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China Shenhua Energy

SEHK:1088
Snowflake Description

Flawless balance sheet, undervalued and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1088
SEHK
HK$410B
Market Cap
  1. Home
  2. HK
  3. Energy
Company description

China Shenhua Energy Company Limited, together with its subsidiaries, engages in coal, power, railway, port, shipping, and coal chemical businesses in the People’s Republic of China and internationally. The last earnings update was 85 days ago. More info.


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1088 Share Price and Events
7 Day Returns
0.9%
SEHK:1088
-1.8%
HK Oil and Gas
-0.2%
HK Market
1 Year Returns
-2.2%
SEHK:1088
-17.2%
HK Oil and Gas
-4.5%
HK Market
1088 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Shenhua Energy (1088) 0.9% -3% -8% -2.2% 13.3% -26.8%
HK Oil and Gas -1.8% -0.3% -14.3% -17.2% -7.1% -45.2%
HK Market -0.2% 2.7% -8.3% -4.5% 16.5% 1%
1 Year Return vs Industry and Market
  • 1088 outperformed the Oil and Gas industry which returned -17.2% over the past year.
  • 1088 outperformed the Market in Hong Kong which returned -4.5% over the past year.
Price Volatility
1088
Industry
5yr Volatility vs Market

1088 Value

 Is China Shenhua Energy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Shenhua Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Shenhua Energy.

SEHK:1088 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1088
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.919 (1 + (1- 25%) (15.68%))
1.018
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.018 * 5.96%)
8.07%

Discounted Cash Flow Calculation for SEHK:1088 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Shenhua Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1088 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.07%)
2020 49,461.08 Analyst x3 45,766.57
2021 52,266.15 Analyst x2 44,749.68
2022 47,057.32 Est @ -9.97% 37,280.47
2023 44,057.28 Est @ -6.38% 32,296.58
2024 42,355.87 Est @ -3.86% 28,730.11
2025 41,465.40 Est @ -2.1% 26,025.21
2026 41,104.34 Est @ -0.87% 23,871.56
2027 41,100.79 Est @ -0.01% 22,086.56
2028 41,345.28 Est @ 0.59% 20,558.36
2029 41,765.89 Est @ 1.02% 19,216.27
Present value of next 10 years cash flows CN¥300,581.36
SEHK:1088 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥41,765.89 × (1 + 2%) ÷ (8.07% – 2%)
CN¥701,908.44
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥701,908.44 ÷ (1 + 8.07%)10
CN¥322,944.39
SEHK:1088 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥300,581.36 + CN¥322,944.39
CN¥623,525.75
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥623,525.75 / 19,889.62
CN¥31.35
SEHK:1088 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1088)
1.136
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥31.35 x 1.136
HK$35.61
Value per share (HKD) From above. HK$35.61
Current discount Discount to share price of HK$16.36
= -1 x (HK$16.36 - HK$35.61) / HK$35.61
54.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China Shenhua Energy is available for.
Intrinsic value
>50%
Share price is HK$16.36 vs Future cash flow value of HK$35.61
Current Discount Checks
For China Shenhua Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Shenhua Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Shenhua Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Shenhua Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Shenhua Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1088 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥2.25
SEHK:1088 Share Price ** SEHK (2019-07-19) in HKD HK$16.36
SEHK:1088 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥14.4
Hong Kong Oil and Gas Industry PE Ratio Median Figure of 26 Publicly-Listed Oil and Gas Companies 8.7x
Hong Kong Market PE Ratio Median Figure of 1,510 Publicly-Listed Companies 10.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Shenhua Energy.

