Investment Rating - The report maintains a positive outlook on the coal sector [10] Core Views - The coal sector is expected to benefit from a low internal crowding degree and marginal improvement in the fundamentals during the peak season, leading to a sustained positive attitude towards the coal sector [2][7] - Short-term supply-demand improvements are anticipated, with a notable increase in daily coal consumption and a decrease in inventory levels [7][19] - The coal sector is viewed as an attractive investment option due to its low valuation and high dividend yield, making it a safe choice amid declining risk appetite [7] Summary by Sections Market Performance - The coal index (Yangtze) fell by 0.50%, underperforming the CSI 300 index by 0.04 percentage points, ranking 8th out of 32 industries [6][18] - As of June 20, the market price for Qinhuangdao power coal was 609 RMB/ton, remaining stable week-on-week [6][44] Supply and Demand Analysis - Daily coal consumption across 25 provinces increased by 14% compared to the beginning of June, reaching 542.2 million tons [19] - Inventory levels at power plants were reported at 120.19 million tons, with a usable days count of 22.2 days, down by 2.8 days week-on-week [19][36] - The supply side showed a slight increase in capacity utilization rates in the "Three West" regions, indicating potential for supply adjustments [19][20] Price Trends - The report anticipates a stabilization and potential rebound in coal prices due to seasonal demand improvements and production cuts from safety and environmental inspections [6][19] - The report highlights that the current coal price center is expected to rise in the medium to long term due to resource depletion issues in Shanxi and limited increases in imports [7] Investment Recommendations - Recommended stocks for short-term defensive and transformation strategies include China Coal Energy, China Shenhua, and Shaanxi Coal and Chemical [8] - Long-term growth companies to focus on include Yanzhou Coal Mining, Huayang Co., and Jinko Energy [8]