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Yanzhou Coal Mining

DB:YZC
Snowflake Description

Undervalued established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
YZC
DB
HK$40B
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Yanzhou Coal Mining Company Limited, an investment holding company, Limited explores, mines, washes, processes, and sells coal in China, Japan, South Korea, Australia, and internationally. The last earnings update was 12 days ago. More info.


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YZC Share Price and Events
7 Day Returns
2.9%
DB:YZC
8.7%
DE Oil and Gas
4.3%
DE Market
1 Year Returns
-28.7%
DB:YZC
34.4%
DE Oil and Gas
-14.2%
DE Market
YZC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Yanzhou Coal Mining (YZC) 2.9% 9.9% -13.8% -28.7% -17.4% -26.6%
DE Oil and Gas 8.7% -2.8% -19.4% 34.4% -14.7% 157%
DE Market 4.3% -9% -21.6% -14.2% -19.6% -25.6%
1 Year Return vs Industry and Market
  • YZC underperformed the Oil and Gas industry which returned 34.4% over the past year.
  • YZC underperformed the Market in Germany which returned -14.2% over the past year.
Price Volatility
YZC
Industry
5yr Volatility vs Market

Value

 Is Yanzhou Coal Mining undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Yanzhou Coal Mining to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Yanzhou Coal Mining.

DB:YZC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.4%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:YZC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.3%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.972 (1 + (1- 25%) (180.81%))
1.865
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.865 * 6.33%)
11.41%

Discounted Cash Flow Calculation for DB:YZC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Yanzhou Coal Mining is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:YZC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 11.41%)
2020 5,007.00 Analyst x2 4,494.11
2021 11,239.25 Analyst x4 9,054.61
2022 7,947.50 Analyst x2 5,746.84
2023 6,180.96 Est @ -22.23% 4,011.63
2024 5,212.02 Est @ -15.68% 3,036.25
2025 4,633.98 Est @ -11.09% 2,422.99
2026 4,268.81 Est @ -7.88% 2,003.41
2027 4,028.34 Est @ -5.63% 1,696.90
2028 3,864.78 Est @ -4.06% 1,461.24
2029 3,750.42 Est @ -2.96% 1,272.75
Present value of next 10 years cash flows CN¥35,200.00
DB:YZC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥3,750.42 × (1 + -0.39%) ÷ (11.41% – -0.39%)
CN¥31,652.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥31,652.62 ÷ (1 + 11.41%)10
CN¥10,741.67
DB:YZC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥35,200.00 + CN¥10,741.67
CN¥45,941.67
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥45,941.67 / 4,912.02
CN¥9.35
DB:YZC Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1171)
1.1
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥9.35 x 1.1
HK$10.29
Non-primary Listing Adjustment Factor 1 share in DB:YZC represents 1.18227x of SEHK:1171
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.18227x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 10.29 x 1.18227
€12.17
Value per share (EUR) From above. €12.17
Current discount Discount to share price of €7.20
= -1 x (€7.20 - €12.17) / €12.17
40.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Yanzhou Coal Mining is available for.
Intrinsic value
41%
Share price is €7.2 vs Future cash flow value of €12.17
Current Discount Checks
For Yanzhou Coal Mining to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Yanzhou Coal Mining's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Yanzhou Coal Mining's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Yanzhou Coal Mining's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Yanzhou Coal Mining's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:YZC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CNY CN¥1.91
SEHK:1171 Share Price ** SEHK (2020-04-08) in HKD HK$6.09
SEHK:1171 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.909 CN¥5.53
Europe Oil and Gas Industry PE Ratio Median Figure of 104 Publicly-Listed Oil and Gas Companies 6.5x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 17.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Yanzhou Coal Mining.