SEHK:1088 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1088 Share Price ÷ EPS (both in CNY)

= 14.4 ÷ 2.25

6.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Shenhua Energy is good value based on earnings compared to the HK Oil and Gas industry average.
  • China Shenhua Energy is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Shenhua Energy's expected growth come at a high price?
Raw Data
SEHK:1088 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
-3.8%per year
Hong Kong Oil and Gas Industry PEG Ratio Median Figure of 10 Publicly-Listed Oil and Gas Companies 0.73x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

SEHK:1088 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.39x ÷ -3.8%

-1.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Shenhua Energy earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on China Shenhua Energy's assets?
Raw Data
SEHK:1088 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥17.32
SEHK:1088 Share Price * SEHK (2019-07-19) in HKD HK$16.36
SEHK:1088 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥14.4
Hong Kong Oil and Gas Industry PB Ratio Median Figure of 44 Publicly-Listed Oil and Gas Companies 0.86x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:1088 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1088 Share Price ÷ Book Value per Share (both in CNY)

= 14.4 ÷ 17.32

0.83x

* Primary Listing of China Shenhua Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Shenhua Energy is good value based on assets compared to the HK Oil and Gas industry average.
X
Value checks
We assess China Shenhua Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. China Shenhua Energy has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1088 Future Performance

 How is China Shenhua Energy expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-3.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Shenhua Energy expected to grow at an attractive rate?
  • China Shenhua Energy's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • China Shenhua Energy's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • China Shenhua Energy's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1088 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1088 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts -3.8%
SEHK:1088 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 0.1%
Hong Kong Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
Hong Kong Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.9%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1088 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1088 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 237,303 76,942 39,946 9
2020-12-31 237,449 72,875 41,782 13
2019-12-31 234,310 78,839 43,111 15
SEHK:1088 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 258,133 107,402 44,799
2018-12-31 264,101 88,248 44,137
2018-09-30 260,295 79,160 46,392
2018-06-30 255,608 79,452 46,017
2018-03-31 250,663 81,979 47,061
2017-12-31 248,746 95,152 47,795
2017-09-30 240,859 103,523 44,872
2017-06-30 224,922 91,313 40,381
2017-03-31 204,787 91,641 33,106
2016-12-31 183,127 81,883 24,910
2016-09-30 167,058 80,555 17,190
2016-06-30 165,791 61,424 15,057

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Shenhua Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • China Shenhua Energy's revenue is expected to grow by 0.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1088 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from China Shenhua Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1088 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.06 2.33 1.80 6.00
2020-12-31 2.13 2.37 1.93 13.00
2019-12-31 2.13 2.32 1.97 12.00
SEHK:1088 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 2.25
2018-12-31 2.22
2018-09-30 2.33
2018-06-30 2.31
2018-03-31 2.37
2017-12-31 2.40
2017-09-30 2.26
2017-06-30 2.03
2017-03-31 1.66
2016-12-31 1.25
2016-09-30 0.86
2016-06-30 0.76

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China Shenhua Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Shenhua Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Shenhua Energy has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1088 Past Performance

  How has China Shenhua Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Shenhua Energy's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Shenhua Energy's year on year earnings growth rate has been positive over the past 5 years.
  • China Shenhua Energy's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • China Shenhua Energy's 1-year earnings growth is negative, it can't be compared to the HK Oil and Gas industry average.
Earnings and Revenue History
China Shenhua Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Shenhua Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1088 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 258,133.00 44,799.00 10,611.00 454.00
2018-12-31 264,101.00 44,137.00 10,705.00 454.00
2018-09-30 260,295.00 46,392.00 10,832.00
2018-06-30 255,608.00 46,017.00 10,601.00
2018-03-31 250,663.00 47,061.00 9,817.00 341.00
2017-12-31 248,746.00 47,795.00 9,727.00 341.00
2017-09-30 240,859.00 44,872.00 9,256.00
2017-06-30 224,922.00 40,381.00 9,136.00
2017-03-31 204,787.00 33,106.00 9,174.00
2016-12-31 183,127.00 24,910.00 9,033.00
2016-09-30 167,058.00 17,190.00 9,567.00
2016-06-30 165,791.00 15,057.00 9,884.00
2016-03-31 175,179.00 15,774.00 10,147.00
2015-12-31 177,069.00 17,649.00 10,298.00
2015-09-30 197,453.00 26,985.00 10,345.00
2015-06-30 213,885.00 29,945.00 10,149.00
2015-03-31 233,444.00 34,838.00 9,672.00
2014-12-31 253,081.00 39,301.00 9,629.00
2014-09-30 274,536.00 41,405.00 9,847.00
2014-06-30 284,332.00 42,559.00 9,905.00
2014-03-31 283,732.00 44,086.00 10,080.00
2013-12-31 283,797.00 45,079.00 10,118.00
2013-09-30 275,911.00 46,038.00 9,890.00
2013-06-30 261,769.00 48,262.00 9,659.00
2013-03-31 255,575.00 50,015.00 9,374.00
2012-12-31 254,575.00 49,708.00 9,160.00
2012-09-30 233,181.00 48,891.00 9,310.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Shenhua Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Shenhua Energy used its assets more efficiently than the HK Oil and Gas industry average last year based on Return on Assets.
  • China Shenhua Energy has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China Shenhua Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Shenhua Energy has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1088 Health

