CMB International: Yancoal Australia (03668) has strong sales volume in the next quarter, and the target price rises to HK$39

The Zhitong Finance App learned that CMB International released a research report saying that in the second quarter of this year, Yancoal Australia (03668) should account for a 15% year-on-year increase in production and 43% year-on-year sales. Mainly affected by shipping delays in the same period last year, maintaining a “buy” rating, the target price rose slightly from HK$38 to HK$39, and long-term coal price forecasts remained unchanged. It is expected that the hot summer season affected by the El Niño phenomenon in the northern hemisphere will support thermal coal prices.

The bank predicts that Yancoal Australia's equipment utilization rate will remain at a high level in the next quarter. Total production accounts for the first half of the year increased 5% year-on-year to 19.8 million tons, reaching 49% to 54% of the annual production guideline. The bank raised Yancoal Australia's profit forecast for 2026 to 2028 by 55%, 14% and 7% respectively, mainly due to an increase in the forecast for the average sales price of thermal coal and metallurgical coal.