DB:YZC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1171 Share Price ÷ EPS (both in CNY)

= 5.53 ÷ 1.91

2.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Yanzhou Coal Mining is good value based on earnings compared to the Europe Oil and Gas industry average.
  • Yanzhou Coal Mining is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Yanzhou Coal Mining's expected growth come at a high price?
Raw Data
DB:YZC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 2.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
-9.7%per year
Europe Oil and Gas Industry PEG Ratio Median Figure of 66 Publicly-Listed Oil and Gas Companies 0.32x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

DB:YZC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 2.9x ÷ -9.7%

-0.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Yanzhou Coal Mining earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Yanzhou Coal Mining's assets?
Raw Data
DB:YZC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CNY CN¥10.49
SEHK:1171 Share Price * SEHK (2020-04-08) in HKD HK$6.09
SEHK:1171 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.909 CN¥5.53
Germany Oil and Gas Industry PB Ratio Median Figure of 6 Publicly-Listed Oil and Gas Companies 1.01x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.47x
DB:YZC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1171 Share Price ÷ Book Value per Share (both in CNY)

= 5.53 ÷ 10.49

0.53x

* Primary Listing of Yanzhou Coal Mining.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Yanzhou Coal Mining is good value based on assets compared to the DE Oil and Gas industry average.
X
Value checks
We assess Yanzhou Coal Mining's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Yanzhou Coal Mining has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Yanzhou Coal Mining expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-9.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Yanzhou Coal Mining expected to grow at an attractive rate?
  • Yanzhou Coal Mining's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Yanzhou Coal Mining's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Yanzhou Coal Mining's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:YZC Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:YZC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts -9.7%
DB:YZC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts -0.5%
Europe Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:YZC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:YZC Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 66,376 14,063 7,684 6
2021-12-31 66,909 16,575 7,702 10
2020-12-31 64,956 17,035 7,472 11
2020-04-08
DB:YZC Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-12-31 67,805 9,969
2019-09-30 194,429 24,612 9,996
2019-06-30 192,676 24,790 9,536
2019-03-31 178,918 23,587 8,597
2018-12-31 163,008 22,432 8,516
2018-09-30 150,977 23,043 7,916
2018-06-30 146,766 23,545 8,371
2018-03-31 143,748 19,707 7,719
2017-12-31 151,228 16,063 7,267
2017-09-30 156,946 9,753 5,999
2017-06-30 158,416 8,367 4,807
2017-03-31 130,327 6,159 3,689

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Yanzhou Coal Mining's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Yanzhou Coal Mining's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:YZC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Yanzhou Coal Mining Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:YZC Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.56 1.77 1.11 6.00
2021-12-31 1.57 2.18 1.19 11.00
2020-12-31 1.51 1.76 1.23 11.00
2020-04-08
DB:YZC Past Financials Data
Date (Data in CNY Millions) EPS *
2019-12-31 1.91
2019-09-30 1.89
2019-06-30 1.80
2019-03-31 1.63
2018-12-31 1.61
2018-09-30 1.50
2018-06-30 1.59
2018-03-31 1.46
2017-12-31 1.38
2017-09-30 1.22
2017-06-30 0.98
2017-03-31 0.75

