[ET Net News Agency, 13 February 2020] Huatai Research cited China Coal Energy's
(01898) management from a conference call indicating that the company's coal and
coal-chemical segments are facing some production disruptions.
Muduchaideng Mine and Nalinhe #2 Mine are currently suspended and awaiting resumption
approvals. Meanwhile, the coal-chemical utilization rate has declined due to
transportation restrictions.
Management believes both mines will resume operation shortly, and the company is
resolving the transportation issues to ensure the smooth delivery of coal to coal-chemical
plants. Management believes the coal market is experiencing soft supply and demand, a
result of the coronavirus, but acknowledged that supply is more severely impacted than
demand, and this has pushed coal prices higher.
Huatai maintained its "buy" call on China Coal, with a target price of HK$4.3. (KL)