# Yankuang Energy Group (600188.SHG)

Canonical: https://gigainvestors.com/s/600188.SHG

Analysis as of: 2026-10-16T07:34:22.626Z. Financial observations: FY1996–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 18.92 per share; close as of 2026-10-15.

Estimated value: low CNY 21.82 per share, central CNY 24.37 per share, high CNY 27.78 per share. Buy at or below the central value CNY 24.37 per share. Valuation as of 2026-10-16T07:34:22.626Z; scenarios are not confidence intervals.

Expected annual return: 12.5% at the stated quote. About 12.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.61×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.02×

- FY2017: 0.06×

- FY2018: 0.09×

- FY2019: 0.07×

- FY2020: 0.07×

- FY2021: 0.16×

- FY2022: 0.28×

- FY2023: 0.25×

- FY2024: 0.19×

- FY2025: 0.13×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.9%

- ROIC, second-lowest year: 8.1%

- Typical minus recent gross margin: -4.0 pp

- Typical gross margin (annual median): 23.5%

- Recent gross margin (lower of latest and 3-year median): 27.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.0%

- ROIC including acquisitions, ten-year median: 9.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 2.2%

- FY2017: 8.1%

- FY2018: 11.9%

- FY2019: 12.7%

- FY2020: 8.3%

- FY2021: 15.5%

- FY2022: 37.2%

- FY2023: 16.3%

- FY2024: 16.6%

- FY2025: 15.1%

### economics: pass

- Owner earnings / net income, 5-yr: 0.93×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 86B

- Net income, five-year total: CNY 93B

- Return on incremental invested capital: 27.8%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -3.8 pp

- Working capital / revenue, final three-year average: 5.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.99×

- FY2022: 1.00×

- FY2023: 0.82×

- FY2024: 0.81×

- FY2025: 0.99×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 8.1% vs 16.3%

- Per-share earnings: 0.35 to 1.45 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

- Ordinary dilution, 5-year annual growth: 5.4%

- Market cap gain: CNY 102B

- Cumulative retained earnings: CNY 17B

- Diluted shares, 10-year annual growth: 0.8%

- Diluted shares, 5-year annual growth: 5.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 19.6%

- Per-share value change: CNY 1.10

- Per-share value, starting three-year median: CNY 0.35

- Per-share value, ending three-year median: CNY 1.45

- Buybacks concentrated in cheaper years (correlation): 0.20

- Average buyback yield: 1.9%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 142B

- Cumulative net income, 10 years: CNY 128B

- ROIC, first three-year median: 8.1%

- ROIC, last three-year median: 16.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.35

- FY2017: CNY 0.97

- FY2018: CNY 1.09

- FY2019: CNY 1.29

- FY2020: CNY 0.89

- FY2021: CNY 2.16

- FY2022: CNY 4.42

- FY2023: CNY 2.74

- FY2024: CNY 1.45

- FY2025: CNY 0.87

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -2.5%

- Receivables to sales index (DSRI): 2.94×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.26×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.45×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.9%

- FY2017: -4.5%

- FY2018: -6.8%

- FY2019: -7.2%

- FY2020: -5.8%

- FY2021: -6.9%

- FY2022: -6.8%

- FY2023: 1.1%

- FY2024: -2.2%

- FY2025: -2.5%

## Holders

## Price story

Down 26% since Sep 2022 · sales +3.1%

Story as of 2026-10-16T10:00:00.327Z; price observation 2026-10-15.

