Mining Corp (MMC)(00975) with a "buy" rating and target price of HK$11.9.
The house sees MMC as the largest beneficiary of China's rising coking coal import,
given its position as a pure premium coking coal producer in closest proximity to the
Chinese border
Goldman expects an FY11-13 EPS CAGR of 79%, highest in regional peers. The house expects
significant margin expansion in FY11 as MMC started selling clean coal in 2H. In
addition, its ongoing construction of washing plants and paved road to help sustain its
above-sector margins in FY12E/13. (KL)