 How is China Shenhua Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China Shenhua Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Shenhua Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • China Shenhua Energy's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Shenhua Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Shenhua Energy Company Filings, last reported 3 months ago.

SEHK:1088 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 408,738.00 53,435.00 81,905.00
2018-12-31 408,837.00 59,360.00 96,045.00
2018-09-30 405,664.00 73,073.00 106,517.00
2018-06-30 390,651.00 98,175.00 96,341.00
2018-03-31 393,876.00 93,781.00 78,401.00
2017-12-31 379,105.00 94,853.00 73,794.00
2017-09-30 371,893.00 90,061.00 66,216.00
2017-06-30 357,778.00 105,953.00 113,718.00
2017-03-31 401,233.00 106,857.00 84,226.00
2016-12-31 384,969.00 105,578.00 78,016.00
2016-09-30 379,433.00 87,950.00 76,753.00
2016-06-30 372,294.00 108,221.00 68,590.00
2016-03-31 370,869.00 106,018.00 53,481.00
2015-12-31 363,921.00 106,595.00 43,399.00
2015-09-30 367,084.00 104,082.00 47,924.00
2015-06-30 362,819.00 101,785.00 52,438.00
2015-03-31 368,414.00 97,134.00 47,655.00
2014-12-31 365,570.00 97,987.00 37,636.00
2014-09-30 352,460.00 107,366.00 63,910.00
2014-06-30 343,845.00 105,426.00 65,308.00
2014-03-31 348,354.00 97,298.00 46,654.00
2013-12-31 334,642.00 90,527.00 40,013.00
2013-09-30 327,088.00 78,505.00 46,510.00
2013-06-30 316,846.00 60,521.00 43,851.00
2013-03-31 320,923.00 66,914.00 60,119.00
2012-12-31 313,151.00 74,312.00 56,004.00
2012-09-30 294,804.00 59,850.00 61,904.00
  • China Shenhua Energy's level of debt (13.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (28% vs 13.1% today).
  • Debt is well covered by operating cash flow (201%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 26.9x coverage).
X
Financial health checks
We assess China Shenhua Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Shenhua Energy has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1088 Dividends

 What is China Shenhua Energy's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.11%
Current annual income from China Shenhua Energy dividends. Estimated to be 5.83% next year.
If you bought HK$2,000 of China Shenhua Energy shares you are expected to receive HK$122 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China Shenhua Energy's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.09%).
  • China Shenhua Energy's dividend is above the markets top 25% of dividend payers in Hong Kong (5.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1088 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
Hong Kong Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 6.2%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1088 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.79 5.00
2020-12-31 0.87 13.00
2019-12-31 0.81 6.00
SEHK:1088 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-06-21 0.880 6.054
2018-05-07 0.910 5.810
2017-07-03 0.460 2.770
2016-06-24 0.320 2.258
2015-05-29 0.740 6.846
2014-07-03 0.910 5.351
2013-06-21 0.960 5.382
2012-03-23 0.900 3.778
2011-03-25 0.750 2.602
2010-06-21 0.530 1.936
2009-04-17 0.460 1.659

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of China Shenhua Energy's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess China Shenhua Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Shenhua Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Shenhua Energy has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1088 Management

