Xin Lang Cai Jing·2025-10-20 06:46Core Viewpoint - The Hong Kong coal stocks continue their strong performance due to improving fundamentals and renewed interest in dividend assets, with significant price increases observed in several companies [1]. Group 1: Stock Performance - Jinma Energy (06885.HK) surged over 13%, Yanzhou Coal Mining (01171.HK) rose approximately 4%, and China Shenhua Energy (01088.HK) and other stocks increased by over 2% [1][2]. - As of the latest data, Jinma Energy's price reached 1.290, with a gain of 0.150 (13.16%), while Yanzhou Coal's price was 11.460, up by 0.450 (4.09%) [2]. Group 2: Market Conditions - The domestic coal consumption has reached the highest level for the same period in the past five years, driven by unusual high temperatures and expectations of a cold winter, which have boosted winter storage demand [1][3]. - The coal prices at northern ports increased significantly, with the price of thermal coal at 748 RMB/ton as of October 17, reflecting a week-on-week increase of 39 RMB/ton [3]. Group 3: Supply and Demand Dynamics - Since the implementation of the overproduction inspection policy by the Energy Bureau in July, domestic coal production has been constrained, with production declining year-on-year for two consecutive months in July and August, leading to overall inventory levels falling below last year's figures [6]. - The coal industry is experiencing a dual improvement in supply and demand, with analysts noting that coal prices have consistently exceeded expectations [6]. Group 4: Investment Sentiment - The coal sector is viewed favorably due to both cyclical and dividend logic, with expectations of improved supply-demand fundamentals driven by production constraints and seasonal demand recovery [7]. - The capital market's response to global economic uncertainties and domestic economic stabilization has led to a surge in investment sentiment, with many coal companies maintaining high dividend yields [7].