Core Viewpoint - Traditional coal enterprises face the challenge of sustainable development, and the Gucheng Coal Mine of Lu'an Chemical Group is leveraging intelligent technology and green initiatives to enhance operational efficiency and environmental sustainability [1]. Group 1: Intelligent Equipment Upgrade - The Gucheng Coal Mine has implemented intelligent mining technologies to overcome traditional development bottlenecks, enhancing coal mining, transportation, and safety monitoring [2]. - The introduction of 12000KN hydraulic supports has increased mining height to 4.5 meters and improved support strength by over 30% compared to traditional supports [4]. - The time required for adjusting supports has been reduced from 1 hour to 5 minutes due to intelligent equipment, significantly increasing equipment uptime and coal recovery rates [4]. Group 2: Transportation and Safety Management - The mine has launched an intelligent management system for trackless rubber-tired vehicles, enabling real-time monitoring of vehicle location, speed, and traffic control [3]. - The implementation of electronic fencing in hazardous areas has led to a noticeable decrease in unsafe behaviors and violations, enhancing overall safety levels in production [5]. - The integration of AI video management systems has improved supervision of operational behaviors, ensuring compliance with safety standards [5]. Group 3: Green Transformation Initiatives - Gucheng Coal Mine has integrated green, low-carbon, and circular development concepts into its transformation process, achieving significant results [6]. - The mine has developed a methane utilization project that converts low-concentration gas into electricity, generating over 100 million kWh annually and reducing carbon dioxide emissions by approximately 1.6 million tons [6]. - Wastewater treatment systems have been established to recycle mine water and domestic sewage, ensuring compliance with environmental standards and supporting various operational needs [8]. Group 4: Future Development Goals - The Gucheng Coal Mine aims to align its operations with dual carbon goals, embedding green and low-carbon requirements into its overall development strategy [10].

Core Viewpoint - Huabei Mining's stock has experienced a decline in recent trading sessions, reflecting broader challenges in the coal mining sector and a significant drop in revenue and profit for the year [1][2]. Financial Performance - As of October 31, Huabei Mining reported a revenue of 31.92 billion yuan for the first nine months of 2025, a year-on-year decrease of 43.78% [2]. - The net profit attributable to shareholders for the same period was 1.07 billion yuan, down 74.14% year-on-year [2]. - The company's stock price has decreased by 1.05% year-to-date, with a 3.44% drop over the last five trading days [1]. Shareholder Information - The number of shareholders as of October 31 is 36,300, a decrease of 8.06% from the previous period [2]. - The average number of circulating shares per shareholder has increased by 8.77% to 74,127 shares [2]. Dividend Distribution - Since its A-share listing, Huabei Mining has distributed a total of 13.156 billion yuan in dividends, with 7.318 billion yuan distributed over the last three years [3]. Major Shareholders - As of September 30, 2025, the second-largest circulating shareholder is Guotai Zhongzheng Coal ETF, holding 42.6809 million shares as a new shareholder [3]. - Hong Kong Central Clearing Limited is the fourth-largest shareholder, with an increase of 2.1386 million shares [3].

Core Viewpoint - The coal mining sector experienced a decline of 1.38% on November 11, with Electric Power Investment Energy leading the losses. The Shanghai Composite Index closed at 4002.76, down 0.39%, while the Shenzhen Component Index closed at 13289.0, down 1.03% [1]. Group 1: Market Performance - The coal mining sector's stocks showed mixed performance, with Daya Energy rising by 10.06% to close at 9.08, while Electric Power Investment Energy fell by 3.66% to 26.88 [1][2]. - The trading volume for Daya Energy was 1.3651 million shares, with a transaction value of 1.158 billion yuan, indicating strong investor interest [1]. - The overall net outflow of main funds in the coal mining sector was 410 million yuan, while retail investors saw a net inflow of 264 million yuan [2]. Group 2: Individual Stock Analysis - Daya Energy had a significant net inflow of 203 million yuan from main funds, while Electric Power Investment Energy experienced a net outflow of 249,100 yuan [3]. - Huabei Mining saw a net inflow of 33.46 million yuan from main funds, indicating a positive sentiment towards the stock despite the overall sector decline [3]. - The stock performance of Electric Power Investment Energy and Shanxi Coking Coal showed notable declines of 3.66% and 2.79%, respectively, reflecting broader market challenges [2].