 What is the CEO of China Shenhua Energy's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jiming Zhang
COMPENSATION CN¥0
AGE 56
TENURE AS CEO 0.8 years
CEO Bio

Mr. Zhang Jiming is President of China Shenhua Energy Co. Ltd. since September 13, 2018. He served as Vice President of China Shenhua Energy Co. Ltd. since July 1, 2016 until September 2018. Mr. Zhang has extensive experience in chemical business administration. He has been the chairman and the general manager of China Shenhua Coal to Liquid and Chemical Co., Ltd. since November 2015. Mr. Zhang served as the president of China Shenhua Coal to Liquid and Chemical Co., Ltd. from August 2012 to November 2015, as a Director and a Vice President (subsidiary chief level) of China Shenhua Coal to Liquid Co., Ltd. from January 2011 to August 2012. Prior to the foregoing, he had successively held the post of the Chief Economist and the Deputy General Manager of China Shenhua Coal to Liquid Co., Ltd., the director and the Vice Director of Liaoyang Petrochemical Branch Company Refinery Plant. He is a Senior Engineer. In 1985, Mr. Zhang graduated from Liaoning Petrochemical School.

CEO Compensation
  • Insufficient data for Jiming to compare compensation growth.
  • Jiming's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China Shenhua Energy management team in years:

1.3
Average Tenure
57
Average Age
  • The average tenure for the China Shenhua Energy management team is less than 2 years, this suggests a new team.
Management Team

Jiming Zhang

TITLE
President
AGE
56
TENURE
0.8 yrs

Shancheng Xu

TITLE
Chief Financial Officer
AGE
55
TENURE
0.6 yrs

Dong Li

TITLE
Executive Director
AGE
59
TENURE
8.2 yrs

Gao Song

TITLE
Executive Director
AGE
57
TENURE
1.3 yrs

Shuhua Mi

TITLE
Executive Director
AGE
57
TENURE
1.3 yrs

Qing Huang

TITLE
Secretary to the Board
AGE
54
TENURE
14.7 yrs

Xiangxi Wang

TITLE
Executive Chairman
AGE
57
Board of Directors Tenure

Average tenure and age of the China Shenhua Energy board of directors in years:

1.7
Average Tenure
58
Average Age
  • The average tenure for the China Shenhua Energy board of directors is less than 3 years, this suggests a new board.
Board of Directors

