Yankuang Energy Group Company Limited Class H (1171) AI Stock Analysis

• Market Cap: HK$130.07B
• Dividend Yield: 7.86%
• Average Volume (3M): 43.36M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.45
• Revenue Growth: 0.80%
• EPS Growth: -35.81%
• Country: HK
• Employees: 77,957
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): 0.25
• Shares Outstanding: 4,075,500,000
• 10 Day Avg. Volume: 31,601,464
• 30 Day Avg. Volume: 43,363,428
• PEG Ratio: -0.19
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 15.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$9.96
• Price Target Upside: -0.30% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$12.50 ▲(25.13% Upside)

Yankuang Energy Group's stock is supported by a strong valuation with a low P/E ratio and high dividend yield, making it attractive for value and income investors. The technical analysis indicates bullish momentum, although caution is advised due to overbought signals. Financial performance is stable, but cash flow issues need addressing to ensure long-term liquidity.

Positive Factors

Strong Balance Sheet

A strong balance sheet with prudent debt management provides financial stability, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Effective Cost Management

Effective cost management helps maintain profitability despite revenue challenges, ensuring the company can sustain operations and invest in strategic initiatives.

Diverse Revenue Streams

Diverse revenue streams from coal, electricity, and chemicals reduce dependency on a single market, enhancing resilience against sector-specific downturns.

Negative Factors

Cash Flow Issues

Cash flow issues can strain liquidity, limiting the company's ability to cover capital expenditures and dividends, potentially affecting long-term operational efficiency.

Decline in Revenue

A decline in revenue may indicate challenges in market demand or competitive pressures, potentially impacting future growth and profitability.

Reduced Profitability

Reduced profitability, as indicated by declining return on equity, may affect the company's ability to generate returns for shareholders and invest in growth opportunities.

Yankuang Energy Group Company Limited Class H Business Overview & Revenue Model

Company Description

Yankuang Energy Group Company Limited engages in the mining, preparation, and sale of coal worldwide. It offers thermal, PCI, and coking coal for electric power, metallurgy and chemical industry, etc.; produces and sells coal chemicals, as well as electricity and related heat supply services; explores for potash mineral; manufactures, installs, repairs, and sells coal mining and excavating equipment, cable, and electrical equipment; and sells construction materials and petroleum products. The company also provides railway, river, and lakes transportation; underground mines management; mining materials testing; equity investment fund and corporate asset management, investment advisory and management, foreign investment fund, import and export, and international trading; solar and wind power, and production management; educational software development and event planning; and coal mining technology development, transfer, and consultation services, as well as operates as a trade broker and agent. In addition, it engages in the wholesale of coal and non-ferrous metals; house and financial leasing; logistics storage and leasing; development of charcoal products; LTCC technology development and equipment rental operations; manufacturing and sale of cable and rubber products; production and processing of steel engineering components; processing, production, and sale of FischerTropsch synthesis catalyst, composite pipe, and plastic profile products; real estate development and operation, property management, garden greening engineering, and sewage treatment and rental housing agency services; and issuing subordinated capital notes. The company was formerly known as Yanzhou Coal Mining Company Limited and changed its name to Yankuang Energy Group Company Limited in December 2021. The company was founded in 1973 and is based in Zoucheng, the People's Republic of China.

How the Company Makes Money

Yankuang Energy generates revenue primarily through the sale of coal and electricity. The company operates extensive coal mining operations that yield significant quantities of thermal and coking coal, which are sold to power plants, steel manufacturers, and other industrial customers. In addition to coal sales, the company's power generation segment contributes to its revenue through the sale of electricity to the grid and local consumers. Furthermore, Yankuang engages in coal chemical production, creating value-added products that enhance its profitability. Strategic partnerships with other energy companies and government entities also bolster its revenue by providing access to new markets and technologies. The fluctuating global demand for coal and energy prices significantly influence its earnings, making market conditions a critical factor in its revenue generation.

