you should break it into whc h2 vs yal h1 to be fairer…whc h2...

you should break it into whc h2 vs yal h1 to be fairer…

whc h2 ebitda 2.34b
net profit 1.61b on ev of ~5.7b assuming net cash of around 1.8b
ev/npat (annualised) of 1.7
eps 1.69 annualised to 3.38 = trailing 6 month pe of 2.35


yal h1 ebitda 3.15
net profit 1.74 on ev of 6.9b assuming net cash of .8bil by now (-200 at June 30 + 1bil)
ev/npat (annualised) of 2
eps 1.31 annualised to 2.62 = trailing 6 month pe of 2.22

on balance I’d probably prefer more exposure to higher cv coal

yal could increase production further but has more staff issues
whc has better capital return policy with big buyback now and coming (suspect they ask for ~20% buyback at the agm and then consider a big off market buy back in ~12 months if prices stay high)
yal has ongoing Chinese ownership issues
suspect both will be paying ff divi from next year.
whc has vickery and Winchester south in the pipeline.
yal has increased taxes coming next year on their qld assets.

anything else I’m missing?

on balance, while I initially thought I’d buy in here I’m starting to think whc remains a more attractive proposition.