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Yanzhou Coal Mining is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Yanzhou Coal Mining's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Yanzhou Coal Mining has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Yanzhou Coal Mining performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Yanzhou Coal Mining's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Yanzhou Coal Mining has delivered over 20% year on year earnings growth in the past 5 years.
  • Yanzhou Coal Mining's 1-year earnings growth is less than its 5-year average (17.1% vs 42%)
  • Yanzhou Coal Mining's earnings growth has exceeded the Europe Oil and Gas industry average in the past year (17.1% vs 1.9%).
Earnings and Revenue History
Yanzhou Coal Mining's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Yanzhou Coal Mining Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:YZC Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 67,804.64 9,968.83 8,777.40
2019-09-30 194,429.06 9,995.69 10,344.08 232.68
2019-06-30 192,675.87 9,535.57 10,868.67 192.37
2019-03-31 178,918.30 8,596.86 12,007.61 166.63
2018-12-31 163,008.47 8,516.00 12,026.99 157.56
2018-09-30 150,976.70 7,915.71 11,591.12 80.23
2018-06-30 146,766.45 8,370.58 11,601.57 85.69
2018-03-31 143,748.50 7,719.31 9,757.74 104.93
2017-12-31 151,227.78 7,266.88 8,883.03 83.12
2017-09-30 156,946.39 5,998.99 8,518.03 61.36
2017-06-30 158,416.45 4,806.97 7,704.15 41.39
2017-03-31 130,326.77 3,689.42 7,443.13
2016-12-31 102,282.15 2,161.81 7,086.56
2016-09-30 95,330.37 736.57 6,290.13
2016-06-30 68,499.19 955.62 5,690.36
2016-03-31 72,130.99 929.20 5,763.29
2015-12-31 69,007.38 859.51 6,050.65
2015-09-30 54,713.28 1,363.75 6,249.37
2015-06-30 57,418.09 1,827.06 6,336.59
2015-03-31 58,868.23 2,076.79 6,928.91
2014-12-31 65,326.13 2,163.81 7,238.73
2014-09-30 66,338.47 3,800.88 7,284.92
2014-06-30 65,590.01 4,501.20 7,152.93
2014-03-31 63,057.88 1,055.42 6,880.41
2013-12-31 58,726.59 1,271.21 6,648.68
2013-09-30 59,017.65 32.17 7,261.26
2013-06-30 56,653.36 -1,907.95 7,776.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Yanzhou Coal Mining has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Yanzhou Coal Mining used its assets less efficiently than the Europe Oil and Gas industry average last year based on Return on Assets.
  • Yanzhou Coal Mining has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Yanzhou Coal Mining's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Yanzhou Coal Mining has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Yanzhou Coal Mining's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Yanzhou Coal Mining's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Yanzhou Coal Mining's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Yanzhou Coal Mining's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Yanzhou Coal Mining's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Yanzhou Coal Mining Company Filings, last reported 3 months ago.

DB:YZC Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 85,348.61 65,375.49 22,789.95
2019-09-30 83,473.05 58,019.60 23,460.73
2019-06-30 84,971.80 60,840.40 27,719.82
2019-03-31 87,731.71 60,401.00 27,459.95
2018-12-31 84,953.49 67,460.42 33,277.44
2018-09-30 81,879.58 62,597.00 27,855.38
2018-06-30 79,620.13 66,220.42 29,343.46
2018-03-31 83,713.94 68,660.81 33,368.29
2017-12-31 77,281.37 68,563.57 28,590.14
2017-09-30 75,964.43 76,716.10 31,932.39
2017-06-30 60,390.00 63,947.91 24,666.13
2017-03-31 55,314.18 68,933.73 21,231.11
2016-12-31 52,240.16 63,197.61 23,060.07
2016-09-30 50,536.99 68,006.46 20,405.81
2016-06-30 45,936.85 66,823.32 17,674.05
2016-03-31 44,684.63 63,096.12 19,033.66
2015-12-31 43,000.53 67,568.76 23,577.90
2015-09-30 41,408.90 49,352.82 22,452.18
2015-06-30 45,192.93 62,302.54 23,123.28
2015-03-31 42,014.13 51,792.60 15,314.11
2014-12-31 43,853.89 60,051.13 20,700.68
2014-09-30 46,968.00 60,992.74 24,426.90
2014-06-30 46,743.88 64,013.68 22,116.41
2014-03-31 44,203.35 63,834.87 24,028.37
2013-12-31 42,557.05 53,351.05 15,510.30
2013-09-30 43,602.41 44,193.41 8,783.76
2013-06-30 43,288.17 44,751.62 10,697.68
  • Yanzhou Coal Mining's level of debt (76.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (136.7% vs 76.6% today).
  • Debt is well covered by operating cash flow (37.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 20.2x coverage).
X
Financial health checks
We assess Yanzhou Coal Mining's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Yanzhou Coal Mining has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Yanzhou Coal Mining's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
9.76%
Current annual income from Yanzhou Coal Mining dividends. Estimated to be 9.45% next year.
If you bought €2,000 of Yanzhou Coal Mining shares you are expected to receive €195 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Yanzhou Coal Mining's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.63%).
  • Yanzhou Coal Mining's dividend is above the markets top 25% of dividend payers in Germany (4.61%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:YZC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 8.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.6%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:YZC Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.50 5.00
2021-12-31 0.53 10.00
2020-12-31 0.53 10.00
2020-04-08
DB:YZC Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-05-24 0.540 8.744
2018-05-25 0.480 6.753
2017-06-29 0.120 1.622
2016-04-29 0.010 0.214
2015-08-31 0.020 0.655
2015-05-22 0.020 0.477
2014-03-28 0.020 0.388
2013-05-15 0.360 6.874
2012-10-26 0.570 6.359
2012-08-24 0.570 5.977
2012-04-23 0.570 5.468
2011-04-04 0.590 3.392
2010-04-23 0.250 1.457
2009-04-27 0.400 3.540

