UBS: Raise target price of Yanzhou Coal Mining (01171.HK) to 7 Hong Kong dollars. Dividend payout ratio higher than the same period last year.

According to the Vision Financial APP, UBS released a research report stating that Yanzhou Coal Mining (01171.HK) had a weak first half performance as expected, with a net profit decreasing by 39% year-on-year, indicating that the net profit in the second quarter fell by 49% year-on-year to 2.021 billion RMB. The company declared a mid-year dividend of 0.18 RMB, with a dividend ratio of 38%, slightly higher than the 31% in the same period last year. The bank predicted that investor reaction to the performance would be generally neutral and raised Yanzhou Coal Energy's profit forecast for the next two years by 7% and 6%, with a target price increasing from 6.8 HKD to 7 HKD, and maintaining a "sell" rating.