tons (up 24% year-on-year) and metallurgical coal sales at 2 million tons. Q2 production was 8.2 million tons, a 4% year-on-year decline, attributed to slight fluctuations in quarterly production scheduling [3]. - The company expects to maintain a full-year production target of 35-39 million tons, representing an increase of 6-56 million tons year-on-year (2-17% growth), with continued production recovery anticipated in H2 2024 [3]. Financial Health - As of the report date, the company reported operating cash flow of AUD 851 million, a significant increase of 856% year-on-year, primarily due to tax payments made in H1 2023. The company has maintained a net cash position since 2022, with a net asset liability ratio of zero and cash holdings of AUD 1.546 billion [3].

澳洲證券交易所、香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失 承擔任何責任。 Yancoal Australia Ltd ACN 111 859 119 兗煤澳大利亞有限公司* （於澳大利亞維多利亞州註冊成立的有限公司） （香港股份代號: 3668） （ 澳洲股份代號: YAL） 截至 2024 年 6 月 30 日止半年度 之半年業績公告 兗煤澳大利亞有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司及其附屬公司截至 2024 年 6 月 30 日止半年度之半年業績。該半年業績已由本公司審計與風險管理委員會審閱，其認 為有關業績的編製符合適用會計準則及規定，並已作出充足披露。 本公告列載本公司截至 2024 年 6 月 30 日止半年度的半年財務報告全文，符合香港聯合交易所有限 公司證券上市規則（「上市規則」）中有關中期業績公告的披露要求。 本公告於香港聯合交易所有限公司的網站（「披露易網站」）www.hkexnews.hk 及本公司的網 站 www.yan ...

Investment Rating - The report maintains a "Buy" rating for Yancoal Australia with a target price of 43.2 HKD [3][11]. Core Insights - The company reported a stable operational performance in Q2 2024, with an average coal price of 181 AUD/ton, remaining relatively flat quarter-on-quarter. The total coal sales volume reached 8.6 million tons, a 3% increase from the previous quarter [1][2]. - The company is expected to maintain a balanced coal price throughout the year, with a cash operating cost guidance of 89-97 AUD/ton, indicating strong profit margins [1][9]. - The dividend policy is attractive, with a commitment to distribute at least 50% of net profit or free cash flow, excluding non-recurring items [1][10]. Financial Performance Summary - Revenue for 2024 is projected at 7,231 million AUD, a decrease of 7% from 2023, while net profit is expected to be 1,380 million AUD, down 24.1% [2][10]. - The earnings per share (EPS) forecast for 2024 and 2025 is 1.05 AUD and 1.19 AUD, respectively [1][10]. - The company maintains a competitive advantage in the Australian coal industry with a strong cash position of 1.55 billion AUD as of June 30, 2024 [1][9]. Production and Sales Outlook - The total coal production guidance for the year remains unchanged at 35-39 million tons, with expectations for recovery in output from the Hunter Valley and Morabbin mines in the second half of the year [1][8]. - The average coal price is expected to stabilize, with the metallurgical coal market also showing signs of balance [1][8]. Cost Structure and Profitability - The cash operating cost is projected to remain at the lower end of the guidance, indicating robust profitability [1][9]. - The company has a competitive edge in terms of cost structure, with no interest-bearing debt and a significant cash reserve [1][9].

Investment Rating - The report maintains a BUY rating for Yancoal Australia with a target price of HK$45, indicating a potential upside of 23.1% from the current price of HK$36.55 [4][12]. Core Insights - Yancoal's 2Q24 sales volume increased by 1% year-on-year, with a total attributable sales volume of 8.6 million tonnes. The company remains confident in achieving its full-year sales volume target of 37.3 million tonnes [2][12]. - The average selling price (ASP) for thermal coal decreased by 17% year-on-year to A$163 per tonne, while metallurgical coal ASP dropped by 21% to A$318 per tonne. The blended ASP fell by 20% to A$181 per tonne [2][12]. - Yancoal's financial position is solid, with a gross cash balance of A$1.55 billion as of the end of June 2024, indicating a strong net cash position moving forward [2][12]. Sales Volume and Revenue - In 2Q24, attributable sales volume for thermal coal was 7.5 million tonnes, up 3% year-on-year, while metallurgical coal sales volume was 1 million tonnes, down 17% year-on-year. Total attributable sales volume for 1H24 grew 17% year-on-year to 16.8 million tonnes [2][6]. - The estimated revenue for 2Q24 was approximately A$1.5 billion, reflecting a 20% decrease year-on-year but a 3% increase quarter-on-quarter [2][14]. Financial Performance - The report projects a full-year revenue of A$7.133 billion for 2024, with a net profit forecast of A$1.477 billion, down from A$1.819 billion in 2023 [14][17]. - The earnings per share (EPS) for 2024 is estimated at A$1.12, with a price-to-earnings (P/E) ratio of 6.2x [14][17]. Cost and Production Guidance - Yancoal's operating cash cost is projected to be between A$89 and A$97 per tonne, reflecting a year-on-year change of -7% to +1% [2][12]. - The company maintains its full-year guidance for attributable saleable production at 35-39 million tonnes, which represents a year-on-year increase of 5% to 17% [2][12].