Preliminary 2Q26 net profit in-line: Shenhuo Coal and Power | Asia Pacific

Research evidence excerpt

Preliminary 2Q26 net profit in-line: Shenhuo Coal and Power | Asia Pacific

Update

July 9, 2026 10:05 AM GMT

Morgan Stanley Asia Limited+MShenhuo Coal and Power | Asia Pacific Hannah Yang, CFA

Equity Analyst

Preliminary 2Q26 net profit in- Hannah.Yang1@morganstanley.comRachel L Zhang +852 2239-7079

Rachel.Zhang@morganstanley.com +852 2239-1520

line Chris Jiang

Chris.Jiang@morganstanley.com +852 3963-1593

Shenhuo expects its 1H26 net profit to rise 152% YoY to Rmb4.8bn, in line with

Cynthia Tang

MSe of Rmb4.7bn. The implied 2Q26 net earnings are Rmb2.5bn, up 11% YoY. The Research Associate

strong earnings were attributed to 1) an 18% YoY increase in aluminum prices, Cynthia.Tang@morganstanley.com +852 3963-4360

supported by tight aluminum overseas impacted by Middle East tension; 2) better

profit contribution from the coal segment in 2Q26, as Shenhuo's coal prices

increased Rmb150/t, driven by lower supply in the domestic market due to the mine

accident in Shanxi in late May; and 3) lower production costs from lower alumina

prices and cheaper power tariffs in Yunnan. Shenhuo Coal and Power (000933.SZ, 000933 CH)

Greater China Materials | China

Solid earnings continue in 2H26. Coking coal production is constrained by stricter

Stock Rating Overweight

safety inspections in China, although previously suspended capacities are gradually Industry View Attractive

resuming production, supporting coal prices and implying better profit contribution Price target Rmb31.00

Up/downside to price target (%) 45

for Shenhuo in 2H26. Overall aluminum supply remains in deficit this year. Shr price, close (Jul 9, 2026) Rmb21.35

Meanwhile, Yunnan power tariffs might slightly decline during the flood season, 52-Week Range Rmb39.48-16.75

Sh out, dil, curr (mn) 2,213