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China Shenhua Energy Co Ltd Class H (HK:1088)
:1088

China Shenhua Energy Co (1088) AI Stock Analysis

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HK:1088

China Shenhua Energy Co

(1088)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
HK$40.00
▲(3.04% Upside)
China Shenhua Energy Co's stock is rated positively due to its strong financial performance and reasonable valuation. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The absence of earnings call and corporate events data does not affect the overall score significantly.
Positive Factors
Balance Sheet Health
A strong equity base and low debt-to-equity ratio indicate prudent financial management, providing stability and flexibility for future investments.
Profitability
High profit margins indicate efficient operations and pricing power, which are crucial for sustaining long-term profitability and competitive advantage.
Cash Flow Stability
Strong operational cash flow supports the company's ability to fund operations, invest in growth, and return capital to shareholders, ensuring long-term financial health.
Negative Factors
Revenue Growth Decline
A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting future earnings and market position.
Free Cash Flow Growth
Decreased free cash flow growth limits the company's ability to invest in new projects or return capital to shareholders, affecting long-term strategic flexibility.
Revenue Growth
Negative revenue growth indicates potential market challenges or declining demand, which could affect the company's ability to maintain its competitive edge.

China Shenhua Energy Co (1088) vs. iShares MSCI Hong Kong ETF (EWH)

China Shenhua Energy Co Business Overview & Revenue Model

Company DescriptionChina Shenhua Energy Company Limited and its subsidiaries engage in the production and sales of coal and power; railway, port, and shipping transportation; and coal-to-olefins businesses in the People's Republic of China and internationally. It operates through six segments: Coal, Power, Railway, Port, Shipping, and Coal Chemical. The Coal segment produces coal from surface and underground mines; and sells coal to power plants, metallurgical and coal chemical producers, and provincial/regional electric grid companies. As of December 31, 2021, this segment had the recoverable coal reserves of 14.15 billion tones. The Power segment generates electric power through thermal, wind, water, and gas; and sells electric power to power grid companies. The Railway segment provides railway transportation services. The Port segment offers loading, transportation, and storage services. The Shipping segment provides shipment transportation services. The Coal Chemical segment produces and sells methanol; and polyethylene and polypropylene, as well as other by-products. The company was incorporated in 2004 and is based in Beijing, the People's Republic of China. China Shenhua Energy Company Limited is a subsidiary of China Energy Investment Corporation Limited.
How the Company Makes MoneyChina Shenhua Energy generates revenue primarily through the sale of coal, which includes both thermal coal for power generation and coking coal for steel manufacturing. The company also earns significant income from its power generation operations, selling electricity to the grid. Additionally, it has established a comprehensive logistics network that includes rail transportation, which further adds to its income through coal transportation services. Strategic partnerships with other energy firms and government entities enhance its operational efficiency and market reach, while its investments in renewable energy sources are positioning it for future growth in a transitioning energy landscape.

