Bank of China International: Lowering the target price of China Shenhua (01088) to HK$48.46, third-quarter profit falls short of expectations

The Zhitong Finance App learned that Bank of China International released a research report saying that China Shenhua (01088)'s profit for the third quarter fell short of expectations. The bank lowered its profit forecast for 2026 to 2028 by 5%, and the target price dropped from HK$50.7 to HK$48.46, reaffirming the “buy” rating.

China Shenhua's net profit for the third quarter increased 3% year-on-year according to IFRS to RMB 16.3 billion, lower than the bank's forecast of 14%, mainly due to weaker performance in the coal and electricity segment. Looking ahead, the bank expects the company's fourth-quarter profit to increase by 3% quarterly, mainly due to stronger thermal coal price expectations in winter.