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China Coal Energy Co Ltd Class H (HK:1898)
:1898

China Coal Energy Co (1898) AI Stock Analysis

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HK

China Coal Energy Co

(OTC:1898)

Rating:76Outperform
Price Target:
HK$10.00
▲(10.74%Upside)
The overall stock score is driven primarily by the company's robust financial performance and attractive valuation. Despite some concerns about revenue decline and debt levels, the financial health and low valuation metrics position the stock favorably. Technical analysis provides mixed signals, adding some uncertainty to the short-term outlook.

China Coal Energy Co (1898) vs. iShares MSCI Hong Kong ETF (EWH)

China Coal Energy Co Business Overview & Revenue Model

Company DescriptionChina Coal Energy Co., Ltd. (1898) is a leading integrated energy company in China, primarily engaged in the production and sale of coal. The company operates in various sectors including coal mining, coal chemical processing, coal-fired power generation, and equipment manufacturing. It is one of the largest coal producers and distributors in China, providing a diverse range of coal products for industrial, commercial, and residential use.
How the Company Makes MoneyChina Coal Energy Co. makes money through several key revenue streams. The primary source of revenue is the mining, production, and sale of coal, which is supplied to power plants, industrial consumers, and other end-users. The company also generates earnings from its coal chemical business, which involves the conversion of coal into chemicals such as methanol and fertilizers. Additionally, China Coal Energy Co. benefits from its coal-fired power generation activities, selling electricity to the grid. The company has strategic partnerships and joint ventures that enhance its market reach and operational efficiency. Furthermore, it earns revenue from the manufacturing and sale of mining equipment, leveraging its expertise in coal mining to supply machinery and technology solutions to the industry.

China Coal Energy Co Earnings Call Summary

Earnings Call Date:Apr 25, 2025
(Q3-2024)
|
% Change Since: 11.07%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted stable production and cost reduction efforts, with notable achievements in polyolefin production and financial business profit growth. However, these were counterbalanced by significant declines in operating income, coal sales volume, and earnings per share.
Q3-2024 Updates
Positive Updates
Stable Production and Exceeded Budget
China Coal's production, sales, and total profit exceeded the budget for the first three quarters of 2024, laying a solid foundation for the year.
Polyolefin Production Increase
The cumulative output of polyolefin increased by 32,000 tonnes to 1.14 million tonnes.
Financial Business Profit Growth
The profit from the financial business was CNY 1.078 billion, up by 11.3%.
Decrease in Unit Sales Cost
The unit sales cost of self-produced commercial coal decreased, resulting in a profit increase of CNY 821 million.
Negative Updates
Decrease in Operating Income
Operating income for the first three quarters of 2024 decreased by 10.1% to CNY 140 billion.
Decline in Coal Sales Volume
Sales volume of commercial coal was down by 9.9 million tonnes.
Reduction in Earnings Per Share
Basic earnings per share decreased by 12.7% to CNY 1.10.
Drop in Equipment Business Output
Coal mined equipment output was CNY 7.72 billion, down 12.3%.
Company Guidance
In the Q3 2024 earnings call for China Coal, the executives highlighted several key performance metrics and future guidance. For the first three quarters of 2024, coal production reached a cumulative output of 102 million tonnes, marking an increase of 1.1% year-on-year, while sales volume of commercial coal stood at 205 million tonnes. The average selling price of self-produced commercial coal decreased by 5.3% to CNY 571 per tonne, and the unit sales cost also saw a reduction. Financially, the company achieved an operating income of CNY 140 billion, albeit a 10.1% decrease from the previous year, while net profit attributable to shareholders was CNY 14.6 billion. Looking ahead, China Coal plans to focus on safe production, cost control, and high-quality development, with a capital expenditure plan of approximately CNY 15 to 20 billion over the next few years, emphasizing coal chemical and new energy projects. Management also addressed the potential for mergers and acquisitions, although no specific plans were disclosed.