Core Viewpoint - The report from Zheshang Securities indicates that coal prices are experiencing a strong upward trend, with expectations for further increases in the fourth quarter, driven by supply constraints and rising demand from power plants [1] Group 1: Coal Market Overview - As of November 6, 2025, the average daily coal sales from key monitored enterprises reached 7.25 million tons, a week-on-week increase of 0.6% and a year-on-year increase of 0.1% [1] - The average daily coal production from key monitored enterprises was 7.37 million tons, a week-on-week increase of 2.5% but a year-on-year decrease of 0.4% [1] - Total coal inventory (including port storage) stood at 23.8 million tons, a week-on-week increase of 3.8% and a year-on-year decrease of 19.9% [1] Group 2: Price Trends - The price of thermal coal (Q5500K) in the Bohai Rim region was 694 CNY/ton as of November 7, 2025, reflecting a week-on-week increase of 1.31% [2] - The price of coking coal at Jingtang Port was 1800 CNY/ton, with a week-on-week increase of 3.4% [3] - The price of anthracite coal in Yangquan remained stable at 930 CNY/ton [4] Group 3: Supply and Demand Dynamics - The report anticipates a supply-demand gap to widen, with an expected increase in coal consumption of approximately 50 million tons due to heating needs, potentially leading to localized coal shortages [1] - The cumulative coal sales from key monitored enterprises this year reached 215.6 million tons, a year-on-year decrease of 2.4% [1] Group 4: Investment Recommendations - The report suggests focusing on flexible thermal coal companies such as China Shenhua (601088), Shaanxi Coal and Chemical Industry (601225), and others, as well as coking coal companies like Huaibei Mining (600985) and Shanxi Coking Coal (000983) [5][6]

Core Viewpoint - Huabei Mining's stock has shown a positive trend with a 3.90% increase year-to-date and a 4.22% rise over the last five trading days, indicating potential investor interest and market confidence [1][2]. Company Overview - Huabei Mining Co., Ltd. is located at 276 Renmin Middle Road, Huaibei City, Anhui Province, established on March 18, 1999, and listed on April 28, 2004. The company primarily engages in the sale of civil explosive products and blasting engineering services, coal mining, washing, processing, and sales, as well as the production and sales of coal chemical products [1]. - The revenue composition of Huabei Mining includes: commodity trading (39.15%), coal products (26.23%), coal chemical products (20.81%), engineering and labor services (3.55%), blending business (2.55%), electricity sales (1.99%), others (1.96%), blasting engineering services (1.23%), mining business (1.21%), civil explosive product sales (0.81%), and transportation services (0.51%) [1]. Financial Performance - As of October 31, Huabei Mining reported a total revenue of 31.925 billion yuan for the period from January to September 2025, reflecting a year-on-year decrease of 43.78%. The net profit attributable to shareholders was 1.07 billion yuan, down 74.14% compared to the previous year [2]. - The company has distributed a total of 13.156 billion yuan in dividends since its A-share listing, with 7.318 billion yuan distributed over the last three years [3]. Shareholder Information - As of October 31, the number of Huabei Mining shareholders was 36,300, a decrease of 8.06% from the previous period. The average number of circulating shares per shareholder increased by 8.77% to 74,127 shares [2]. - Notable institutional holdings include Guotai Junan CSI Coal ETF (515220) as the second-largest shareholder with 42.6809 million shares, and Hong Kong Central Clearing Limited as the fourth-largest shareholder with 30.5931 million shares, both showing increases in holdings [3].