Price needs cash profits to shrink 2.9% a year for ten years

### Sales · FY2024–2025

sales +3.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 102B 

- FY2017: CNY 151B 

- FY2018: CNY 163B 

- FY2019: CNY 215B 

- FY2020: CNY 215B 

- FY2021: CNY 152B 

- FY2022: CNY 225B 

- FY2023: CNY 150B 

- FY2024: CNY 139B 

- FY2025: CNY 144B 

### Gross margin · FY2025

gross margin 27.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 13.0% 

- FY2017: 16.6% 

- FY2018: 19.5% 

- FY2019: 15.4% 

- FY2020: 13.2% 

- FY2021: 29.4% 

- FY2022: 42.3% 

- FY2023: 40.6% 

- FY2024: 35.8% 

- FY2025: 27.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in thermal coal; annual sales are CNY 143.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2025: revenue 143506497000; grossProfit 39539109000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600188.SHG: Yankuang Energy Group Company Limited engages in the mining and sale of coal in the People's Republic of China, Australia, and internationally. It operates through Coal Mining; Smart Logistics; Coal Chemical, Electricity and Heat Supply; and Equipment Manufacturing segments. The company offers thermal, PCI, and coking coal; methanol, acetic acid, ethyl acetate, caprolactam, urea, ethylene glycol, naphtha, liquid paraffin, and crude liquid wax; coal mining and excavating equipment, cables, wires, cable accessories, and raw materials products; and chemicals, as well as involved in wholesale of petroleum and mineral products; and manufacturing of synthetic materials. It also engages in potash mineral exploration; electricity and heat supply; coal mining technology development, transfer, and consultation; finance leasing; leasing, trading, and commercial factoring; engineering; investment and asset management; educational software development; event planning; construction and production solar and wind power; providing railway, river, and lakes transportation; commercial; and logistics and transportation services. In addition, the company is involved in coal resource exploration development; port infrastructure construction; production and sales of mining equipment, electromechanical equipment, and rubber products; installation of mining equipment; coal and electrolytic copper trading; recycling of renewable resources; management of mineral resources, coal mining, and washing; operation of power generation; bonded area trade and warehousing; manufacturing of chemical products; and manufacturing of other metal processing machinery. 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 incorporated in 1997 and is based in Zoucheng, the People's Republic of China. Yankuang Energy Group Company Limited operates as a subsidiary of Shan Dong Energy Group Co., Ltd.

### Why customers stay

Margins ranged from 27.6% to 40.6% during 2023–25; it earns 13.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2023: grossProfit / revenue = 40.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2024: grossProfit / revenue = 35.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2025: grossProfit / revenue = 27.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); 10-year return on capital observations [[2016,0.022264727817574114],[2017,0.08109800258608636],[2018,0.11930307646252762],[2019,0.1270913934451553],[2020,0.08285892186686522],[2021,0.15521148603005874],[2022,0.37180277154880126],[2023,0.16337029229093386],[2024,0.1656546524857825],[2025,0.1508156436030374]]; median 0.13895351852409635. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 19.6% of cash earnings on expansion; earns 27.8% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2016: growth capex 3277863000; upkeep 3948140000; owner earnings 2161814000. Growth capex / owner earnings = 1.5162557925890017.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2017: growth capex 4018193000; upkeep 6155578000; owner earnings 7266876000. Growth capex / owner earnings = 0.5529464105345956.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2018: growth capex 4041282000; upkeep 6648299000; owner earnings 8515999000. Growth capex / owner earnings = 0.4745517231742277.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2019: growth capex 2736424000; upkeep 8631431000; owner earnings 9918114000. Growth capex / owner earnings = 0.27590164823675145.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2020: growth capex 118716179.20842934; upkeep 11893512820.79157; owner earnings 4779649179.208429. Growth capex / owner earnings = 0.024837843690463123.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2021: growth capex 0; upkeep 10440317000; owner earnings 16050672800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2022: growth capex 4182425000; upkeep 13999615000; owner earnings 33274713400. Growth capex / owner earnings = 0.1256937948562466.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2023: growth capex 0; upkeep 18191050000; owner earnings 16424301600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2024: growth capex 0; upkeep 17076800000; owner earnings 11751042200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); FY2025: growth capex 1755480000; upkeep 16765345000; owner earnings 8954569997.837519. Growth capex / owner earnings = 0.19604291444747646.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); Incremental return on capital 0.277991500170179, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); Dividend observations: [[2016,3446936000],[2017,4616855000],[2018,7432521000],[2019,8412458000],[2020,4633630000],[2021,4874184000],[2022,10162671000],[2023,24431610000],[2024,19313833000],[2025,7226986000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 73.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600188.SHG SharesStats.PercentInsiders = 73.756 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 2.9% yearly over ten years; actual growth was 25.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:22.626Z); Ten-year compound average after fade. Initial solved rate -0.05303033580955968. Price 18.92; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.08946174932393468 → FY2025 0.8616693090059417. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-11: CNY 6.05 per share

