HK Stock Market Move | SHOUGANG RES (00639) rose over 4%, with net profit in the first half of the year increasing by 46% year-on-year. The high dividend payout highlights the value of dividend allocation.

SHOUGANG RES (00639) rose over 4%, as of the time of this report, it increased by 4.09%, reaching HKD 2.93, with a transaction value of HKD 80.2649 million. In terms of news, SHOUGANG RES released its mid-term results for 2026 last night, reporting revenue of HKD 3.243 billion, an increase of 54% year-on-year; profit attributable to shareholders was HKD 589 million, up 46% year-on-year; and an interim dividend of HKD 0.10 per ordinary share is proposed. In the first half of the year, the company produced 2.79 million tons of raw coking coal, an increase of 6%, with a rise of 150,000 tons; the output of premium coking coal was 1.95 million tons, a year-on-year increase of 27%. Huatai believes that since July, the ongoing production cuts in Shanxi's safety supervision, combined with reduced oil supply from Mongolia, have led to an average coking coal price increase of 21% from July 1 to August 26 compared to the second quarter, which is expected to support the company's profitability in the second half of the year. Furthermore, after experiencing performance fluctuations due to the coal conversion between the upper and lower levels in 2025, the company has consistently provided stable returns to shareholders, highlighting the value of dividend allocation.