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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, and Shipping. 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 company was founded on November 8, 2004 and is headquartered in Beijing, China.

Financial Highlights

Dec 2019 HKDUSD
Revenue274,261.51M35,003.77M
Gross Profit84,272.67M10,755.65M
Operating income74,828.28M9,550.27M
Income before tax73,125.13M9,332.90M
Net income47,292.25M6,035.87M
EBITDA96,792.24M12,353.51M
Diluted EPS2.370.30
Dividends Per Share1.370.17
Total Assets629,862.05M80,836.52M
Total liabilities159,808.13M20,509.78M
Total equity398,306.09M51,118.62M
Operating cash flow69,454.65M8,864.44M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 218,411.18M 213,968.97M 286,825.75M 312,815.45M 274,261.51M
Gross Profit 64,577.64M 65,663.95M 98,259.14M 103,869.49M 84,272.67M
Operating income 51,848.12M 56,220.79M 88,894.92M 93,346.81M 74,828.28M
Income before tax 42,051.82M 47,923.85M 83,897.44M 82,548.14M 73,125.13M
Net income 21,769.70M 29,105.30M 55,111.78M 52,278.24M 47,292.25M
EBITDA 79,122.85M 83,561.78M 116,741.97M 119,647.60M 96,792.24M
Diluted EPS 1.09 1.46 2.77 2.62 2.37
Dividends Per Share 0.37 0.52 1.12 1.03 1.37
Total Assets 668,113.86M 643,422.75M 686,176.95M 674,664.93M 629,862.05M
Total liabilities 233,772.00M 213,935.39M 231,082.12M 208,444.74M 159,808.13M
Total equity 355,745.92M 353,630.43M 366,785.26M 378,248.48M 398,306.09M
Operating cash flow 62,383.28M 90,398.20M 104,606.89M 99,928.82M 69,454.65M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 28,172.73M 27,564.59M 36,806.42M 39,912.42M 35,003.77M
Gross Profit 8,329.83M 8,459.17M 12,608.93M 13,252.81M 10,755.65M
Operating income 6,687.86M 7,242.65M 11,407.29M 11,910.21M 9,550.27M
Income before tax 5,424.24M 6,173.79M 10,765.99M 10,532.39M 9,332.90M
Net income 2,808.06M 3,749.49M 7,072.12M 6,670.23M 6,035.87M
EBITDA 10,206.01M 10,764.86M 14,980.71M 15,265.95M 12,353.51M
Diluted EPS 0.14 0.18 0.35 0.33 0.30
Dividends Per Share 0.04 0.06 0.14 0.13 0.17
Total Assets 86,206.56M 82,988.55M 87,776.71M 86,171.26M 80,836.52M
Total liabilities 30,163.54M 27,593.35M 29,560.34M 26,623.50M 20,509.78M
Total equity 45,901.80M 45,611.19M 46,919.68M 48,311.60M 51,118.62M
Operating cash flow 8,046.78M 11,645.56M 13,423.50M 12,750.01M 8,864.44M

Valuation Measures

Dec 2019
PER6.12
ROA7.25%
ROE12.18%
Operating margin27.28%
Profit margin17.24%

Key executives

  • Chief Executive Officer: Ji Ping Yang
  • Chief Financial Officer: Shan Cheng Xu
  • Securities Representative: Guang Shui Chen
  • Board Secretary: Qing Huang

Shareholders

  • The Vanguard Group, Inc. (3.7%)
  • BlackRock Fund Advisors (2.5%)
  • Dimensional Fund Advisors LP (1.7%)
  • Lazard Asset Management LLC (1.1%)
  • Hang Seng Investment Management Ltd. (1.0%)
  • Merian Global Investors (UK) Ltd. (1.0%)
  • State Street Global Advisors Asia Ltd. (1.0%)
  • FIL Investment Management (Hong Kong) Ltd. (1.0%)
  • Grantham, Mayo, Van Otterloo & Co. LLC (0.9%)
  • BlackRock Investment Management (UK) Ltd. (0.7%)

Contact Details

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

Related Companies

  • Railway Transportation Co., Ltd.
  • Zhejiang Guohua Zheneng Power Generation 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 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.
  • Shenhua Hong Kong International Trade Co., Ltd.
  • Shenhua Guohua Jiujiang Power Co. Ltd.
  • Zhejiang Guohua Zheneng Power Co., Ltd.
  • Shenhua Trading Group Ltd.
  • Shenhua Bayannoer Energy Co., Ltd.
  • Shenhua Shendong Coal Group Co., Ltd.
  • Shenhua Group Baotou Mining Co., Ltd.
  • Guohua Mengjin Power Generation Co., Ltd.
  • Shenhua (Beijing) Remote Sensing & Geo-Engineering Co. Ltd.
  • Shenhua Material Trading Co., Ltd.
  • Inner Mongolia Guohua Hulunbeier Power Generation Co., Ltd.
  • Shenhua Hollysys Information Technology Co., Ltd.
  • Shenhua Tianhong Trading Co., Ltd.
  • Hulunbeier Shenhua Clean Coal Co., Ltd.
  • Shenhua Baorixile Energy Co., Ltd.
  • Shenhua Baotou Coal Chemical Co., Ltd.
  • Shenhua Guohua International Electric Power Co. Ltd.

Competitors

  • PT Adaro Energy Tbk
  • PT Bukit Asam Tbk
  • Peabody Energy Corporation
Last Updated on 9 Apr, 2020

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