1. Report Industry Investment Rating - The investment rating for the coal mining industry is "Bullish" [2] 2. Core Viewpoints of the Report - Currently, the coal economy is at the beginning of a new upward cycle, with fundamental and policy factors in resonance. It is advisable to allocate the coal sector at low levels [11]. - The underlying investment logic of coal production capacity shortage remains unchanged. The coal price has established a bottom and its central level has reached a new platform. High - quality coal enterprises maintain their core asset attributes, and coal assets are still undervalued with potential for valuation improvement. The coal sector has both dividend characteristics and pro - cyclical elasticity [3]. - In the context of energy inflation, the pattern of tight coal supply and demand in the next 3 - 5 years remains unchanged. High - quality coal enterprises have high - barrier, high - cash, high - dividend, and high - dividend - yield attributes. After a short - term correction, the coal sector has shown high investment value [3]. 3. Summaries Based on Relevant Catalogs 3.1 This Week's Core Viewpoints and Key Concerns - **Core Viewpoints**: In the short - term, coal supply and demand are basically balanced, but there is a long - term gap. Coal prices are expected to rise further due to tight supply and upcoming seasonal demand. Coal assets are cost - effective, with high win - rate and high odds. The report continues to be bullish on coal and suggests allocation at low levels [11]. - **Key Concerns**: From January to October 2025, China's coal imports decreased by 11.0% year - on - year. From January to September 2025, coal and coking coal imports in India decreased by 1.0% year - on - year, and in Japan decreased by 2.3% year - on - year [13] 3.2 This Week's Performance of the Coal Sector and Individual Stocks - The coal sector rose 4.43% this week, outperforming the market. The Shanghai and Shenzhen 300 Index rose 0.82% [14]. - The thermal coal sector rose 4.60%, the coking coal sector rose 2.46%, and the coke sector rose 6.42% [15]. - The top three stocks in terms of gains and losses in the coal mining and washing sector were Huayang Co., Ltd. (11.50%), Jinkong Coal Industry (10.11%), and China National Coal Group Corporation (8.54%) [18] 3.3 Coal Price Tracking - **Coal Price Index**: As of November 7, the comprehensive transaction price of CCTD Qinhuangdao thermal coal (Q5500) was 703.0 yuan/ton, up 10.0 yuan/ton week - on - week. The comprehensive average price index of Bohai Rim thermal coal (Q5500) was 694.0 yuan/ton, up 9.0 yuan/ton week - on - week. The annual long - term contract price of CCTD Qinhuangdao thermal coal (Q5500) was 684.0 yuan/ton, up 8.0 yuan/ton month - on - month [23]. - **Thermal Coal Price**: As of November 8, the market price of Qinhuangdao Port thermal coal (Q5500) from Shanxi was 808 yuan/ton, up 40 yuan/ton week - on - week. International thermal coal FOB prices also increased [29]. - **Coking Coal Price**: As of November 7, the ex - warehouse price of primary coking coal from Shanxi at Jingtang Port was 1800 yuan/ton, up 60 yuan/ton week - on - week. The CIF price of Australian Peak View Mine hard coking coal in China was 212.3 US dollars/ton, up 0.6 US dollars/ton week - on - week [31]. - **Anthracite and Pulverized Coal Price**: As of November 7, the wagon - loading price of Jiaozuo anthracite was 1020.0 yuan/ton, unchanged week - on - week. The wagon - loading prices of pulverized coal in Changzhi Lucheng and Yangquan increased [39] 3.4 Coal Supply and Demand Tracking - **Coal Mine Capacity Utilization**: As of November 7, the capacity utilization rate of sample thermal coal mines was 91.1%, up 0.6 percentage points week - on - week, and that of sample coking coal mines was 83.76%, down 1.0 percentage points week - on - week [46]. - **Import Coal Price Difference**: As of November 7, the price difference between domestic and foreign 5000 - kcal thermal coal was - 79.1 yuan/ton, down 19.5 yuan/ton week - on - week; the price difference for 4000 - kcal thermal coal was - 75.2 yuan/ton, down 20.1 yuan/ton week - on - week [42]. - **Coal - fired Power Consumption and Inventory**: Inland 17 provinces' coal inventory increased, while daily consumption decreased. Coastal 8 provinces' coal inventory decreased, while daily consumption increased [45]. - **Downstream Metallurgical Demand**: As of November 7, the Myspic comprehensive steel price index decreased, the price of Tangshan - produced primary metallurgical coke increased, the blast furnace operating rate increased, and the profit per ton of coke in independent coking enterprises increased [64][65]. - **Downstream Chemical and Building Materials Demand**: As of November 7, the prices of urea in some regions decreased, the national methanol, ethylene glycol, and acetic acid price indices decreased, the synthetic ammonia price index increased, the cement price index increased slightly, the cement clinker capacity utilization rate decreased, the float glass operating rate decreased, and the weekly coal consumption in the chemical industry increased [70][74][76] 3.5 Coal Inventory Situation - **Thermal Coal Inventory**: As of November 7, the coal inventory at Qinhuangdao Port increased to 577.0 tons. The 55 - port thermal coal inventory decreased to 6148.7 tons as of October 31, and the production - area inventory decreased to 292.0 tons [91]. - **Coking Coal Inventory**: As of November 7, the production - area coking coal inventory increased to 165.6 tons, the six - port coking coal inventory increased to 304.3 tons, the coking enterprise inventory increased to 923.8 tons, and the steel mill inventory decreased to 787.3 tons [92]. - **Coke Inventory**: As of November 7, the total coke inventory of coking plants, four - port coke inventory, and the total coke inventory of domestic sample steel mills all decreased [94] 3.6 Coal Transportation Situation - **International and Domestic Coal Transportation**: As of November 7, the Baltic Dry Index (BDI) was 2104.0 points, up 138.0 points week - on - week. As of November 6, the average daily coal shipment volume of the Datong - Qinhuangdao Railway increased slightly week - on - week [108]. - **Ratio of Cargo to Ships at Four Ports in the Bohai Rim**: As of November 7, the inventory of four ports in the Bohai Rim was 1449.0 tons, the number of anchored ships was 106, and the cargo - to - ship ratio was 13.7, down 4.03 week - on - week [106] 3.7 Weather Conditions - As of November 7, the Three Gorges outflow was 10200 cubic meters per second, down 23.88% week - on - week. - In the next 10 days (November 9 - 18), there will be precipitation in some areas, with high - impact weather including cooling in Xinjiang and central - eastern regions. - In the next 11 - 14 days (November 19 - 22), there will be light precipitation in some areas, and the average temperature in some regions will be different from the normal level [113] 3.8 Listed Company Valuation Table and Key Announcements - **Listed Company Valuation Table**: The table provides the closing prices, net profits attributable to the parent company, EPS, and P/E ratios of key listed coal companies from 2024A to 2027E [114]. - **Key Announcements**: Companies such as Meijin Energy, China Shenhua, and Hengyuan Coal and Electricity have made announcements regarding project terminations, asset acquisitions, and corporate restructurings [115][116][118]