Yankuang Energy Group Company Limited Class H Financial Statement Overview

Summary

Yankuang Energy Group shows a balanced financial position with a strong balance sheet and decent profitability metrics. Despite revenue challenges, the company maintains profitability through effective cost controls. However, cash flow issues present a critical area that needs attention to ensure liquidity and operational efficiency.

Income Statement

The company demonstrates a solid gross profit margin and EBIT margin for TTM (Trailing-Twelve-Months), indicating effective cost management. However, there has been a decline in total revenue compared to the previous year, highlighting potential challenges in sustaining sales growth. Net profit margin remains robust, although slightly reduced, reflecting profitability resilience amidst revenue pressures.

Balance Sheet

The balance sheet is strong with a moderate debt-to-equity ratio and a healthy equity ratio, showcasing financial stability and prudent debt management. The return on equity is satisfactory, indicating effective use of equity capital, although it has experienced a slight decline, suggesting reduced profitability.

Cash Flow

The cash flow statement reveals a significant reduction in operating cash flow for TTM, coupled with negative free cash flow, posing a risk to liquidity. The free cash flow to net income ratio is unfavorable, signaling potential issues in generating cash from operations to cover capital expenditures and dividends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.16B	139.12B	150.02B	200.83B	151.99B	214.99B
Gross Profit	43.62B	49.81B	60.96B	82.22B	44.65B	28.42B
EBITDA	41.43B	46.26B	56.31B	74.53B	40.03B	22.30B
Net Income	12.13B	14.43B	20.14B	33.82B	16.44B	7.61B
Balance Sheet
Total Assets	375.67B	358.55B	354.28B	295.80B	288.70B	258.91B
Cash, Cash Equivalents and Short-Term Investments	45.42B	38.51B	37.70B	45.27B	45.83B	24.69B
Total Debt	81.46B	79.67B	77.94B	75.01B	98.42B	94.98B
Total Liabilities	239.22B	225.54B	235.94B	167.71B	192.21B	179.13B
Stockholders Equity	84.44B	82.59B	72.69B	94.74B	68.19B	54.12B
Cash Flow
Free Cash Flow	181.16M	5.27B	-2.02B	35.27B	25.74B	10.22B
Operating Cash Flow	13.56B	22.34B	16.17B	53.45B	36.18B	22.23B
Investing Cash Flow	-13.27B	-9.73B	-12.20B	-12.63B	-4.83B	-13.58B
Financing Cash Flow	-7.54B	-12.39B	-32.51B	-43.27B	-8.04B	-14.41B

Yankuang Energy Group Company Limited Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1171, the sentiment is Negative. The current price of 9.99 is below the 20-day moving average (MA) of 10.13, below the 50-day MA of 10.70, and above the 200-day MA of 9.01, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 41.70 is Neutral, neither overbought nor oversold. The STOCH value of 48.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1171.

Yankuang Energy Group Company Limited Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1277	81 Outperform	HK$11.21B	6.57	19.63%	9.77%	-2.79%	-39.45%
0639	79 Outperform	HK$14.76B	13.63	6.64%	9.31%	-5.78%	-29.52%
1088	78 Outperform	HK$873.87B	13.71	―	8.88%	-13.87%	-15.41%
1171	72 Outperform	HK$130.07B	8.16	―	7.86%	0.80%	-35.81%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
1898	64 Neutral	HK$174.92B	8.60	10.99%	4.49%	-3.42%	-18.73%
0975	58 Neutral	HK$11.06B	17.42	6.76%	―	-20.50%	-64.45%

Yankuang Energy Group Company Limited Class H Corporate Events

Yankuang Energy Acquires Full Stake in High-End Support

Yankuang Energy Group Company Limited announced that its subsidiary, Donghua Heavy Industry, has entered into an Equity Transfer Agreement to acquire 100% equity interest in High-End Support from Shandong Energy Equipment for RMB 344,847,433.48. This acquisition will make High-End Support a wholly-owned subsidiary of Yankuang Energy, potentially strengthening the company’s market position and operational capabilities in the energy sector.