China Shenhua Energy Co Financial Statement Overview

Summary
China Shenhua Energy Co demonstrates strong financial health with solid profitability metrics, a robust balance sheet, and stable cash flow. The income statement shows strong profitability despite a slight decline in revenue growth. The balance sheet is strong with low debt and high equity, and cash flow is stable, though free cash flow growth could improve.
Income Statement
85
Very Positive
The income statement reflects strong profitability with a gross profit margin of 34.14% and a net profit margin of 17.08% for the TTM period. However, there is a slight decline in revenue from the previous year, impacting the revenue growth metric negatively. EBIT and EBITDA margins remain healthy at 25.85% and 26.16% respectively, indicating efficient operations.
Balance Sheet
80
Positive
The balance sheet depicts a strong equity base with an equity ratio of 64.42% in the TTM period. The company maintains a low debt-to-equity ratio of 0.08, suggesting prudent financial leverage. Return on Equity stands at 12.64%, showcasing effective utilization of shareholders' funds. The company has substantial cash reserves, enhancing its financial stability.
Cash Flow
78
Positive
The cash flow statement indicates robust operational efficiency with an operating cash flow to net income ratio of 0.82. However, there is a notable decline in free cash flow growth rate, primarily due to increased capital expenditures. The free cash flow to net income ratio is 0.31, reflecting adequate cash generation relative to profitability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue308.41B338.38B343.07B344.53B335.22B233.26B
Gross Profit109.20B115.18B122.44B134.47B110.76B94.24B
EBITDA83.31B111.23B108.98B121.03B95.95B80.99B
Net Income53.81B58.67B59.69B69.65B50.08B39.17B
Balance Sheet
Total Assets682.53B658.07B630.13B621.70B607.05B558.45B
Cash, Cash Equivalents and Short-Term Investments168.68B159.72B150.28B170.50B162.89B127.46B
Total Debt34.01B31.00B36.87B56.94B65.41B63.88B
Total Liabilities212.43B154.12B151.76B162.46B161.38B133.32B
Stockholders Equity401.52B426.87B408.69B393.85B376.88B360.19B
Cash Flow
Free Cash Flow6.95B56.32B52.60B81.05B70.71B60.62B
Operating Cash Flow45.79B93.35B89.69B109.73B94.58B81.29B
Investing Cash Flow-61.06B-85.36B-36.97B-56.59B-6.84B32.05B
Financing Cash Flow-60.70B-51.17B-76.13B-78.73B-43.73B-42.08B

China Shenhua Energy Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price38.82
Price Trends
50DMA
40.14
Negative
100DMA
37.75
Positive
200DMA
33.46
Positive
Market Momentum
MACD
-0.38
Positive
RSI
38.63
Neutral
STOCH
21.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1088, the sentiment is Negative. The current price of 38.82 is below the 20-day moving average (MA) of 40.04, below the 50-day MA of 40.14, and above the 200-day MA of 33.46, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 38.63 is Neutral, neither overbought nor oversold. The STOCH value of 21.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1088.

China Shenhua Energy Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
HK$13.32B7.8119.63%9.42%-2.79%-39.45%
79
Outperform
HK$14.97B13.826.64%9.15%-5.78%-29.52%
78
Outperform
$922.67B14.259.07%-13.87%-15.41%
72
Outperform
$133.19B8.437.95%0.80%-35.81%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
64
Neutral
HK$173.84B8.4510.99%4.56%-3.42%-18.73%
58
Neutral
$10.28B16.196.76%-20.50%-64.45%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1088
China Shenhua Energy Co
38.82
8.06
26.22%
HK:1898
China Coal Energy Co
10.18
0.97
10.48%
HK:0975
Mongolian Mining
10.57
3.18
43.03%
HK:1171
Yankuang Energy Group Company Limited Class H
9.88
1.58
18.96%
HK:1277
Kinetic Mines & Energy Ltd.
1.38
0.17
14.05%
HK:0639
Shougang Fushan Resources Group Limited
2.95
0.59
25.00%

China Shenhua Energy Co Corporate Events

China Shenhua Energy Advances Beihai Phase II Power Project
Nov 30, 2025

China Shenhua Energy Company Limited announced that its No. 3 power generation unit of the Beihai Phase II project has successfully completed a 168-hour trial operation and is now in commercial operation. This project, part of the 14th Five-Year Plan for energy development in the Guangxi Zhuang Autonomous Region, features advanced ultra-supercritical coal-fired technology and aims to optimize regional power structure, enhance grid stability, and support regional economic development.

China Shenhua Energy Co. Strengthens Ties with China Railway for Enhanced Services
Nov 28, 2025

China Shenhua Energy Co. has entered into a 2026-2028 Continuing Connected Transactions Framework Agreement with China Railway Taiyuan Group Co., Ltd. This agreement, approved by the company’s board, facilitates mutual provision of transportation services, coal supply, and other products between the two entities. This strategic partnership is expected to strengthen China Shenhua’s market position and operational capabilities, potentially impacting stakeholders positively by enhancing service efficiency and market reach.

