China Shenhua Energy, the mainland's biggest coal producer, saw its share price surge 24.01 per cent to a record yesterday after investment bank UBS almost tripled its target price.
The stock gained HK$11.20 to close at HK$57.85, with HK$6.77 billion worth of shares changing hands. It was the third most active stock in the market.
Its Shanghai-traded A shares, which debuted on Tuesday, hit the 10 per cent daily ceiling to close at 83.85 yuan.
UBS yesterday lifted its 12-month target on Shenhua to HK$101 from HK$35.15 on expectations that coal prices in the mainland will more than double to 150 yuan a tonne and a coal deficit of 200 million tonnes may hit the country by 2020.
The target price reflects a 15 per cent premium and 74 times forecast earnings for next year.
