Yanzhou Coal Mining Company Limited (YZC)

Symbol Overview

YZChttp://www.nasdaq.com/symbol/yzcEnergy1998Coal Mining

Latest Yanzhou Coal Mining Company Limited (YZC) company news

BRIEF-Yanzhou Coal's 6-Month Net Profit Up 34.1 Pct Y/Y

Aug 24 (Reuters) - Yanzhou Coal Mining Co Ltd :

* SAYS 6-MONTH NET PROFIT UP 34.1 PERCENT Y/Y Source text in Chinese: https://bit.ly/2MuidqL Further company coverage: (Reporting by Hong Kong newsroom)

Yancoal Australia applies for dual listing in Hong Kong, proposes to consolidate shares

(Adds details of listing application, proposed capital raise)

July 2 (Reuters) - Coal-miner Yancoal Australia Ltd said on Monday it applied to list on the Hong Kong Stock Exchange (HKEX) before the end of 2018, while maintaining its ASX listing.

Yancoal also proposed a 35-for-1 share consolidation for shareholders' approval, which its majority shareholder Yanzhou Coal Mining Company Ltd said it intends to support.

Existing shareholders would be offered the chance to invest in a capital raising proposed to be executed alongside the Hong Kong listing, Yancoal said in a statement. It added that the details of the capital raising were yet to be finalised.

Yancoal said it expects to remain a unit of its Shanghai-listed majority shareholder despite any dilution to Yanzhou Coal's stake due to the capital raising. (Reporting by Aaron Saldanha in Bengaluru; Editing by Daniel Wallis)

Will Yanzhou Coal Mining Company Limited (HKG:1171) Continue To Underperform Its Industry?

View photos

This article is intended for those of you who are at the beginning of your investing journey and want a simplistic look at the return on Yanzhou Coal Mining Company Limited (HKG:1171) stock.

Yanzhou Coal Mining Company Limited (HKG:1171) delivered a less impressive 9.61% ROE over the past year, compared to the 10.52% return generated by its industry. Though 1171’s recent performance is underwhelming, it is useful to understand what ROE is made up of and how it should be interpreted. Knowing these components can change your views on 1171’s below-average returns. I will take you through how metrics such as financial leverage impact ROE which may affect the overall sustainability of 1171’s returns. View out our latest analysis for Yanzhou Coal Mining

What you must know about ROE

Return on Equity (ROE) weighs Yanzhou Coal Mining’s profit against the level of its shareholders’ equity. For example, if the company invests HK$1 in the form of equity, it will generate HK$0.096 in earnings from this. Generally speaking, a higher ROE is preferred; however, there are other factors we must also consider before making any conclusions.

Return on Equity = Net Profit ÷ Shareholders Equity

ROE is measured against cost of equity in order to determine the efficiency of Yanzhou Coal Mining’s equity capital deployed. Its cost of equity is 17.36%. Given a discrepancy of -7.75% between return and cost, this indicated that Yanzhou Coal Mining may be paying more for its capital than what it’s generating in return. ROE can be split up into three useful ratios: net profit margin, asset turnover, and financial leverage. This is called the Dupont Formula:

Dupont Formula

ROE = profit margin × asset turnover × financial leverage

ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity)

ROE = annual net profit ÷ shareholders’ equity

SEHK:1171 Last Perf June 27th 18

The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses. Asset turnover reveals how much revenue can be generated from Yanzhou Coal Mining’s asset base. Finally, financial leverage will be our main focus today. It shows how much of assets are funded by equity and can show how sustainable the company’s capital structure is. Since ROE can be inflated by excessive debt, we need to examine Yanzhou Coal Mining’s debt-to-equity level. At 82.02%, Yanzhou Coal Mining’s debt-to-equity ratio appears sensible and indicates its ROE is generated from its capacity to increase profit without a large debt burden.

SEHK:1171 Historical Debt June 27th 18

Next Steps:

ROE is a simple yet informative ratio, illustrating the various components that each measure the quality of the overall stock. Yanzhou Coal Mining’s ROE is underwhelming relative to the industry average, and its returns were also not strong enough to cover its own cost of equity. However, ROE is not likely to be inflated by excessive debt funding, giving shareholders more conviction in the sustainability of returns, which has headroom to increase further. ROE is a helpful signal, but it is definitely not sufficient on its own to make an investment decision.

For Yanzhou Coal Mining, I’ve put together three relevant factors you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is Yanzhou Coal Mining worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Yanzhou Coal Mining is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Yanzhou Coal Mining? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

June Dividend Stocks To Look Out For

View photos

One of the best paying dividend stock on our list is Fufeng Group. Dividend stocks are a great way to hedge your portfolio as they provide both steady income and cushion against market risks A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. I’ve made a list of other value-adding dividend-paying stocks for you to consider for your investment portfolio.

