Coal prices in China have stayed above Chinese government guidance of RMB535/t for an extended period and our recent checks lead us to believe the coal price will likely remain at elevated levels through 2017 and into 2018 due to slow ramp-ups of new supply and resilient demand.We upgrade our QHD price forecasts by 2%,11%,and 12% for 2017,2018,and 2019,to RMB620/t,RMB600/t,and RMB580/t.We believe consensus remains too low in its coal price and coal company earnings forecasts.We raise our earnings forecasts by 11-140% and reiterate Buy on coal stocks.Our top pick is Shenhua,with a new target price of HK$26.5(+6%)and 36% potential share price upside.