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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 2020 HKDUSD
Revenue262,116.08M33,795.28M
Gross Profit75,557.14M9,741.77M
Operating income66,468.71M8,569.97M
Income before tax65,640.54M8,463.20M
Net income40,283.28M5,193.82M
EBITDA89,275.19M11,510.47M
Diluted EPS1.970.25
Dividends Per Share2.150.27
Total Assets667,401.63M86,073.58M
Total liabilities158,065.99M20,385.48M
Total equity431,813.73M55,690.23M
Operating cash flow91,157.37M11,753.15M
Currency in HKDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 213,968.97M 286,825.75M 312,815.45M 274,261.51M 262,116.08M
Gross Profit 65,663.95M 98,259.14M 103,869.49M 84,272.67M 75,557.14M
Operating income 56,220.79M 88,894.92M 93,346.81M 74,828.28M 66,468.71M
Income before tax 47,923.85M 83,897.44M 82,548.14M 73,125.13M 65,640.54M
Net income 29,105.30M 55,111.78M 52,278.24M 47,292.25M 40,283.28M
EBITDA 83,561.78M 116,741.97M 119,647.60M 96,792.24M 89,275.19M
Diluted EPS 1.14 2.26 2.20 2.17 1.97
Dividends Per Share 0.52 1.12 1.03 1.37 2.15
Total Assets 643,422.75M 686,176.95M 674,664.93M 629,862.05M 667,401.63M
Total liabilities 213,935.39M 231,082.12M 208,444.74M 159,808.13M 158,065.99M
Total equity 353,630.43M 366,785.26M 378,248.48M 398,306.09M 431,813.73M
Operating cash flow 90,398.20M 104,606.89M 99,928.82M 69,498.87M 91,157.37M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 27,564.59M 36,806.42M 39,912.42M 35,003.77M 33,795.28M
Gross Profit 8,459.17M 12,608.93M 13,252.81M 10,755.65M 9,741.77M
Operating income 7,242.65M 11,407.29M 11,910.21M 9,550.27M 8,569.97M
Income before tax 6,173.79M 10,765.99M 10,532.39M 9,332.90M 8,463.20M
Net income 3,749.49M 7,072.12M 6,670.23M 6,035.87M 5,193.82M
EBITDA 10,764.86M 14,980.71M 15,265.95M 12,353.51M 11,510.47M
Diluted EPS 0.14 0.29 0.28 0.27 0.25
Dividends Per Share 0.06 0.14 0.13 0.17 0.27
Total Assets 82,988.55M 87,776.71M 86,171.26M 80,836.52M 86,073.58M
Total liabilities 27,593.35M 29,560.34M 26,623.50M 20,509.78M 20,385.48M
Total equity 45,611.19M 46,919.68M 48,311.60M 51,118.62M 55,690.23M
Operating cash flow 11,645.56M 13,423.50M 12,750.01M 8,870.08M 11,753.15M

Valuation Measures

Dec 2020
PER6.24
ROA6.21%
ROE9.70%
Operating margin25.35%
Profit margin15.36%

Key executives

  • Chief Executive Officer, GM & Executive Director: Ji Ping Yang
  • Chief Financial Officer: Shan Cheng Xu
  • Director & Executive Vice President: Xing Zhong Wang
  • Executive Director & Vice President: Ming Jun Xu
  • Manager-Guohua Division: Yang Liu

Shareholders

  • The Vanguard Group, Inc. (3.2%)
  • BlackRock Fund Advisors (2.4%)
  • Dimensional Fund Advisors LP (1.9%)
  • Lazard Asset Management LLC (1.3%)
  • GF Fund Management Co., Ltd. (1.2%)
  • Orient Securities Asset Management Co. Ltd. (1.0%)
  • BlackRock Advisors (UK) Ltd. (0.6%)
  • FIL Investment Management (Hong Kong) Ltd. (0.6%)
  • BlackRock Investment Management (UK) Ltd. (0.4%)
  • Geode Capital Management LLC (0.4%)

Contact Details

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

Related Companies

  • Shenhua Shendong Electric Power Co., Ltd.
  • Shenhua Xinjie Energy Co., Ltd.
  • Shenhua Zhunneng Resources Development & Utilisation Co., Ltd.
  • Shenhua Baoshen Railway Group Co., Ltd.
  • PT GH EMM Indonesia
  • Shenhua Zhunchi Railway Co., Ltd.
  • Shenhua Fujian Energy Co., Ltd.
  • Shenhua Beidian Shengli Energy Co., Ltd.
  • Shenhua Baorixile Energy Industrial Co., Ltd.
  • Shenhua Shendong Power Co., Ltd.
  • Shenhua Watermark Coal Pty Ltd.
  • Railway Transportation Co., Ltd.
  • Huanghua Harbour Administration Co.
  • Baotou Energy Co., Ltd.
  • Shendong Coal Corp.
  • Beijing Shenhua Changyun High-Tech Coal Blending Co., Ltd.
  • Yulin Shenhua Energy Co., Ltd.
  • Shenhua Baotou Energy Co., Ltd.
  • Shenhua Yili Energy Co., Ltd.
  • 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.
  • Shenhua Hong Kong International Trade Co., Ltd.
  • Shenhua Guohua Jiujiang Power Generation Co., Ltd.
  • Zhejiang Guohua Zheneng Power Co., Ltd.
  • Shenhua Trading Group Ltd.
  • Shenhua Bayannoer Energy Co., Ltd.

Competitors

  • Peabody Energy Corporation
  • Jizhong Energy Resources Co., Ltd. Class A
  • Shanxi Coking Coal Energy Group Co., Ltd Class A
  • Glencore plc
  • Qinhuangdao Port Co., Ltd. Class H
  • Daqin Railway Co., Ltd. Class A
  • Rio Tinto Limited
  • Rio Tinto plc
  • Anglo American plc
  • BHP Group Ltd
  • BHP Group Plc
  • 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
  • PT Adaro Energy Tbk
Last Updated on 21 Oct, 2021

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