Ge Long Hui·2025-09-02 02:56Core Viewpoint - UBS report indicates that China Shenhua's half-year earnings and dividends exceeded expectations, with a 15% year-on-year decline in net profit, aligning with profit forecasts [1] Financial Performance - Net profit for the second quarter decreased by 10% year-on-year to 13.3 billion [1] - Interim dividend declared at 0.98 HKD, with a payout ratio of 79%, higher than the guidance and last year's 76.5% [1] Market Outlook - The company's stable earnings are attributed to effective cost control, and the dividend payout ratio surpassed expectations [1] - Anticipated seasonal weakness in thermal coal demand as summer ends may lead to a slightly positive reaction from investors regarding the latest performance [1] Industry Insights - Recent surveys with industry experts suggest that the anti-involution policies in the coal sector have had limited actual impact on thermal coal supply [1] - UBS has slightly raised its earnings forecasts for China Shenhua by 3% and 7% for the next two years [1] Target Price Adjustment - Target price increased from 27.8 HKD to 29.6 HKD, while maintaining a "Sell" rating [1]