China Shenhua Energy Company Limited (1088.HK) stock analysis

In our weekly check, China Shenhua Energy Company Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 6, red flags: 2.

About China Shenhua Energy Company Limited

China Shenhua Energy Company Limited is an Energy company (Coal) based in China, listed on HKSE as 1088.HK.

What our checks show for 1088.HK

Red flags

• The dividend takes 110% of profit: little cushion if profit falls.
• The stock has fallen as much as 85% from a peak. Would you have held through that?

Warning signs

• The gross margin fell by 2.4 points, to 30.6%: costs are rising faster than prices.
• Analysts expect the net margin to shrink by 1.9 points from today's 17.1%.
• Revenue grew only 0% a year over the last 3 years.
• Earnings per share fell 6.2% a year over the last 3 years.
• Net profit fell 5.3% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• Net debt is only 0.9x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 21.4 times over.
• The net margin rose by 2.2 points over 5 years, to 17.1%.
• Operating cash flow is 1.43x net profit: the profit arrives as real cash.
• A large company: market value $101 billion.
• Beta 0.4: the stock usually moves less than the market.

Similar companies

COALINDIA.NS · XOM · 0386.HK · TUPRS.IS · CVX · SHEL

Questions

What grade does China Shenhua Energy Company Limited (1088.HK) have?

In our weekly check, China Shenhua Energy Company Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 6, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1088.HK stock?

This week's biggest flags for China Shenhua Energy Company Limited: Dividend stretched, Deep past fall, Gross margin falling. In total 8 of 25 checks show a warning or a red flag.

What does China Shenhua Energy Company Limited do?

China Shenhua Energy Company Limited is an Energy company (Coal) based in China, listed on HKSE as 1088.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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