China Coal Energy Co Financial Statement Overview

Summary
China Coal Energy Co demonstrates a solid financial foundation with strong profitability metrics, a stable balance sheet, and efficient cash flow management. However, revenue decline and considerable debt levels are concerns.
Income Statement
78
Positive
China Coal Energy Co shows a mixed performance with strong gross profit margins and consistent EBIT and EBITDA margins. However, recent revenue has declined, impacting net profit margins. The TTM (Trailing-Twelve-Months) figures indicate a slight contraction in revenues compared to previous annual data, which may suggest challenges in maintaining growth momentum.
Balance Sheet
82
Very Positive
The company exhibits a robust balance sheet with a healthy equity ratio and a manageable debt-to-equity ratio. The stockholders' equity has shown growth, reflecting improved financial health. However, the level of total debt is considerable, which could pose leverage risks if not managed properly.
Cash Flow
75
Positive
China Coal Energy Co's cash flow position is strong, with significant operating cash flow and a positive free cash flow, although there has been a recent decline in free cash flow. The free cash flow to net income ratio is favorable, indicating efficient cash flow management. However, the reduction in free cash flow growth rate highlights potential concerns about sustaining cash generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue171.07B181.91B192.97B220.58B231.13B140.96B
Gross Profit31.15B37.92B48.25B55.42B42.04B36.45B
EBITDA34.77B43.30B44.30B42.51B37.37B25.64B
Net Income17.16B18.16B19.53B25.38B19.00B8.93B
Balance Sheet
Total Assets269.18B357.79B349.36B340.11B321.74B281.69B
Cash, Cash Equivalents and Short-Term Investments28.71B76.78B91.54B91.03B72.92B35.95B
Total Debt101.44B64.39B73.52B84.23B97.33B95.33B
Total Liabilities155.95B165.77B166.58B175.05B179.34B157.83B
Stockholders Equity93.74B151.71B144.12B130.76B113.79B100.86B
Cash Flow
Free Cash Flow10.64B16.07B25.39B33.88B37.68B12.32B
Operating Cash Flow33.43B34.14B42.97B43.63B48.11B22.63B
Investing Cash Flow-19.46B-12.05B-17.53B-22.05B-25.38B-14.24B
Financing Cash Flow-21.78B-23.88B-26.30B-22.69B-6.70B-5.47B

China Coal Energy Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.03
Price Trends
50DMA
8.48
Positive
100DMA
8.36
Positive
200DMA
8.83
Positive
Market Momentum
MACD
0.14
Negative
RSI
60.61
Neutral
STOCH
81.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1898, the sentiment is Positive. The current price of 9.03 is above the 20-day moving average (MA) of 8.74, above the 50-day MA of 8.48, and above the 200-day MA of 8.83, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 60.61 is Neutral, neither overbought nor oversold. The STOCH value of 81.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1898.

China Coal Energy Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$840.25B10.8412.78%7.28%-7.73%-6.97%
76
Outperform
$147.55B6.1012.03%10.67%-4.04%-12.32%
76
Outperform
HK$9.53B4.1627.12%14.16%17.89%0.63%
70
Outperform
HK$13.75B8.919.12%6.65%-14.16%-19.38%
70
Outperform
$6.28B3.5219.62%0.16%-4.09%
67
Neutral
$14.65B9.686.41%5.31%4.12%-71.24%
64
Neutral
HK$111.29B5.0322.05%8.30%2.87%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1898
China Coal Energy Co
9.03
0.86
10.57%
HK:0639
Shougang Fushan Resources Group Limited
2.73
-0.23
-7.77%
HK:1088
China Shenhua Energy Co
34.20
-0.95
-2.70%
HK:0975
Mongolian Mining
6.19
-2.48
-28.60%
HK:1171
Yankuang Energy Group Company Limited Class H
7.74
-2.34
-23.21%
HK:1277
Kinetic Mines & Energy Ltd.
1.13
0.18
18.95%

China Coal Energy Co Corporate Events

China Coal Energy Reports Mixed Operational Performance in May 2025
Jun 16, 2025

In May 2025, China Coal Energy Company Limited reported a slight increase in the production volume of commercial coal by 1.9% compared to the previous year, while sales volume decreased by 4.9%. The company’s coal chemical operations saw a decline in the production and sales of polyethylene and polypropylene, but an increase in urea and methanol production and sales. The production value of coal mining equipment rose by 12.2%. These operational data reflect the company’s ongoing adjustments to market conditions and internal strategies, highlighting the challenges and opportunities within the coal and coal chemical sectors.

