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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

China Shenhua Energy Co

(OTC:1088)

Rating:80Outperform
Price Target:
HK$39.00
▲(25.40%Upside)
The stock's overall score is driven by strong financial performance, characterized by robust profitability and a solid balance sheet. The valuation is attractive with a low P/E ratio and high dividend yield, adding to its appeal. While technical indicators show positive momentum, caution is advised due to nearing overbought conditions. These factors collectively suggest a well-positioned stock with potential for stable returns.

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 Co., Ltd. generates revenue through several key streams. The primary source of income is from the sale of coal, which includes both thermal coal for power generation and metallurgical coal for steelmaking. The company also earns substantial revenue from its power generation segment, where it operates numerous coal-fired power plants. Additionally, China Shenhua Energy benefits from its integrated logistics operations, which include railway and port services, facilitating the efficient transportation of coal and other goods. The company's strategic partnerships and investments in infrastructure further enhance its revenue potential by ensuring the smooth supply chain operations and expanding its market reach. These diversified operations enable the company to maintain a robust financial performance amidst fluctuating market conditions.

China Shenhua Energy Co Financial Statement Overview

Summary
China Shenhua Energy Co shows strong financial health with robust profitability metrics and a solid balance sheet. Despite challenges in revenue growth, operational efficiency and financial leverage are strengths. Cash flow is stable, but there's room for improvement in free cash flow growth.
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 Revenue320.31B338.38B343.07B344.53B335.22B233.26B
Gross Profit109.38B115.18B122.44B134.47B110.76B94.24B
EBITDA83.81B111.23B108.98B121.03B95.95B80.99B
Net Income54.74B58.67B59.69B69.65B50.08B39.17B
Balance Sheet
Total Assets672.31B658.07B630.13B621.70B607.05B558.45B
Cash, Cash Equivalents and Short-Term Investments163.11B159.72B150.28B170.50B162.89B127.46B
Total Debt36.50B31.00B36.87B56.94B65.41B63.88B
Total Liabilities159.42B154.12B151.76B162.46B161.38B133.32B
Stockholders Equity433.11B426.87B408.69B393.85B376.88B360.19B
Cash Flow
Free Cash Flow16.76B56.32B52.60B81.05B70.71B60.62B
Operating Cash Flow44.65B93.35B89.69B109.73B94.58B81.29B
Investing Cash Flow-61.62B-85.36B-36.97B-56.59B-6.84B32.05B
Financing Cash Flow-57.03B-51.17B-76.13B-78.73B-43.73B-42.08B

China Shenhua Energy Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price31.10
Price Trends
50DMA
30.17
Positive
100DMA
29.45
Positive
200DMA
29.99
Positive
Market Momentum
MACD
0.16
Positive
RSI
43.90
Neutral
STOCH
4.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1088, the sentiment is Neutral. The current price of 31.1 is below the 20-day moving average (MA) of 31.52, above the 50-day MA of 30.17, and above the 200-day MA of 29.99, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 4.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1088.

China Shenhua Energy Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$842.85B9.6512.78%8.11%-7.73%-6.97%
52
Neutral
C$2.91B-0.97-3.26%6.23%2.20%-43.43%
$18.62B5.5612.03%11.62%
$5.79B12.169.94%0.81%
$12.49B6.1315.59%7.63%
$3.31B-17.87%
$14.16B4.9122.05%7.48%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1088
China Shenhua Energy Co
30.45
-4.13
-11.95%
CCOZF
China Coal Energy Co
1.06
-0.14
-11.67%
CRGGF
China Resources Gas Group
2.81
-0.57
-16.86%
CRPJF
China Resources Power Holdings Co
2.33
-0.64
-21.55%
MAANF
Maanshan Iron & Steel Co
0.22
0.08
57.14%
YZCHF
Yankuang Energy Group Company Limited Class H
1.00
-0.34
-25.37%

China Shenhua Energy Co Corporate Events

China Shenhua Energy Co Proposes Governance Restructuring and Business Scope Amendments
Jun 20, 2025

China Shenhua Energy Co has announced a proposal to abolish its supervisory committee and amend its Articles of Association, Rules of Procedure of General Meeting, and Rules of Procedure of the Board. These changes, subject to shareholder approval, aim to streamline governance by transferring the supervisory committee’s functions to the audit and risk management committee. The amendments also include updates to the scope of business and standardization of terms, reflecting the company’s evolving business needs and regulatory compliance. The Board believes these changes will benefit the company and its shareholders.

The most recent analyst rating on (HK:1088) stock is a Hold with a HK$28.00 price target. To see the full list of analyst forecasts on China Shenhua Energy Co stock, see the HK:1088 Stock Forecast page.

