Zhejiang Expressway Co reports 22.2% revenue decline in FY2016 and 11.6 pp EBITDA Margin growth from 58.0% to 69.6%
27/03/2017 • About Zhejiang Expressway Co (
$576) • By InTwits
Zhejiang Expressway Co reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 69.6% in FY2016 vs. 58.0% in FY2015 vs. 49.6% in FY2012
- The company has business model with average profitability: ROIC is at 11.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.6x while industry average is 2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zhejiang Expressway Co ($576) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,927 | 7,851 | 9,460 | 12,507 | 9,735 | -22.2% |
| Gross Profit | 2,353 | 2,896 | 3,562 | 5,447 | 5,139 | -5.7% |
| SG&A | 86 | 85 | 106 | 109 | 82 | -24.8% |
| EBITDA | 3,435 | 4,009 | 5,064 | 7,258 | 6,777 | -6.6% |
| Net Income | 1,649 | 1,907 | 2,265 | 2,990 | 3,037 | 1.6% |
Balance Sheet
|
|---|
| Cash | 3,392 | 1,807 | 3,357 | 4,983 | 7,199 | 44.5% |
| Short Term Debt | 1,660 | 1,850 | 10,813 | 10,979 | 18,131 | 65.1% |
| Long Term Debt | 680 | 300 | 3,160 | 9,190 | 6,700 | -27.1% |
Cash flow
|
|---|
| Capex | 365 | 252 | 1,270 | 327 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 2.2% | 13.3% | 20.5% | 32.2% | -22.2% | |
| EBITDA growth | -4.1% | 16.7% | 26.3% | 43.3% | -6.6% | |
| Gross Margin | 34.0% | 36.9% | 37.7% | 43.6% | 52.8% | 9.2% |
| EBITDA Margin | 49.6% | 51.1% | 53.5% | 58.0% | 69.6% | 11.6% |
| Net Income Margin | 23.8% | 24.3% | 23.9% | 23.9% | 31.2% | 7.3% |
| SG&A, % of revenue | 1.2% | 1.1% | 1.1% | 0.9% | 0.8% | -0.0% |
| CAPEX, % of revenue | 5.3% | 3.2% | 13.4% | 2.6% | | -2.6% |
| ROIC | 11.2% | 13.3% | 13.2% | 15.3% | 11.9% | -3.4% |
| ROE | 10.6% | 11.9% | 13.7% | 17.7% | | -17.7% |
| Net Debt/EBITDA | -0.3x | 0.1x | 2.1x | 2.1x | 2.6x | 0.5x |
Revenue and profitability
Zhejiang Expressway Co's Revenue dropped on 22.2% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 11.6 pp from 58.0% to 69.6% in FY2016.
Gross Margin increased on 9.2 pp from 43.6% to 52.8% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased on 7.3 pp from 23.9% to 31.2% in FY2016.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 3.7x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 2.1x to 2.6x in FY2016. Debt surged on 23.1% in FY2016 while cash surged on 44.5% in FY2016.
Appendix 1: Peers in Industrial Transportation
Below we provide Zhejiang Expressway Co benchmarking against other companies in Industrial Transportation industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