The most recent analyst rating on (HK:1898) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on China Coal Energy Co stock, see the HK:1898 Stock Forecast page.

China Coal Energy Announces 2025 H Shareholders’ Class Meeting
Jun 5, 2025

China Coal Energy Company Limited has announced a class meeting for its H shareholders to be held on June 27, 2025, in Beijing. The meeting will address special resolutions concerning amendments to the company’s Articles of Association and the Rules of Procedures for Shareholders’ General Meetings. These changes are aimed at refining the governance structure and operational processes, potentially impacting shareholder engagement and corporate governance.

The most recent analyst rating on (HK:1898) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on China Coal Energy Co stock, see the HK:1898 Stock Forecast page.

China Coal Energy Updates Final Dividend Details for 2024
Jun 5, 2025

China Coal Energy Company Limited has announced an update regarding its final dividend for the year ended 31 December 2024, declaring a dividend of RMB 0.258 per share. The announcement details the ex-dividend date, book closure period, and record date, with specific tax implications for non-resident shareholders. This update reflects the company’s ongoing commitment to shareholder returns and provides clarity on the dividend distribution process, impacting stakeholders by outlining tax responsibilities and timelines.

The most recent analyst rating on (HK:1898) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on China Coal Energy Co stock, see the HK:1898 Stock Forecast page.

China Coal Energy Announces 2024 AGM and Strategic Amendments
Jun 5, 2025

China Coal Energy Company Limited has announced its 2024 Annual General Meeting to be held on June 27, 2025, in Beijing. The meeting will address several key resolutions, including the approval of the 2024 financial and supervisory reports, profit distribution proposals, and the 2025 capital expenditure budget. Additionally, the company plans to amend its Articles of Association and internal procedures, including the cancellation of the Supervisory Committee, reflecting a strategic shift in its governance structure. These changes could impact the company’s operational efficiency and stakeholder relationships.

The most recent analyst rating on (HK:1898) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on China Coal Energy Co stock, see the HK:1898 Stock Forecast page.

China Coal Energy Reports Mixed April 2025 Production Data
May 15, 2025

In April 2025, China Coal Energy Company Limited reported a 5.4% increase in commercial coal production compared to the previous year, although sales volume decreased by 5.8%. The coal chemical segment saw mixed results, with polyethylene and polypropylene production slightly increasing, while sales volumes declined. Notably, methanol production and sales experienced significant growth, with increases of 56.6% and 52.7% respectively. The company highlighted that these figures are subject to variability due to external factors, and investors are cautioned against relying solely on this data for future predictions.

The most recent analyst rating on (HK:1898) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on China Coal Energy Co stock, see the HK:1898 Stock Forecast page.

China Coal Energy Co Restructures Governance and Plans Profit Distribution
Apr 25, 2025

China Coal Energy Co has announced significant changes to its corporate governance structure, including the cancellation of its Supervisory Committee. The Audit and Risk Management Committee will assume the responsibilities of the Supervisory Committee, aligning with recent regulatory changes and enhancing corporate governance. Additionally, the company plans to amend its Articles of Association and several internal procedures to improve shareholder engagement and corporate operations. The Board of Directors has also been authorized to implement a 2025 interim profit distribution plan, ensuring a stable dividend payout ratio, subject to shareholder approval.

China Coal Energy Unveils 2025 Action Plan Amid Industry Challenges
Apr 25, 2025

China Coal Energy Company Limited has announced its action plan for 2025, titled ‘Enhancing Quality and Efficiency and Focusing on Returns.’ The plan aims to improve business quality, corporate governance, and investor returns while focusing on high-quality development and investment value enhancement. Despite a challenging coal industry environment, the company reported stable financial performance in 2024, with increased coal production and a sound governance structure recognized by the capital market. The company plans to continue its focus on efficiency enhancement and incremental transformation, reinforcing innovation and optimizing its structure to achieve its ’14th Five-Year’ Plan objectives and lay the groundwork for the ’15th Five-Year’ Plan.

China Coal Energy Reports Decline in Q1 2025 Financial Performance
Apr 25, 2025

China Coal Energy Company Limited reported a decline in its financial performance for the first quarter of 2025, with operational revenue dropping by 15.4% and net profit attributable to shareholders decreasing by 20% compared to the same period last year. The company also experienced a significant reduction in net cash flows from operating activities, which fell by 89%. Despite these challenges, the company’s total assets saw a slight decrease of 0.6%, while owners’ equity attributable to shareholders increased by 2.6%, indicating some resilience in its financial structure.

