Group 1 - The China Securities State-Owned Enterprises Dividend Index (000824) decreased by 0.17% as of September 23, 2025, with Nanjing Bank (601009) leading the gains at 4.30% [1] - The People's Bank of China announced on September 19 that it would adjust the 14-day reverse repurchase operations to a fixed quantity and interest rate bidding, which aims to enhance liquidity management [1] - Analysts from Galaxy Securities believe this adjustment will improve the pricing mechanism of interest rates and enhance liquidity management efficiency, giving larger state-owned banks a competitive edge over smaller banks [1][2] Group 2 - The China Securities State-Owned Enterprises Dividend Index consists of 100 listed companies selected for their high and stable cash dividend yields, reflecting the overall performance of high-dividend state-owned enterprises [2] - As of August 29, 2025, the top ten weighted stocks in the index accounted for 16.84% of the total index, including companies like COSCO Shipping Holdings (601919) and Jizhong Energy (000937) [2] - The National State-Owned Enterprises Dividend ETF (159515) closely tracks the performance of the index, providing investors with exposure to high-dividend state-owned enterprises [2]

Investment Rating - The report maintains a positive outlook on the coal industry, indicating a "Look Favorably" rating due to expected price increases in coal [1]. Core Insights - The report highlights a tight supply situation and strong pre-holiday inventory demand, predicting that coal prices will continue to rise [1][3]. - The average daily coal inflow to the Bohai Rim ports increased by 10.27% week-on-week, while the average daily outflow also saw a rise of 14.21% [3][22]. - The report emphasizes the expected price increases for thermal coal and coking coal, driven by seasonal demand and supply constraints [3][10]. Summary by Sections Recent Industry Policies and Dynamics - The report notes significant coal resource discoveries in Anhui province, which are crucial for strategic reserves [9]. - The report mentions the successful launch of a coal-to-natural gas project in Xinjiang, expected to be operational by 2027 [5]. Price Movements - As of September 19, thermal coal prices at Qinhuangdao port showed increases, with Q4500, Q5000, and Q5500 grades rising by 23, 27, and 24 CNY/ton respectively [3][10]. - Coking coal prices remained stable, with prices reported at 1510 CNY/ton for low-sulfur coking coal in Shanxi [3][13]. Inventory and Supply - Bohai Rim port coal inventory decreased by 0.89% week-on-week, totaling 22.5 million tons [3][22]. - The report indicates that the overall supply from production areas remains tight due to capacity checks, affecting recovery rates [3][10]. Shipping Costs - Domestic coastal shipping costs increased by 19.91% week-on-week, averaging 35.53 CNY/ton [3][31]. - International shipping rates showed mixed trends, with Indonesian coal prices slightly decreasing [3][31]. Company Valuations - The report provides a valuation table for key companies in the coal sector, highlighting their stock prices, market capitalizations, and earnings projections [3][36]. - Notable companies include China Shenhua, Shaanxi Coal, and Yanzhou Coal, with varying price-to-earnings (PE) ratios indicating their market performance [3][36].