China Shenhua Energy Reports October 2025 Operational Data
Nov 14, 2025

China Shenhua Energy Company Limited reported its major operational data for October 2025, highlighting a decrease in commercial coal production and sales compared to the previous year. Despite this, the company saw an increase in polypropylene sales due to higher production and inventory consumption. The acquisition of Hangjin Energy earlier in the year has been integrated into the operational data, reflecting the company’s strategic expansion. The operational data reveals fluctuations influenced by factors such as equipment maintenance and structural adjustments in shipping, indicating the dynamic nature of the company’s operations.

China Shenhua Energy Announces Strategic Asset Acquisition
Nov 7, 2025

China Shenhua Energy Company Limited announced its intention to issue A shares and pay cash to acquire assets from its controlling shareholder, China Energy Investment Corporation. This transaction, which includes coal and coal-related assets, aims to raise supporting funds and is classified as a related transaction under applicable laws. The company’s A shares were temporarily suspended from trading but have since resumed, indicating a strategic move to bolster its asset base and financial standing.

China Shenhua Energy Declares Interim Dividend for 2025
Oct 27, 2025

China Shenhua Energy Company Limited announced an interim dividend of RMB 0.98 per share for the six months ending June 30, 2025, with the payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.096. This announcement reflects the company’s ongoing commitment to shareholder returns and may influence investor sentiment positively, particularly given the detailed tax implications for non-resident shareholders, which are outlined to ensure compliance with international tax agreements.

China Shenhua Energy Co Approves Key Resolutions at 2025 EGM
Oct 24, 2025

China Shenhua Energy Co, a leading player in the energy sector, recently held its second extraordinary general meeting for 2025, where all proposed resolutions were successfully passed. The meeting, attended by a significant number of shareholders and proxies, resulted in the approval of an interim dividend distribution and the granting of a general mandate to issue shares. These decisions reflect the company’s strategic focus on shareholder returns and operational flexibility, potentially strengthening its market position and stakeholder confidence.

China Shenhua Energy Reports Decline in Q3 2025 Financial Performance
Oct 24, 2025

China Shenhua Energy Company Limited released its third quarterly report for 2025, indicating a decline in revenue and profit compared to the same period last year. Revenue decreased by 13.1% to RMB 75,042 million, and profit attributable to equity holders fell by 11.8% to RMB 14,660 million. The report highlights a significant reduction in net cash generated from operating activities, which dropped by 19.9% from the previous year, reflecting challenges in the company’s financial performance.

China Shenhua Energy Co Enters New Framework Agreement with China Railway
Oct 24, 2025

China Shenhua Energy Co has announced the approval of a new 2026-2028 Continuing Connected Transactions Framework Agreement with Taiyuan Railway Bureau, acting on behalf of China Railway. This agreement, effective from January 1, 2026, to December 31, 2028, continues the provision of transportation services, coal supply, and other products between the Group and China Railway Group. The decision follows an increase in the annual revenue cap for 2025 under the previous agreement, aiming to support a new logistics business model and boost transportation revenue. The new framework agreement is subject to reporting and announcement requirements under Hong Kong Listing Rules but is exempt from independent shareholders’ approval.

China Shenhua Energy Announces Board Resolutions and New Agreement
Oct 24, 2025

China Shenhua Energy Company Limited announced the resolutions from the fourteenth meeting of its sixth board session, which included the approval of the third quarterly financial report for 2025 and a new framework agreement for continuing connected transactions with China State Railway Group Co., Ltd. This announcement underscores the company’s ongoing strategic partnerships and financial transparency, potentially impacting its operational dynamics and stakeholder relations positively.

