Shares of KINETIC DEV (01277) climbed nearly 4% in morning trading on the Hong Kong Stock Exchange, last changing hands at HK$2.105, up 3.95% with a turnover of HK$14.16 million.

The company recently posted its interim results for 2026, reporting revenue of approximately HK$2.521 billion, a modest 0.4% year-on-year increase. Net profit attributable to shareholders surged 36.82% to HK$768 million, with basic earnings per share of 9.11 HK cents. The board declared an interim dividend of 6.0 HK cents per share.

According to the announcement, the earnings growth was primarily driven by improved performance in the coal mining segment and effective cost control measures across all operating divisions.

Analysts at Guohai Securities noted that thanks to higher coal prices and cost reductions, the company's coal business pre-tax profit for the first half of 2026 rose 29.4% year-on-year to HK$1.202 billion. Gross and net profit margins were strong at 52.6% and 30.0%, respectively.

Looking at future capacity expansion, the company expects to increase annual production capacity to 2.2 million tonnes of coking coal and 1.8 million tonnes of thermal coal within the next two years.

On the equity front, between June and August 2026, the company subscribed to convertible notes issued by MC Mining and announced plans for further capital injections, opening up additional equity growth potential. The broker believes that with both volume growth and equity expansion on track, the South African project is poised to deliver incremental profit gains.