Over the last few years CIMC Enric Holdings Ltd showed solid growth in fundamentals
27/03/2015 • About CIMC Enric Holdings Ltd (
$3899) • By InTwits
CIMC Enric Holdings Ltd is a fast-growing stock in Oil&Gas Services industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
CIMC Enric Holdings Ltd showed growth in the last financial year. The company's revenue surged on 39.7% in FY2014. Together with revenue growth CIMC Enric Holdings Ltd also managed to keep EBITDA growth. EBITDA grew 25.1% for the same period.
In the last 3 years the company showed fast revenue growth of 18.2% from 2011 to 2014 annualy. EBITDA surged on 19.0% from 2011 to 2014 annualy.
CIMC Enric Holdings Ltd ($3899) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 3,999 | 6,829 | 8,083 | 8,063 | 11,267 |
|---|
| Revenue growth, % | | 70.8% | 18.4% | -0.3% | 39.7% |
|---|
| Gross margin, % | 18.7% | 18.7% | 19.5% | 20.4% | 18.8% |
|---|
| SG&A, % | 12.2% | 9.82% | 10.2% | 10.5% | 10.2% |
|---|
| EBITDA | 470 | 837 | 1,056 | 1,126 | 1,409 |
|---|
| EBITDA growth, % | | 78.0% | 26.2% | 6.7% | 25.1% |
|---|
| EBITDA margin, % | 11.8% | 12.3% | 13.1% | 14.0% | 12.5% |
|---|
| Net Income | 277 | 572 | 760 | 776 | 1,028 |
|---|
| Net Income margin, % | 6.92% | 8.37% | 9.40% | 9.63% | 9.12% |
|---|
| |
| CAPEX | 162 | 460 | 428 | 262 | 388 |
|---|
| CAPEX/Revenue, % | 4.05% | 6.74% | 5.29% | 3.25% | 3.44% |
|---|
| Debt | 256 | 758 | 598 | 698 | 196 |
|---|
| Cash | 764 | 976 | 945 | 1,204 | 1,682 |
|---|
| Net Debt/EBITDA | -1.1x | -0.3x | -0.3x | -0.4x | -1.1x |
|---|
| |
| ROIC, % | 11.2% | 19.4% | 20.3% | 20.0% | 21.3% |
|---|
| ROE, % | 10.4% | 16.4% | 19.6% | 19.0% | 20.1% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 14% in FY2013 to 12.5% in FY2014. In the longer period CIMC Enric Holdings Ltd's EBITDA margin increased slightly on 0.200 pp from 12.3% in 2011 to 12.5% in 2014.
CIMC Enric Holdings Ltd shows attractive ROIC at 21.3% for the last 12 months which assumes stable development model. During the last three years it increased - it was 19.4% in FY2011. Average ROIC for the last three years was 20.5%.
CIMC Enric Holdings Ltd showed decline of 0.500 pp from 9.60% to 9.10% in 2014. In the longer period CIMC Enric Holdings Ltd showed Net Income margin growth of 0.700 pp from 8.40% in 2011 to 9.10% in 2014.
CIMC Enric Holdings Ltd operates at ROE of 20.1%. It's average ROE for the last three years was 19.6%.
Capital expenditures (CAPEX)
CIMC Enric Holdings Ltd's CAPEX/Revenue was 3.44% in FY2014. CIMC Enric Holdings Ltd showed big decline in CAPEX/Revenue of 3.29 pp from 6.74% in 2011 to 3.44% in 2014. For the last three years the average CAPEX/Revenue was 4.00%.
Leverage (Debt)
CIMC Enric Holdings Ltd has negative net debt at -1.1x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period the company's leverage surged on 0.79x from -0.26x in 2011 to -1.06x in 2014.
Peers in Oil&Gas Services
Below we provide CIMC Enric Holdings Ltd benchmarking against other companies in Oil&Gas Services 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.
Top companies by Revenue growth, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | | -20.5% | 196.3% | 207.4% | 105.9% |
| Hilong Holding Ltd ($1623) | | 35.2% | 23.5% | 8.3% | 5.0% |
| |
|---|
| Median (2 companies) | | 7.3% | 109.9% | 107.8% | 55.5% |
|---|
| CIMC Enric Holdings Ltd ($3899) | | 70.8% | 18.4% | -0.3% | 39.7% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Hilong Holding Ltd ($1623) | 41.0% | 41.0% | 39.5% | 40.3% | 39.6% |
| Yuan Heng Gas Holdings Ltd ($332) | -0.7% | -1.0% | 0.7% | 0.2% | 4.0% |
| |
|---|
| Median (2 companies) | 20.1% | 20.0% | 20.1% | 20.2% | 21.8% |
|---|
| CIMC Enric Holdings Ltd ($3899) | 18.7% | 18.7% | 19.5% | 20.4% | 18.8% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Hilong Holding Ltd ($1623) | 27.9% | 28.5% | 25.9% | 27.8% | 28.8% |
| Yuan Heng Gas Holdings Ltd ($332) | -8.5% | -14.4% | -1.3% | -0.0% | 3.3% |
| |
|---|
| Median (2 companies) | 9.7% | 7.0% | 12.3% | 13.9% | 16.0% |
|---|
| CIMC Enric Holdings Ltd ($3899) | 11.8% | 12.3% | 13.1% | 14.0% | 12.5% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Hilong Holding Ltd ($1623) | 11.6% | 17.1% | 16.7% | 18.9% | 48.1% |
| Yuan Heng Gas Holdings Ltd ($332) | 0.8% | 0.5% | 0.0% | 0.0% | 0.6% |
| |
|---|
| Median (2 companies) | 6.2% | 8.8% | 8.3% | 9.4% | 24.4% |
|---|
| CIMC Enric Holdings Ltd ($3899) | 4.0% | 6.7% | 5.3% | 3.3% | 3.4% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | -27.9% | | -59.8% | -0.0% | 25.6% |
| Hilong Holding Ltd ($1623) | 19.6% | 19.0% | 15.5% | 14.8% | 12.0% |
| |
|---|
| Median (2 companies) | -4.1% | 19.0% | -22.2% | 7.4% | 18.8% |
|---|
| CIMC Enric Holdings Ltd ($3899) | 11.2% | 19.4% | 20.3% | 20.0% | 21.3% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | | | | | 2.7x |
| Hilong Holding Ltd ($1623) | 1.5x | 0.8x | 0.9x | 1.1x | 2.6x |
| |
|---|
| Median (2 companies) | 1.5x | 0.8x | 0.9x | 1.1x | 2.6x |
|---|
| CIMC Enric Holdings Ltd ($3899) | -1.1x | -0.3x | -0.3x | -0.4x | -1.1x |
