Yankuang Energy Group Company Sponsored ADR Class H (YZCAY) AI Stock Analysis

• Market Cap: $15.67B
• Dividend Yield: 8.52%
• Average Volume (3M): 268.00
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.06
• Revenue Growth: 1.18%
• EPS Growth: N/A
• Country: US
• Employees: 77,957
• Sector: Energy
• Sector Strength: 67
• Industry: Coal
• EPS (TTM): 0.27
• Shares Outstanding: 407,550,000
• 10 Day Avg. Volume: 396
• 30 Day Avg. Volume: 268
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 0.69
• Enterprise Value/Ebitda: 1.03
• 1Y Price Target: $13.50
• Price Target Upside: 14.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $13.50 ▲(14.31% Upside)

Yankuang Energy Group's solid valuation reflects its undervalued status with a low P/E ratio and attractive dividend yield, contributing significantly to the overall score. Financial performance supports this with strong operational efficiency, though the increased leverage and cash flow conversion issues require monitoring. Technical analysis suggests bullish trends but flags potential overbought conditions that could lead to a pullback.

Yankuang Energy Group Company Sponsored ADR 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 Group generates revenue primarily through the extraction and sale of coal, which remains a significant part of its operations. The company operates numerous coal mines and sells both thermal and metallurgical coal to domestic and international markets. Additionally, Yankuang earns revenue from its power generation segment, where it operates coal-fired power plants, providing electricity to the grid. The company also engages in the production and sale of chemical products derived from coal, such as methanol and fertilizers. Key revenue streams include long-term contracts with utility companies and industrial clients, as well as market sales. Partnerships with other energy firms and investments in renewable energy initiatives further contribute to its earnings, allowing Yankuang to adapt to the growing demand for cleaner energy solutions.

Yankuang Energy Group Company Sponsored ADR Class H Financial Statement Overview

Summary

Yankuang Energy Group demonstrates strong operational efficiency with robust profit margins despite revenue fluctuations. The balance sheet reflects a stable but increasingly leveraged position, which could impact future flexibility. Cash flow shows adequate operating cash generation, though conversion to free cash flow is a potential concern. Overall, the company is financially sound, but attention to leverage and cash flow conversion is advised to maintain long-term stability.

Income Statement

The company's revenue has seen significant fluctuations over the years with a decline in 2024 and TTM compared to 2023. The gross profit margin for TTM is approximately 35.8%, indicating strong production efficiency. However, the net profit margin has declined from 10.8% in 2024 to 10.9% in TTM, which suggests slight erosion in bottom-line profitability. EBIT and EBITDA margins remain robust at 19.3% and 24.2% respectively for TTM, showcasing good operational efficiency. Despite the reduction in revenue, the company maintains strong profitability metrics.

Balance Sheet

The balance sheet indicates a stable financial position with a slight increase in total assets over the period. The debt-to-equity ratio increased to 1.09 in TTM, reflecting higher financial leverage, which could pose a risk if not managed properly. The return on equity (ROE) for TTM is 16.3%, illustrating effective use of shareholders' funds, though this is a decrease from 18.2% in 2024. The equity ratio stands at 23.4%, indicating a moderate level of financial stability and reliance on debt financing.

Cash Flow

The cash flow statement highlights a decrease in free cash flow from 2024 to TTM, with a growth rate of 9.3%. The operating cash flow to net income ratio is 1.25 for TTM, suggesting solid cash generation relative to net income. However, the free cash flow to net income ratio stands at 0.41, indicating a lower conversion of earnings into free cash flow, which could be a concern if sustained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	128.29B	139.12B	143.59B	200.83B	151.99B	214.99B
Gross Profit	45.93B	49.81B	54.50B	82.22B	44.65B	28.42B
EBITDA	31.07B	46.26B	54.67B	81.02B	38.32B	21.95B
Net Income	14.01B	14.43B	20.58B	33.82B	16.44B	7.61B
Balance Sheet
Total Assets	366.77B	358.55B	354.28B	295.80B	288.70B	258.91B
Cash, Cash Equivalents and Short-Term Investments	42.38B	38.51B	37.70B	45.27B	45.83B	24.69B
Total Debt	93.20B	79.67B	130.48B	75.01B	98.42B	94.98B
Total Liabilities	229.55B	225.54B	235.98B	167.71B	192.21B	179.13B
Stockholders Equity	85.67B	82.59B	72.83B	94.74B	68.19B	54.12B
Cash Flow
Free Cash Flow	5.75B	5.27B	-2.02B	35.27B	25.74B	10.22B
Operating Cash Flow	17.47B	22.34B	16.17B	53.45B	36.18B	22.23B
Investing Cash Flow	-9.94B	-9.73B	-12.20B	-12.63B	-4.83B	-13.58B
Financing Cash Flow	-13.20B	-12.39B	-32.52B	-43.27B	-8.04B	-14.41B

Yankuang Energy Group Company Sponsored ADR Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YZCAY, the sentiment is Positive. The current price of 11.81 is below the 20-day moving average (MA) of 11.97, above the 50-day MA of 11.30, and above the 200-day MA of 10.58, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 51.64 is Neutral, neither overbought nor oversold. The STOCH value of 33.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YZCAY.

Yankuang Energy Group Company Sponsored ADR Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YZCAY	74 Outperform	$15.67B	7.53	15.63%	8.52%	1.18%	―
ARLP	72 Outperform	$2.96B	12.63	12.59%	11.76%	-8.59%	-55.01%
METC	67 Neutral	$1.60B	43.10	-5.55%	1.98%	-12.79%	-134.14%
BTU	67 Neutral	$2.12B	16.39	3.87%	1.79%	-5.83%	-73.88%
Sector *	65 Neutral	$15.47B	7.31	3.20%	5.32%	4.22%	-60.66%
HCC	64 Neutral	$3.21B	79.43	1.95%	0.56%	-27.62%	-90.48%
AMR	57 Neutral	$1.95B	64.14	-2.29%	0.36%	-29.63%	-108.26%