Shenhua dividend
Shenhua paid RMB3.24 per share in 2025, while its own free cash flow per share was RMB1.29. The dividend therefore exceeded the cash Shenhua generated per share that year.
How much does Shenhua pay its shareholders per share?
Dividends rise from CNY1.90 per share in 2027 to CNY1.95 in 2028 and CNY2.00 in 2029. The bear case falls from CNY1.55 to CNY1.10, while the bull case rises from CNY2.15 to CNY2.55. The CNY0.98 interim dividend and CNY1.03 final dividend anchor the near-term base. But dividends already declined from CNY2.55 in 2022 to CNY2.01 in 2025, while 2025 dividends exceeded free cash flow.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow per share | 1.29 | 2.58 | 2.56 | 4.01 | 3.42 |
| − Paid to minority owners, per share | 1.04 | 0.34 | 0.34 | 0.45 | 0.34 |
| − Dividends paid, per share | 3.24 | 2.26 | 2.55 | 2.54 | 1.81 |
| − Share buybacks, per share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Does Shenhua’s cash cover its dividend?
At HK$43.88, the H share trades at 13.2x trailing earnings; the 3.1% free-cash-flow yield is below the 5.4% dividend yield. Output was 332.1 million tonnes in 2025, while realised price fell to RMB495 per tonne from RMB563 in 2024. The company’s own free cash flow per share fell from RMB4.01 in 2022 to RMB1.29 in 2025. Dividends paid were RMB3.24 per share in 2025, RMB2.99 more than free cash flow.
Shenhua returned much of its operating cash while continuing to invest. Across the period, shareholder dividends and payments to minority owners of subsidiaries together exceeded free cash flow, and the gap became especially pronounced in the final year. The company could fund that difference from cash reserves, investment maturities or borrowing, but doing so reduced its financial cushion.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 25,539 | 51,333 | 50,963 | 79,663 | 67,899 |
| − Dividends paid | 64,374 | 44,903 | 50,665 | 50,466 | 35,962 |
| − Share buybacks | 0 | 0 | 0 | 0 | 0 |
| = Free cash flow not paid out | 20,278 | 25,111 | |||
| = Paid out more than the free cash flow | 59,423 | 379 | 6,483 |
What this means. In 2025, the company paid 252.1 percent of its free cash flow to shareholders, but it also paid minority owners, so the total cash paid out was even higher.
What could change Shenhua’s dividend?
The outcome turns on coal prices and sales mix as contracts reset, and on whether acquired businesses improve chain economics. Hongshaquan No. 2 should enter formal production by the end of 2026; Boligou is expected in 2028. Xinjie’s initial working faces—the active underground areas where miners cut and remove coal—are targeted for 2029. Operating cash must cover the remaining 2026 capital plan and distributions while debt is refinanced. Contract coverage protects volume, not price, and 2025 dividends exceeded the company’s own free cash flow.
What is Shenhua’s dividend yield against its share price?
Book value is HK$24.82 per share, so the 1.8x price-to-book ratio says investors pay for earning power beyond the accounting assets. The 3.1% free-cash-flow yield sits below the 5.4% dividend yield, making the cash reconciliation central. Shenhua also issued 1,363 million A shares and paid RMB85,791 million for acquired assets. New shares are more slices of the same cake: total profit can rise while each existing share gains less.
| Today (Oct 13, 2026) | |
|---|---|
| Share price | 43.88 |
| Free cash flow yield (calculated) | 3.1% |
| Dividend yield (calculated) | 5.4% |
What this means. Enterprise value per unit of reserves means the business is valued at HK$89.04 for each tonne of coal it has, not that it sells each tonne for HK$89.04.