China Shenhua Energy Shares Climb After Reporting Sharp Jump in Net Profit

By Ronnie Harui

China Shenhua Energy Co.'s Hong Kong-listed shares climbed Monday morning after the company reported a 44% increase in 2021 net profit.

The energy company's shares rose as much as 10% to HK$24.60 in the morning session. The shares were last up 9.6% at HK$24.45.

The Chinese company said late Friday that net profit rose to 51.61 billion yuan ($8.11 billion) in 2021 from CNY35.85 billion in 2020. The board also recommended the payment of a final dividend in cash of CNY2.54 per share.

The dividend should be a positive catalyst for the shares, Citi Research said in a note. The U.S. bank raised its 2022 and 2023 net profit forecasts for China Shenhua Energy by 4% to reflect higher benchmark prices for long-term coal contracts in 2022 and higher power tariffs.

Citi also revised up its H-share target price to HK$27.50 from HK$24.00.

Write to Ronnie Harui at [e-mail]

(END) Dow Jones Newswires

03-27-22 2324ET