# China Coal Energy (601898.SHG)

Canonical: https://gigainvestors.com/s/601898.SHG

Analysis as of: 2026-10-16T07:34:20.987Z. Financial observations: FY2004–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 14.96 per share; close as of 2026-10-15.

Estimated value: low CNY 12.02 per share, central CNY 13.00 per share, high CNY 14.30 per share. Buy at or below the central value CNY 13.00 per share. Valuation as of 2026-10-16T07:34:20.987Z; scenarios are not confidence intervals.

Expected annual return: 8.6% at the stated quote. About 8.6% 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: pass

- Positive operating margins follow a sustained upward trend (at least 90% explained, low residual variation), with no net losses or latest decline; improvement passes the margin-variation check

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

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.37×

- Sustained margin improvement: Yes

- Variation explained by rising trend: 93.0%

- Variation around the rising trend: 0.10×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.07×

- FY2018: 0.08×

- FY2019: 0.09×

- FY2020: 0.09×

- FY2021: 0.11×

- FY2022: 0.15×

- FY2023: 0.17×

- FY2024: 0.17×

- FY2025: 0.18×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 8.6%

- ROIC, second-lowest year: 2.6%

- Typical minus recent gross margin: 0.8 pp

- Typical gross margin (annual median): 25.9%

- Recent gross margin (lower of latest and 3-year median): 25.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.1%

- ROIC including acquisitions, ten-year median: 3.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 1.8%

- FY2017: 2.6%

- FY2018: 3.8%

- FY2019: 4.7%

- FY2020: 5.5%

- FY2021: 14.0%

- FY2022: 20.3%

- FY2023: 20.5%

- FY2024: 17.9%

- FY2025: 11.7%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.71×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 63B

- Net income, five-year total: CNY 89B

- Return on incremental invested capital: 107.7%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -1.3 pp

- Working capital / revenue, final three-year average: -1.5%

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

- FY2021: 1.00×

- FY2022: 1.02×

- FY2023: 0.66×

- FY2024: 0.57×

- FY2025: 0.38×

### management: pass

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

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 2.6% vs 17.9%

- Per-share earnings: 0.14 to 1.46 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.9%

- Ordinary dilution, 5-year annual growth: 0.7%

- Market cap gain: CNY 79B

- Cumulative retained earnings: CNY 70B

- Diluted shares, 10-year annual growth: -0.9%

- Diluted shares, 5-year annual growth: 0.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 34.3%

- Per-share value change: CNY 1.32

- Per-share value, starting three-year median: CNY 0.14

- Per-share value, ending three-year median: CNY 1.46

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 13B

- Cumulative net income, 10 years: CNY 108B

- ROIC, first three-year median: 2.6%

- ROIC, last three-year median: 17.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.14

- FY2017: CNY 0.16

- FY2018: CNY 0.24

- FY2019: CNY 0.44

- FY2020: CNY 0.46

- FY2021: CNY 1.03

- FY2022: CNY 1.38

- FY2023: CNY 1.47

- FY2024: CNY 1.46

- FY2025: CNY 1.35

### accounting: pass

- Sloan accruals: -3.9%

- Receivables to sales index (DSRI): 1.42×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.82×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.33×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.2%

- FY2017: -6.2%

- FY2018: -6.4%

- FY2019: -6.0%

- FY2020: -5.9%

- FY2021: -10.7%

- FY2022: -7.5%

- FY2023: -6.7%

- FY2024: -4.1%

- FY2025: -3.9%

## Holders

## Price story

Down 20% since Apr 2026 · sales -22.3%

Story as of 2026-10-16T10:00:00.171Z; price observation 2026-10-15.

Price needs cash profits to grow 3.6% a year for ten years

### Sales · FY2024–2025

sales -22.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 61B 

- FY2017: CNY 82B 

- FY2018: CNY 104B 

- FY2019: CNY 129B 

- FY2020: CNY 141B 

- FY2021: CNY 240B 

- FY2022: CNY 221B 

- FY2023: CNY 193B 

- FY2024: CNY 189B 

- FY2025: CNY 147B 

### Gross margin · FY2025

gross margin 26.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 33.4% 

- FY2017: 32.2% 

- FY2018: 28.5% 

- FY2019: 27.9% 

- FY2020: 17.4% 

- FY2021: 17.6% 

- FY2022: 25.1% 

- FY2023: 25.0% 

- FY2024: 24.6% 

- FY2025: 26.6% 

## Owner memo

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

### How it makes money

Operates in thermal coal; annual sales are CNY 147.1 billion.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2025-12-31 (filed 2026-10-16T07:34:20.987Z); FY2025: revenue 147071819000; grossProfit 39116780000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601898.SHG: China Coal Energy Company Limited, together with its subsidiaries, engages in the production and sale of coal in China and internationally. The company operates through four segments: Coal, Coal Chemical, Coal Mining Equipment, and Finance. It offers thermal and coking coal products; polyolefin, methanol, urea, and ammonium nitrate; and coal mining machinery and equipment. The company also engages in financial activities; thermal power generation; aluminum processing; import of equipment and related parts; bidding services; iron ore business; road transportation; and waste disposal. It exports its products. The company was founded in 2006 and is headquartered in Beijing, China. China Coal Energy Company Limited operates as a subsidiary of China National Coal Group Corporation.

