Preliminary 2Q26 earnings better than expected

Research evidence excerpt

Preliminary 2Q26 earnings better than expected

Update

July 14, 2026 12:28 PM GMT

Morgan Stanley Asia Limited+MChina Shenhua Energy | Asia Pacific Hannah Yang, CFA

Equity Analyst

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

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

better than expected Chris Jiang

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

Reaction to earnings Cynthia Tang

Research Associate

Unchanged Modest upside Modest revision higher Cynthia.Tang@morganstanley.com +852 3963-4360

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Shenhua expects its 1H26 net profit to increase 7-21% YoY, to Rmb26.3-29.8bn,

better than our expectation of Rmb26.0bn: This implies 2Q26 net earnings of

Rmb15.6-19.1bn, up 23-51% YoY. Shenhua consolidated the 11 assets injected from China Shenhua Energy (1088.HK, 1088 HK)

China Energy group, so 1H26 net profit would change -4.7% YoY – +8.0% YoY on a China Coal | China

restated basis. The better earnings reflected 1) higher YoY coal prices, especially in Stock Rating Overweight

Industry View Cautious

2Q26; and 2) higher earnings contribution from the coal chemicals, railways, and Price target HK$48.30

Up/downside to price target (%) 14

ports businesses. Shr price, close (Jul 14, 2026) HK$42.30

52-Week Range HK$49.62-30.85

Earnings remain supported in 3Q26: Coal prices corrected recently in response to Sh out, dil, curr (mn) 3,377

the lower daily burn rate at power plants owing to the rainy weather in multiple Mkt cap, curr (mn) US$126,771

EV, curr (mn) US$117,942

regions and higher inventory level at ports. As the plum rain season comes to an Avg daily trading value (mn) US$77.79