Investment Rating - The industry rating is "Positive" [1] Core Viewpoints - A V-shaped reversal in coal prices is anticipated, with winter prices expected to reach 800 CNY/ton. The long-term contracts are supporting spot prices, and policy-driven sentiment is leading to significant price increases. The long-term contract prices for September are 674, 613, and 551 CNY/ton for 5500, 5000, and 4500 kcal respectively, with the CCI index showing slight variations [6][26] - The coal market is expected to see a balance between supply and demand gradually, with prices steadily rising. The report maintains a "Positive" rating for the industry and suggests focusing on flexible thermal coal companies and those in turnaround situations in coking coal and coke sectors [6][26] Summary by Sections Coal Sector Performance - The coal sector outperformed the CSI 300 index, with a weekly increase of 3.59% as of September 19, 2025, while the index fell by 0.44%, resulting in a 4.03 percentage point outperformance. A total of 24 stocks in the sector rose, with Yongtai Energy showing the highest increase of 13.42% [2] - Key monitored enterprises reported an average daily coal sales volume of 7.22 million tons for the week of September 12-18, 2025, a week-on-week increase of 5.3%. The average daily production was 7.18 million tons, also up 4.8% week-on-week and 4.4% year-on-year [2][24] Price Trends - As of September 19, 2025, the price of thermal coal (Q5500K) in the Bohai Rim was 676 CNY/ton, a week-on-week increase of 0.15%. The import price index for thermal coal was 812 CNY/ton, up 4.5% week-on-week. Prices at various ports and production areas also showed increases [3] - The price of coking coal at Jingtang Port was 1610 CNY/ton, up 3.9% week-on-week, while the futures settlement price for coking coal was 1216 CNY/ton, reflecting a 6.9% increase [4] Supply and Demand Dynamics - The total coal inventory monitored was 25.54 million tons as of September 18, 2025, a decrease of 1% week-on-week and 6% year-on-year. The cumulative sales volume of key monitored enterprises was 180.46 million tons, down 2.4% year-on-year [2][24] - The report indicates that the demand from the power and chemical industries has varied, with coal consumption in the power sector down 2.9% year-on-year, while the chemical sector saw an increase of 16% [2][24] Investment Recommendations - The report recommends focusing on companies in the thermal coal sector such as China Shenhua, Shaanxi Coal and Chemical Industry, and others, as well as coking coal companies like Huabei Mining and Shanxi Coking Coal. It also highlights companies in the coke sector that are expected to see profit improvements [6][26]

Investment Rating - The investment rating for the coal industry is "Positive" (maintained) [1] Core Viewpoints - Coal prices have rebounded above 700 RMB, with a current price of 704 RMB/ton, reflecting a week-on-week increase of 24 RMB/ton (3.53%) [3][4] - The demand for non-electric coal is expected to be a highlight in the upcoming months, particularly during the "golden September and silver October" period [4] - The report predicts that the current rebound in coal prices is at a turning point, with potential further increases expected as the market stabilizes [4][5] Summary by Sections Investment Logic - The prices of thermal coal and coking coal are at a turning point, with thermal coal prices expected to recover to long-term contract prices, currently above the second target price of around 700 RMB [4][13] - Future expectations indicate that thermal coal prices could reach a third target price of approximately 750 RMB, with a potential peak at around 860 RMB [4][13] Market Performance - The coal index increased by 3.51% this week, outperforming the CSI 300 index by 3.96 percentage points [8][25] - The average PE ratio for the coal sector is 13.59, and the PB ratio is 1.28, ranking low among all A-share industries [25][31] Coal Price Indicators - As of September 19, the Qinhuangdao Q5500 thermal coal price is 704 RMB/ton, with a week-on-week increase of 24 RMB [20] - The price of coking coal at the Jingtang port has risen to 1670 RMB/ton, reflecting a significant increase from earlier months [21][23] Investment Recommendations - The report suggests a dual logic for investment in coal stocks, focusing on both cyclical recovery and stable dividends, with specific stocks recommended for investment [5][14] - Key stocks identified for investment include: - Cyclical logic: Jinko Coal Industry, Yanzhou Coal Mining - Dividend logic: China Shenhua, Zhongmei Energy - Diversified aluminum elasticity: Shenhua Holdings, Electric Power Investment Energy - Growth logic: Xinjie Energy, Guanghui Energy [5][14][15]

