Yanzhou Coal is a giant in the world of coal. The company operates in all aspects on coal mining, sales and rail transportation of coal. At present, the company is trading via ADRs on the NYSE, as well as through listings on the Shanghai and Hong Kong exchanges. Its current market cap is more than $13 billion and it has returned more than 400% since this time last year, when it reached a low of $5.11 vs. its current price of more than $22.00.

YZC boasts gross margins of nearly 50%, has about $2 billion in cash on its books and is consistently highly cash-flow positive. In addition, the company has an attractive dividend yield of more than 2.6%.

YZC makes for a great play on the long-term growth of China. It is a solid large-cap stock with a healthy dividend yield in an industry that isn't going away. The benefits of owning include a play on energy as well as international diversification for a broader portfolio. However, I feel that YZC is best viewed as one stock to hold among many, and not one to count on for individual spectacular gains.

The stock has already had its run, and future gains are more likely to come in linear fashion along with economic growth in China. I would expect to see up to 30% upside in YZC from current levels, which is very attractive for a large-cap stock, but certainly not something that will dramatically move a portfolio.

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