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
|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%|
|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%|
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.
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.