Asia300

China Shenhua Energy Co. Ltd.

China

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Aug 18, 2017
Prev close: 18.58
Aug 18, 2017
Market cap:
Market cap(USD):
445,135M
56,906.7M
Shares: 19,889.6M

Currency in HKD

Company profile

Market(Ticker): HKG(1088)
Sector:
Industry:
Energy Minerals
Coal
Full time employees: 90,882

Business summary

China Shenhua Energy Co. Ltd. engages in the production and sale of coal, railway and port transportation of coal-related materials, as well as power generation and sales. It operates through the following business segments: Coal Operations, Power Operations, Railway Operations, Port Operations and Shipping Operations. The Coal Operations segment engages in producing coal from surface and underground mines and sells coal to external customer and the power segment. The Power Operation segment uses coal, sourced from the coal mining segment and purchased from external suppliers, to generate electric power for sale to external power grid companies and to the coal mining segment. The Railway Operations segment engages in providing railway transportation services to the coal mining segment and external customers. The Port Operations segment engages in providing shipment transportation services to the power segment, the coal mining segment and external customers. The company was founded on November 8, 2004 and is headquartered in Beijing, China.

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.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 205,881.18M
Gross profit 75,336.12M
Operating income 54,778.96M
Income before tax 45,169.89M
Net income 26,537.12M
EBITDA 82,756.74M
Diluted EPS 1.33
Dividends per share 3.40
Total assets 637,772.03M
Total liabilities 213,935.39M
Total equity 348,478.40M
Operating cash flow 96,954.19M

Currency in HKD

Revenue 26,522.68M
Gross profit 9,705.18M
Operating income 7,056.91M
Income before tax 5,819.01M
Net income 3,418.64M
EBITDA 10,661.15M
Diluted EPS 0.17
Dividends per share 0.43
Total assets 82,259.72M
Total liabilities 27,593.35M
Total equity 44,946.68M
Operating cash flow 12,490.14M

Currency in USD

Valuation measures

Dec 2016

PER 10.94
ROA 4.08%
ROE 7.60%
Operating margin 26.60%
Profit margin 12.88%

Key executive

  • Vice Chairman & President: Wen Ling
  • Chief Financial Officer: Ke Hui Zhang
  • Executive Director & Senior Vice President: Dong Li
  • Senior Vice President: Jin Li Wang
  • Security Relations Contact: Guang Shui Chen

Share holders

  • The Vanguard Group, Inc.(3.4%)
  • Hang Seng Investment Management Ltd.(2.5%)
  • BlackRock Fund Advisors(2.3%)
  • Lazard Asset Management LLC(2.0%)
  • State Street Global Advisors Asia Ltd.(1.1%)
  • Franklin Mutual Advisers LLC(1.0%)
  • FIL Investment Management (Hong Kong) Ltd.(1.0%)
  • BlackRock Japan Co., Ltd.(0.8%)
  • Dimensional Fund Advisors LP(0.8%)
  • Bessemer Investment Management LLC(0.7%)

Address

  • Website: http://www.csec.com
  • Address: Block B Shenhua Tower, 22 Andingmen Xibinhe Road, Beijing, 100011, China
  • Phone: +86.10.5813.3399

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