Yanzhou Coal Mining's third quarter results have drawn a mixed reaction from analysts commenting on its profit outlook.
While sales volume is expected to remain strong in the remainder of the year, continued pricing pressure due to the weak global economy could dampen profit growth early next year, according to some analysts.
The Shandong province-based H share reported a 46 per cent year-on-year rise in net profit to 842.6 million yuan (about HK$794.88 million) for the first nine months of this year. Turnover rose 23.27 per cent to 5.94 billion yuan.
The main revenue growth drivers were a 10.1 per cent year-on-year increase in coal sales volume to 25.86 million tonnes, and a 10 per cent rise in its average coal sales price to 225.80 yuan a tonne.
Domestic sales volume rose 5.8 per cent year-on-year to 14.99 million tonnes, with export sales climbing 16.6 per cent to 10.87 million tonnes.
Merrill Lynch said it expected market consensus for Yanzhou Coal's full-year net profit would drop by about 3 per cent.