China Shenhua Energy Company Limited

SEHK:1088 Stock Report

Market Cap: HK$834.4b

China Shenhua Energy Valuation

Is 1088 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1088 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1088 (HK$32.05) is trading below our estimate of fair value (HK$56.68)

Significantly Below Fair Value: 1088 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1088?

Key metric: As 1088 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1088. This is calculated by dividing 1088's market cap by their current earnings.
What is 1088's PE Ratio?
PE Ratio10.3x
EarningsCN¥57.76b
Market CapCN¥782.90b

Price to Earnings Ratio vs Peers

How does 1088's PE Ratio compare to its peers?

The above table shows the PE ratio for 1088 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.8x
1898 China Coal Energy
6.6x4.1%HK$152.8b
1171 Yankuang Energy Group
5.1x0.5%HK$122.1b
386 China Petroleum & Chemical
9.8x9.4%HK$763.1b
883 CNOOC
5.6x-1.9%HK$884.5b
1088 China Shenhua Energy
10.3x-1.1%HK$834.4b

Price-To-Earnings vs Peers: 1088 is expensive based on its Price-To-Earnings Ratio (10.3x) compared to the peer average (6.8x).

Price to Earnings Ratio vs Industry

How does 1088's PE Ratio compare vs other companies in the HK Oil and Gas Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
663 King Stone Energy Group
1.3xn/aUS$15.51m
276 Mongolia Energy
0.06xn/aUS$14.52m
No more companies available in this PE range
1088 10.3xIndustry Avg. 9.4xNo. of Companies5PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1088 is expensive based on its Price-To-Earnings Ratio (10.3x) compared to the Hong Kong Oil and Gas industry average (9.4x).

Price to Earnings Ratio vs Fair Ratio

What is 1088's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1088 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.3x
Fair PE Ratio9.3x

Price-To-Earnings vs Fair Ratio: 1088 is expensive based on its Price-To-Earnings Ratio (10.3x) compared to the estimated Fair Price-To-Earnings Ratio (9.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 1088 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$32.05
HK$35.99
+12.3%
15.0%HK$42.49HK$24.44n/a12
Dec ’25HK$32.20
HK$36.37
+12.9%
14.5%HK$42.80HK$24.62n/a13
Nov ’25HK$34.30
HK$36.80
+7.3%
15.3%HK$43.48HK$25.00n/a12
Oct ’25HK$35.05
HK$37.54
+7.1%
16.1%HK$46.35HK$25.38n/a11
Sep ’25HK$33.70
HK$38.95
+15.6%
17.1%HK$46.02HK$25.20n/a11
Aug ’25HK$32.10
HK$38.80
+20.9%
16.4%HK$45.18HK$24.74n/a11
Jul ’25HK$35.95
HK$35.50
-1.3%
18.5%HK$45.00HK$24.64n/a12
Jun ’25HK$37.95
HK$33.50
-11.7%
16.6%HK$42.12HK$24.72n/a13
May ’25HK$32.70
HK$30.74
-6.0%
13.2%HK$38.04HK$24.79n/a14
Apr ’25HK$30.75
HK$29.81
-3.1%
10.3%HK$35.10HK$24.80n/a14
Mar ’25HK$30.55
HK$29.62
-3.0%
9.3%HK$34.77HK$24.92n/a13
Feb ’25HK$29.30
HK$29.11
-0.6%
12.0%HK$34.79HK$20.20n/a14
Jan ’25HK$26.75
HK$27.04
+1.1%
13.7%HK$33.11HK$20.32n/a13
Dec ’24HK$25.10
HK$27.15
+8.1%
14.2%HK$33.90HK$20.32HK$32.2013
Nov ’24HK$24.05
HK$26.49
+10.2%
14.6%HK$33.10HK$19.84HK$34.3013
Oct ’24HK$25.40
HK$26.19
+3.1%
13.4%HK$32.41HK$19.90HK$35.0514
Sep ’24HK$22.85
HK$26.48
+15.9%
11.9%HK$31.17HK$20.06HK$33.7015
Aug ’24HK$23.35
HK$27.06
+15.9%
12.1%HK$32.17HK$21.08HK$32.1015
Jul ’24HK$23.95
HK$27.63
+15.4%
12.6%HK$34.22HK$20.99HK$35.9515
Jun ’24HK$24.45
HK$27.25
+11.4%
14.0%HK$32.96HK$19.33HK$37.9516
May ’24HK$26.00
HK$27.55
+6.0%
14.1%HK$33.98HK$19.92HK$32.7014
Apr ’24HK$24.70
HK$27.94
+13.1%
13.9%HK$34.18HK$20.04HK$30.7515
Mar ’24HK$24.00
HK$29.59
+23.3%
12.3%HK$36.92HK$23.07HK$30.5515
Feb ’24HK$24.05
HK$30.00
+24.7%
12.9%HK$37.07HK$23.16HK$29.3015
Jan ’24HK$22.55
HK$29.95
+32.8%
11.2%HK$36.62HK$23.98HK$26.7515
Dec ’23HK$23.40
HK$29.42
+25.7%
11.4%HK$35.90HK$23.51HK$25.1014

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 21:33
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

China Shenhua Energy Company Limited is covered by 79 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Yibiao ChenABCI Securities Company Limited
Ephrem RaviBarclays
Kathryn DingBNP Paribas Securities (Asia)