China Coal Energy Announces Board and Committee Roles
Apr 25, 2025

China Coal Energy Company Limited announced the composition of its board of directors and the roles within its five established board committees. These committees, which include strategy and investment, nomination, audit and risk management, remuneration and assessment, and safety, health, and environmental protection, are structured to enhance corporate governance and strategic oversight, potentially impacting the company’s operational efficiency and stakeholder confidence.

China Coal Energy Strengthens Governance with Audit and Risk Management Initiatives
Apr 25, 2025

China Coal Energy Company Limited’s Audit and Risk Management Committee has outlined its comprehensive responsibilities, which include supervising financial management, risk management, and internal controls. The committee is tasked with reviewing financial statements, appointing external auditors, and ensuring compliance with relevant laws and regulations. This strategic focus on governance and risk management is expected to enhance the company’s operational efficiency and strengthen its market position, benefiting stakeholders by promoting transparency and accountability.

China Coal Energy Co’s Strategic Investment Initiatives
Apr 25, 2025

The Strategy and Investment Committee of China Coal Energy Co’s Board of Directors is tasked with studying and recommending long-term development strategies and major investment decisions. This committee plays a crucial role in shaping the company’s investment, financing, and capital operations, ensuring alignment with the company’s strategic goals and protecting shareholder interests.

China Coal Energy Establishes Remuneration and Assessment Committee
Apr 25, 2025

China Coal Energy Company Limited’s Board of Directors has established a Remuneration and Assessment Committee responsible for setting and reviewing remuneration policies for directors and senior management. The committee’s responsibilities include formulating assessment standards, reviewing remuneration mechanisms, and ensuring fair compensation practices. This initiative aims to align the company’s remuneration strategies with industry standards and shareholder interests, potentially impacting the company’s governance and stakeholder relations.

China Coal Energy Strengthens ESG Oversight with New Committee Mandate
Apr 25, 2025

China Coal Energy Company Limited has outlined the responsibilities of its Safety, Health, and Environmental Protection Committee, emphasizing the supervision of security, health, and environmental plans. The committee is tasked with making recommendations on significant issues, assessing ESG-related impacts, and guiding the formulation of the company’s ESG strategy. This initiative highlights the company’s commitment to enhancing its ESG performance and ensuring compliance with relevant regulations, potentially impacting its operational efficiency and stakeholder relations.

China Coal Energy Co Strengthens Governance with Nomination Committee Guidelines
Apr 25, 2025

China Coal Energy Co has outlined the responsibilities of its Nomination Committee, which include making recommendations on the board’s composition and selecting candidates for director and senior management roles. This move is aimed at ensuring governance efficiency and enhancing the company’s strategic positioning in the energy sector.

China Coal Energy Schedules Q1 2025 Results Briefing
Apr 21, 2025

China Coal Energy Company Limited announced plans to release its first quarter 2025 financial results on April 25, 2025, followed by a results briefing on April 28, 2025. The briefing will be conducted via telephone conference, live video, and online interaction, allowing investors to gain insights into the company’s performance and business operations. This initiative is aimed at enhancing transparency and fostering better communication with stakeholders, potentially impacting investor confidence and market perception.

China Coal Energy Reports Growth in Coal and Chemical Operations for March 2025
Apr 17, 2025

In March 2025, China Coal Energy reported a notable increase in the production and sales volumes of commercial coal, with a 7.4% rise in production and a 3.3% increase in sales compared to the previous year. The company also experienced significant growth in its methanol and ammonium nitrate production and sales, while facing declines in polyethylene and polypropylene sales. Despite these fluctuations, the overall operational data highlights the company’s resilience and adaptability in the face of varying market conditions, which could have implications for its market positioning and stakeholder interests.

China Coal Energy Schedules Board Meeting for Quarterly Results
Apr 9, 2025

China Coal Energy Company Limited has announced a board meeting scheduled for April 25, 2025, to review and approve the quarterly results for the first quarter of the year. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the upcoming periods.

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 11, 2025