STOCKS | Eastmoney Research Says Coal Prices Were Firm as It Backed Coal Stocks

Chen Guo, deputy director and chief strategist at Eastmoney Research Institute, said he remained bullish on both traditional and new energy. According to Jin10, Chen said the day’s pullback in coal could not be explained by expectations of coal mine production resuming, and he said fundamentals had not shown signs of deterioration. He said coking coal was still rising at 2,160 yuan per ton, while thermal coal was steady at 860 yuan per ton. Chen said subsequent coal prices were more likely to rise than fall and could post further upside beyond market expectations. Chen forecast that mainstream coal companies’ second-quarter results in interim reports would show year-on-year growth close to 100%. He also expected average coal prices in the second half of the year to be more certain than in the first half, supporting sustained high earnings growth. Chen said investors should avoid selling coal stocks at current levels unless forced by uncontrollable circumstances, adding that he expected a large gap between market expectations and outcomes in the second half and that gains could significantly exceed expectations.