China Shenhua Energy’s Jiujiang Phase II Power Unit Begins Commercial Operation
Oct 21, 2025

China Shenhua Energy Company Limited announced the successful completion of a 168-hour continuous full-load trial operation for the No. 4 power generation unit of the Jiujiang Phase II project. This milestone signifies the commencement of commercial operations for both 1,000 MW ultra-supercritical secondary reheat coal-fired power generation units under the project. Located in Jiangxi Province, this key project aligns with the province’s 14th Five-Year Plan and demonstrates outstanding environmental performance by achieving ultra-low emission standards. The operationalization of Jiujiang Phase II is expected to bolster energy security in Jiangxi Province and Central China, while promoting regional social and economic development.

China Shenhua Energy to Host 2025 Q3 Results Presentation
Oct 17, 2025

China Shenhua Energy Company Limited announced its 2025 third quarterly results presentation, scheduled for October 27, 2025, at the Shanghai Stock Exchange SSE roadshow center. The presentation aims to provide investors with a comprehensive understanding of the company’s operating results and financial conditions, allowing for interactive online communication and addressing investors’ questions and concerns. This initiative reflects the company’s commitment to transparency and engagement with stakeholders, potentially strengthening its industry positioning and investor relations.

China Shenhua Energy Reports Mixed Operational Results for September 2025
Oct 16, 2025

In September 2025, China Shenhua Energy Co. reported a mixed performance across its operations. The company saw increased transportation turnover due to higher coal volumes along its railways, and loading volumes at key ports rose due to increased resource arrivals. However, there were declines in shipping volume and power generation, attributed to structural adjustments in shipping routes and insufficient electricity demand in some regions. The acquisition of Hangjin Energy earlier in the year has been integrated into the company’s operational data, impacting year-on-year comparisons.

China Shenhua Energy to Review Nine-Month Financial Results
Oct 10, 2025

China Shenhua Energy Company Limited has announced that its board of directors will hold a meeting on October 24, 2025, in Beijing to consider and potentially approve the company’s financial results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its strategic decisions and stakeholder interests.

China Shenhua Announces Share Issuance and Asset Acquisition Plan
Oct 10, 2025

China Shenhua Energy Company Limited announced its plan to issue A shares and pay cash to acquire assets from its controlling shareholder, China Energy Investment Corporation Limited. This transaction aims to enhance the company’s asset base and raise supporting funds, although it is not expected to constitute a major asset restructuring or change in control. The company’s A shares were temporarily suspended but resumed trading after the proposal was approved by the board and supervisory committee.

China Shenhua Energy Announces Extraordinary General Meeting and Dividend Plans
Sep 29, 2025

China Shenhua Energy Company Limited has announced an Extraordinary General Meeting scheduled for October 24, 2025, to discuss key resolutions. The company plans to distribute an interim dividend of RMB 0.98 per share for the first half of 2025, totaling approximately RMB 19,471 million. Additionally, the meeting will consider granting a General Mandate to the Board to issue additional A and/or H shares, not exceeding 20% of the total shares in issue, to accommodate market conditions and company needs. This move could potentially enhance the company’s capital structure and provide flexibility for future growth opportunities.

China Shenhua Energy Reports Mixed Operational Data for August 2025
Sep 16, 2025

In August 2025, China Shenhua Energy reported a slight decrease in commercial coal production and sales compared to the previous year, with a notable decline in shipping volume and shipment turnover due to structural adjustments in the shipping business. However, the company experienced increases in transportation turnover of self-owned railways and loading volumes at key ports, attributed to improved coal source availability and resource arrivals. Additionally, sales of polyethylene and polypropylene rose significantly due to a lower base from scheduled maintenance in the previous year, indicating a recovery in the coal-to-olefin production segment.

China Shenhua Announces Asset Acquisition and Share Issuance Plan
Sep 12, 2025

China Shenhua Energy Company Limited announced its plan to issue A shares and pay cash to acquire assets from its controlling shareholder, China Energy Investment Corporation Limited. This transaction, which involves coal and related energy assets, aims to raise supporting funds and is classified as a related transaction, not a major asset restructuring. The company’s A shares were suspended from trading on August 4, 2025, to facilitate this process, and the board has approved the proposals related to the transaction.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025