Zhi Tong Cai Jing·2025-09-02 08:56Core Viewpoint - Goldman Sachs reports that China Shenhua (601088) experienced a 15% year-on-year decline in net profit for the first half of the year, amounting to 26.71 billion RMB, primarily due to decreased profits in the coal business, although this result aligns with market expectations [1] Financial Performance - The recurring net profit, excluding one-time items, was 26.68 billion RMB, also reflecting a 15% year-on-year decrease, which was below Goldman Sachs' expectations [1] - The company declared an interim dividend of 0.98 RMB per share, with a payout ratio of 73%, slightly up from 72% for the entire previous year [1] Future Outlook - Goldman Sachs has lowered its earnings forecast for Shenhua by 10% for 2025, but anticipates stable cash flow generation and a strengthening balance sheet to support a 70% dividend payout ratio [1] - The expected yield for A/H shares is projected to be between 4.9% and 5.6% [1] Target Price Adjustments - Goldman Sachs maintains a "Neutral" rating for Shenhua, raising the target price for H-shares from 29 HKD to 32 HKD, and for A-shares from 31 RMB to 34 RMB [1]