China Coal Energy Company Limited
1898.HK · HKSE
Company research
China Coal Energy Company Limited (1898.HK) is a Beijing-based energy company founded in 2006 and listed on both the Hong Kong Stock Exchange and the Shanghai Stock Exchange, operating as a subsidiary of China National Coal Group Corporation. As the second-largest coal producer in China, the company is principally engaged in coal production, processing, and trading — offering both thermal and coking coal — alongside coal chemical products such as polyolefin, methanol, urea, and ammonium nitrate. Its diversified operations span four core segments: Coal, Coal Chemical, Coal Mining Equipment, and Finance, further complemented by activities in pithead power generation, aluminum processing, and railway transportation. With approximately 46,452 full-time employees and a market capitalization of approximately HKD 170 billion, China Coal Energy remains a major player in China's coal supply chain, both domestically and internationally.
Research reports
The report notes that 2025 revenue fell 21.8% year‑on‑year to RMB 148.06 billion and net profit attributable to shareholders dropped 20.0%, but highlights that the earnings decline narrowed in 2H25 as Chinese coal prices stabilized and domestic and overseas coal supply–demand conditions improved. It argues that geopolitical disruptions in Iran are boosting coal’s role as a substitute for oil and gas, that coal‑chemical products like polyolefins and urea are benefiting from higher energy prices, and that 2026 EPS is likely to exceed market expectations, supporting a buy rating with a HKD 16.30 target price.
Global Prosperity Financial Company Limited · December 18, 2025China Coal Energy Company (1898.HK) – Participate in the investment of state-owned Zhanxin Fund & Acquire 30% equity of new energy companyThis report analyzes the company’s RMB 1.0 billion investment in a centrally sponsored strategic emerging industries fund (央企战新基金), giving it a 1.96% stake, and the acquisition of the remaining 30% equity in a renewable‑energy subsidiary for RMB 115 million, making it an indirect wholly owned unit and strengthening synergy between core coal operations and new‑energy growth. It provides detailed forecasts for 2025–2027 revenue and net profit, assigns 12x 2026E P/E, sets a HKD 17.81 target price with a buy rating, and flags risks from product‑price volatility and policy/industry transition.
Cinda International Research Limited (信达国际研究有限公司) · November 5, 2025Individual Stock Recommendation – China Coal Energy (1898.HK)The report states that revenue for the first three quarters of 2025 was RMB 110.58 billion, down 21.2% year‑on‑year, and net profit attributable to shareholders was RMB 11.18 billion, down 28.5%, but emphasizes that Q3 profit decline moderated due to lower unit costs and a modest rebound in coal selling prices to around RMB 482 per tonne versus roughly RMB 470 in 1H25. It discusses tighter “anti‑involution” production controls that are constraining coal supply, argues this supports further price recovery, and highlights upside from either raising the dividend payout ratio above the current 35% or acquiring parent‑company assets, with consensus 2026 EPS growth and a buy rating backed by a HKD 13.80 target price.