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Yanzhou Coal Mining's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Yanzhou Coal Mining's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Yanzhou Coal Mining afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Yanzhou Coal Mining has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Yanzhou Coal Mining's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Xiangqian Wu
COMPENSATION CN¥1,102,000
AGE 53
TENURE AS CEO 4.3 years
CEO Bio

Mr. Xiangqian Wu serves as Non-Executive Director at Yancoal Australia Ltd since April 28, 2017. He served as Executive Director of Yancoal Australia Ltd. Mr. Wu serves as General Manager of Yanzhou Coal Mining Company Limited since January 6, 2016 and hass been its Director since May 14, 2014. Mr. Wu is a Research Fellow in Applied Engineering Technology and a Doctor of Engineering. Mr. Wu joined Yanzhou Coal Mining Company Limited’s predecessor in 1988. In 2003, he was appointed as the Deputy Head of Jining No.3 Coal Mine of Yanzhou Coal Mining Company Limited. In 2004, he was appointed as the Deputy Head and Chief Engineer of Jining No.3 Coal Mine of Yanzhou Coal Mining Company Limited. In March 2014, he was promoted as the Chairman and General Manager of Yanzhou Coal Ordos Neng Hua Co., Ltd. and Chairman of Inner Mongolia Haosheng Coal Mining Co., Ltd. He employeed with Duanxin Investment Holding (Shenzhen) Co., Ltd – Chairman of the Board. Mr. Wu graduated from Shandong University of Science and Technology and China University of Mining and Technology. He has been a Non Executive Director at Yancoal Australia Limited since April 28, 2017.

CEO Compensation
  • Xiangqian's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Xiangqian's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Yanzhou Coal Mining management team in years:

4.3
Average Tenure
53
Average Age
  • The tenure for the Yanzhou Coal Mining management team is about average.
Management Team

Xiangqian Wu

TITLE
GM & Director
COMPENSATION
CN¥1M
AGE
53
TENURE
4.3 yrs

Qingchun Zhao

TITLE
CFO & Director
COMPENSATION
CN¥888K
AGE
51
TENURE
4.3 yrs

Fuqi Wang

TITLE
Chief Engineer
COMPENSATION
CN¥927K
AGE
55
TENURE
6.1 yrs

Jun Guo

TITLE
Executive Director
COMPENSATION
CN¥884K
AGE
56

Honggang Zhao

TITLE
Deputy General Manager
COMPENSATION
CN¥903K
AGE
54
TENURE
5.3 yrs

Jian Liu

TITLE
Deputy GM & Director
COMPENSATION
CN¥816K
AGE
50
TENURE
3.3 yrs

Jing He

TITLE
Deputy General Manager & Director
COMPENSATION
CN¥911K
AGE
49
TENURE
2.8 yrs

Zhijie Gong

TITLE
Deputy General Manager
COMPENSATION
CN¥1M
AGE
54

Qingbin Jin

TITLE
Secretary to the Board
COMPENSATION
CN¥382K
AGE
42
TENURE
4.1 yrs

Jian Xu

TITLE
Head of Finance Management Department
Board of Directors Tenure

Average tenure and age of the Yanzhou Coal Mining board of directors in years:

3.8
Average Tenure
53
Average Age
  • The tenure for the Yanzhou Coal Mining board of directors is about average.
Board of Directors

