STOCKS | UBS Raises Yankuang Energy Target Price To HK$15

UBS raised its target price on Yankuang Energy (01171) to HK$15 from HK$14 and kept a Buy rating, according to ETNet. The broker said Yankuang Energy reported first-half 2026 net profit of RMB 7.1 billion, up 48% year on year and in line with its earlier profit warning. Second-quarter net profit rose 55% year on year to RMB 3.2 billion, and recurring profit more than doubled from the first quarter after excluding about RMB 2.9 billion in asset-sale gains booked in the first quarter. First-half operating cash flow was RMB 13.8 billion, down 1% year on year, while capital expenditure reached RMB 5.7 billion, or 29% of its 2026 budget. Management declared an interim dividend of RMB 0.2 per share, implying a payout ratio of 28% on reported earnings and 43% on recurring earnings. Second-quarter revenue rose 19% quarter on quarter to RMB 41 billion, while gross profit increased 63% to RMB 11.8 billion. Gross margin widened by 8 percentage points to 29%, supported by stronger profitability in coal and coal chemicals.