SEHK:1171

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Yanzhou Coal Mining

Executive Summary

Yanzhou Coal Mining Company Limited, an investment holding company, primarily engages in the mining, preparation, and sale of coal in China, Japan, South Korea, Singapore, Australia, and internationally. More Details


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Yanzhou Coal Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1171 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.7%

1171

-6.3%

HK Oil and Gas

-5.5%

HK Market


1 Year Return

-30.1%

1171

-34.1%

HK Oil and Gas

-1.9%

HK Market

Return vs Industry: 1171 exceeded the Hong Kong Oil and Gas industry which returned -34.6% over the past year.

Return vs Market: 1171 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

1171IndustryMarket
7 Day-7.7%-6.3%-5.5%
30 Day-7.7%-11.0%-7.7%
90 Day-2.1%-6.2%-1.5%
1 Year-10.6%-30.1%-30.5%-34.1%2.1%-1.9%
3 Year7.5%-27.0%-33.7%-43.3%-8.4%-18.3%
5 Year129.1%52.0%-26.2%-40.1%16.1%-3.5%

Price Volatility Vs. Market

How volatile is Yanzhou Coal Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Yanzhou Coal Mining undervalued compared to its fair value and its price relative to the market?

49.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1171 (HK$5.61) is trading below our estimate of fair value (HK$11.18)

Significantly Below Fair Value: 1171 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1171 is good value based on its PE Ratio (3x) compared to the HK Oil and Gas industry average (5.8x).

PE vs Market: 1171 is good value based on its PE Ratio (3x) compared to the Hong Kong market (11x).


Price to Earnings Growth Ratio

PEG Ratio: 1171's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 1171 is good value based on its PB Ratio (0.4x) compared to the HK Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Yanzhou Coal Mining forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1171's earnings are forecast to decline over the next 3 years (-2.4% per year).

Earnings vs Market: 1171's earnings are forecast to decline over the next 3 years (-2.4% per year).

High Growth Earnings: 1171's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 1171's revenue is expected to decline over the next 3 years (-6.6% per year).

High Growth Revenue: 1171's revenue is forecast to decline over the next 3 years (-6.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1171's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Yanzhou Coal Mining performed over the past 5 years?

37.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1171 has high quality earnings.

Growing Profit Margin: 1171's current net profit margins (4.2%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: 1171's earnings have grown significantly by 37% per year over the past 5 years.

Accelerating Growth: 1171's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1171 had negative earnings growth (-11%) over the past year, making it difficult to compare to the Oil and Gas industry average (-5.9%).


Return on Equity

High ROE: 1171's Return on Equity (12.6%) is considered low.


Next Steps

Financial Health

How is Yanzhou Coal Mining's financial position?


Financial Position Analysis

Short Term Liabilities: 1171's short term assets (CN¥68.3B) do not cover its short term liabilities (CN¥78.2B).

Long Term Liabilities: 1171's short term assets (CN¥68.3B) exceed its long term liabilities (CN¥56.9B).


Debt to Equity History and Analysis

Debt Level: 1171's debt to equity ratio (86.4%) is considered high.

Reducing Debt: 1171's debt to equity ratio has reduced from 137.3% to 86.4% over the past 5 years.

Debt Coverage: 1171's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: 1171 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Yanzhou Coal Mining current dividend yield, its reliability and sustainability?

11.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1171's dividend (11.77%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1171's dividend (11.77%) is in the top 25% of dividend payers in the Hong Kong market (7.04%)


Stability and Growth of Payments

Stable Dividend: 1171's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1171's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.8%), 1171's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1171's dividends in 3 years are forecast to be well covered by earnings (35% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Energy industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average management tenure


CEO

Jian Liu (51 yo)

0.42

Tenure

CN¥964,000

Compensation

Mr. Jian Liu serves as General Manager at Yanzhou Coal Mining Company Limited since April 22, 2020. He serves as a Director at Yanzhou Coal Mining Company Limited since May 24, 2019 and was its Vice Genera ...


CEO Compensation Analysis

Compensation vs Market: Jian's total compensation ($USD141.66K) is below average for companies of similar size in the Hong Kong market ($USD642.46K).

Compensation vs Earnings: Jian's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jian Liu
GM & Director0.42yrCN¥964.00kno data
Qingchun Zhao
CFO & Director4.25yrsCN¥1.00mno data
Jing He
Deputy GM & Director0.25yrCN¥1.20mno data
Zhijie Gong
Deputy General Manager0.67yrCN¥839.00kno data
Qingbin Jin
Secretary to the Board4.5yrsCN¥857.00kno data
Lei Zhang
Chief Investment Officer0.25yrno datano data
Jian Xu
Head of Finance Management Departmentno datano datano data
Chunyao Wang
Chief Engineer0.42yrno datano data
Chuanchang Zhang
Deputy General Manager0.25yrno datano data
Peng Wang
Deputy General Manager0.25yrno datano data
Yaomeng Xiao
Deputy GM & Chief Safety Officer0.25yrno datano data

0.4yrs

Average Tenure

50.5yo

Average Age

Experienced Management: 1171's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jian Liu
GM & Director0.42yrCN¥964.00kno data
Qingchun Zhao
CFO & Director4.25yrsCN¥1.00mno data
Jing He
Deputy GM & Director0.25yrCN¥1.20mno data
Chiu Kwok Poon
Independent Non-Executive Director3.25yrsCN¥142.00kno data
Xiyong Li
Chairman of the Board7yrsno data0.00021%
CN¥ 88.9k
Xiangqian Wu
Director6.33yrsCN¥1.25m0.00021%
CN¥ 88.9k
Shisheng Gu
Chairman of the Supervisory Committee3.25yrsCN¥191.43k0.00026%
CN¥ 110.1k
Hui Tian
Independent Non Executive Director0.25yrno datano data
Hong Zhou
Vice Chairman of the Supervisory Committee3.25yrsno datano data
Chang Cai
Independent Non-Executive Director2.83yrsCN¥142.00kno data
Limin Zhu
Independent Non Executive Director0.25yrno datano data
Ruolin Wang
Employee Representative Director0.25yrno datano data

3.0yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 1171's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Yanzhou Coal Mining Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yanzhou Coal Mining Company Limited
  • Ticker: 1171
  • Exchange: SEHK
  • Founded: 1973
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: HK$42.330b
  • Shares outstanding: 4.86b
  • Website: https://www.yanzhoucoal.com.cn

Number of Employees


Location

  • Yanzhou Coal Mining Company Limited
  • 298 Fushan South Road
  • Zoucheng
  • Shandong Province
  • 273500
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YZCA.YOTCPK (Pink Sheets LLC)SPON ADR EACH REP 10'H'CNY1 LEVELIIIUSUSDMar 1998
YZCDB (Deutsche Boerse AG)SPON ADR EACH REP 10'H'CNY1 LEVELIIIDEEURMar 1998
YZCH.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDApr 1998
1171SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDApr 1998
YZCADB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURApr 1998
1171SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDApr 1998
1171SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDApr 1998
600188SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJul 1998
600188XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJul 1998

Biography

Yanzhou Coal Mining Company Limited, an investment holding company, primarily engages in the mining, preparation, and sale of coal in China, Japan, South Korea, Singapore, Australia, and internationally. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/25 20:20
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.