### Why customers stay

Margins ranged from 24.6% to 26.6% during 2023–25; it earns 8.6% on its capital.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2023-12-31 (filed 2026-10-16T07:34:20.987Z); FY2023: grossProfit / revenue = 25%.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2024-12-31 (filed 2026-10-16T07:34:20.987Z); FY2024: grossProfit / revenue = 24.6%.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2025-12-31 (filed 2026-10-16T07:34:20.987Z); FY2025: grossProfit / revenue = 26.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.987Z); 10-year return on capital observations [[2016,0.017513464224517397],[2017,0.02644159729191308],[2018,0.03757902265091931],[2019,0.04719187953352789],[2020,0.05506868218705413],[2021,0.1401135089055031],[2022,0.20286245818433185],[2023,0.2045169644987583],[2024,0.1785822103009771],[2025,0.11679166242084466]]; median 0.08593017230394939. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2016-12-31 (filed 2026-10-16T07:34:20.987Z); FY2016: growth capex 2308783075.2879906; upkeep 6707332924.712009; owner earnings 1612976075.2879906. Growth capex / owner earnings = 1.4313808559595445.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2017-12-31 (filed 2026-10-16T07:34:20.987Z); FY2017: growth capex 1117101000; upkeep 7392055000; owner earnings 2291775000. Growth capex / owner earnings = 0.48743921196452533.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2018-12-31 (filed 2026-10-16T07:34:20.987Z); FY2018: growth capex 1901242000; upkeep 7526794000; owner earnings 3352389000. Growth capex / owner earnings = 0.5671304851555115.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2019-12-31 (filed 2026-10-16T07:34:20.987Z); FY2019: growth capex 1399880000; upkeep 9545657000; owner earnings 5628607000. Growth capex / owner earnings = 0.24870807288552924.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2020-12-31 (filed 2026-10-16T07:34:20.987Z); FY2020: growth capex 474025000; upkeep 9833298000; owner earnings 5907091000. Growth capex / owner earnings = 0.08024677459683624.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2021-12-31 (filed 2026-10-16T07:34:20.987Z); FY2021: growth capex 0; upkeep 10427318000; owner earnings 13775978400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2022-12-31 (filed 2026-10-16T07:34:20.987Z); FY2022: growth capex 0; upkeep 9756238000; cash acquisitions 0; owner earnings 18651321499.542423. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2023-12-31 (filed 2026-10-16T07:34:20.987Z); FY2023: growth capex 0; upkeep 17574916000; cash acquisitions 0; owner earnings 12807991000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2024-12-31 (filed 2026-10-16T07:34:20.987Z); FY2024: growth capex 0; upkeep 18070494000; cash acquisitions 0; owner earnings 11077427600. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/601898.SHG.json#2025-12-31 (filed 2026-10-16T07:34:20.987Z); FY2025: growth capex 0; upkeep 21787133000; cash acquisitions 0; owner earnings 6757331200. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.987Z); Dividend observations: [[2016,5854082000],[2017,5511382000],[2018,5834804000],[2019,1034176000],[2020,1683850000],[2021,5971966000],[2022,7789073000],[2023,8771380000],[2024,10288723000],[2025,5621673000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 83.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601898.SHG SharesStats.PercentInsiders = 83.59100000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 3.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.987Z); Ten-year compound average after fade. Initial solved rate 0.03880312180509071. Price 14.96; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.4961281529264054 → FY2025 0.509654042794511. Closing-price date 2026-10-15.

