Jim Trippon, a leading expert on China, conducts his research from offices in both the U.S. and China. The editor of the China Stock Digest explains, "We recently issued a buy recommendation on Yanzhou Coal Mining (NYSE: YZC) and since then, the stock has been sizzling."

The advisor notes, "Industrial production in China continues to rise even faster than the increase in the nation's GDP. Yanzhou Coal is benefiting from a number of developing trends that give us confidence in higher valuations for this company. Unlike many other staple resources, coal prices are not strictly capped by the government, and prices are being squeezed upward by both supply and demand.

"Coal is by far the most important fuel for generating stations. Yanzhou Coal is an industry leader because of its proximity to the industrialized eastern region of China. In addition to being close to major industrial markets, the company operates a number of rail lines, giving it priority in its access to steel and power generation markets.

"Record high oil prices will continue to push the demand for coal. We believe Yanzhou Coal is uniquely positioned to continue to reward investors with stable growth and dividend returns.

"The company saw annual earnings per share growth of more than 100% over the past 12 months compared to the same period a year ago, justifying the estimated P/E ratio of 17. Yanzhou returned a dividend of 1.5% for the trailing 12-month period."

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