Coal supply squeeze and strong earnings drive Haohua Energy higher
Coal supply contraction lifts prices China's raw coal output fell 9.7% in June, the biggest drop in a decade, while thermal and coking coal prices jumped 40-72% year-on-year. This supply squeeze directly boosts Haohua's revenue and profit, as it sells coal at much higher prices.
This is the core force behind the stock's rise: tight supply and rising coal prices benefit all coal producers including Haohua.
Interim dividend plan signals cash return Haohua's chairman proposed an interim dividend of at least 20% of half-year net profit. This puts cash directly in shareholders' hands and signals management confidence, making the stock more attractive to income-focused investors.
A new dividend proposal is a concrete capital return event that can support the share price.
Profit jumps 66% on higher coal prices Haohua's first-half net profit rose 66.14% to 745 million yuan, with revenue up 9.46% and gross margin expanding 7.42 percentage points. The profit surge confirms the company is cashing in on higher coal prices, strengthening the investment case.
Strong earnings growth is a direct fundamental driver of the stock's value and investor interest.
September coking coal outlook remains bullish Nine institutions are unanimously bullish on coking coal for September, with the highest strength reading since early 2026. The coal association expects prices to rise rather than fall, supporting Haohua's revenue outlook, though it warns that such strong consensus can sometimes precede a market reversal.
A bullish near-term outlook for coking coal directly supports Haohua's sales prices and future earnings.