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Energy Minerals

China Shenhua Energy Co., Ltd.

Company Background

China Shenhua Energy is a Chinese state-owned coal company, which handles the mining, production and transport of coal as well as power generation. Besides coal mines and power plants, the company also runs railways and ports to transport coal. In size it is one of the largest companies in China, and is one of the world's largest coal firms. Its output and capital investment are widely monitored in and outside China as important indicators of the Chinese economy.

 

The company was established in 2004, and its parent firm is Shenhua Group, a large enterprise under direct control of the government. The company's actions tend to reflect government policies. The Chinese Communist Party has the power to pick the company's top officials.

 

Environmental protection is a major challenge facing the company. China relies on coal for 70% of the electricity it generetes, but coal is also a key source of air pollution. Against this backdrop, China Shenhua Energy is under pressure to introduce state-of-the-art power facilities, including ultrasupercritical power generation systems and integrated coal gasification combined cycle systems, so costs will likely increase in the short term. The company must brace itself for lower coal demand, as the Chinese government aims to reduce dependence on coal-fired power generation over the medium and long term.

 

China Shenhua Energy regards chemicals as a new source of revenue. It is already producing polyethylene and polypropylene. The company aims to complement its coal business, which is vulnerable to price fluctuations, by nurturing a high-end chemicals business.

Business Summary

China Shenhua Energy Co., Ltd. engages in the production and sale of coal and electricity. It operates through the following business segments: Coal, Power, Railway, Port, Shipping, and Coal Chemical. The Coal segment includes the production and sale of coal as well as the operation of coal mines. The Power segment includes the generation and sale of power and electricity. The Railway segment includes the operation of transportation railways for coal and non-coal commodities. The Port segment provides logistics and vessels for coal and non-coal cargo. The Shipping segment includes self-operated vessel management and allocation for coal distribution. The Coal Chemical segment comprises the coal-to-olefins project of Baotou Coal Chemical. The company was founded on November 8, 2004 and is headquartered in Beijing, China.

Financial Highlights

Dec 2021 HKDUSD
Revenue404,005.99M51,976.64M
Gross Profit111,144.55M14,299.09M
Operating income97,185.80M12,503.25M
Income before tax96,469.90M12,411.15M
Net income62,197.32M8,001.88M
EBITDA123,619.69M15,904.06M
Diluted EPS3.130.40
Dividends Per Share3.120.40
Total Assets746,922.32M95,804.72M
Total liabilities197,405.71M25,320.43M
Total equity464,887.42M59,629.23M
Operating cash flow114,626.40M14,747.04M
Currency in HKDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 286,825.75M 312,815.45M 274,261.51M 262,116.08M 404,005.99M
Gross Profit 98,259.14M 103,869.49M 84,272.67M 75,557.14M 111,144.55M
Operating income 88,894.92M 93,346.81M 74,828.28M 66,468.71M 97,185.80M
Income before tax 83,897.44M 82,548.14M 73,125.13M 65,640.54M 96,469.90M
Net income 55,111.78M 52,278.24M 47,292.25M 40,283.28M 62,197.32M
EBITDA 116,741.97M 119,647.60M 96,792.24M 89,275.19M 123,619.69M
Diluted EPS 2.26 2.20 2.17 1.97 3.13
Dividends Per Share 1.12 1.03 1.37 2.15 3.12
Total Assets 686,176.95M 674,664.93M 629,862.05M 667,401.63M 746,922.32M
Total liabilities 231,082.12M 208,444.74M 159,808.13M 158,065.99M 197,405.71M
Total equity 366,785.26M 378,248.48M 398,306.09M 431,813.73M 464,887.42M
Operating cash flow 104,606.89M 99,928.82M 69,498.87M 91,157.37M 114,626.40M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 36,806.42M 39,912.42M 35,003.77M 33,795.28M 51,976.64M
Gross Profit 12,608.93M 13,252.81M 10,755.65M 9,741.77M 14,299.09M
Operating income 11,407.29M 11,910.21M 9,550.27M 8,569.97M 12,503.25M
Income before tax 10,765.99M 10,532.39M 9,332.90M 8,463.20M 12,411.15M
Net income 7,072.12M 6,670.23M 6,035.87M 5,193.82M 8,001.88M
EBITDA 14,980.71M 15,265.95M 12,353.51M 11,510.47M 15,904.06M
Diluted EPS 0.29 0.28 0.27 0.25 0.40
Dividends Per Share 0.14 0.13 0.17 0.27 0.40
Total Assets 87,776.71M 86,171.26M 80,836.52M 86,073.58M 95,804.72M
Total liabilities 29,560.34M 26,623.50M 20,509.78M 20,385.48M 25,320.43M
Total equity 46,919.68M 48,311.60M 51,118.62M 55,690.23M 59,629.23M
Operating cash flow 13,423.50M 12,750.01M 8,870.08M 11,753.15M 14,747.04M

Valuation Measures

Dec 2021
PER4.77
ROA8.79%
ROE13.87%
Operating margin24.05%
Profit margin15.39%

Key executives

  • Chief Executive Officer & Executive Director: Zhi Ren Lv
  • Executive Director & Vice President: Ming Jun Xu
  • Manager-Guohua Division: Yang Liu
  • Secretary: Qing Huang

Shareholders

  • The Vanguard Group, Inc. (3.3%)
  • BlackRock Fund Advisors (2.6%)
  • Essence Fund Co., Ltd. (1.3%)
  • Dimensional Fund Advisors LP (1.1%)
  • E Fund Management Co., Ltd. (0.8%)
  • Orient Securities Asset Management Co. Ltd. (0.7%)
  • BlackRock Advisors (UK) Ltd. (0.6%)
  • FIL Investment Management (Hong Kong) Ltd. (0.6%)
  • BlackRock Investment Management (UK) Ltd. (0.5%)
  • BlackRock Japan Co., Ltd. (0.4%)

Contact Details

  • Website:http://www.csec.com
  • Address: 22 Andingmen Xibinhe Road, Dongcheng District, Beijing, 100011, China
  • Phone: +86.10.5813.3399

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  • Yulin Shenhua Energy Co., Ltd.
  • Shenhua Baotou Energy Co., Ltd.
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  • Shenhua Zhonghai Marine Co., Ltd.
  • China Shenhua Overseas Development & Investment Co., Ltd.
  • Shenhua Zhonghai Shipping Co., Ltd.
  • Shenhua Sichuan Energy Co., Ltd.
  • Shenhua Hong Kong Ltd.
  • China Shenhua Overseas Capital Co., Ltd.
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Competitors

  • Peabody Energy Corporation
  • Jizhong Energy Resources Co., Ltd. Class A
  • Shanxi Coking Coal Energy Group Co., Ltd Class A
  • Qinhuangdao Port Co., Ltd. Class H
  • Daqin Railway Co., Ltd. Class A
  • Rio Tinto Limited
  • Rio Tinto plc
  • Glencore plc
  • Anglo American plc
  • BHP Group Ltd
  • China Datang Corp. Renewable Power Co. Ltd. Class H
  • Chubu Electric Power Company,Incorporated
  • Duke Energy Corporation
  • E.ON SE
  • Enel SpA
  • Iberdrola SA
  • RWE AG
  • Kansai Electric Power Company, Incorporated
  • Tokyo Electric Power Company Holdings, Incorporated
Last Updated on 16 Aug, 2022

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