Exchange Earnings Amounted To 2 Billion 600 Million Yuan &Nbsp; Yanzhou Coal Industry "Hidden Killer".

In March 28th,

The performance of Yanzhou coal industry is much higher than that of the market, but not from the main business, but from the exchange earnings.

The exchange yield is as high as 2 billion 600 million.

Public information shows that the Yanzhou coal industry, which is a wholly owned subsidiary of Yanzhou coal Bp Australia Limited in Australia, has acquired a 100% stake in Felix company through its wholly owned subsidiary, Australia Star Coal Limited company. The total purchase price is 3 billion 333 million Australian dollars (about 18 billion 951 million yuan).

All the funds needed for the acquisition were made by Yanzhou Coal Australia from the Bank of China Sydney branch or the syndicated loan which was led by it. The amount of financing is Australian dollar or US dollar equivalent to RMB 20 billion yuan.

Guo Jin securities analyst Hao Zheng believes that the exchange gains and losses of the Australian dollar / US dollar enhance the company's performance elasticity, which is the main factor for the company's performance exceeding expectations.

After the acquisition of the Australian Felix project, its performance was increased by the Australian dollar / dollar exchange rate.

In addition, in the first quarter of 2011, the international coal price rising companies benefited obviously, and the exchange earnings will continue to increase a small share of earnings per share.

The bright spot of the company's 2011 performance growth is mainly due to the thickening of the international coal price and the depreciation of the US dollar.

In March 25th, the Australian / dollar exchange rate was 1.02622010 years in December 31st, the Australian / dollar exchange rate was 1.0163, and the remittance dollar was 1% lower than the Australian dollar.

In the first quarter, the amount of Australian contracts signed has reached 2 million 660 thousand tons, with an average price of US $133.4 / ton.

Insiders pointed out that, at present, Yanzhou coal industry is not only a coal share, but also the first share of the A share market exchange earnings, the Australian dollar appreciation of 1%, corresponding to the exchange earnings increased by 200 million, earnings per share to Yanzhou coal industry performance increased by 0.5-0.6 yuan.

The trend of US dollar depreciation will continue to maintain. As the appreciation of the renminbi is strictly controlled by the central bank and the appreciation rate is relatively slow, it is expected that the Australian dollar will continue to appreciate against the US dollar and RMB in the future. Yanzhou Coal Australia will provide higher exchange earnings for Yanzhou coal industry.

Stable performance exists hidden killer

Statistics show that as of March 27th, in the 900 listed companies that have published annual reports, 671 companies have seen exchange gains and losses.

Most of the companies that realized exchange earnings in 2010 were companies with large imports of raw materials and mainly domestic markets.

For example, Hainan Airlines (600221.SH), Minmetals development (600058.SH), Zhenhua Heavy Industries (600320.SH), TCL group (000100.SZ), middle sea oil (601808.SH) and so on.

Among them, the exchange earnings of Hainan airlines were 371 million yuan, while the exchange earnings of Minmetals development, Zhenhua heavy industries and TCL group were 299 million, 226 million and 197 million yuan respectively.

But at the same time, 482 companies had exchange losses, which accounted for 70% of the total number of foreign exchange gains and losses companies.

Due to the appreciation of the Canadian dollar against the US dollar, the exchange loss of China's oil company (601857.SH) in 2010 was 1 billion 172 million yuan, an increase of nearly 50% over the previous year's 783 million yuan.

In addition, the exchange loss of 000527.SZ in 2010 was 231 million yuan.

It can be seen that the fluctuation of exchange rate is a double-edged sword, and a company will benefit from it and some companies will suffer losses.

Yanzhou coal industry annual report shows that in 2010, the profits of overseas assets of Yanzhou coal industry first exceeded that of China.

In 2010, Yanzhou Coal's Australian net profit exceeded 10% of Yancheng's domestic net profit.

Yanzhou Coal Australia's net profit increased by 2 billion 416 million 300 thousand yuan or 977.4% over the same period last year.

Some analysts believe that Yanzhou coal industry is the first large-scale coal industry in foreign countries, and its coal in Australia mainly depends on exports.

Therefore, the fluctuation of exchange rate will also have a greater impact on the export of coal.

At the same time, the fluctuation of exchange rate is an uncontrollable factor, or will become a hidden killer of the company's unstable performance.

Yanzhou coal industry also said that the uncertainty of exchange rate changes will affect group performance.

The risk of exchange rate volatility is mainly due to the frequent fluctuations of the Australian dollar against the US dollar, which may lead to the large exchange gains and losses of Yanzhou Coal Australia, which will affect book profits.