3Q26 Profit Buoyant on High Aluminum & Coal Prices

Shenhuo Coal & Power (Shenhuo) has released its 3Q26 results. For 9M26, the company achieved revenue of RMB37.84bn (+22.03% YoY) and an attributable NP of RMB7.49bn (+114.54% YoY). For 3Q26, revenue reached RMB13.05bn (+23.34% YoY), with an attributable NP of RMB2,705mn (+70.66% YoY). The significant earnings growth in 9M26 was driven by higher primary aluminum and coal prices, along with lower alumina costs. Looking ahead, we expect the company to demonstrate resilient earnings backed by its cost edges, while the coal segment is likely to extend its recovery, in our view. Maintain BUY. For 9M26, the gross margin reached 37.15% (+13.97pp YoY);