Changes in Hong Kong stocks | Shougang Resources (00639) rose more than 6%. Institutions say the company's high price per ton of coal in the industry will help achieve higher gross profit per ton of coal

The Zhitong Finance App learned that Shougang Resources (00639) increased by more than 6%. As of press release, it had risen 5.98% to HK$3.19, with a turnover of HK$26.412 million.

Tianfeng Securities released a research report stating that Shougang's resources business is centered around three coal mines. The company's total production capacity is 5.25 million tons/year. Currently, all types of coal are semi-hard coking coal. Judging from the company's expense ratio and balance ratio, the company's operations are relatively conservative and steady. However, from the perspective of gross margin and net profit margin, the company's profitability is strong.

The bank pointed out that the selling price of the company's tons of coal is high among companies in the same industry, or shows its high coal quality characteristics. Although negatively affected by fluctuations in coal quality in the short term, the company has steadily improved the quality of commercial coal by implementing strict coal quality supervision and management and strengthening on-site coal quality control in mines and coal washing plants. Judging from recent data, the company has also made certain efforts to control costs. Depreciation, amortization, and refined-coking coal processing fees all showed a downward trend. In the context of high coal prices and cost control driven by high coal quality, the company achieved a high gross profit of tons of coal in the industry.