Risk factor
Very high price volatility
Profitability factor
Undervalued vs peers
About
Yancoal Australia Ltd is a prominent global entity in the coal sector, focusing on the entire lifecycle from discovery and development to extraction and sale of both metallurgical and thermal coal. The company's reach extends across Australia and key international markets, including Japan, Singapore, China, South Korea, Taiwan, and Thailand. Its extensive portfolio of mining assets is primarily located in Australia. In New South Wales, Yancoal holds a significant 95% stake in the Moolarben coal mine, situated in the Western Coalfields. It also fully owns the Stratford Duralie mines in the Gloucester Basin, the Ashton mine in the Upper Hunter Valley, and the Austar mine. Furthermore, the company possesses substantial interests in the Hunter Valley region, with an 80% share in the Mount Thorley mine and an 84.5% interest in the Warkworth mine, alongside an additional interest in the Hunter Valley coal mine. In Queensland, Yancoal fully controls the Yarrabee mine, located northeast of Blackwater within the Central Bowen Basin, and maintains a 50% interest in the Middlemount mine, also in the Bowen Basin. The company additionally holds an interest in the Cameby Downs mine in Southeast Queensland. Established in 2004 and headquartered in Sydney, Australia, Yancoal Australia Ltd operates as a subsidiary of Yankuang Energy Group Company Limited.
Company Valuation
Considering past and projected metrics, the stock is 'cheaper' than its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBITDA, undervalued on P/FCF.
Target Price
The average target price of 3668.HK is 52 and suggests 75.9% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to inc