Investment Rating - The report maintains a "Positive" investment rating for the coal industry [10]. Core Insights - The current profitability of the coal industry is better than that before the supply-side reform in 2016, but coking coal profitability is lower than thermal coal, indicating a stronger necessity for reform [7][8]. - The "anti-involution" measures in the coal industry are expected to primarily involve production limits and capacity exits, which could raise the price baseline in a favorable demand environment. However, the current demand pressure is greater than in 2016 [6][7]. - Short-term price elasticity may be limited due to high inventory and suppressed demand, but unexpected demand improvements could lead to price rebounds [6][7]. Summary by Sections Market Performance - The coal index (Yangtze) increased by 1.67%, outperforming the CSI 300 index by 0.13 percentage points, ranking 11th out of 32 industries [21]. - As of July 4, the market price for Qinhuangdao thermal coal was 623 RMB/ton, a weekly increase of 3 RMB/ton [21]. Thermal Coal Analysis - Daily coal consumption in 25 provinces reached 573.3 million tons, a week-on-week increase of 3.3% [22]. - The inventory of power plants was 125.22 million tons, with a usable days count of 21.8 days, a decrease of 0.4 days week-on-week [22]. Coking Coal Analysis - The price for main coking coal at Jingtang Port was stable at 1230 RMB/ton as of July 4 [21]. - Coking coal inventory increased by 0.55% week-on-week, indicating a need to monitor supply recovery and seasonal demand [22][53]. Investment Recommendations - Recommended stocks include long-term stable profit leaders such as China Coal Energy, China Shenhua Energy, and Shaanxi Coal and Chemical Industry [8]. - Growth-oriented companies include Electric Power Investment and New Hope Liuhe, while flexible growth stocks include Yanzhou Coal Mining and Huayang Co [8].