CICC: Maintains outperform rating on Yancoal Australia (03668.HK), lowers target price to HK$29.

According to the financial news app "Zhitong Caijing", Zhongjin released a research report stating that considering the assumption of a decrease in coal prices, Yancoal Australia (03668.HK) is expected to lower its 2025/26E profit by 37%/7% to 5.35/7.47 billion Australian dollars. The current stock price corresponds to a Hong Kong stock 2025/26E P/E ratio of 13.6 times/9.3 times. Considering that the company has a certain cost advantage compared to its peers, the bank maintains an outperform industry rating. With the improvement in demand margins and the continued fermentation of the "anti-internal competition" policy since July, it is optimistic about the resilience of the fundamentals in 2025-2026, switching to 2026 valuation and lowering the target price by 6% to 29 Hong Kong dollars, corresponding to a Hong Kong stock 14.0 times 2025E P/E ratio and 9.6 times 2026E P/E ratio, implying a 3% upside.