Citi: China Coal Energy (01898) Q3 net profit misses expectations; maintain "Buy" rating

Citi issued a research report stating that China Coal Energy's (01898) third-quarter net profit missed expectations. The bank maintains its "Buy" rating with a target price of HK$16.6. China Coal Energy reported net profit of RMB12.7 billion for the first nine months of the year under Chinese accounting standards, up 2% year-on-year; net profit under International Financial Reporting Standards was RMB12.9 billion, up 15% year-on-year, equivalent to 68% of the full-year market consensus and 73% of the bank's full-year forecast, respectively. Excluding impairment losses, the bank calculated recurring net profit for the first nine months at RMB12.9 billion, up 2% year-on-year. Third-quarter net profit is estimated at RMB4.6 billion, down 4% year-on-year and up 7% quarter-on-quarter, below the bank's expectations due to higher-than-expected unit coal costs, selling and administrative expenses, and finance costs. Excluding impairments, third-quarter recurring net profit was RMB4.6 billion, down 2% year-on-year and up 3% quarter-on-quarter.