HKEX | 1171
Yanzhou Coal expects 2019 coal price to be RMB570-630 per ton
Yanzhou Coal (1171) Chairman of the Board of Directors Li Xiyong said, as Chinese government pushs for the investment on infrastructure, and with the increase in the number of projects, the demand of coal will increase. Moreover, as the environmental protection policy lessens the capacity of coal production, he expects the coal price of this year will fluctuate in a mid-to-high level, and stays at a range of RMB 570-630 per ton. Due to seasonal factors, coal price will be lower in the first half of the year, with second quarter being the lowest point and the fourth quarter, while there is demand of heating, being the highest point. He continues, the state is promoting methanol-fuelled cars, thus expects the price of methanol will increase in the second half of this year.
Sales income of Yanzhou Coal last year was RMB 67.45 billion, up by 28.1% year-on-year. Sales income from coal business was RMB 62.43 billion, up by 28.8% year-on-year. Gross profit increased by 28.5% to RMB 24.31 billion. Net income attributable to shareholders was RMB 8.58 billion, up by 16.6% year-on-year. Earnings per share was RMB 1.75, with final dividend of RMB 0.54.
Li suggests, the company’s sales target of commercial coal this year is 120 million tons, of which the self-produced coal sales target is 100 million tons. Sales target of methanol this year is 1.7 million tons.