Investment Rating - The investment rating for the coal mining industry is "Positive" [2] Core Viewpoints - The report indicates that the coal economy is at the beginning of a new upward cycle, with a resonance between fundamentals and policies, making it an opportune time to invest in the coal sector [3][13] - The report highlights that coal prices have shown signs of stabilization, and there is an expectation for price increases due to seasonal demand and supply constraints [5][13] - The report emphasizes the continued investment logic of coal capacity shortages, with a short-term balance and a long-term gap in supply [13][14] Summary by Sections Coal Price Tracking - As of September 19, the market price for Qinhuangdao port thermal coal (Q5500) is 699 CNY/ton, an increase of 21 CNY/ton week-on-week [4][31] - The price for coking coal at Jingtang port is 1610 CNY/ton, up 60 CNY/ton week-on-week [4][33] - International thermal coal prices have also seen fluctuations, with Newcastle thermal coal at 69.6 USD/ton, a week-on-week increase of 0.4 USD/ton [4][31] Supply and Demand Tracking - The capacity utilization rate for sample thermal coal mines is 91.7%, an increase of 2.4 percentage points week-on-week [4][48] - Daily coal consumption in inland provinces has increased by 4.10 thousand tons/day (+1.22%) [5][13] - The report notes that the supply side is still constrained by policies, and the demand is expected to rise as winter heating needs begin [5][13] Industry Performance - The coal sector has shown a weekly increase of 3.59%, outperforming the broader market [16] - The report identifies key companies to focus on, including China Shenhua, Shaanxi Coal, and others, highlighting their stable operations and strong performance [14][16]

Group 1 - The coal mining sector increased by 2.02% on September 19, with Huayang Co. leading the gains [1] - The Shanghai Composite Index closed at 3820.09, down 0.3%, while the Shenzhen Component Index closed at 13070.86, down 0.04% [1] - Notable performers in the coal mining sector included: - Biaozhan Service (600348) with a closing price of 7.60, up 7.80% - Lu'an Huaneng (6691099) at 15.00, up 5.63% - Jinko Coal Industry (601001) at 14.30, up 5.54% [1] Group 2 - The coal mining sector experienced a net outflow of 355 million yuan from institutional investors, while retail investors saw a net inflow of 320 million yuan [2] - Key stocks with significant capital flows included: - Shanxi Coking Coal (000983) with a net inflow of 127 million yuan from institutional investors - Biaozhan Co. (600348) with a net inflow of 106 million yuan from institutional investors [3] - The overall trading volume for the coal mining sector was substantial, with various companies reporting significant transaction amounts [2][3]

Core Viewpoint - Shanxi Coking Coal's stock price has shown fluctuations with a recent increase, while the company faces declining revenue and profit margins in the first half of 2025 [1][2]. Financial Performance - As of August 29, 2025, Shanxi Coking Coal reported a revenue of 180.53 billion yuan, a year-on-year decrease of 16.30%, and a net profit attributable to shareholders of 10.14 billion yuan, down 48.44% year-on-year [2]. - The company's stock price has decreased by 7.86% year-to-date but has increased by 6.33% over the last five trading days [1]. Stock Market Activity - On September 19, 2025, Shanxi Coking Coal's stock rose by 2.07%, reaching 7.39 yuan per share, with a trading volume of 3.41 billion yuan and a turnover rate of 1.01% [1]. - The company has appeared on the "Dragon and Tiger List" once this year, with a net purchase of 1.02 billion yuan on July 22 [1]. Shareholder Information - As of June 30, 2025, the number of shareholders decreased by 2.08% to 161,000, while the average circulating shares per person increased by 2.13% to 28,816 shares [2][3]. - Major shareholders include Hong Kong Central Clearing Limited and various ETFs, with some increasing their holdings [3]. Dividend Distribution - Shanxi Coking Coal has distributed a total of 238.15 billion yuan in dividends since its A-share listing, with 126.03 billion yuan distributed in the last three years [3].

Group 1 - The Energy ETF Guangfa (159945) opened down 0.54% at 1.100 yuan [1] - Major holdings in the Energy ETF Guangfa include China Shenhua down 0.08%, China Petroleum down 0.24%, China Petrochemical down 0.18%, Shaanxi Coal and Chemical Industry down 0.53%, China National Offshore Oil Corporation down 0.41%, Guanghui Energy unchanged, Yanzhou Coal Mining down 0.22%, Jereh down 0.39%, China Coal Energy down 0.34%, and Shanxi Coking Coal down 1.20% [1] - The performance benchmark for the Energy ETF Guangfa is the CSI All Share Energy Index, managed by Guangfa Fund Management Co., Ltd., with a fund manager named Yao Xi [1] Group 2 - Since its establishment on June 25, 2015, the Energy ETF Guangfa has returned 10.82%, with a return of 0.38% over the past month [1]