Yankuang Energy Group Successfully Issues Third Tranche of 2025 Sci-Tech Innovation Bonds

Yankuang Energy Group Company Limited successfully issued the third tranche of its 2025 sci-tech innovation bonds, raising RMB 3 billion. This issuance, approved for a two-year term, reflects the company’s strategic financial initiatives and could enhance its market positioning and operational capabilities.

Yankuang Energy Reports Decline in Q3 2025 Financial Results

Yankuang Energy Group Company Limited reported its unaudited financial results for the third quarter of 2025, showing a decline in both operating income and net profit compared to the previous year. The company’s operating income for the first three quarters was RMB104.957 billion, down 11.64%, while net profit attributable to shareholders decreased by 39.15% to RMB7.120 billion. These results reflect challenges in the energy market and have implications for the company’s financial health and investor confidence.

Yankuang Energy Group Successfully Issues RMB 3 Billion Sci-Tech Bonds

Yankuang Energy Group Company Limited has successfully issued the second tranche of its 2025 sci-tech innovation bonds, amounting to RMB 3 billion. This issuance, with an interest rate of 1.96%, marks a significant step in the company’s financial strategy, potentially enhancing its market position and providing additional resources for innovation and development.

Yankuang Energy Group to Hold Q3 2025 Results Presentation

Yankuang Energy Group Company Limited has announced that it will hold a results presentation for the third quarter of 2025 on October 31, 2025. The presentation will be conducted via telephone and online meeting, allowing investors to understand the company’s operating results, future market analysis, and operational methods. This initiative aims to enhance communication with investors, addressing their concerns and providing insights into the company’s performance.

Yankuang Energy Reports Q3 2025 Coal Production and Sales Data

Yankuang Energy Group Company Limited announced the third-quarter 2025 operational data for its overseas subsidiary, Yancoal Australia Limited. The data revealed a 9% decrease in the production volume of saleable coal compared to the same quarter in 2024, while sales volume saw a slight increase of 3%. However, the average realized price per tonne dropped by 18%, indicating potential challenges in market pricing. This announcement may impact the company’s financial performance and market positioning as it navigates fluctuating coal prices.

Yankuang Energy Reports Growth in Coal and Chemical Segments for Q3 2025

Yankuang Energy Group Company Limited reported a notable increase in its coal business for the third quarter of 2025, with production and sales volumes of saleable coal rising by 4.92% and 10.08% respectively compared to the previous year. The coal chemicals segment also showed mixed results, with significant year-on-year increases in the production and sales of glycol, caprolactam, and polyformaldehyde, while methanol and ethyl acetate experienced declines. These changes reflect the company’s strategic adjustments and market responses, including the consolidation of Shandong Energy Group Northwest Mining Co., Ltd., and the commencement of a new urea production facility, which contributed to the overall growth in urea production and sales.

Yankuang Energy Group Schedules Board Meeting for Q3 Results

Yankuang Energy Group Company Limited has announced that a board meeting will be held on October 30, 2025, to discuss the publication of its unaudited third-quarter results for the period ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

Yankuang Energy Group Announces Spin-off of Kasong Science and Technology

Yankuang Energy Group Company Limited has announced its intention to spin off its subsidiary, Kasong Science and Technology Co., Ltd., to be listed on the National Equities Exchange and Quotations. This strategic move is expected to enhance Kasong’s market competitiveness and financial transparency, broaden its financing channels, and improve its management systems. The spin-off aims to boost the company’s industrial scale, enhance its brand image, and maximize shareholder value while maintaining control over Kasong Science and Technology.

Yankuang Energy Terminates Merger with Highfield Resources

Yankuang Energy Group Company Limited has announced the termination of its merger and acquisition agreement with Highfield Resources Limited due to unmet conditions. The decision, made after careful consideration, will not impact the company’s current operations or shareholder interests, and the company will continue to advance its Canadian potash development project.