China Shenhua Energy Co Secures Strong Shareholder Support at Annual Meetings
Jun 20, 2025

China Shenhua Energy Co, a leading energy company, announced the successful conclusion of its 2024 Annual General Meeting and the 2025 first class meetings for A and H shareholders. All resolutions proposed at these meetings were approved, indicating strong shareholder support. The meetings were attended by a significant number of shareholders and proxies, representing over 73% of the company’s total issued shares. This outcome reflects the company’s stable governance and shareholder confidence, potentially strengthening its position in the energy market.

The most recent analyst rating on (HK:1088) stock is a Hold with a HK$28.00 price target. To see the full list of analyst forecasts on China Shenhua Energy Co stock, see the HK:1088 Stock Forecast page.

China Shenhua Energy Announces Final Dividend for 2024
Jun 20, 2025

China Shenhua Energy Company Limited has announced a final cash dividend of RMB 2.26 per share for the financial year ending 31 December 2024, with payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.0834. The announcement outlines the withholding tax rates applicable to different categories of shareholders, which may impact the net dividend received by non-resident shareholders, reflecting the company’s adherence to international tax agreements and regulations.

The most recent analyst rating on (HK:1088) stock is a Hold with a HK$28.00 price target. To see the full list of analyst forecasts on China Shenhua Energy Co stock, see the HK:1088 Stock Forecast page.

China Shenhua Energy Announces Board and Committee Roles
Jun 20, 2025

China Shenhua Energy Company Limited has announced the current composition of its board of directors and the roles each member holds within the company’s various board committees. This announcement provides clarity on the governance structure and is likely to impact the company’s strategic direction and operational oversight, potentially influencing its market positioning and stakeholder relations.

The most recent analyst rating on (HK:1088) stock is a Hold with a HK$28.00 price target. To see the full list of analyst forecasts on China Shenhua Energy Co stock, see the HK:1088 Stock Forecast page.

China Shenhua Unveils Ambitious 2025 Growth Plan
Jun 20, 2025

China Shenhua Energy Company Limited has announced its 2025 Corporate Value and Return Enhancement Action Plan, aiming to improve its operational quality and investment value. The company reported strong financial performance in 2024, with significant revenue and profit growth, and plans to maintain this momentum by setting ambitious business targets for 2025, including substantial coal production and power generation goals, alongside a planned capital expenditure of RMB41.793 billion.

The most recent analyst rating on (HK:1088) stock is a Hold with a HK$28.00 price target. To see the full list of analyst forecasts on China Shenhua Energy Co stock, see the HK:1088 Stock Forecast page.

China Shenhua Energy Announces Key Governance Changes
Jun 20, 2025

China Shenhua Energy Company Limited announced the resolutions passed at the tenth meeting of its sixth session of the board of directors. Key decisions include the abolition of the supervisory committee and amendments to the Articles of Association, as well as changes to the rules of procedure for general meetings. These resolutions, approved unanimously, aim to streamline governance and operational procedures, potentially impacting the company’s strategic direction and stakeholder engagement.

The most recent analyst rating on (HK:1088) stock is a Hold with a HK$28.00 price target. To see the full list of analyst forecasts on China Shenhua Energy Co stock, see the HK:1088 Stock Forecast page.

China Shenhua Energy Reports Mixed Operational Results for May 2025
Jun 16, 2025

China Shenhua Energy Co. reported a decrease in coal sales and shipping volume for May 2025, attributed to weak downstream demand and structural adjustments in its shipping business. However, the company saw a significant increase in polyethylene and polypropylene sales due to a lower base from scheduled maintenance of coal-to-olefin equipment in the previous year. The operational data reflects the integration of Hangjin Energy’s business volumes, following its acquisition in February 2025.

The most recent analyst rating on (HK:1088) stock is a Hold with a HK$28.00 price target. To see the full list of analyst forecasts on China Shenhua Energy Co stock, see the HK:1088 Stock Forecast page.

China Shenhua Energy Co. Acquires Stake in Finance Company to Bolster Market Position
May 23, 2025

China Shenhua Energy Co., Ltd. has announced the approval of a proposal to acquire a 7.43% equity interest in China Energy Finance Co., Ltd. from its subsidiaries, including ShuoHuang Railway, Zhunge’er Energy, and Baoshen Railway. This acquisition, valued at approximately RMB 2.93 billion, will alter the shareholding structure of the Finance Company to 60% held by China Energy Investment Corporation Limited and 40% by China Shenhua. This strategic move is expected to strengthen China Shenhua’s financial capabilities and enhance its positioning in the energy sector.

The most recent analyst rating on (HK:1088) stock is a Hold with a HK$35.00 price target. To see the full list of analyst forecasts on China Shenhua Energy Co stock, see the HK:1088 Stock Forecast page.

China Shenhua Energy Co Announces 2024 Annual General Meeting and Key Resolutions
May 20, 2025

China Shenhua Energy Co has announced its 2024 Annual General Meeting to be held on June 20, 2025, where key resolutions will be discussed, including the approval of the 2024 financial statements and a profit distribution plan with a final dividend of RMB2.26 per share. The meeting will also address the remuneration of directors and supervisors, the extension of KPMG as auditors, and a shareholder return plan for 2025-2027, indicating a strategic focus on shareholder value and financial transparency.