Xiyong Li

TITLE
Chairman of the Board
AGE
56
TENURE
6.6 yrs

Xiangqian Wu

TITLE
GM & Director
COMPENSATION
CN¥1M
AGE
53
TENURE
5.9 yrs

Wei Li

TITLE
Vice Chairman of the Board
AGE
53
TENURE
3.8 yrs

Qingchun Zhao

TITLE
CFO & Director
COMPENSATION
CN¥888K
AGE
51
TENURE
3.8 yrs

Jun Guo

TITLE
Executive Director
COMPENSATION
CN¥884K
AGE
56
TENURE
3.8 yrs

Jian Liu

TITLE
Deputy GM & Director
COMPENSATION
CN¥816K
AGE
50
TENURE
1.1 yrs

Shisheng Gu

TITLE
Chairman of the Supervisory Committee
COMPENSATION
CN¥191K
AGE
55
TENURE
2.8 yrs

Anbang Qi

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥130K
AGE
67
TENURE
3.8 yrs

Chang Cai

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥130K
AGE
48
TENURE
2.4 yrs

Hong Zhou

TITLE
Vice Chairman of the Supervisory Committee
AGE
49
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Yanzhou Coal Mining's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Yanzhou Coal Mining has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Yanzhou Coal Mining Company Limited, an investment holding company, Limited explores, mines, washes, processes, and sells coal in China, Japan, South Korea, Australia, and internationally. The company operates through four divisions: Coal Mining; Coal Railway Transportation; Methanol, Electricity, and Heat Supply; and Equipment Manufacturing. It offers coal products for electric power, metallurgy and chemical industry, etc.; produces and distributes coal chemicals, including methanol; produces and sells electricity and heat; and explores for potash mineral. The company also manufactures, sells, leases, repairs, and maintains mechanical and electrical equipment, such as hydraulic supports, heading machines, shearers, and others. In addition, it provides railway, river, and lakes transportation services; sells construction materials; and manufactures and sells coal mining and excavating equipment, and accessories. Further, the company is involved in the wholesale of coal, non-ferrous metal, and other related products; financial leasing; logistics storage and leasing; entrepot trading; provision of charcoal products; LTCC technology development and equipment rental operations; manufacturing of cable and rubber; and production and processing of steel engineering components. Additionally, it provides financial and business advisory, asset management and market information consultation, and investigation; underground mines management; mining materials testing; and equity investment fund and corporate asset management, foreign investment fund, import and export services, and international trading services. The company is involved in the provision of property management, garden greening engineering, and sewage treatment and rental housing agency services; and issuing subordinated capital notes. The company was founded in 1973 and is based in Zoucheng, the People’s Republic of China. Yanzhou Coal Mining Company Limited is a subsidiary of Yankuang Group Corporation Limited.

Details
Name: Yanzhou Coal Mining Company Limited
YZC
Exchange: DB
Founded: 1973
HK$4,747,422,994
4,912,016,000
Website: http://www.yanzhoucoal.com.cn
Address: Yanzhou Coal Mining Company Limited
298 Fushan South Road,
Zoucheng,
Shandong Province, 273500,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1171 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 01. Apr 1998
OTCPK YZCH.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 01. Apr 1998
DB YZCA Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 01. Apr 1998
SHSC 1171 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 01. Apr 1998
SZSC 1171 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 01. Apr 1998
OTCPK YZCA.Y SPON ADR EACH REP 10'H'CNY1 LEVELIII Pink Sheets LLC US USD 31. Mar 1998
SHSE 600188 Domestic Shares Shanghai Stock Exchange CN CNY 01. Jul 1998
DB YZC SPON ADR EACH REP 10'H'CNY1 LEVELIII Deutsche Boerse AG DE EUR 31. Mar 1998
XSSC 600188 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 01. Jul 1998
Number of employees
Current staff
Staff numbers
0
Yanzhou Coal Mining employees.
Industry
Coal and Consumable Fuels
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 20:51
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/07
Last earnings filing: 2020/03/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.