Reasons to be bullish on Yanzhou Coal Mining Co:
- A good five-year dividend average of 5.9%
- It has a splendid levered free cash flow of $1.16 billion.
- Net income has generally been trending upward for the past three years; it increased from $950 million in 2008 to $1.37 billion in 2010.
- A good ROE of 24%
- A strong quarterly revenue growth rate of 26.7%
- A decent current ratio of 1.2 and good quick ratio of 2.23
- A very low payout ratio of 39% and an even lower five year average payout ratio of only 27%
- A very good 3-year dividend growth rate of 50%
- An incredibly strong 3-year total return of 348%
- It has a decent interest coverage ratio of 4.9.
- Operating income was RMB 11,848 million for the third quarter of 2011 an increase of 26% compared with the same period last year.
- Net profit for the 3rd quarter was RMB 2,133.1 million an increase of 14.6% compared with the corresponding period last year.
- For the first 3 quarters of 2011 operating income stood at RMB 32,606 million an increase of 30% compared with the same period last year. Net operating profit for the same time period jumped to RMB 6,304 million an increase of 20.4% compared with the same period last year.
- $100K invested for 10 years would have grown into a stunning $1.23 million
Technical outlook
Unlike most stocks in the U.S. that are overbought, Yangzhou coal is actually rather oversold. A weekly close above $27 will turn the intermediate outlook bullish and should result in a test of the 36 ranges. A weekly close below $20 will signify further weakness and possibly result in a new 52-week low before a bottom takes hold. Ideally, it should test the 20 ranges on low volume and end the day or week on a higher note.
Yanzhou Coal Mining Co., Ltd. (NYSE: YZC)
Industry: Mining
Levered Free Cash Flow: 1.16B
Net income for the past three years
Net Income 2008 = $950 million
Net Income 2009 = $606 million
Net Income 2010 = $1376 million
Net Income 2011 = $N/A million
EBITDA 12/2011 = $N/A million
EBITDA 12/2010 = $2346 million
EBITDA 12/2009 = $1111 million
Total cash flow from operating activities
2008 = $1.05 billion
2009 = $955.06 million
2010 = $819.44 million
Cash Flow 12/2010 = 2.37 $/share
Cash Flow 12/2009 = N/A $/share
Annual EPS before NRI 12/2010 = 2.79
Annual EPS before NRI 12/2009 = 1.23
Annual EPS before NRI 12/2008 = 1.93
Annual EPS before NRI 12/2007 = 4.5
ROE = 24%
Return on Assets = 9%
Quarterly Earnings Growth = -70.2%
Quarterly Revenue Growth = 26.7%
Key Ratios
Price to Book = 2.77
Price to Tangible Book = 4.96
Price to Cash Flow = 9.74
Price to Free Cash Flow = 51.3
Current Ratio = 1.3
Current Ratio 5 Year Average = 2.45
Quick Ratio = 2.23
Cash Ratio = 1.25
Interest Coverage = 4.9
Payout Ratio 12/2011 = 39%
Payout Ratio 5 Year Avg 09/2011 = 0.27
Payout Ratio 5 Year Avg 06/2011 = 0.27
Dividend yield 5-year average = 5.9%
Dividend growth rate 3-year avg = 50.19%
Paying dividends since = 1998
Total return last 3 years = 348.66%
Total return last 5 years = 175.02%
Other interesting Chinese companies
Investors looking for other ideas might find these four Chinese plays to be of interest. We have provided detailed stats on each of them
Huaneng Power International, I (NYSE: HNP)
Industry : Electric Utilities
Levered Free Cash Flow: -942.42M
Net income for the past three years
Net Income 2009 = $-667 million
Net Income 2009 = $749 million
Net Income 2010 = $491 million
Net Income 2011 = $N/A million
EBITDA 12/2011 = $N/A million
EBITDA 12/2010 = $3004 million
EBITDA 12/2009 = $2743 million
Net income Reported Quarterly = $36 million
Total cash flow from operating activities
2008 = $760.78 million
2009 = $2.2 billion
2010 = $2.75 billion
Cash Flow 12/2011 = $9.29 (estimate)
Cash Flow 12/2010 = 7.01 $/share
Cash Flow 12/2009 = 6.65 $/share
Annual EPS before NRI 12/2010 = 1.69
Annual EPS before NRI 12/2009 = 2.4
Annual EPS before NRI 12/2008 = -2
Annual EPS before NRI 12/2007 = 2.8
Quarterly Earnings Growth = -79.3%
Key Ratios
Price to Book = 0.83
Price to Tangible Book = 2.12
Price to Cash Flow = 3.57
Price to Free Cash Flow = -15.7
Current Ratio 5-Year Average = 0.43
Quick Ratio = 0.32
Cash Ratio = 0.19
Interest Coverage 09/2011 = N/A
Payout Ratio 12/2011 = 64%
Dividend yield 5-year average = 4.10
Dividend growth rate 3-year avg = 41.69%
Dividend growth rate 5-year avg = -7.57
Consecutive dividend increases = 0 years
Paying dividends since = 1999
Total return last 3 years = 8.1%
Total return last 5 years = -12.18%
China Mobile Limited (NYSE: CHL)
Industry : Communications
Levered Free Cash Flow: 4.70B
