标题: Coal: Fushan Energy (639.HK): ACCUMULATE - "Downstream Demand Weaker; C [打印本页] 作者: Wynnel 时间: 2008-11-11 17:36 标题: Coal: Fushan Energy (639.HK): ACCUMULATE - "Downstream Demand Weaker; Coal P
Events: On November 4, we visited Fushan’s three operating coal mines and the coal mine currently under construction, as well as communicating with management. Our Comments: 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. 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.
