SEHK:3948

Stock Analysis Report

Inner Mongolia Yitai CoalLtd

Executive Summary

Inner Mongolia Yitai Coal Co.,Ltd. engages in the mining, production, transportation, and sale of coal products in the Inner Mongolia autonomous region of the People’s Republic of China.

Rewards

Trading at 70.9% below its fair value

Earnings are forecast to grow 20.07% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Profit margins (7.3%) are lower than last year (13.4%)



Snowflake Analysis

Very undervalued average dividend payer.

Share Price & News

How has Inner Mongolia Yitai CoalLtd's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3948 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

3948

-1.1%

HK Oil and Gas

0.6%

HK Market


1 Year Return

-9.0%

3948

-29.8%

HK Oil and Gas

-4.5%

HK Market

Return vs Industry: 3948 exceeded the Hong Kong Oil and Gas industry which returned -28.7% over the past year.

Return vs Market: 3948 underperformed the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

3948IndustryMarket
7 Day1.5%-1.1%0.6%
30 Day2.8%-11.2%-5.2%
90 Day4.7%-5.3%2.3%
1 Year-0.8%-9.0%-25.6%-29.8%-1.0%-4.5%
3 Year-10.9%-25.8%-16.9%-28.6%14.4%2.9%
5 Year-3.9%-22.7%-31.2%-43.6%15.5%-3.8%

Price Volatility Vs. Market

How volatile is Inner Mongolia Yitai CoalLtd's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Inner Mongolia Yitai CoalLtd undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3948 (HK$5.53) is trading below our estimate of fair value (HK$18.99)

Significantly Below Fair Value: 3948 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3948 is good value based on its PE Ratio (5.6x) compared to the Oil and Gas industry average (6.4x).

PE vs Market: 3948 is good value based on its PE Ratio (5.6x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 3948 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 3948 is good value based on its PB Ratio (0.5x) compared to the HK Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Inner Mongolia Yitai CoalLtd forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3948's forecast earnings growth (20.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 3948's earnings (20.1% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3948's revenue is expected to decline over the next 3 years (-5.4% per year).

High Growth Revenue: 3948's revenue is forecast to decline over the next 3 years (-5.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 3948's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Inner Mongolia Yitai CoalLtd performed over the past 5 years?

30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3948 has high quality earnings.

Growing Profit Margin: 3948's current net profit margins (7.3%) are lower than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: 3948's earnings have grown significantly by 30.4% per year over the past 5 years.

Accelerating Growth: 3948's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3948 had negative earnings growth (-38.6%) over the past year, making it difficult to compare to the Oil and Gas industry average (11.7%).


Return on Equity

High ROE: 3948's Return on Equity (9.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Inner Mongolia Yitai CoalLtd's financial position?


Financial Position Analysis

Short Term Liabilities: 3948's short term assets (CN¥21.3B) exceed its short term liabilities (CN¥11.7B).

Long Term Liabilities: 3948's short term assets (CN¥21.3B) do not cover its long term liabilities (CN¥37.4B).


Debt to Equity History and Analysis

Debt Level: 3948's debt to equity ratio (91.9%) is considered high.

Reducing Debt: 3948's debt to equity ratio has increased from 90.2% to 91.9% over the past 5 years.

Debt Coverage: 3948's debt is well covered by operating cash flow (26.2%).

Interest Coverage: 3948's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: 3948 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3948's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Inner Mongolia Yitai CoalLtd's current dividend yield, its reliability and sustainability?

9.39%

Current Dividend Yield


Dividend Yield vs Market

company9.4%marketbottom25%2.3%markettop25%6.4%industryaverage6.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 3948's dividend (9.39%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 3948's dividend (9.39%) is in the top 25% of dividend payers in the Hong Kong market (6.33%)


Stability and Growth of Payments

Stable Dividend: 3948's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3948's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.6%), 3948's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Jian Liu (52yo)

0.3yrs

Tenure

CN¥1,147,900

Compensation

Mr. Jian Liu serves as General Manager of Inner Mongolia Yitai Coal Company Limited since November 07, 2019. He served as Deputy Manager of Inner Mongolia Yitai Coal Co. Ltd. since December 2012 and has be ...


Leadership Team

NamePositionTenureCompensationOwnership
Jian Liu
GM & Executive Director0.3yrsCN¥1.15mno data
Guiliang Lv
CFO & Executive Director9yrsCN¥1.36mno data
Chunlin Liu
Executive Director18.9yrsCN¥24.00kno data
Yaoyong Ge
Executive Director11.2yrsCN¥24.00kno data
Dongsheng Zhang
Executive Director10.8yrsCN¥24.00kno data
Mingliang Zhang
Chief Engineer7.3yrsCN¥1.47mno data
Junjie Lv
Executive Director0.2yrsCN¥1.15mno data
Xin Zhao
Company Secretary4.8yrsCN¥502.60kno data
Jingquan Zhang
Executive Chairman0.2yrsCN¥10.00kno data
Zhifu Ji
Head of the Corporate Department0yrsCN¥261.00kno data

2.5yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 3948's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jian Liu
GM & Executive Director0.3yrsCN¥1.15mno data
Guiliang Lv
CFO & Executive Director9yrsCN¥1.36mno data
Chunlin Liu
Executive Director18.9yrsCN¥24.00kno data
Yaoyong Ge
Executive Director11.2yrsCN¥24.00kno data
Dongsheng Zhang
Executive Director10.8yrsCN¥24.00kno data
Junjie Lv
Executive Director0.2yrsCN¥1.15mno data
Jingquan Zhang
Executive Chairman0.2yrsCN¥10.00kno data
Sujian Huang
Independent Non-Executive Director3.3yrsCN¥200.00kno data
Zhiming Zhang
Independent Non-Executive Director4.7yrsCN¥200.00kno data
Zhenjin Zhang
Chairman of Supervisory Committee0.9yrsno datano data

4.0yrs

Average Tenure

52yo

Average Age

Experienced Board: 3948's board of directors are considered experienced (4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Inner Mongolia Yitai Coal Co.,Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Inner Mongolia Yitai Coal Co.,Ltd.
  • Ticker: 3948
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: US$2.464b
  • Listing Market Cap: US$19.138b
  • Shares outstanding: 3.25b
  • Website: https://www.yitaicoal.com

Number of Employees


Location

  • Inner Mongolia Yitai Coal Co.,Ltd.
  • Yitai Building
  • North Tianjiao Road
  • Ordos
  • Inner Mongolia Province
  • 17000
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
900948SHSE (Shanghai Stock Exchange)YesForeign Shares-Domestically ListedCNUSDAug 1997
3948SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDJul 2012
YT8DB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURJul 2012

Biography

Inner Mongolia Yitai Coal Co.,Ltd. engages in the mining, production, transportation, and sale of coal products in the Inner Mongolia autonomous region of the People’s Republic of China. It operates through Coal, Transportation, Coal-Related Chemical, and Others segments. The company also provides road and railway transportation services to coal companies; coal quality and oil products inspection services; mine equipment materials inspection services; and produces and sells coal-based synthetic fuels and coal-related chemicals. In addition, it is involved in the coal wholesale, coal technology development and consulting, chemical production and sale, biotechnology, and finance service activities. The company was founded in 1997 and is based in Ordos, the People’s Republic of China. Inner Mongolia Yitai Coal Co.,Ltd. is a subsidiary of Inner Mongolia Yitai Group Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:05
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
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.