Net income for the past three years
Net Income 2009 = $16921 million
Net Income 2010 = $17752 million
Net Income 2011 = $N/A million
EBITDA 12/2010 = $36333 million
EBITDA 12/2009 = $34353 million
Net income Reported Quarterly = $36 million
Total cash flow from operating activities
2007 = $23.12 billion
2008 = $28.41 billion
2009 = $30.34 billion
Cash Flow 12/2010 = 7.62 $/share
Cash Flow 12/2009 = 7.17 $/share
Annual EPS before NRI 12/2010 = 4.36
Annual EPS before NRI 12/2009 = 4.15
Annual EPS before NRI 12/2007 = 2.82
ROE = 21$
Return on Assets = 11%
Quarterly Earnings Growth = 6.3%
Quarterly Revenue Growth = 8.8%
Key Ratios
Price to Book = 2.36
Price to Tangible Book = 2.51
Price to Cash Flow = 7.27
Price to Free Cash Flow = 19.9
Current Ratio = 1.3
Current Ratio 5-Year Average = 1.33
Quick Ratio = 1.24
Cash Ratio = 1.21
Payout Ratio = 31%
Dividend yield 5-year average = 3%
Dividend growth rate 3-year avg = 4.5%
Dividend growth rate 5-year avg = 19%
Consecutive dividend increases = 2 years
Paying dividends since = 2003
Total return last 3 years = 48.33%
Total return last 5 years = 45.38%
China Petroleum & Chemical Cor (NYSE: SNP)
Industry : Production & Extraction
Levered Free Cash Flow: 1.41B
Net income for the past three years
Net Income 2008 = $3843 million
Net Income 2009 = $9479 million
Net Income 2010 = $11537 million
Net Income 2011 = $N/A million
EBITDA 12/2011 = $N/A million
EBITDA 12/2010 = $25274 million
EBITDA 12/2009 = $20350 million
Net income Reported Quarterly = $36 million
Total cash flow from operating activities
2008 = $9.94 billion
2009 = $24.25 billion
2010 = $25.85 billion
Cash Flow 12/2011 = N/A $/share
Cash Flow 12/2010 = 22.52 $/share
Cash Flow 12/2009 = 18.89 $/share
Annual EPS before NRI 12/2010 = 12.3
Annual EPS before NRI 12/2009 = 10.34
Annual l EPS before NRI 12/2008 = 0.45
Annual l EPS before NRI 12/2007 = 8.68
ROE = 16.47%
Return on Assets = 7.31%
Quarterly Earnings Growth = 0.5%
Quarterly Revenue Growth = 31%
Key Ratios
Price to Book = 1.4
Price to Tangible Book = 1.46
Price to Cash Flow = 5.13
Price to Free Cash Flow = 10.6
Current Ratio = 0.9
Current Ratio 5 Year Average = 0.68
Quick Ratio = 0.31
Cash Ratio = 0.18
Payout Ratio 06/2011 = 0.23
Payout Ratio 5-Year Avg 09/2011 = 0.47
Payout Ratio 5-Year Avg 06/2011 = 0.47
Change in Payout Ratio = -0.24
Dividend yield 5-year average = 2.8%
Dividend growth rate 3-year avg = 16.84%
Dividend growth rate 5-year avg = 15%
Consecutive dividend increases = 3 years
Paying dividends since = 2001
Total return last 3 years = 161.54%
Total return last 5 years = 62.24%
Giant Interactive Group Inc (NYSE: GA)
Industry : Internet & Software
Levered Free Cash Flow : N/A
Net income for the past three years
Net Income 2009 = $126 million
Net Income 2010 = $122 million
Net Income 2011 = $144 million
EBITDA 12/2011 = $N/A million
EBITDA 12/2010 = $149 million
EBITDA 12/2009 = $148 million
Net income Reported Quarterly = $36 million
Total cash flow from operating activities
2008 = $162.66 million
2009 = $110.12 million
2010 = $156.63 million
Cash Flow 12/2011 = N/A $/share
Cash Flow 12/2010 = 0.62 $/share
Cash Flow 12/2009 = 0.6 $/share
Annual EPS before NRI 12/2011 = 0.74
Annual EPS before NRI 12/2010 = 0.55
Annual EPS before NRI 12/2009 = 0.54
Annual EPS before NRI 12/2008 = 0.66
Annual EPS before NRI 12/2007 = 0.72
ROE = 24.64%
Return on Assets = 19.89%
Quarterly Earnings Growth = 6.6%
Quarterly Revenue Growth = 34.4%
Key Ratios
Price to Sales = 3.95
Price to Book = 2.76
Price to Tangible Book = 3.3
Price to Cash Flow = 7.86
Price to Free Cash Flow = 10.6
Current Ratio 09/2011 = 2.15
Current Ratio 5 Year Average = 7.22
Quick Ratio = 2.15
Cash Ratio = 2.13
Interest Coverage 03/2012 = N/A
Payout Ratio 09/2011 = 0.24
Payout Ratio 06/2011 = 0.24
Payout Ratio 5 Year Avg 09/2011 = 0.24
Payout Ratio 5-Year Avg 06/2011 = 0.24
Change in Payout Ratio = 0
Dividend growth rate 3-year avg = 0%
Consecutive dividend increases = 0 years
Paying dividends since = 2009
Total return last 3 years = 23.47%
EPS, Price, EPS surprise charts obtained from zacks.com. Dividend history charts sourced from dividata.com. Free cash flow yield, income from continuing operations and revenue growth charts sourced from Ycharts.com. Earnings estimates and growth rate charts for sourced from dailyfinance.com. Major accounting data and financial indicators table sourced from yanzhoucoal.com.cn
Disclaimer: This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies-let the buyer beware.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
