CORRECTED - CORRECTED-China Shenhua Q3 profit up 12 pct on higher sales

(Corrects second paragraph to domestic accounting standards, from international accounting standards)

HONG KONG, Oct 27 (Reuters) - China Shenhua Energy Co Ltd (1088.HK), the world's most valuable coal producer, said its quarterly profit rose 12 percent after cranking out more coal and selling it at higher prices, thanks to strong demand from power producers.

Shenhua (601088.SS), China's top coal miner, said its July-September net profit was 8.7 billion yuan based on domestic accounting standards, up from 7.8 billion yuan a year earlier but below a forecast by Sun Hung Kai Financial of 9.83 billion.

Across the sector, analysts prefer Shenhua because of its exposure to contract sales and because it operates its own railway network to transport coal, giving it higher earnings visibility and room to control its costs compared to its rivals. (Reporting by Sui-Lee Wee; Editing by Don Durfee and Chris Lewis)