CMB International: Lowered YANCOAL AUS (03668) target price to HK$34, maintains "buy" rating.

China Merchants International released a research report stating that it has lowered its profit forecasts for YANCOAL AUS (03668) for the years 2025 to 2027 by 22%, 17%, and 13% respectively, mainly due to a decrease in the average selling price of coal, despite a slight increase in sales volume. However, they still maintain a "buy" rating because logistics issues are improving, and they expect the production-sales ratio to increase in the third quarter, coupled with the rebound in thermal coal prices since June. The target price has been revised down from HK$36 to HK$34. The report stated that YANCOAL AUS's production or sales volume in the second quarter is expected to increase by 15% and decrease by 6% year-on-year respectively, mainly due to adverse weather conditions leading to temporary port closures, affecting deliveries. The blended average selling price in the second quarter decreased by 22% year-on-year, but remained consistent with market trends. The bank estimates that the company's revenue in the second quarter is approximately AUD 1.14 billion, a 26% drop year-on-year.