Coal: Fushan Energy (639.HK): ACCUMULATE - "Downstream Demand Weaker; Coal P
Events:<br/>On November 4, we visited Fushan’s three operating coal mines and the coal mine currently under construction, as well as communicating with management.<br/>Our Comments:<br/>Downstream demand has been very weak recently, and coal producers are under great pressure to cut coal prices. The company’s two coal preparation plants will start operation in 2009, with a clean coal output of about 4mt; raw coal output will be about 5mt. If at this time oversupply is serious, coking coal producers may reduce production accordingly.<br/>We cut our coal prices and earnings forecasts for the company: we cut our 2008 EPS forecast from HK$0.24 to HK$0.14; we cut our 2009 EPS forecast from HK$0.54 to HK$0.25, and cut our 2010 EPS forecast from HK$0.35 to HK$0.17. Maintain ACCUMULATE. We cut target prices from HK$4.02 to HK$2.42, and reiterate our ACCUMULATE rating on the stock.<br/> 页:
[1]