CSEC,China Shenhua(SH:601088) CMS·2025-08-06 04:43Investment Rating - The report maintains a "Recommended" rating for the coal mining industry, indicating a positive outlook for the sector [5]. Core Views - The coal market is experiencing a steady upward trend, with prices for thermal coal and coking coal showing increases as of August 1. For instance, the Yulin 5800 kcal index reached 545.0 CNY/ton, up by 34.0 CNY/ton week-on-week [11][12]. - The report highlights that the overall supply of coal is tightening due to production limitations caused by rainfall and some mines completing their monthly production tasks, leading to a decrease in inventory levels [11][12]. - Despite weak downstream demand, strong cost support is expected to keep prices stable with a slight upward trend in the short term. The report anticipates that the price gap between long-term contracts and spot prices will narrow [11][12]. Summary by Sections 1. Investment Views - The thermal coal market is on a continuous rise, with significant price increases noted for various indices [11]. - The coking coal market has seen stable prices, with no week-on-week changes reported for several indices [11]. - The report suggests that the coal market is expected to maintain a steady and slightly upward price trend in the short term [11]. 2. Coal Sector Performance and Stock Review - The coal mining sector's performance has been mixed, with the coal mining and washing index declining by 4.48% while major coal companies experienced varying degrees of stock price changes [12][14]. - Notable declines were observed in companies like Zhengzhou Coal Electricity and Shanxi Coking Coal, with drops of 9.67% and 9.01% respectively [12]. 3. Important Announcements and News - China Shenhua is planning a significant acquisition of assets from its controlling shareholder, which includes coal, coal power, and coal chemical assets, with the stock expected to be suspended for up to 10 trading days [2][15]. - Gansu Energy has received approval to resume production at its Wangjiashan coal mine, which had been previously halted due to safety concerns [17]. 4. Dynamic Data Tracking - As of August 1, the daily coal consumption of the six major coastal power plants was reported at 898,000 tons, a slight decrease from the previous week, while total inventory increased to 13.963 million tons [3][11]. - The report provides detailed tracking of coal prices at ports and production sites, indicating a general upward trend in pricing [3][19]. 5. Key Company Valuations - The report includes a valuation table for key coal companies, highlighting metrics such as total market capitalization, net profit, and PE ratios for companies like China Shenhua and Shanxi Coal [41].