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.


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

2.6%

1171

2.0%

HK Oil and Gas

3.1%

HK Market


1 Year Return

-0.4%

1171

-27.3%

HK Oil and Gas

0.5%

HK Market

Return vs Industry: 1171 exceeded the Hong Kong Oil and Gas industry which returned -27.3% over the past year.

Return vs Market: 1171 matched the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

1171IndustryMarket
7 Day2.6%2.0%3.1%
30 Day-5.9%-6.4%-1.8%
90 Day14.3%-5.7%-4.8%
1 Year8.7%-0.4%-23.0%-27.3%4.1%0.5%
3 Year59.0%35.3%-0.1%-14.3%15.8%4.2%
5 Year56.6%32.5%-29.0%-41.7%18.9%-0.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1171 (HK$8.16) is trading below our estimate of fair value (HK$25.66)

Significantly Undervalued: 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 (4.1x) compared to the Oil and Gas industry average (7x).

PE vs Market: 1171 is good value based on its PE Ratio (4.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low 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 (0.6x) compared to the HK Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Yanzhou Coal Mining forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-9.0%

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 (-9% per year).

Earnings vs Market: 1171's earnings are forecast to decline over the next 3 years (-9% 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 (-7.3% per year).

High Growth Revenue: 1171's revenue is forecast to decline over the next 3 years (-7.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1171's Return on Equity is forecast to be low in 3 years time (13.1%).


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

Earnings Trend: 1171's earnings have grown significantly by 35.8% per year over the past 5 years.

Accelerating Growth: 1171's earnings growth over the past year (13.9%) is below its 5-year average (35.8% per year).

Earnings vs Industry: 1171 earnings growth over the past year (13.9%) exceeded the Oil and Gas industry 12.6%.


Return on Equity

High ROE: 1171's Return on Equity (14.2%) is considered low.


Return on Assets

ROA vs Industry: 1171's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: 1171 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Yanzhou Coal Mining's financial position?


Financial Position Analysis

Short Term Liabilities: 1171's short term assets (CN¥69.6B) exceeds its short term liabilities (CN¥63.3B)

Long Term Liabilities: 1171's short term assets (69.6B) exceeds its long term liabilities (54.1B)


Debt to Equity History and Analysis

Debt Level: 1171's debt to equity ratio (71.6%) is considered high

Reducing Debt: 1171's debt to equity ratio has reduced from 136.8% to 71.6% over the past 5 years.

Debt Coverage: 1171's debt is well covered by operating cash flow (40.7%).

Interest Coverage: 1171's interest payments on its debt are well covered by EBIT (32.7x coverage).


Balance Sheet

Inventory Level: 1171 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1171's debt is covered by short term assets (assets are 1.144600x debt).


Next Steps

Dividend

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

13.55%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Yanzhou Coal Mining before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company13.6%marketbottom25%2.3%markettop25%6.3%industryaverage6.2%forecastin3Years9.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1171's dividend (13.55%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1171's dividend (13.55%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

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: At its current payout ratio (85.4%), 1171's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1171's dividends in 3 years are forecast to be well covered by earnings (33.6% payout ratio).


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?

3.8yrs

Average management tenure


CEO

Xiangqian Wu (53yo)

3.8yrs

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

Compensation vs. Market: Xiangqian's total compensation ($USD155.36K) is below average for companies of similar size in the Hong Kong market ($USD607.90K).

Compensation vs Earnings: Xiangqian's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 1171's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

55yo

Average Age

Experienced Board: 1171's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: 1171 insiders have bought more shares than they have sold 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: 5.6yrs
    • Compensation: CN¥927.00k
  • Xiangqian Wu (53yo)

    GM & Director

    • Tenure: 3.8yrs
    • 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: 3.6yrs
    • Compensation: CN¥382.00k
  • Xiangguo Kong (64yo)

    • Tenure: 2.6yrs
    • Compensation: CN¥130.00k
  • Jian Liu (50yo)

    Deputy GM & Director

    • Tenure: 0.6yrs
    • 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: 6.1yrs
  • Xiangqian Wu (53yo)

    GM & Director

    • Tenure: 3.8yrs
    • 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: 2.6yrs
    • Compensation: CN¥130.00k
  • Jian Liu (50yo)

    Deputy GM & Director

    • Tenure: 0.6yrs
    • Compensation: CN¥816.00k
  • Chang Cai (48yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • 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$51.174b
  • 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 Analysis2019/10/17 12:34
End of Day Share Price2019/10/17 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.