The Top 5 Fastest Growing Coal Producing Countries 3

Asia leads the list of fastest coal producing countries

Globally, Asian markets (AAXJ) (VPL) have emerged as the fastest growing coal producing region recording the highest compounded annual growth rate in coal production over the past 5 years (see chart below). Brazil (EWZ) leads the pack with a 7.9% CAGR over the period 2011-16. However, Asia then takes over with Pakistan (PAK), Indonesia (EIDO), India (EPI), and Mongolia follow next, checking in at 4.3%, 4.2%, 4.2%, and 3.5% CAGR, respectively.

 

The PLATTS TOP 250 list for 2016 included 5 coal mining stocks, all belonging to emerging markets.

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China Shenhua Energy Co. Ltd. (CUAEF) (CSUAY) (1088.HK)

The company ranked 25th in the Platts Top 250 companies list. Also known as Shenhua or China Shenhua or Shenhua Energy, this China-based state-owned mining giant is a subsidiary of Shenhua Group. The company’s 1st-half profits rose to their highest in 4 years. Higher coal prices served as tailwinds for profitability. The company’s stock trades on the NYSE’s OTC market under the symbols CUAEF and CSUAY. The Hong Kong-listed stock (1088) is up 54.6% YTD (as of August 25). The stock trades at a P/E of 8.04 currently. Forward P/E for the stock for December 2017 stands at 8.74. Analysts that reviewed the company have given the stock a 3.91/5 rating from a buying perspective.

Coal India Limited (COAL.BO)

The company ranked 38th in the Platts Top 250 companies list. This Indian state-controlled coal mining company is the largest coal producer in the world. It contributes around 82% of the coal production in India. The India-listed stock (COAL) of the company trades at P/E of 16.33, with forward P/E estimated at 12.95 (for March 2018). The stock is down 19.57% YTD as of August 25. 66.7% of analysts that reviewed and rated the stock recommend a BUY.

Yanzhou Coal Mining Co Ltd (YZCAY) (600188.SS) (1171.HK)

The company ranked 167th in the Platts Top 250 companies list. Majority owned by the Yankuang Group, Yanzhou Coal Mining is a China-based coal mining company engaged in underground mining coal preparation and sales, and railway transportation service of coal.

The company is listed on the NYSE’s OTC market under the symbol YZCAY. The stock also trades on the Hong Kong Stock Exchange under the ticker 1171 and on the Shanghai Stock Exchange under the ticker 600188. The Shanghai-listed stock (600188) of the company, up 17.4% YTD, trades at P/E of 13. Forward P/E for the stock for December 2017 stands at 13.59. The EBITDA Yield for the company’s stock is 8.63%. The Piotroski F-Score for the stock is 7 (a score of 9 indicates a high-value stock based on the firm’s financial strength, while a score of 1 indicates a low-value stock). Analysts that reviewed the stock have given the stock a 3.54/5 rating from a buying perspective, with 61.5% analysts recommending a BUY.

China Coal Energy Co Ltd (CCOZY) (1898.HK) (601898.SS)

The company ranked 174th in the Platts Top 250 companies list. Commonly known as China Coal, this company is the second largest coal mining enterprise in China. It is a subsidiary of China National Coal Group. The company is listed on the NYSE’s OTC market under the symbol CCOZY. The stock also trades on the Hong Kong Stock Exchange under the ticker 1898 and on the Shanghai Stock Exchange under the ticker 601898. The Shanghai-listed stock (601898) of the company, up 10.33% YTD, trades at P/E of 27.5. Forward P/E for the stock for December 2017 stands at 20.61.

Higher revenue (up 41.1% in 1H17) and lower costs helped the company increase its net profits by 10 times for 1H17. Net profit for the firm was recorded at $342.2 million (2.28 billion yuan) in 1H17, compared to $33.78 million (225.1 million yuan) in 1H16.

PT Adaro Energy (PADEF) (ADRO.JK)

The company ranked 249th in the Platts Top 250 companies list. PT Adaro Energy Tbk is an Indonesian energy group that focuses on coal mining through subsidiaries. The company’s stock trades on the NYSE’s OTC market under the symbols PADEF and ADOOY. The Indonesia-listed stock (ADRO) is up 14.75% YTD (as of August 25). The stock trades at a P/E of 12.54 currently. Forward P/E for the stock for December 2017 stands at 11.22. Analysts that reviewed the stock have given the stock a 4.52/5 rating from a buying perspective, with 85.2% of analysts recommending a BUY.

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