Fufeng Group Limited (SEHK:546)

Fufeng Group Limited, an investment holding company, engages in the manufacture and sale of fermentation-based food additive, and biochemical and starch-based products in the People’s Republic of China and internationally. Founded in 1999, and now led by CEO Qiang Zhao, the company now has 9,500 employees and with the stock’s market cap sitting at HKD HK$11.31B, it comes under the large-cap stocks category.

546 has a substantial dividend yield of 4.96% and pays out 28.73% of its profit as dividends . Although investors would have seen a few years of reduced payments, it has picked up again, with dividends increasing from CN¥0.0092 to CN¥0.22 over the past 10 years. More detail on Fufeng Group here.

SEHK:546 Historical Dividend Yield Jun 2nd 18

Sino-Ocean Group Holding Limited (SEHK:3377)

Sino-Ocean Group Holding Limited, an investment holding company, engages in the property investment and development activities in the People’s Republic of China. Established in 1993, and currently lead by Ming Li, the company now has 10,081 employees and with the company’s market cap sitting at HKD HK$40.34B, it falls under the large-cap stocks category.

3377 has a enticing dividend yield of 6.08% and pays out 39.41% of its profit as dividends , and analysts are expecting the payout ratio in three years to hit 43.25%. While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. The company also looks promising for it’s future growth, with analysts expecting an earnings per share increase of 57.60% over the next three years. More on Sino-Ocean Group Holding here.

SEHK:3377 Historical Dividend Yield Jun 2nd 18

Yanzhou Coal Mining Company Limited (SEHK:1171)

Yanzhou Coal Mining Company Limited explores, mines, washes, processes, and sells coal in China, Japan, South Korea, and Australia. Formed in 1973, and currently run by Xiangqian Wu, the company now has 68,550 employees and with the company’s market cap sitting at HKD HK$71.06B, it falls under the large-cap category.

1171 has an alluring dividend yield of 5.18% and is currently distributing 32.64% of profits to shareholders , with the expected payout in three years being 33.90%. Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. More detail on Yanzhou Coal Mining here.

SEHK:1171 Historical Dividend Yield Jun 2nd 18

For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

Best-In-Class SEHK Dividend Stocks

View photos

A great investment for income investors with a long time horizon is in dividend-paying companies like Fufeng Group. Dividend stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. If you’re a long term investor, these high-performing top dividend stocks can boost your monthly portfolio income.

Fufeng Group Limited (SEHK:546)

Fufeng Group Limited, an investment holding company, engages in the manufacture and sale of fermentation-based food additive, and biochemical and starch-based products in the People’s Republic of China. Founded in 1999, and currently lead by Qiang Zhao, the company now has 9,500 employees and with the market cap of HKD HK$11.21B, it falls under the large-cap category.

546 has a juicy dividend yield of 5.00% and is currently distributing 28.73% of profits to shareholders . Despite there being some hiccups, dividends per share have increased during the past 10 years. Interested in Fufeng Group? Find out more here.

SEHK:546 Historical Dividend Yield May 1st 18

Sino-Ocean Group Holding Limited (SEHK:3377)

Sino-Ocean Group Holding Limited, an investment holding company, engages in the property investment and development activities in the People’s Republic of China. Established in 1993, and headed by CEO Ming Li, the company currently employs 10,081 people and has a market cap of HKD HK$41.32B, putting it in the large-cap category.

3377 has a large dividend yield of 5.86% and pays 39.41% of its earnings as dividends , with analysts expecting a 43.21% payout in three years. While there’s been some level of instability in the yield, 3377 has overall increased DPS over a 10 year period from CN¥0.12 to CN¥0.32. Sino-Ocean Group Holding’s future earnings growth looks strong, with analysts expecting 57.60% EPS growth in the next three years. More on Sino-Ocean Group Holding here.

SEHK:3377 Historical Dividend Yield May 1st 18

Yanzhou Coal Mining Company Limited (SEHK:1171)

Yanzhou Coal Mining Company Limited explores, mines, washes, processes, and sells coal in China, Japan, South Korea, and Australia. Started in 1973, and currently lead by Xiangqian Wu, the company currently employs 68,550 people and with the company’s market cap sitting at HKD HK$72.38B, it falls under the large-cap stocks category.

1171 has a sumptuous dividend yield of 5.97% and has a payout ratio of 32.64% , with the expected payout in three years being 35.68%. Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. More on Yanzhou Coal Mining here.

SEHK:1171 Historical Dividend Yield May 1st 18

For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

Leave a Reply

Your email address will not be published. Required fields are marked *