Gao Song

TITLE
Executive Director
AGE
57
TENURE
1.3 yrs

Shuhua Mi

TITLE
Executive Director
AGE
57
TENURE
1.3 yrs

Xiangxi Wang

TITLE
Executive Chairman
AGE
57
TENURE
0.1 yrs

Jibin Zhao

TITLE
Non-Executive Director
AGE
67
TENURE
3.1 yrs

Dong Li

TITLE
Executive Director
AGE
59
TENURE
3.1 yrs

Maria Tam

TITLE
Independent Non-Executive Director
AGE
74
TENURE
2.1 yrs

Bo Jiang

TITLE
Independent Non-Executive Director
AGE
64
TENURE
2.1 yrs

Christina Zhong

TITLE
Independent Non-Executive Director
AGE
51
TENURE
2.1 yrs

Suping Peng

TITLE
Independent Non-Executive Director
AGE
60
TENURE
1.3 yrs

Ming Huang

TITLE
Independent Non-Executive Director
AGE
55
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
13. Mar 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 08. Mar 19 08. Mar 19 -19,600,301 HK$18.67 HK$-366,017,920
14. Feb 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 11. Feb 19 11. Feb 19 -5,529,678 HK$19.54 HK$-108,041,613
08. Feb 19 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 04. Feb 19 04. Feb 19 -13,308 HK$19.63 HK$-261,205
08. Feb 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 04. Feb 19 04. Feb 19 2,317,789 HK$19.63 HK$45,492,873
08. Feb 19 Sell J.P. Morgan Asset Management, Inc. Company 04. Feb 19 04. Feb 19 -2,241,500 HK$19.63 HK$-43,995,495
08. Feb 19 Buy J.P. Morgan Asset Management, Inc. Company 04. Feb 19 04. Feb 19 5,000 HK$19.63 HK$98,139
08. Feb 19 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 01. Feb 19 01. Feb 19 -4 HK$19.73 HK$-79
08. Feb 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 01. Feb 19 01. Feb 19 -610,322 HK$19.73 HK$-12,039,823
08. Feb 19 Sell J.P. Morgan Asset Management, Inc. Company 01. Feb 19 01. Feb 19 -29,000 HK$19.73 HK$-572,083
04. Feb 19 Buy J.P. Morgan Asset Management, Inc. Company 31. Jan 19 31. Jan 19 1,068,482 HK$19.78 HK$21,132,547
29. Jan 19 Sell J.P. Morgan Asset Management, Inc. Company 24. Jan 19 24. Jan 19 -4,212,457 HK$19.31 HK$-81,350,956
24. Jan 19 Buy J.P. Morgan Asset Management, Inc. Company 21. Jan 19 21. Jan 19 4,714,438 HK$19.27 HK$90,856,195
21. Jan 19 Sell J.P. Morgan Asset Management, Inc. Company 16. Jan 19 16. Jan 19 -1,536,632 HK$18.49 HK$-28,415,401
18. Jan 19 Buy J.P. Morgan Asset Management, Inc. Company 15. Jan 19 15. Jan 19 1,421,670 HK$18.63 HK$26,482,163
07. Dec 18 Buy J.P. Morgan Asset Management, Inc. Company 04. Dec 18 04. Dec 18 993,715 HK$17.85 HK$17,736,422
31. Jul 18 Sell J.P. Morgan Asset Management, Inc. Company 26. Jul 18 26. Jul 18 -6,713,813 HK$17.84 HK$-119,747,549
27. Jul 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 24. Jul 18 24. Jul 18 3,138,056 HK$17.75 HK$55,687,627
X
Management checks
We assess China Shenhua Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Shenhua Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1088 News

Simply Wall St News

China Shenhua Energy (HKG:1088) Seems To Use Debt Quite Sensibly

SEHK:1088 Historical Debt, July 19th 2019 A Look At China Shenhua Energy's Liabilities According to the last reported balance sheet, China Shenhua Energy had liabilities of CN¥93.2b due within 12 months, and liabilities of CN¥54.6b due beyond 12 months. … China Shenhua Energy may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. … Summing up Although China Shenhua Energy's balance sheet isn't particularly strong, due to the total liabilities, it is clearly positive to see that it has net cash of CN¥28b.

Simply Wall St -

Why You Should Like China Shenhua Energy Company Limited’s (HKG:1088) ROCE

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for China Shenhua Energy: 0.17 = CN¥77b ÷ (CN¥556b - CN¥93b) (Based on the trailing twelve months to March 2019.) So, China Shenhua Energy has an ROCE of 17%. … Check out our latest analysis for China Shenhua Energy Is China Shenhua Energy's ROCE Good? … China Shenhua Energy's Current Liabilities And Their Impact On Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months.

Simply Wall St -

Is There An Opportunity With China Shenhua Energy Company Limited's (HKG:1088) 49% Undervaluation?

In this article we are going to estimate the intrinsic value of China Shenhua Energy Company Limited (HKG:1088) by projecting its future cash flows and then discounting them to today's value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (CN¥, Millions) CN¥52.10k CN¥48.89k CN¥50.08k CN¥44.28k CN¥40.96k CN¥39.06k CN¥38.03k CN¥37.55k CN¥37.44k CN¥37.60k Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x3 Est @ -11.57% Est @ -7.5% Est @ -4.65% Est @ -2.65% Est @ -1.26% Est @ -0.28% Est @ 0.41% Present Value (CN¥, Millions) Discounted @ 8.03% CN¥48.23k CN¥41.90k CN¥39.72k CN¥32.52k CN¥27.85k CN¥24.58k CN¥22.15k CN¥20.25k CN¥18.69k CN¥17.37k Present Value of 10-year Cash Flow (PVCF)= CN¥293.26b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … SEHK:1088 Intrinsic value, June 19th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Does China Shenhua Energy Company Limited's (HKG:1088) P/E Ratio Signal A Buying Opportunity?

