Huatai Securities: Leading companies increase dividend payout ratio to cope with economic downturn, investment in coal sector still revolves around the dividend logic.

Huatai Securities research report indicates that, although the profits of coal sector companies were generally under pressure in the first half of 2025 due to the decline in coal prices, listed companies generally maintained or increased dividends. Among them, China Shenhua and Shanxi Coking Coal implemented their first interim dividends, while Shougang Resources further increased its interim dividend ratio to 76%, reflecting the confidence of leading companies in the coal industry in long-term stable development. Huatai Securities believes that with the expectation of coal prices remaining at a relatively high range in the second half of the year, sector investment will still focus on dividend logic. Leading power coal companies with high and long-term sales can maintain good sales realization and steady profits, with abundant cash flow trends remaining unchanged. The heating up of market expectations for the Fed rate cut will further catalyze the valuation of related high-dividend yield companies.