Core Viewpoint - Coal stocks continue to decline, with notable drops in major companies such as China Coal Energy, Yanzhou Coal Mining, and China Shenhua Energy, indicating a bearish trend in the coal sector [1] Group 1: Market Performance - As of the latest report, China Coal Energy (01898) fell by 4.48% to HKD 10.87, Yanzhou Coal Mining (01171) decreased by 3.71% to HKD 10.63, China Shenhua Energy (01088) dropped by 1.56% to HKD 40.36, and Yancoal Australia (03668) declined by 0.87% to HKD 27.22 [1] Group 2: Coal Price Trends - Coal prices have risen above RMB 830 per ton, but a short-term peak in coal prices may have been reached. In October, the output of industrial raw coal was 410 million tons, a year-on-year decrease of 2.3%, but month-on-month stable [1] - The fundamental shift in the supply-demand dynamics of the coal industry since May is identified as the core reason for the recent price increases, suggesting a long-term upward trend in coal prices remains intact [1] Group 3: Future Outlook - According to Dongwu Securities, coal companies are expected to see their earnings bottom out starting from the third quarter, with coal prices projected to stabilize as they are anticipated to reach a low point in Q2 2025. This stability is expected to benefit leading companies, ensuring consistent profitability [1] - The expected decline in insurance capital costs may lead to a decrease in dividend yields for major players like China Shenhua and Shaanxi Coal from approximately 4.5% in 2025 to around 3.5% by mid-2026 [1]