Core Viewpoint - The company held its second extraordinary general meeting of shareholders in 2025, where several key proposals were approved, including changes to the company's articles of association and the provision of guarantees for a subsidiary [2][20]. Meeting Details - The meeting was convened on September 17, 2025, with both on-site and online voting options available [4][5]. - A total of 1,518 shareholders attended, representing 3,363,300,526 shares, which is 59.2433% of the total voting shares [6]. Proposal Voting Results - Proposal 1: Revision of the Articles of Association - Approved by 3,326,397,594 shares (98.9028% of votes) [10]. - Proposal 2: Revision of the Rules of Procedure for Shareholders' Meetings - Approved by 3,308,544,799 shares (98.3720% of votes) [12]. - Proposal 3: Revision of the Rules of Procedure for Board Meetings - Approved by 3,308,181,053 shares (98.3611% of votes) [14]. - Proposal 4: Change in Guarantee for Subsidiary Shanxi Xishan Huadong Cement Co., Ltd. - Approved by 3,357,030,426 shares (99.8136% of votes) [17]. Legal Opinion - The legal opinion provided by Beijing Junzhi Law Firm confirmed that the meeting was convened and conducted in accordance with relevant laws and regulations, making the results valid [20].

Summary of Shanxi Coking Coal Conference Call Company Overview - **Company**: Shanxi Coking Coal - **Industry**: Coking Coal Production Key Points Price and Production Trends - In 2024, the comprehensive selling price of coking coal decreased by approximately 300 RMB per ton, with a recovery observed post-July due to national policy changes, leading to a current price close to 1,400 RMB per ton, an increase from August [2][3][5] - The initial benchmark price for main coking coal was 1,580 RMB per ton, dropping to a low of 1,150 RMB per ton in mid-June before gradually recovering to around 1,400 RMB per ton [2][6] - In the first half of 2025, Shanxi Coking Coal's raw coal output was 23.35 million tons, an increase of about 3 million tons year-on-year, while commodity coal sales reached 13.03 million tons, up over 2 million tons from the previous year [2][13] Cost Management - The total cost of raw coal is approximately 270 RMB per ton, with washing costs near 100 RMB per ton, leading to a total cost of under 400 RMB per ton [2][13] - The company aims to reduce costs by 10% this year compared to last year, which had higher costs due to significant production cuts in the first half [2][15] Market Dynamics - The increase in sales volume and price in August was attributed to market alignment after a significant drop in June [4] - The company operates under a pricing mechanism that allows for monthly negotiations, adjusting prices when the difference between contract and market prices exceeds 100 RMB [2][16] Electric Power Segment - The gross margin in the electric power segment improved due to lower oil prices, carbon emission reward policies, and the closure of loss-making power plants [2][17] New Mining Projects - A new mining project has been initiated, with a dedicated command established for preliminary exploration, expected to take about 8 years to complete due to the project's scale and complexity [4][9][10] - The project involves both coal and associated bauxite resources, with the exploration process expected to take 1 to 2 years before transitioning to mining rights [11] Regulatory Environment - The "anti-involution" policy has minimal impact on Shanxi Coking Coal's production, as the company does not have excess production capacity and is more influenced by price changes [4][12] - The company anticipates that the national government will maintain a stable environment for the coal industry, monitoring price fluctuations to avoid volatility [4][19] Financial Considerations - Last year, the company paid over 24 billion RMB in carbon rights fees, primarily funded through loans and cash, with loans accounting for about 20 billion RMB [24] - The management remains committed to maintaining dividend plans despite the financial demands of new projects, with dividends contingent on annual profitability [25] Future Outlook - The coal industry faces complex supply-demand dynamics, influenced by both supply-side factors and downstream demand from sectors like steel [19] - The company expects a controlled approach to coal imports, which will impact future supply and pricing strategies [19] This summary encapsulates the essential insights from the conference call, highlighting the operational performance, market conditions, and strategic initiatives of Shanxi Coking Coal.