Coking Coal (01733) to HK$5.65 from HK$5.8 post recent issue of senior notes, and
maintained its "buy" call.
The house noted that recently the Ministry of Railway (MoR) offered some qualified
buyers the chance to acquire rolling stock on MoR's behalf. Winsway could potentially
acquire up to 6,000 new railcars, according to company guidance (likely to start with
4,500).
In addition, Winsway has secured sufficient railway allocation, while its available off
-take from Mongolian coal mines exceeds Goldman's 8mn tons estimate, and so even if some
mines do not deliver they may not miss their volume target. (KL)