[ET Net News Agency, 4 May 2020] HSBC Global Research tweaked its target price for
China Coal Energy (01898) to HK$2.7 from HK$2.73 and maintained its "buy" rating.
The research house said China Coal is its second pick with the stock on 5x P/E and
providing a 5-6% yield over the horizon. Coal production volume volumes recovered to 102mt
in 2019 (up 33%) from the 77mt trough in 2018.
HSBC's current assessment annual net income is Rmb4.5bn for 2020, down 30%, although
there are obvious potential downside risks, given the ongoing economic uncertainties. It
cut its net income estimate over 2020-22 by 8% to 18%, primarily reflecting its lower coal
price assumptions. (KL)