Analyst Wayne Fung of CMB International Securities maintained a Buy rating on Yancoal Australia, reducing the price target to HK$34.00.
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Wayne Fung has given his Buy rating due to a combination of factors that suggest a positive outlook for Yancoal Australia. Despite a temporary setback in sales volume caused by adverse weather conditions affecting logistics, the company demonstrated strong production growth in the second quarter of 2025. This production increase is expected to contribute to Yancoal reaching the higher end of its full-year production targets.
Furthermore, the thermal coal price has shown signs of recovery since June, which could positively impact Yancoal’s future revenue. Additionally, the company maintains a robust cash position, holding a significant cash balance that represents about 20% of its market capitalization. These factors, combined with the expectation of improved logistics in the coming quarter, underpin the Buy rating, even though earnings forecasts have been adjusted downward due to lower average selling prices.
Fung covers the Industrials sector, focusing on stocks such as Sany Heavy Equipment International Holdings Co, Ehang Holdings, and J&T Global Express Limited. According to TipRanks, Fung has an average return of 8.4% and a 54.39% success rate on recommended stocks.