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

- 2016-10: CNY 6.65 per share

- 2016-11: CNY 6.23 per share

- 2016-12: CNY 5.81 per share

- 2017-01: CNY 6.00 per share

- 2017-02: CNY 6.08 per share

- 2017-03: CNY 6.11 per share

- 2017-04: CNY 5.82 per share

- 2017-05: CNY 5.31 per share

- 2017-06: CNY 5.88 per share

- 2017-07: CNY 6.33 per share

- 2017-08: CNY 6.57 per share

- 2017-09: CNY 6.18 per share

- 2017-10: CNY 5.90 per share

- 2017-11: CNY 5.85 per share

- 2017-12: CNY 5.72 per share

- 2018-01: CNY 6.15 per share

- 2018-02: CNY 5.63 per share

- 2018-03: CNY 5.11 per share

- 2018-04: CNY 4.99 per share

- 2018-05: CNY 4.92 per share

- 2018-06: CNY 4.83 per share

- 2018-07: CNY 4.98 per share

- 2018-08: CNY 5.01 per share

- 2018-09: CNY 5.28 per share

- 2018-10: CNY 5.25 per share

- 2018-11: CNY 4.91 per share

- 2018-12: CNY 4.65 per share

- 2019-01: CNY 4.61 per share

- 2019-02: CNY 5.14 per share

- 2019-03: CNY 5.12 per share

- 2019-04: CNY 5.09 per share

- 2019-05: CNY 4.77 per share

- 2019-06: CNY 4.80 per share

- 2019-07: CNY 4.66 per share

- 2019-08: CNY 4.82 per share

- 2019-09: CNY 4.92 per share

- 2019-10: CNY 4.68 per share

- 2019-11: CNY 4.88 per share

- 2019-12: CNY 5.02 per share

- 2020-01: CNY 4.67 per share

- 2020-02: CNY 4.31 per share

- 2020-03: CNY 3.99 per share

- 2020-04: CNY 3.82 per share

- 2020-05: CNY 3.79 per share

- 2020-06: CNY 3.80 per share

- 2020-07: CNY 4.13 per share

- 2020-08: CNY 4.09 per share

- 2020-09: CNY 3.93 per share

- 2020-10: CNY 3.93 per share

- 2020-11: CNY 4.45 per share

- 2020-12: CNY 4.45 per share

- 2021-01: CNY 4.03 per share

- 2021-02: CNY 4.99 per share

- 2021-03: CNY 6.15 per share

- 2021-04: CNY 7.00 per share

- 2021-05: CNY 7.18 per share

- 2021-06: CNY 7.15 per share

- 2021-07: CNY 7.27 per share

- 2021-08: CNY 8.53 per share

- 2021-09: CNY 9.02 per share

- 2021-10: CNY 6.98 per share

- 2021-11: CNY 6.05 per share

- 2021-12: CNY 6.29 per share

- 2022-01: CNY 5.98 per share

- 2022-02: CNY 6.81 per share

- 2022-03: CNY 8.09 per share

- 2022-04: CNY 9.40 per share

- 2022-05: CNY 9.96 per share

- 2022-06: CNY 10.38 per share

- 2022-07: CNY 8.74 per share

- 2022-08: CNY 9.98 per share

- 2022-09: CNY 10.64 per share

- 2022-10: CNY 8.82 per share

- 2022-11: CNY 9.70 per share

- 2022-12: CNY 8.62 per share

- 2023-01: CNY 8.70 per share

- 2023-02: CNY 8.77 per share

- 2023-03: CNY 7.90 per share

- 2023-04: CNY 9.01 per share

- 2023-05: CNY 8.16 per share

- 2023-06: CNY 8.44 per share

- 2023-07: CNY 8.40 per share

- 2023-08: CNY 8.06 per share

- 2023-09: CNY 8.74 per share

- 2023-10: CNY 8.60 per share

- 2023-11: CNY 9.33 per share

- 2023-12: CNY 9.69 per share

- 2024-01: CNY 12.16 per share

- 2024-02: CNY 12.44 per share

- 2024-03: CNY 11.44 per share

- 2024-04: CNY 11.76 per share

- 2024-05: CNY 13.28 per share

- 2024-06: CNY 12.48 per share

- 2024-07: CNY 11.95 per share

- 2024-08: CNY 13.27 per share

- 2024-09: CNY 14.75 per share

- 2024-10: CNY 12.93 per share

- 2024-11: CNY 12.46 per share

- 2024-12: CNY 12.18 per share

- 2025-01: CNY 11.46 per share

- 2025-02: CNY 10.12 per share

- 2025-03: CNY 10.04 per share

- 2025-04: CNY 10.14 per share

- 2025-05: CNY 10.71 per share

- 2025-06: CNY 10.94 per share

- 2025-07: CNY 11.80 per share

- 2025-08: CNY 11.34 per share

- 2025-09: CNY 11.36 per share

- 2025-10: CNY 13.58 per share

- 2025-11: CNY 13.52 per share

- 2025-12: CNY 12.44 per share

- 2026-01: CNY 13.68 per share

- 2026-02: CNY 15.17 per share

- 2026-03: CNY 17.20 per share

- 2026-04: CNY 18.72 per share

- 2026-05: CNY 15.68 per share

- 2026-06: CNY 12.18 per share

- 2026-07: CNY 13.80 per share

- 2026-08: CNY 16.19 per share

- 2026-09: CNY 13.80 per share

- 2026-10: CNY 14.62 per share

## Annual estimated value (CNY per share)

- FY2018: low CNY 3.80 per share, central CNY 4.10 per share, high CNY 4.51 per share

- FY2019: low CNY 5.26 per share, central CNY 6.22 per share, high CNY 6.97 per share

- FY2020: low CNY 6.45 per share, central CNY 6.98 per share, high CNY 7.69 per share

- FY2021: low CNY 15.40 per share, central CNY 19.80 per share, high CNY 22.36 per share

- FY2022: low CNY 14.57 per share, central CNY 18.80 per share, high CNY 21.26 per share

- FY2023: low CNY 16.57 per share, central CNY 21.43 per share, high CNY 24.26 per share

- FY2024: low CNY 13.48 per share, central CNY 14.74 per share, high CNY 16.42 per share

- FY2025: low CNY 12.26 per share, central CNY 13.23 per share, high CNY 14.53 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 2026-10-15T06:40:07.782Z 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.