Core Viewpoint - The coal prices are expected to continue to decline year-on-year until the third quarter of 2025, but there has been a significant recovery in coal prices on a quarter-on-quarter basis in Q3 2025, leading to improved performance for coal companies. The supply constraints from production policies and the upcoming winter demand are expected to support coal prices, indicating a potential bottoming out of coal company performance [1][10]. Summary by Sections Coal Price and Company Performance - In Q3 2025, coal prices showed a significant quarter-on-quarter recovery, with Qinhuangdao power coal (Q5500, Shanxi origin) averaging 672 RMB/ton, up 6.47%, and Beijing-Tangshan coking coal averaging 1562 RMB/ton, up 18.76% [2]. - The 28 coal companies monitored by Guotai Junan achieved a total revenue of 302.30 billion RMB in Q3 2025, a quarter-on-quarter increase of 11%, and a net profit attributable to the parent company of 31.61 billion RMB, up 21% [2]. - Year-to-date performance for these companies showed a total revenue of 856.22 billion RMB, down 15.5% year-on-year, and a net profit of 113.46 billion RMB, down 28.1% year-on-year [3]. Cost and Expense Analysis - Total expenses for the 28 coal companies decreased by 3.1% year-on-year to 60.77 billion RMB in the first three quarters of 2025, with management expenses down 5.6% [4]. - The expense ratio increased to 12.20%, up 1.24 percentage points year-on-year, influenced by the decline in revenue [4]. Cash Flow and Debt - Operating cash flow for the 28 coal companies totaled 179.73 billion RMB, down 21% year-on-year, while interest-bearing debt increased by 21.46% to 573.07 billion RMB [8]. - The average asset-liability ratio was 51.3%, a slight decrease of 0.2 percentage points year-on-year [8]. Inventory and Receivables - The average accounts receivable turnover days increased to 31 days, up 19.5% year-on-year, indicating weakened collection capabilities [9]. - Inventory turnover days also increased to 28 days, reflecting a 20% year-on-year rise [9]. Investment Recommendations - The coal sector is characterized by low valuations, high dividend yields, and strong cash flow, presenting a bottoming investment opportunity [10][11]. - Key companies to watch include China Shenhua, Shaanxi Coal, and China Coal Energy, among others, categorized by stability and elasticity in coal prices [12].

Core Viewpoint - Huabei Mining's stock price has shown a modest increase this year, with a notable rise in recent trading days, indicating potential investor interest and market activity [2]. Group 1: Stock Performance - As of November 6, Huabei Mining's stock price increased by 2.01%, reaching 13.69 CNY per share, with a trading volume of 44.08 million CNY and a turnover rate of 0.12% [1]. - Year-to-date, the stock price has risen by 2.78%, with a 1.03% increase over the last five trading days, a 7.46% increase over the last 20 days, and a 6.21% increase over the last 60 days [2]. Group 2: Financial Performance - For the period from January to September 2025, Huabei Mining reported a revenue of 31.93 billion CNY, a year-on-year decrease of 43.78%, and a net profit attributable to shareholders of 1.07 billion CNY, down 74.14% year-on-year [2]. - The company's main business revenue composition includes: commodity trading (39.15%), coal products (26.23%), coal chemical products (20.81%), and other services [2]. Group 3: Shareholder Information - As of October 31, 2025, the number of Huabei Mining's shareholders was 36,300, a decrease of 8.06% from the previous period, with an average of 74,127 circulating shares per shareholder, an increase of 8.77% [2]. - The company has distributed a total of 13.16 billion CNY in dividends since its A-share listing, with 7.32 billion CNY distributed over the last three years [3]. Group 4: Institutional Holdings - As of September 30, 2025, the second-largest circulating shareholder is Guotai Zhongxin Coal ETF, holding 42.68 million shares as a new shareholder [3]. - Other significant shareholders include Hong Kong Central Clearing Limited and Huatai-PineBridge SSE Dividend ETF, both of which have increased their holdings compared to the previous period [3].