- 2016-12: CNY 5.57 per share

- 2017-01: CNY 5.59 per share

- 2017-02: CNY 5.55 per share

- 2017-03: CNY 5.85 per share

- 2017-04: CNY 6.06 per share

- 2017-05: CNY 5.37 per share

- 2017-06: CNY 6.28 per share

- 2017-07: CNY 7.31 per share

- 2017-08: CNY 6.92 per share

- 2017-09: CNY 6.69 per share

- 2017-10: CNY 6.13 per share

- 2017-11: CNY 7.15 per share

- 2017-12: CNY 7.45 per share

- 2018-01: CNY 9.23 per share

- 2018-02: CNY 8.07 per share

- 2018-03: CNY 7.06 per share

- 2018-04: CNY 7.40 per share

- 2018-05: CNY 6.94 per share

- 2018-06: CNY 6.69 per share

- 2018-07: CNY 6.21 per share

- 2018-08: CNY 5.73 per share

- 2018-09: CNY 5.91 per share

- 2018-10: CNY 5.27 per share

- 2018-11: CNY 4.89 per share

- 2018-12: CNY 4.50 per share

- 2019-01: CNY 4.53 per share

- 2019-02: CNY 5.42 per share

- 2019-03: CNY 5.44 per share

- 2019-04: CNY 5.87 per share

- 2019-05: CNY 5.47 per share

- 2019-06: CNY 5.57 per share

- 2019-07: CNY 5.28 per share

- 2019-08: CNY 4.91 per share

- 2019-09: CNY 5.46 per share

- 2019-10: CNY 5.33 per share

- 2019-11: CNY 4.82 per share

- 2019-12: CNY 5.42 per share

- 2020-01: CNY 4.96 per share

- 2020-02: CNY 4.55 per share

- 2020-03: CNY 4.43 per share

- 2020-04: CNY 4.25 per share

- 2020-05: CNY 4.33 per share

- 2020-06: CNY 4.49 per share

- 2020-07: CNY 4.72 per share

- 2020-08: CNY 4.76 per share

- 2020-09: CNY 4.75 per share

- 2020-10: CNY 4.62 per share

- 2020-11: CNY 5.83 per share

- 2020-12: CNY 5.16 per share

- 2021-01: CNY 4.46 per share

- 2021-02: CNY 4.94 per share

- 2021-03: CNY 6.78 per share

- 2021-04: CNY 6.66 per share

- 2021-05: CNY 6.94 per share

- 2021-06: CNY 7.88 per share

- 2021-07: CNY 9.64 per share

- 2021-08: CNY 13.09 per share

- 2021-09: CNY 14.87 per share

- 2021-10: CNY 11.58 per share

- 2021-11: CNY 11.65 per share

- 2021-12: CNY 12.07 per share

- 2022-01: CNY 11.85 per share

- 2022-02: CNY 16.26 per share

- 2022-03: CNY 19.66 per share

- 2022-04: CNY 17.81 per share

- 2022-05: CNY 19.82 per share

- 2022-06: CNY 20.25 per share

- 2022-07: CNY 18.79 per share

- 2022-08: CNY 24.62 per share

- 2022-09: CNY 25.73 per share

- 2022-10: CNY 20.82 per share

- 2022-11: CNY 20.81 per share

- 2022-12: CNY 17.22 per share

- 2023-01: CNY 17.61 per share

- 2023-02: CNY 18.31 per share

- 2023-03: CNY 18.24 per share

- 2023-04: CNY 17.64 per share

- 2023-05: CNY 13.91 per share

- 2023-06: CNY 15.34 per share

- 2023-07: CNY 13.65 per share

- 2023-08: CNY 13.25 per share

- 2023-09: CNY 15.58 per share

- 2023-10: CNY 15.02 per share

- 2023-11: CNY 15.81 per share

- 2023-12: CNY 15.24 per share

- 2024-01: CNY 17.58 per share

- 2024-02: CNY 19.91 per share

- 2024-03: CNY 18.30 per share

- 2024-04: CNY 17.77 per share

- 2024-05: CNY 19.38 per share

- 2024-06: CNY 17.48 per share

- 2024-07: CNY 15.00 per share

- 2024-08: CNY 14.20 per share

- 2024-09: CNY 16.70 per share

- 2024-10: CNY 15.43 per share

- 2024-11: CNY 14.60 per share

- 2024-12: CNY 14.17 per share

- 2025-01: CNY 13.47 per share

- 2025-02: CNY 13.27 per share

- 2025-03: CNY 13.32 per share

- 2025-04: CNY 12.20 per share

- 2025-05: CNY 12.87 per share

- 2025-06: CNY 12.17 per share

- 2025-07: CNY 12.62 per share

- 2025-08: CNY 12.95 per share

- 2025-09: CNY 13.31 per share

- 2025-10: CNY 14.72 per share

- 2025-11: CNY 13.91 per share

- 2025-12: CNY 13.15 per share

- 2026-01: CNY 14.64 per share

- 2026-02: CNY 17.72 per share

- 2026-03: CNY 19.35 per share

- 2026-04: CNY 22.85 per share

- 2026-05: CNY 21.80 per share

- 2026-06: CNY 17.77 per share

- 2026-07: CNY 20.19 per share

- 2026-08: CNY 23.62 per share

- 2026-09: CNY 19.44 per share

- 2026-10: CNY 20.04 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 6.64 per share, central CNY 7.16 per share, high CNY 7.86 per share

- FY2017: low CNY 9.23 per share, central CNY 11.72 per share, high CNY 13.17 per share

- FY2018: low CNY 11.83 per share, central CNY 13.53 per share, high CNY 15.14 per share

- FY2019: low CNY 20.61 per share, central CNY 28.15 per share, high CNY 32.54 per share

- FY2020: low CNY 16.12 per share, central CNY 17.99 per share, high CNY 20.48 per share

- FY2021: low CNY 16.31 per share, central CNY 17.78 per share, high CNY 19.73 per share

- FY2022: low CNY 24.85 per share, central CNY 33.92 per share, high CNY 39.20 per share

- FY2023: low CNY 26.47 per share, central CNY 29.72 per share, high CNY 34.05 per share

- FY2024: low CNY 18.16 per share, central CNY 20.38 per share, high CNY 23.34 per share

- FY2025: low CNY 18.17 per share, central CNY 20.37 per share, high CNY 23.29 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:06.312Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.