Investment Rating - The report maintains a "Buy" rating for several key companies in the coal industry, including Shanxi Coking Coal, Lu'an Huanneng, Yancoal, China Shenhua, Shaanxi Coal and Chemical Industry, and others [5]. Core Insights - The coal market is experiencing a supply-demand tug-of-war, leading to continued price fluctuations. Recent supply constraints and increasing terminal demand have resulted in a slight recovery in port coal prices. However, as coal mines resume production after the New Year, supply is expected to stabilize, while demand is anticipated to strengthen due to colder weather [8][9]. - The report suggests a strategy of buying on dips, focusing on companies with strong dividend yields and low valuations, as well as those with significant production capacity growth potential. Key recommendations include China Shenhua, Zhongmei Energy, and Yancoal, among others [8][9]. Summary by Sections 1. Core Views and Business Tracking - The report emphasizes the importance of dividend policies and growth prospects for listed companies in the coal sector [13][15]. 2. Coal Price Tracking - The report tracks coal price indices, noting that the price of thermal coal at the port has shown a week-on-week increase of 6 CNY/ton, while year-on-year comparisons indicate a decline [9][10]. 3. Coal Inventory Tracking - As of December 31, 2025, the inventory at the Bohai Rim ports was reported at 28.366 million tons, reflecting a week-on-week decrease of 5.43% [8]. 4. Downstream Performance of the Coal Industry - The report highlights that the daily coal consumption across 25 provinces reached 6.116 million tons, marking a 12.78% increase compared to the end of November [8][9]. 5. Weekly Performance of the Coal Sector and Individual Stocks - The coal sector has seen significant price movements, with individual stocks reflecting the overall market trends. The report provides detailed performance metrics for key companies [10][11].

Group 1: Report Industry Investment Rating - No specific investment rating provided [3] Group 2: Core View of the Report - Short - term market sentiment is still volatile, coal production is stabilizing on the fundamentals, demand remains relatively strong, and coal prices are fluctuating. It is recommended to wait and see and participate with caution [3] Group 3: Summary by Related Contents Market Situation - Last week, the exchange tightened the opening restrictions on the coking coal 2601 contract and raised the intraday trading fees to stabilize market sentiment. The coking coal price rose first and then fell, and the subsequent volatility decreased. Over the weekend, the Trump administration in the US announced an expansion of the scope of the 50% tariff on steel and aluminum imports, which is expected to impact the market sentiment. On the spot side, the high - priced resources of some coal mines had weak sales, and the prices declined. Coke completed the 6th round of price increase [3] Fundamentals - Last week, coal mines in Shanxi resumed the production increase rhythm, but some mines in Linfen reduced production due to underground conditions and the implementation of the 276 - working - day policy, resulting in slow overall production increase in Shanxi. It is expected that coal mines will continue the resumption of production this week, but the production increase progress is slow and easily interrupted by emergencies. The structural inventory pressure of coking coal has been significantly relieved. Recently, with the rise of coal prices, the downstream procurement rhythm has slowed down, and the inventory at the mine end has stabilized at a low level. In terms of demand, the profitability of coking and steel enterprises is good, and the production enthusiasm is high. The average daily hot metal output of steel mills has slightly increased to 240.66 tons, a week - on - week increase of 0.34 tons and a year - on - year increase of 11.89 tons. Attention should be paid to the implementation of environmental protection and production restriction policies around Beijing - Tianjin - Hebei during the military parade [3]