Switch 2.5%
Santos (STO) to Yancoal (YAL)
*** GENERAL ADVICE ONLY ***
Description
Sector: Thermal Coal
Yancoal Australia Ltd, a subsidiary of Yankuang Energy Group Company Limited, specializes in exploring, developing, producing, and marketing metallurgical and thermal coal. Based in Sydney, it operates in various countries and holds significant interests in several mines across New South Wales, Queensland, and Western Australia, including Moolarben, Mount Thorley, Warkworth, Hunter Valley Operations, Yarrabee, Ashton, Stratford Duralie, and Middlemount. The company was incorporated in 2004.
Metrics
Date: 21/12/2023
Market Cap: $1.32B
PE: 2.27
Yield: 22.02%
Trade
Allocation: Trim 2% Entry: $252 Exit: $281 Profit: 11.5%
Catalyst
Despite the geopolitical pressure, the Timor approval and WDS merger talk, STO has struggled to fund a bid.
Conversely, the recent coal import numbers from China showed a 35% increase in coal imports.
YAL has been a staple position in our portfolios over the last 2 years and re-entering after selling at 5.15 after the dividend in September is an improvement of 5%
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.