External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Yancoal’s (YAL) 2Q24 operating data came in slightly below our expectation, with only 1% YoY increase in attributable sales volume due to adverse weather conditions and operational factors such as longwall move and wash plant throughput rates.</li><li>Blended ASP dropped 20% YoY in 2Q24 but is in line with the market trend and our expectation.</li><li>We estimate Yancoal delivered ~A$1.5bn of revenue in 2Q24 (-20% YoY; +3% QoQ). YAL maintains the full-year sales volume guidance unchanged. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yancoal’s (YAL) 2Q24 operating data came in slightly below our expectation, with only 1% YoY increase in attributable sales volume due to adverse weather conditions and operational factors such as longwall move and wash plant throughput rates.Blended ASP dropped 20% YoY in 2Q24 but is in line with the market trend and our expectation.We estimate Yancoal delivered ~A$1.5bn of revenue in 2Q24 (-20% YoY; +3% QoQ). YAL maintains the full-year sales volume guidance unchanged. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yancoal Australia (3668 HK) - 2Q24 Sales Volume +1%; Full-Year Target Still Achievable

<ul><li>We believe the suspension of Grosvenor metallurgical coal mine (owned by Anglo American [AAL LN, NR]) in Queensland, Australia, following the underground fire in late Jun, would last for several months.</li><li>We estimate the suspension will result in ~0.8% reduction of global metallurgical coal export volume, which will likely translate into higher met coal price and serve as a positive catalyst for Yancoal (YAL).</li><li>We expect higher spot prices will boost YAL’s ASP in both 2H24E and 1H25E when some contracts are to be repriced over the coming months. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We believe the suspension of Grosvenor metallurgical coal mine (owned by Anglo American [AAL LN, NR]) in Queensland, Australia, following the underground fire in late Jun, would last for several months.We estimate the suspension will result in ~0.8% reduction of global metallurgical coal export volume, which will likely translate into higher met coal price and serve as a positive catalyst for Yancoal (YAL).We expect higher spot prices will boost YAL’s ASP in both 2H24E and 1H25E when some contracts are to be repriced over the coming months. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yancoal Australia (3668 HK) - Higher Coal Price Assumptions After the Fire Incident

<ul><li>YAL’s net profit in 2023 came in at A$1.82bn, down 49% YoY but 5% above the consensus estimates.</li><li>We are encouraged that YAL achieved &gt;20% YoY unit cost reduction in 2H23, on the back of accelerated volume growth (3Q23: +28% YoY; 4Q23: +46% YoY).</li><li>YAL declared final dividend (fully franked) of A$0.325/share. This, together with the interim dividend, implies a full-year payout ratio of 50.5% and ~13% yield based on the current price. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

YAL’s net profit in 2023 came in at A$1.82bn, down 49% YoY but 5% above the consensus estimates.We are encouraged that YAL achieved &gt;20% YoY unit cost reduction in 2H23, on the back of accelerated volume growth (3Q23: +28% YoY; 4Q23: +46% YoY).YAL declared final dividend (fully franked) of A$0.325/share. This, together with the interim dividend, implies a full-year payout ratio of 50.5% and ~13% yield based on the current price. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yancoal Australia (3668 HK) – Decline in 2023 Net Profit Largely Expected

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>China and Hong Kong saw positive ETF flows for the week.</li>
<li>Dividend Yield, Low Volatility and Value strategies have outperformed during the market correction in Hong Kong.</li>
<li>Lufax Holdings jumps after announcement that Ping An will increase stake.  Fufeng slumps after announcing a decline in 1st half profit.</li>
</ul>


China and Hong Kong saw positive ETF flows for the week.
Dividend Yield, Low Volatility and Value strategies have outperformed during the market correction in Hong Kong.
Lufax Holdings jumps after announcement that Ping An will increase stake.  Fufeng slumps after announcing a decline in 1st half profit.


The Heat Is On: News Flow and Sentiment in CHINA/HONG KONG (July 5th)

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes for the Hang Seng Index in September 2023.</li>
<li>The index changes for the December 2023 rebalance will be announced in mid-November (17 Nov) and implemented in early-December (with effect from 4 Dec).</li>
<li>Although the Hang Seng index has a highly subjective constituent selection process and index changes are somewhat unpredictable, we will continue sharing our thoughts for each quarterly review.</li>
</ul>


In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes for the Hang Seng Index in September 2023.
The index changes for the December 2023 rebalance will be announced in mid-November (17 Nov) and implemented in early-December (with effect from 4 Dec).
Although the Hang Seng index has a highly subjective constituent selection process and index changes are somewhat unpredictable, we will continue sharing our thoughts for each quarterly review.


Quiddity Leaderboard for Hang Seng Index Dec 23: High Conviction Names Have Decent Momentum Vs HSI

Australia

Yancoal Australia Limited provides coal mining services. The Company mines, processes, and sells pure-coal, metallurgical coal, and more. Yancoal Australia also exports its products.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Yancoal Australia (3668 HK)