Share price hit 14-year high, lavish 50.4 billion yuan dividend, China Shenhua why so capricious?

2022-06-23 0 By

Recent period of time, A – share market coal oil plate gains gratifying.Among them, China shenhua performance is the most bright eye.As of March 28, the company’s shares closed at 30.08 yuan per share, a 14-year high.Its shares rose 15.25 per cent in March.Capital market investors have embraced Shenhua as the company has offered a big dividend: all of its full-year net profit will be handed out to shareholders.Why is Shenhua so capricious?In the A-share market, coal stocks are the standard cyclical sector.Since this year, in the growth unit and track unit flameout of the background, cycle unit coal coruscated a new vitality.The flush coal index rose 12.11 percent as of March 30.Among them, the emergence of ping Coal shares, Yankuang Energy, shan Coal International, Gold control coal industry and other stocks rose more than 60%.The total market value of China Shenhua, which ranks the first in the sector, has risen as high as 28.91% since the beginning of the year, and its share price has hit a new high in 14 years.The biggest driver of new highs is earnings growth.The 2021 annual report shows that China Shenhua achieved revenue of 335.2 billion yuan, up 43.7% year on year;Net profit reached 50.269 billion yuan, up 28.3% year on year.In the face of high performance growth, China Shenhua generously issued profit distribution plan: it plans to distribute a dividend of 2.54 yuan per share and pay a total cash dividend of 50.466 billion yuan.This data, accounting for the 2021 net profit of 100.4%.Especially noteworthy is that this has been China Shenhua two consecutive years of high proportion of dividends.Public information shows that since its listing, Shenhua has paid out 15 dividends totaling 270 billion yuan, including 223.9 billion yuan for A-shares and 46.1 billion yuan for Hong Kong shares.High dividends, of course, are a good thing for investors.In China Shenhua bonus feast, who is the big winner?By the end of 2021, the state can invest 69.52% of the shares, through the dividend will receive 35.084 billion yuan.In addition, CSF and Huijin received 1.509 billion yuan and 267 million yuan, respectively.”Coal super wind” return to the arena?In addition to China Shenhua, many listed coal companies also recorded a jump in performance.China Coal Energy, the second largest listed coal company, posted revenue of 231.1 billion yuan, up 64 percent year on year.Net profit reached 13.3 billion yuan, up 124.8% year on year.Pingmei achieved revenue of 29.699 billion yuan, up 32.6% year on year;The net profit of the mother was 2.922 billion yuan, a year-on-year increase of 110.61 percent.In 2021, the coal industry is booming.According to statistics, the revenue of China’s coal mining and washing industry above designated scale reached 3.29 trillion yuan, up 58.3% year on year.Total profits reached 702.31 billion yuan, up 212.7 percent year on year.This is no doubt helped by the sharp rise in coal prices.Since the second quarter of last year, major global energy prices have shown an upward trend.In October 2021, the domestic thermal coal futures price exceeded 1,900 yuan/ton, setting a new record.Although under the background of stable energy supply, the coal price fell due to the rapid growth of coal output, the booming situation of production and sales made the performance of coal enterprises rise sharply.Seeing the coal industry looming that year “coal super wind” posture, many investors pay more attention to the coal industry prosperity degree is sustainable.There are comments that ensure sufficient supply of domestic coal, overall price stability, related to the overall situation of economic and social development and stability.For the coal market in 2022, Shenhua expects that the price center will move down and fluctuate within a narrow range within a reasonable range.China Coal Energy believes that coal is still the ballast stone to ensure energy security, and coal demand is expected to remain resilient in 2022. However, with the continuation of the policy of ensuring supply and price stability and the orderly release of nuclear production capacity in recent years, the elasticity of coal supply is expected to further increase, and it is an inevitable trend for coal prices to fall from a high level to a relatively reasonable level.