Friday, April 25, 2014

Inner Mongolia Yitai Coal : BofAML lowers Yitai Coal to HK$8.7

[ET Net News Agency, 25 April 2014] BofA Merrill Lynch lowered its target price for Inner Mongolia Yitai Coal (03948) to HK$8.7 from HK$10, and maintained its "underperform" rating.

The research house said Yitai's 1Q results were in line. Thanks to the improved sales mix, its gross margin improved by 200bps to 38%. Its net margin improved by 100bps to 19%.

The QHD 5,500k coal price has fallen to RMB530/t, down 18% year-to-date. BofAML expects the domestic coal price to stay under pressure in 2H. The domestic property market has started to show weakness. Falling property demand could lead to decreasing coal demand. (KL)

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