Guangfa Securities: Coal prices are expected to gradually stabilize and rebound, continuing a steady and slightly strong trend in the fourth quarter.

Jin10 data reported on September 1st that GF Securities stated that since July, the prices of various coal types have risen significantly, mainly due to the supply and demand situation shifting from a loose state to a slightly tight balance. Although prices have loosened this week, due to stricter safety regulations and checks on overproduction, it is expected that supply is unlikely to increase, and coal prices are expected to gradually stabilize and rise, continuing a stable and slightly strong trend in the fourth quarter. On the company side, coal prices were at the bottom range in the second quarter, but leading companies have good control over costs, showing overall strong profit resilience. In the second half of the year, both volume and price are expected to rise, with upward elasticity in valuation and profits, and the sector shows clear advantages in valuation and dividend yield.