The most recent analyst rating on (HK:1088) stock is a Hold with a HK$28.00 price target. To see the full list of analyst forecasts on China Shenhua Energy Co stock, see the HK:1088 Stock Forecast page.

China Shenhua Energy Announces H Share Repurchase Plan
May 20, 2025

China Shenhua Energy Company Limited has announced a special resolution for the repurchase of its H shares, not exceeding 10% of the total issued H shares, during its upcoming 2025 first class meeting of H shareholders. This move is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value. The board of directors is authorized to implement the repurchase plan, which includes determining the timing, price, and number of shares to be repurchased, and making necessary regulatory filings and amendments to the company’s articles of association.

The most recent analyst rating on (HK:1088) stock is a Hold with a HK$28.00 price target. To see the full list of analyst forecasts on China Shenhua Energy Co stock, see the HK:1088 Stock Forecast page.

China Shenhua Energy Reports Mixed Operational Performance for April 2025
May 15, 2025

In April 2025, China Shenhua Energy Company reported a mixed performance in its major operational data. The company experienced a year-on-year decrease in commercial coal production and sales, as well as a decline in shipping volume and shipment turnover due to structural adjustments in its shipping business. However, there was a notable increase in the loading volume at Tianjin Coal Dock and in the sales of polyethylene and polypropylene, attributed to the arrival of more resources and a lower base from the previous year’s equipment maintenance. The acquisition of Hangjin Energy in February 2025 has been incorporated into the operational data, impacting the company’s business volumes.

The most recent analyst rating on (HK:1088) stock is a Hold with a HK$32.41 price target. To see the full list of analyst forecasts on China Shenhua Energy Co stock, see the HK:1088 Stock Forecast page.

China Shenhua Energy Reports Decline in Q1 2025 Revenue and Profit
Apr 25, 2025

China Shenhua Energy Company Limited reported its first-quarter financial results for 2025, showing a decline in revenue and profit compared to the same period last year. The company experienced a 21.1% decrease in revenue and a 19.0% drop in profit attributable to equity holders, reflecting challenges in the energy market. Despite these declines, the company’s total assets increased slightly by 0.6%, and equity attributable to equity holders rose by 3.1%, indicating a stable financial position. The report was prepared in accordance with IFRS Accounting Standards but has not been audited.

China Shenhua Energy Announces Board Committee Restructuring
Apr 25, 2025

China Shenhua Energy Company Limited has announced changes in the composition of its board committees. The appointments include Mr. Zhang Changyan as chairman of the Strategy and Investment Committee, Mr. Kang Fengwei as chairman of the Safety, Health, Environment and ESG Working Committee, and other key roles. These changes are expected to enhance the strategic and operational focus of the company, aligning with its commitment to governance and sustainability, and ensuring compliance with committee procedural rules.

China Shenhua Energy Co Announces Board Composition and Committee Roles
Apr 25, 2025

China Shenhua Energy Co has announced the current composition of its board of directors and their respective roles within various board committees. This update provides clarity on leadership roles and may influence the company’s strategic direction and governance, impacting stakeholders’ perception of its management and operational efficiency.

China Shenhua Energy Approves Q1 Financials and Auditor Reappointment
Apr 25, 2025

China Shenhua Energy Company Limited held its eighth meeting of the sixth session of the board of directors, during which key resolutions were approved. The board unanimously approved the first quarterly financial report for 2025 and the re-appointment of external auditors for the year, indicating a stable financial outlook and continuity in its auditing practices. This meeting underscores the company’s commitment to transparency and adherence to regulatory requirements, potentially strengthening its position in the energy market.

China Shenhua Energy to Host 2025 Q1 Results Presentation
Apr 24, 2025

China Shenhua Energy Company Limited announced it will hold an online presentation for its 2025 first quarterly results on May 8, 2025, at the Shanghai Stock Exchange roadshow center. This event aims to provide investors with a comprehensive understanding of the company’s operating results and financial conditions, allowing for interactive communication and addressing investor concerns.

China Shenhua Energy Reports Stable Coal Production Amid Market Challenges
Apr 14, 2025

In March 2025, China Shenhua Energy reported stable coal production levels, though sales volume and transportation turnover decreased due to weaker downstream demand. The completion of the acquisition of Hangjin Energy has been integrated into the company’s operations, affecting the restated figures for the previous year.

China Shenhua Energy Schedules Board Meeting to Review Q1 2025 Results
Apr 8, 2025

China Shenhua Energy Company Limited has announced a board meeting scheduled for April 25, 2025, in Beijing to review and potentially approve the company’s financial results for the first quarter of 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its strategic decisions and stakeholder relations.

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: Jun 07, 2025