Shares of Yankuang Energy (01171) climbed nearly 5% during the late trading session, last up 4.77% at HK$13.61 with turnover reaching HK$522 million.

The company is scheduled to hold a board meeting on August 28 to approve its interim results. Earlier, Yankuang issued a profit alert, projecting attributable net profit of RMB 7.2 billion for the first half of 2026, representing a 53% year-on-year increase. Excluding non-recurring items, net profit is expected at RMB 4.5 billion, up 2% from the prior year.

The substantial one-time investment gain from the public listing and transfer of its 100% stake in Inner Mongolia Xintai Coal stands as the key driver behind the significant boost in reported net profit.

A research note from Huafu Securities suggests that with improving coal supply-demand dynamics in 2026, weakening import substitution effects, and stronger seasonal peak summer demand alongside chemical coal consumption, the coal price center is likely to shift upward relative to 2025. Given the company's high proportion of market-based sales, any coal price recovery could unlock further earnings elasticity in its coal operations.

Coal chemicals serve as the company's second core business, offering a diverse product portfolio, with high-end extensions opening up additional growth prospects.