View our latest analysis for China Shenhua Energy How Do I Calculate China Shenhua Energy's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for China Shenhua Energy: P/E of 6.32 = CN¥14.24 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥2.25 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … China Shenhua Energy's earnings per share fell by 4.9% in the last twelve months.

Simply Wall St -

Is China Shenhua Energy Company Limited (HKG:1088) A Smart Choice For Dividend Investors?

Is China Shenhua Energy Company Limited (HKG:1088) a good dividend stock? … It's good to see that China Shenhua Energy has been paying a dividend for a number of years. … Conclusion To summarise, shareholders should always check that China Shenhua Energy's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Has China Shenhua Energy Company Limited (HKG:1088) Got Enough Cash?

China Shenhua Energy Company Limited (HKG:1088), a large-cap worth HK$438b, comes to mind for investors seeking a strong and reliable stock investment. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … See our latest analysis for China Shenhua Energy?

Simply Wall St -

China Shenhua Energy Company Limited (HKG:1088): Commentary On Fundamentals

China Shenhua Energy Company Limited (HKG:1088) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … company with a

Simply Wall St -

What Are Analysts Saying About China Shenhua Energy Company Limited's (HKG:1088) Future?

In December 2018, China Shenhua Energy Company Limited (HKG:1088) released its most recent earnings announcement, whicha … company

Simply Wall St -

China Shenhua Energy Company Limited (HKG:1088): Are Analysts’ Forecast Signalling Trouble Ahead?

On 31 December 2018, China Shenhua Energy Company Limited (HKG:1088) announced its latest earnings update.

Simply Wall St -

Could The China Shenhua Energy Company Limited (HKG:1088) Ownership Structure Tell Us Something Useful?

Every investor in China Shenhua Energy Company Limited (HKG:1088) should be aware of the most powerful shareholder groups. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … China Shenhua Energy is a pretty big company.

Simply Wall St -

1088 Company Info

Description

China Shenhua Energy Company Limited, together with its subsidiaries, engages in coal, power, railway, port, shipping, and coal chemical businesses in the People’s Republic of China and internationally. The company’s Coal segment produces coal from surface and underground mines; and sells coal to power plants, metallurgical and coal chemical producers, and provincial/regional electric grid companies. As of December 31, 2018, this segment had the recoverable coal reserves of 14.95 billion tones. Its Power segment generates and sells electric power to power grid companies. This segment generates electric power through coal, thermal, wind, water, and gas. The company’s Railway segment provides railway transportation services. Its Port segment offers loading, transportation, and storage services. The company’s Shipping segment provides shipment transportation services. Its Coal Chemical segment produces and sells methanol; and polyethylene and polypropylene, as well as other by-products. The company was founded in 2004 and is based in Beijing, China. China Shenhua Energy Company Limited is a subsidiary of Shenhua Group Corporation Limited.

Details
Name: China Shenhua Energy Company Limited
1088
Exchange: SEHK
Founded: 2004
HK$409,926,334,880
19,889,620,455
Website: http://www.csec.com
Address: China Shenhua Energy Company Limited
22 Andingmen Xibinhe Road,
Dongcheng District,
Beijing,
100011,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1088 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 15. Jun 2005
OTCPK CUAE.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 15. Jun 2005
DB IKF Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 15. Jun 2005
SHSC 1088 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 15. Jun 2005
SZSC 1088 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 15. Jun 2005
OTCPK CSUA.Y ADR Pink Sheets LLC US USD 13. Oct 2008
SHSE 601088 Domestic Shares Shanghai Stock Exchange CN CNY 17. Oct 2007
XSSC 601088 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 17. Oct 2007
Number of employees
Current staff
Staff numbers
86,856
China Shenhua Energy employees.
Industry
Coal and Consumable Fuels
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 12:49
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.