External broker reports(aggregated public sources), CMB International

CMB International

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.

External broker reports(aggregated public sources)

Equity Bottom-Up

<ul><li>We expect a resilient demand for seaborne coal as many countries have put energy security top of the priority, while the coal supply has remained tight due to miners’ capex discipline and heavy rainfall in Australia, a key coal producing country. </li><li>The strong coal price helped Yancoal Australia (YAL), the largest pure coal producer in Australia, reduce the net gearing ratio dramatically from 69% in 2020 to only 3% in Jun 2022, which paved the way for generous dividend distribution going forward. </li><li>We forecast net profit in 2H22E to grow 2x YoY and 60% HoH, taking the full year profit to A$4.5bn (+4.7x YoY).</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 expect a resilient demand for seaborne coal as many countries have put energy security top of the priority, while the coal supply has remained tight due to miners’ capex discipline and heavy rainfall in Australia, a key coal producing country. The strong coal price helped Yancoal Australia (YAL), the largest pure coal producer in Australia, reduce the net gearing ratio dramatically from 69% in 2020 to only 3% in Jun 2022, which paved the way for generous dividend distribution going forward. We forecast net profit in 2H22E to grow 2x YoY and 60% HoH, taking the full year profit to A$4.5bn (+4.7x YoY).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) – Scarcity Value yet to Be Explored; Resume Coverage with BUY