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

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HK:1898

China Coal Energy Co

(OTC:1898)

Rating:78Outperform
Price Target:
HK$11.50
▲(22.47% Upside)
China Coal Energy Co receives a strong overall stock score driven primarily by its solid financial performance and bullish technical indicators. The company's robust balance sheet and cash flow position, coupled with positive market momentum, offset concerns about revenue decline and potential price corrections due to overbought conditions.

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

China Coal Energy Co Business Overview & Revenue Model

Company DescriptionChina Coal Energy Company Limited primarily engages in the production and trade of coal, coal chemical business, coal mining equipment manufacturing, pithead power generation, and other related businesses in the People's Republic of China and internationally. It operates through Coal, Coal-Chemical, Mining Machinery, Finance, and Others segments. The company offers thermal and coking coal. It also produces and sells polyolefin, methanol, urea, and other coal chemical products, as well as coke; research, designs, develops, manufactures, and sells coal mining machinery and equipment; and provides after-sales services. In addition, the company is involved in aluminum, electricity generation, and other manufacturing businesses. Further, it provides equipment trading agency, tendering, investment management, finance, and waste disposal services. The company was founded in 2006 and is based in Beijing, the People's Republic of China. China Coal Energy Company Limited is a subsidiary of China National Coal Group Corporation.
How the Company Makes MoneyChina Coal Energy Co. generates revenue primarily through its coal mining and trading operations. The company operates numerous coal mines across China, producing a wide range of coal products, such as steam coal and coking coal, which are sold to various industrial sectors including power generation, steel manufacturing, and cement production. Additionally, China Coal has a significant presence in coal chemical products, where it converts coal into synthetic materials and fuels, further diversifying its revenue streams. The company also manufactures and sells coal mining equipment, contributing to its earnings. Strategic partnerships with domestic and international firms enhance its market reach, while investments in clean energy and technological advancements support its long-term profitability and compliance with environmental regulations.

China Coal Energy Co Earnings Call Summary

Earnings Call Date:Aug 22, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Oct 22, 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. There are concerns regarding revenue decline and debt levels, but the company's financial health remains robust.
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 Assets355.67B357.79B349.36B340.11B321.74B281.69B
Cash, Cash Equivalents and Short-Term Investments79.02B76.78B91.54B91.03B72.92B35.95B
Total Debt70.32B64.39B73.52B84.23B97.33B95.33B
Total Liabilities159.33B165.77B166.58B175.05B179.34B157.83B
Stockholders Equity155.92B151.71B144.12B130.76B113.79B100.86B
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 Price9.39
Price Trends
50DMA
9.51
Negative
100DMA
8.79
Positive
200DMA
8.56
Positive
Market Momentum
MACD
-0.09
Positive
RSI
47.15
Neutral
STOCH
-0.40
Positive
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 9.39 is below the 20-day moving average (MA) of 9.58, below the 50-day MA of 9.51, and above the 200-day MA of 8.56, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of -0.40 is Positive, 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$150.02B7.8011.38%4.95%-3.42%-18.73%
65
Neutral
$15.01B7.393.19%5.33%4.10%-61.80%
$103.87B10.2413.48%7.10%
$1.32B17.886.76%
$15.52B7.1219.80%10.15%
76
Outperform
HK$9.61B5.6419.63%11.21%-2.79%-39.45%
70
Outperform
HK$13.80B12.746.64%11.06%-5.78%-29.52%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1898
China Coal Energy Co
9.39
1.37
17.01%
CUAEF
China Shenhua Energy Co
4.20
0.65
18.31%
MOGLF
Mongolian Mining
1.40
0.51
57.30%
YZCHF
Yankuang Energy Group Company Limited Class H
1.18
0.09
8.26%
HK:1277
Kinetic Mines & Energy Ltd.
1.16
0.18
18.37%
HK:0639
Shougang Fushan Resources Group Limited
2.71
0.36
15.32%

China Coal Energy Co Corporate Events

China Coal Energy Reports Decline in June 2025 Production and Sales
Jul 15, 2025

China Coal Energy Company Limited reported a decline in the production and sales volumes of its coal and coal chemical products for June 2025 compared to the same period in 2024. The company experienced decreases in the production and sales of commercial coal, polyethylene, polypropylene, and other chemical products, with notable percentage drops in these areas. The announcement highlights the impact of various factors such as macroeconomic policy adjustments, market conditions, and operational challenges on the company’s performance. Despite these challenges, the company continues to provide regular updates to investors to maintain transparency and manage expectations.

The most recent analyst rating on (HK:1898) stock is a Sell with a HK$7.50 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 Secures Shareholder Approval at 2024 AGM
Jun 27, 2025

China Coal Energy Company Limited announced the successful conclusion of its 2024 Annual General Meeting and class meetings for A and H shareholders, held on June 27, 2025. All proposed resolutions were approved by the shareholders, indicating strong support for the company’s strategic direction and governance. This outcome reinforces the company’s stability and commitment to its stakeholders, potentially enhancing its position in the competitive energy market.

The most recent analyst rating on (HK:1898) stock is a Sell with a HK$7.50 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 for 2024
Jun 27, 2025

China Coal Energy Company Limited has announced an update to its final cash dividend for the year ended December 31, 2024. The dividend, approved on June 27, 2025, is set at RMB 0.258 per share, payable in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.09524. The payment date is scheduled for August 27, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may impact its financial positioning by enhancing investor confidence. The withholding tax details indicate a 10% tax rate for non-resident enterprise and individual shareholders, with specific conditions for Chinese Mainland investors.

The most recent analyst rating on (HK:1898) stock is a Sell with a HK$7.50 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 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.

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: Jul 23, 2025