SEHK:1171

Stock Analysis Report

Yanzhou Coal Mining

Executive Summary

Yanzhou Coal Mining Company Limited, an investment holding company, Limited explores, mines, washes, processes, and sells coal in China, Japan, South Korea, Australia, and internationally.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.

Risks

  • Yanzhou Coal Mining has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

5.8%

SEHK:1171

5.2%

HK Oil and Gas

1.9%

HK Market


1 Year Return

5.7%

SEHK:1171

-22.7%

HK Oil and Gas

-3.3%

HK Market

1171 outperformed the Oil and Gas industry which returned -24.8% over the past year.

1171 outperformed the Market in Hong Kong which returned -3.9% over the past year.


Share holder returns

1171IndustryMarket
7 Day5.8%5.2%1.9%
30 Day39.0%11.5%6.1%
90 Day25.4%0.5%-0.5%
1 Year15.3%5.7%-18.9%-22.7%0.1%-3.3%
3 Year114.1%82.2%15.1%-0.3%17.7%5.9%
5 Year61.0%36.2%-29.9%-41.7%19.0%-0.6%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Yanzhou Coal Mining's share price is below the future cash flow value, and at a moderate discount (> 20%).

Yanzhou Coal Mining's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Yanzhou Coal Mining is good value based on earnings compared to the HK Oil and Gas industry average.

Yanzhou Coal Mining is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Yanzhou Coal Mining earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Yanzhou Coal Mining is good value based on assets compared to the HK Oil and Gas industry average.


Next Steps

Future Growth

How is Yanzhou Coal Mining expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

-9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Yanzhou Coal Mining's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Yanzhou Coal Mining's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Yanzhou Coal Mining's revenues are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Yanzhou Coal Mining's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Yanzhou Coal Mining's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Yanzhou Coal Mining is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

35.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Yanzhou Coal Mining has delivered over 20% year on year earnings growth in the past 5 years.

Yanzhou Coal Mining's 1-year earnings growth is less than its 5-year average (13.9% vs 35.8%)

Yanzhou Coal Mining's earnings growth has exceeded the HK Oil and Gas industry average in the past year (13.9% vs 11.8%).


Return on Equity

Yanzhou Coal Mining has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Yanzhou Coal Mining used its assets less efficiently than the HK Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Yanzhou Coal Mining has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Yanzhou Coal Mining's financial position?


Financial Position Analysis

Yanzhou Coal Mining is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Yanzhou Coal Mining's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Yanzhou Coal Mining's level of debt (71.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (136.8% vs 71.6% today).

Debt is well covered by operating cash flow (40.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 32.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

8.69%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Yanzhou Coal Mining's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

Yanzhou Coal Mining's dividend is above the markets top 25% of dividend payers in Hong Kong (6.06%).

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

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3x coverage).


Next Steps

Management

What is the CEO of Yanzhou Coal Mining's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Xiangqian Wu (53yo)

3.7yrs

Tenure

CN¥1,102,000

Compensation

Mr. Xiangqian Wu serves as Executive Director of Yancoal Australia Ltd. Prior to this, he served as Non-Executive Director of Yancoal Australia Ltd. from April 28, 2017. Mr. Wu serves as General Manager of ...


CEO Compensation Analysis

Xiangqian's remuneration is lower than average for companies of similar size in Hong Kong.

Xiangqian's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

53.5yo

Average Age

The tenure for the Yanzhou Coal Mining management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

55yo

Average Age

The tenure for the Yanzhou Coal Mining board of directors is about average.


Insider Trading

More shares have been bought than sold by Yanzhou Coal Mining individual insiders in the past 3 months.


Recent Insider Transactions

BuyCN¥8,102,20613 Sep 19
BlackRock, Inc.
EntityCompany
Shares977,029
Max PriceCN¥8.29
BuyCN¥27,242,61523 Aug 19
Xiaolei Zhang
EntityIndividual
Shares4,270,000
Max PriceCN¥6.38
SellCN¥765,60013 Aug 19
BlackRock, Inc.
EntityCompany
Shares120,000
Max PriceCN¥6.38
SellCN¥1,326,59806 Aug 19
Lei Cao
EntityIndividual
Shares190,000
Max PriceCN¥6.98
BuyCN¥775,030,32731 Jul 19
Yankuang Group Co., Ltd
EntityCompany
Shares97,000,000
Max PriceCN¥7.99
SellCN¥39,311,90804 Jun 19
BlackRock, Inc.
EntityCompany
Shares5,406,000
Max PriceCN¥7.27

Ownership Breakdown


Management Team

  • Qingchun Zhao (51yo)

    CFO & Director

    • Tenure: 3.3yrs
    • Compensation: CN¥888.00k
  • Fuqi Wang (55yo)

    Chief Engineer

    • Tenure: 5.5yrs
    • Compensation: CN¥927.00k
  • Xiangqian Wu (53yo)

    GM & Director

    • Tenure: 3.7yrs
    • Compensation: CN¥1.10m
  • Jun Guo (56yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥884.00k
  • Honggang Zhao (54yo)

    Deputy General Manager

    • Tenure: 4.8yrs
    • Compensation: CN¥903.00k
  • Qingbin Jin (42yo)

    Secretary to the Board

    • Tenure: 3.5yrs
    • Compensation: CN¥382.00k
  • Xiangguo Kong (64yo)

    • Tenure: 2.5yrs
    • Compensation: CN¥130.00k
  • Jian Liu (50yo)

    Deputy GM & Director

    • Tenure: 0.5yrs
    • Compensation: CN¥816.00k
  • Jing He (49yo)

    Deputy General Manager

    • Tenure: 2.3yrs
    • Compensation: CN¥911.00k
  • Gong Zhijie (54yo)

    Vice General Manager

    • Tenure: 0yrs
    • Compensation: CN¥1.08m

Board Members

  • Chiu Kwok Poon (57yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥130.00k
  • Qingchun Zhao (51yo)

    CFO & Director

    • Tenure: 3.3yrs
    • Compensation: CN¥888.00k
  • Xiyong Li (56yo)

    Chairman of the Board

    • Tenure: 6yrs
  • Xiangqian Wu (53yo)

    GM & Director

    • Tenure: 3.7yrs
    • Compensation: CN¥1.10m
  • Shisheng Gu (55yo)

    Chairman of the Supervisory Committee

    • Tenure: 2.3yrs
    • Compensation: CN¥191.43k
  • Jun Guo (56yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥884.00k
  • Wei Li (53yo)

    Vice Chairman of the Board

    • Tenure: 3.3yrs
  • Anbang Qi (67yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥130.00k
  • Xiangguo Kong (64yo)

    • Tenure: 2.5yrs
    • Compensation: CN¥130.00k
  • Jian Liu (50yo)

    Deputy GM & Director

    • Tenure: 0.5yrs
    • Compensation: CN¥816.00k
  • Chang Cai (48yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥130.00k

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$54.349b
  • Shares outstanding: 4.91b
  • 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, Limited explores, mines, washes, processes, and sells coal in China, Japan, South Korea, Australia, and internationally. The company oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 12:35
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.