Credit Suisse upgraded YZC yesterday. $19.35 on the conversion x 10 for the ADR.

We upgrade our target price for Yanzhou to HK$15 (from HK$13)
to reflect the impact of the Felix acquisition. We maintain our
OUTPERFORM rating.
● We estimate the highly probably Felix acquisition and the potential resolution of the Yushuwan mine, will boost Yanzhou’s output by 22% for 2010E, 50% in the long run, and increase Yanzhou’s coal reserve by 40%, from the current level, on attributable basis.

While we believe the acquisition price of Felix is better-valued on long term than short term, the potential acquisition of Felix would add 14% earnings to Yanzhou for 2010E, and 37% for 2011E.

● We expect a better balanced coal market for 4Q09 and 2010E,
and moderate upside for coal prices (CS NEWC coal price at
US$75/t for 2009E and US$80/t for 2010E). We believe the
cyclical driver of the power demand, output of basic materials, is stabilised, and improving real demand improvement from other part of the economy will make power demand, and therefore coal prices outlook, become defensive again, with potential upsides.