[ET Net News Agency, 17 September 2018] Credit Suisse lowered its target price for
Yanzhou Coal Mining (01171) to HK$6.5 from HK$10, and downgraded its rating to from
"neutral" to "underperform".
The research house expects Yanzhou Coal to be adversely affected by lower coal prices.
It believes Yanzhou's mining costs are set to further go up over the next three
years.Credit Suisse expects China's coal supply to strengthen through 4Q 2018-2019, with
the Chinese government pushing new capacity additions. This would drag coal price down to
Rmb580/t in 2019.
Yanzhou Coal, with climbing costs from aging mines, would be most affected by the lower
coal prices. Credit Suisse tweaked its 2018-20 EPS estimates for Yanzhou Coal by
+6%/-17%/-20%. (KL)