China Coal Energy Co Ltd has formed a joint venture, with registered capital expected to gradually increase to 54 billion yuan ($8.5 billion) from 1 billion yuan, to build and operate a coal transportation railway linking northwestern China with the rest of the country.

The move is part of plans by China, the world's top coal producer and consumer, to rapidly expand large coal mines and power plants in its arid northern and western provinces.

The around 1,800-kilometre railroad will connect key coal producing provinces including Inner Mongolia and Shaanxi with the centre of China and will involve a total investment of about 154 billion yuan ($24.2 billion), the country's second largest miner said in a filing with the Hong Kong bourse late on Thursday.

Key stats and ratios

 Q2 (Jun '12)2011
Net profit margin12.01%12.14%
Operating margin15.93%15.86%
EBITD margin-21.18%
Return on average assets6.67%7.54%
Return on average equity12.33%12.58%
Employees54,948-
Carbon Disclosure Rating--

Carbon Disclosure Rating - -

China Coal said it would own 10 percent of the Mengxi-Huazhong Railway Co, with China Railway Investment Corp holding 20 percent and another 14 Chinese partners taking the other 70 percent.

China intends to boost coal production in provinces including Inner Mongolia, Shanxi, Shaanxi and Ningxia, with output in those areas expected to reach 2.2 billion tonnes, or 56 percent of the country's forecast production of 3.9 billion tonnes, by 2015.

Dividends

 CompanyIndustrySector
Dividend Yield3.822.702.09
Dividend Yield - 5 Year Avg.1.430.081.33
Dividend 5 Year Growth Rate-0.862.95
 
Payout Ratio(TTM)30.570.3716.15

Valuation Ratios

 CompanyIndustrySector
P/E Ratio (TTM)8.0015.1611.14
P/E High - Last 5 Yrs.44.7320.0721.88
P/E Low - Last 5 Yrs.9.1914.259.24
 
Beta1.840.080.83
 
Price to Sales (TTM)0.983.192.92
Price to Book (MRQ)0.890.110.86
Price to Tangible Book (MRQ)1.810.120.85
Price to Cash Flow (TTM)6.0213.298.52
Price to Free Cash Flow (TTM)-0.078.52

China Coal Energy Company Limited (China Coal Energy), a joint stock limited company,was exclusively initiated by China National Coal Group Corporation on August 22, 2006. China Coal Energy was successfully listed in Hong Kong on December 19, 2006 and finalized A Share issue in February 2008.

China Coal Energy has been one of the large energy conglomerate which integrates relevant engineering and technological service businesses comprising coal production and trading, coal chemical, coal mining equipment manufacturing, pit mouth power generation, coal mine design etc. China Coal Energy boasts abundant coal resources and its coal reserves rank the fifth place among all the listed coal enterprises in the world and the second place in China. Coal production of China Coal Energy reached 100.37 million tons in 2008 and China Coal Energy is the second largest coal enterprise and the largest manufacturer of coal mining equipment in China. It also enjoys the title of one of the largest coal exporter and independent coking enterprises in China.

After several years of accumulation and development, China Coal Energy has excelled in the aspects of admirable advantage of resource, integrated business structure, advanced coal mining and washing technology, powerful network of marketing and customer services, a solid management team with rich operating experiences, reputable product brands. China Coal Energy which shall be energy-oriented will seize the market opportunity, rely on the science and technology progress, accelerate the pace of development, strive for steady growth of revenue and profit, and maximize long-term profits for shareholders.

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Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service