Core Insights - The company reported a significant decline in net profit for the first three quarters of 2025, with a net profit of 1.07 billion yuan, down 74.1% year-on-year, and a Q3 net profit of 38.72 million yuan, down 96.8% year-on-year [1] - The decrease in production and sales volume, attributed to geological conditions in coal mines, has pressured the company's performance [1] - The company is optimistic about a recovery in Q4 performance due to a substantial improvement in coking coal prices in October compared to Q2 [1] Financial Performance - For the first three quarters of 2025, the company produced 13.04 million tons of commodity coal, a decrease of 16.8% year-on-year, and sold 9.81 million tons, down 17.38% year-on-year [1] - The average selling price of commodity coal was 804 yuan per ton, down 27.9% year-on-year, while the cost per ton was 461 yuan, down 17.2% year-on-year, resulting in a gross profit of 343 yuan per ton, down 38.6% year-on-year [1] - The coal business revenue for the first three quarters was 7.89 billion yuan, a decrease of 40.4% year-on-year, with a segment gross profit of 3.36 billion yuan, down 49.24% year-on-year [1] Product Segments - The company saw an increase in methanol sales, with a total of 210,000 tons sold in 2025, up 34.1% year-on-year, while the average selling price was 2,081 yuan per ton, down 4.1% year-on-year [2] - The newly launched 600,000-ton anhydrous ethanol project is expected to contribute profits starting in 2025, with production and sales of 381,000 tons and 364,000 tons respectively in the first three quarters of 2025, generating 1.8 billion yuan in revenue [2] - The company’s coking coal production and procurement have decreased, with procurement of washed coal at 3.78 million tons, down 1.86% year-on-year [2] Future Projects - The company is advancing new projects, including the 8 million-ton power coal project expected to be operational in 2026, which will increase coal production capacity [3] - The 2×660MW ultra-supercritical power generation units are expected to be operational by the end of 2025, with 739MW of new energy indicators, including 406MW of wind power already secured [3] - Other key projects, such as a 10,000-ton/year DMC project and various deep utilization projects, are also expected to be operational soon [3] Earnings Forecast - The company is projected to achieve revenues of 42.9 billion yuan, 46.1 billion yuan, and 47.7 billion yuan for 2025-2027, with year-on-year changes of -34.9%, +7.5%, and +3.6% respectively [3] - The expected net profits for the same period are 1.69 billion yuan, 2.75 billion yuan, and 3.39 billion yuan, with year-on-year changes of -65.1%, +62.1%, and +23.5% respectively [3] - The company has been given a "recommended" rating based on these projections [3]

Core Viewpoint - Huabei Mining reported a continuous decline in the number of shareholders, indicating potential concerns regarding investor confidence and stock performance [2] Shareholder Information - As of October 31, the number of shareholders for Huabei Mining was 36,333, a decrease of 3,187 from the previous period (October 20), representing a decline of 8.06%. This marks the fourth consecutive period of decline in shareholder numbers [2] Stock Performance - The closing price of Huabei Mining on the reporting date was 13.48 yuan, reflecting an increase of 1.51%. However, since the concentration of shares began, the stock price has cumulatively decreased by 2.67%, with 4 days of increases and 6 days of decreases during this period [2] Financing Data - As of October 31, the margin trading balance for Huabei Mining was 272 million yuan, with a financing balance of 263 million yuan. During the current concentration period, the financing balance decreased by 14.08 million yuan, a decline of 5.09% [2] Financial Performance - According to the third-quarter report, Huabei Mining achieved a total operating revenue of 31.925 billion yuan for the first three quarters, a year-on-year decrease of 43.78%. The net profit was 1.07 billion yuan, down 74.14% year-on-year, with basic earnings per share at 0.4000 yuan and a weighted average return on equity of 2.53% [2]