Datang Intl Power Generation CAPEX dropped on 38.5% while Revenue surged on 10.9%
29/03/2018 • About Datang Intl Power Generation (
$991) • By InTwits
Datang Intl Power Generation reported 2017 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Datang Intl Power Generation has high CAPEX intensity: 5 year average CAPEX/Revenue was 29.1%. At the same time it's a lot of higher than industry average of 15.6%.
- CAPEX is quite volatile: 10,077 in 2017, 16,392 in 2016, 18,187 in 2015, 20,242 in 2014, 32,515 in 2013
- The company has potentially unprofitable business model: ROIC is at 3.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 7.7x while industry average is 7.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Datang Intl Power Generation ($991) key annual financial indicators
| mln. CNY | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 75,227 | 70,194 | 61,196 | 58,261 | 64,608 | 10.9% |
| Gross Profit | | | 18,789 | 14,645 | | -100.0% |
| SG&A | | | 3,827 | 3,828 | | -100.0% |
| EBITDA | 25,262 | 24,396 | 23,234 | 22,669 | 18,974 | -16.3% |
| Net Income | 3,403 | 1,767 | 2,809 | -2,623 | 1,708 | |
Balance Sheet
|
|---|
| Cash | 7,881 | 5,288 | 5,524 | 4,501 | 4,622 | 2.7% |
| Short Term Debt | 41,186 | 45,841 | 33,550 | 37,636 | 40,090 | 6.5% |
| Long Term Debt | 161,470 | 162,496 | 145,471 | 114,903 | 109,751 | -4.5% |
Cash flow
|
|---|
| Capex | 32,515 | 20,242 | 18,187 | 16,392 | 10,077 | -38.5% |
Ratios
|
|---|
| Revenue growth | -3.1% | -6.7% | -12.8% | -4.8% | 10.9% | |
| EBITDA growth | 13.3% | -3.4% | -4.8% | -2.4% | -16.3% | |
| Gross Margin | | | 30.7% | 25.1% | | -25.1% |
| EBITDA Margin | 33.6% | 34.8% | 38.0% | 38.9% | 29.4% | -9.5% |
| Net Income Margin | 4.5% | 2.5% | 4.6% | -4.5% | 2.6% | 7.1% |
| SG&A, % of revenue | | | 6.3% | 6.6% | | -6.6% |
| CAPEX, % of revenue | 43.2% | 28.8% | 29.7% | 28.1% | 15.6% | -12.5% |
| ROIC | 5.9% | 4.8% | 4.6% | 4.4% | 3.7% | -0.7% |
| ROE | 8.0% | 4.0% | 6.3% | -6.2% | 4.2% | 10.4% |
| Net Debt/EBITDA | 7.7x | 8.3x | 7.5x | 6.5x | 7.7x | 1.1x |
Revenue and profitability
Datang Intl Power Generation's Revenue surged on 10.9%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 9.5 pp from 38.9% to 29.4% in 2017.
Net Income marign increased on 7.1 pp from -4.5% to 2.6% in 2017.
Capital expenditures (CAPEX) and working capital investments
Datang Intl Power Generation's CAPEX/Revenue was 15.6% in 2017. Datang Intl Power Generation showed big decline in CAPEX/Revenue of 13.2 pp from 28.8% in 2014 to 15.6% in 2017. For the last three years the average CAPEX/Revenue was 24.5%.To deliver this fast growth Datang Intl Power Generation invested a large share of EBITDA (53.1%) to CAPEX.
Return on investment
The company operates at low ROIC (3.70%) and ROE (4.18%). ROIC decreased slightly on 0.68 pp from 4.4% to 3.7% in 2017. ROE jumped on 10.4 pp from -6.2% to 4.2% in 2017.
Leverage (Debt)
Debt level is 7.7x Net Debt / EBITDA and 7.9x Debt / EBITDA. Net Debt / EBITDA surged on 1.1x from 6.5x to 7.7x in 2017. Debt decreased slightly on 1.8% while cash increased on 2.7%.
Appendix 1: Peers in Electricity
Below we provide Datang Intl Power Generation benchmarking against other companies in Electricity 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.
