Geo SDJGeo Energy's PT Sungai Danau Jaya, in Tanah Bumbu, South Kalimantan, Indonesia, has one of the country's most efficient coal mines.
(Photo: Company)

Geo Energy, one of the 4 coal mining plays on SGX, wants to list in Hong Kong, where world-leading coal mine players like China Shenhua Energy (1088.HK) and China Coal Energy (1898.HK) are listed.

The Indon coal miner is following on the footsteps of Yancoal Australia, one of Australia’s largest coal miners which recently applied for a dual listing on the Hong Kong Stock Exchange.

Agritrade Resources Limited (1131.HK) is a Singapore headquartered coal mining, shipping, and energy group listed on the Hong Kong Stock Exchange.

With a net profit of S$74 million for the year ended 31 March 2018, it is a close comparable to Geo Energy (FY2017: S$51 million).

As at 21 September, Agritrade Resources traded at 36 times PE, compared to Geo Energy's 8 times.

The average PE of 14 times for numerous other coal plays listed in China and Hong Kong was also significantly richer than for Geo Energy.

With a greater group of investors that are experienced in identifying a good mining company, market valuations for Geo Energy may be higher with the dual listing. 

Most of Geo Energy's coal production capacity is pre-sold to Engelhart Commodities Trading Partners (ECTP), which has undertaken to purchase all the coal produced through the life of the Group’s major coal mine, PT Sungai Danau Jaya (SDJ).

ECTP supplies coal to China and Hong Kong power giants such as China Resources Power and China Light & Power.

Last year, the Group completed the acquisition of PT Tanah Bumbu Resources (TBR), a mining concession adjacent to the SDJ. The acquisition is expected to increase the Group’s total annual production to 13 to 15 million tonnes of coal by 2019, translating into a 5% market share of the Indonesian coal export market.

TungKumHon 9.2018
LQM 000066Large institutional investors that are based in Hong Kong have expressed interest in our proposed Hong Kong listing.

- Tung Kum Hon
Group CEO
Photo by Sim Kih

It also raised US$300 million via the issuance of S144A Senior Notes to big-name investors from the US, Europe, Hong Kong, and Singapore.

These names include Value Partners, Fidelity, BOCHK Asset Management, Goldman Sachs Asset Management and Guotai Junan Assets (Asia).

Hong Kong and Chinese investors are intrigued by the opportunities in Southeast Asia.

Its decision to list comes at a time when the HBA benchmark price for 6,322 kcal/kg GAR Indonesian coal has reached a 6-year high of more than US$100 per tonne.

Helped by the uplift in coal prices, the Group posted its 9th consecutive quarter of profitability in 2QFY2018 with net profit attributable to shareholders at US$8.5 million.

Geo Energy's relatively cheap PE, generous dividend payout policy of 30% or more, and guaranteed coal offtake may be an interesting investment proposition for Hong Kong and PRC investors looking to ride on Southeast Asian growth.

For more information, refer to its 2QFY2018 results media release here.


Financial Highlights


yoy change




Gross profit



Gross margin



Net profit attributable to shareholders



*percentage points

Share Prices

Counter NameLastChange
AEM Holdings3.380-0.060
Avi-Tech Electronics0.380-0.010
BH Global0.300-
China Sunsine0.490-0.030
Food Empire0.840-0.020
Fortress Minerals0.745-0.070
Golden Energy0.1680.007
GSS Energy0.055-0.001
ISDN Holdings0.580-0.025
IX Biopharma0.220-0.015
KSH Holdings0.350-0.015
Leader Env0.1210.001
Medtecs Intl0.9850.040
Moya Asia0.063-0.003
Nordic Group0.245-0.005
Oxley Holdings0.235-
REX International0.169-0.005
Southern Alliance Mining1.180-0.210
Sri Trang Agro1.990-0.050
Straco Corp.0.550-
Sunpower Group0.810-0.040
The Trendlines0.097-0.004
UG Healthcare0.7100.040
Uni-Asia Group0.650-0.010
Wilmar Intl4.720-0.090
Yangzijiang Shipbldg1.410-0.050
Yinda Infocomm0.1600.003

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 474 guests and no members online