Over the last few years ENN Energy Holdings Ltd showed solid growth in fundamentals
03/04/2015 • About ENN Energy Holdings Ltd (
$2688) • By InTwits
Pay attention to ENN Energy Holdings Ltd as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
ENN Energy Holdings Ltd showed fast growth in the last financial year. The company's revenue surged on 26.7% in FY2014. EBITDA also increased considerably: 52.1% for the same period.
In the last 3 years ENN Energy Holdings Ltd showed fast revenue growth of 24.5% from 2011 to 2014 annualy. EBITDA surged on 24.1% from 2011 to 2014 annualy.
ENN Energy Holdings Ltd ($2688) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 11,215 | 15,068 | 18,027 | 22,966 | 29,087 |
|---|
| Revenue growth, % | | 34.4% | 19.6% | 27.4% | 26.7% |
|---|
| Gross margin, % | 26.9% | 25.9% | 26.9% | 23.8% | 20.9% |
|---|
| SG&A, % | 11.4% | 10.2% | 10.2% | 8.42% | 7.75% |
|---|
| EBITDA | 2,193 | 2,768 | 3,677 | 3,477 | 5,288 |
|---|
| EBITDA growth, % | | 26.2% | 32.8% | -5.4% | 52.1% |
|---|
| EBITDA margin, % | 19.6% | 18.4% | 20.4% | 15.1% | 18.2% |
|---|
| Net Income | 1,013 | 1,253 | 1,482 | 1,252 | 2,968 |
|---|
| Net Income margin, % | 9.03% | 8.32% | 8.22% | 5.45% | 10.2% |
|---|
| |
| CAPEX | 2,335 | 2,767 | 2,879 | 3,110 | 2,791 |
|---|
| CAPEX/Revenue, % | 20.8% | 18.4% | 16.0% | 13.5% | 9.60% |
|---|
| Debt | 6,263 | 10,672 | 11,242 | 12,443 | 14,543 |
|---|
| Cash | 2,851 | 3,349 | 6,156 | 6,822 | 10,503 |
|---|
| Net Debt/EBITDA | 1.6x | 2.6x | 1.4x | 1.6x | 0.8x |
|---|
| |
| ROIC, % | 13.0% | 13.1% | 14.3% | 11.7% | 16.4% |
|---|
| ROE, % | 18.2% | 19.2% | 18.9% | 13.8% | 27.4% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. ENN Energy Holdings Ltd's EBITDA margin surged on 3.10 pp from 15.1% to 18.2% in 2014. In the longer period ENN Energy Holdings Ltd showed small EBITDA margin decline of 0.200 pp from 18.4% in 2011 to 18.2% in 2014.
We call ENN Energy Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 16.4%. During the last three years it surged - it was 13.1% in FY2011. It's average ROIC for the last three years was 14.1%.
ENN Energy Holdings Ltd's Net Income margin surged on 4.70 pp from 5.50% to 10.2% in 2014. In the longer period the company's Net Income margin surged on 1.90 pp from 8.30% in 2011 to 10.2% in 2014.
ENN Energy Holdings Ltd operates at ROE of 27.4%. For the last three years the average ROE was 20.0%.
Capital expenditures (CAPEX)
To this fast growth ENN Energy Holdings Ltd had to invest in CAPEX.The company's CAPEX/Revenue was 9.60% in FY2014. CAPEX/Revenue dropped on 8.77 pp from 18.4% in 2011 to 9.60% in 2014. It's average level of CAPEX/Revenue for the last three years was 13.0%.
Leverage (Debt)
The company has low debt level at 0.8x Net Debt/EBITDA - at the same time with high growth. In the last 3 years ENN Energy Holdings Ltd's leverage dropped on 1.88x from 2.65x in 2011 to 0.76x in 2014.
Peers in Gas
Below you can find ENN Energy Holdings Ltd benchmarking vs. other companies in Gas industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China Gas Holdings Ltd ($384) | | 55.3% | 19.4% | -5.2% | 44.8% |
| China Resources Gas Group Ltd ($1193) | | 52.3% | -4.1% | 63.6% | 28.8% |
| Towngas China Co Ltd ($1083) | | 44.9% | 20.0% | 29.6% | 17.4% |
| Hong Kong & China Gas Co Ltd ($3) | | 15.7% | 11.1% | 13.3% | 11.9% |
| China Oil Gangran Energy Group Holdings Ltd ($8132) | | 0.1% | 9.5% | -16.8% | -12.2% |
| |
|---|
| Median (5 companies) | | 44.9% | 10.3% | 21.4% | 17.4% |
|---|
| ENN Energy Holdings Ltd ($2688) | | 34.4% | 19.6% | 27.4% | 26.7% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| China Resources Gas Group Ltd ($1193) | 29.3% | 29.3% | 31.2% | 34.2% | 30.3% |
| China Gas Holdings Ltd ($384) | 20.7% | 18.3% | 19.0% | 21.0% | 20.3% |
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 22.2% | 21.2% | 9.4% | 17.2% | 16.4% |
| |
|---|
| Median (3 companies) | 22.2% | 21.2% | 19.0% | 21.0% | 20.3% |
|---|
| ENN Energy Holdings Ltd ($2688) | 26.9% | 25.9% | 26.9% | 23.8% | 20.9% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Hong Kong & China Gas Co Ltd ($3) | 30.1% | 31.1% | 30.0% | 29.6% | 29.2% |
| Towngas China Co Ltd ($1083) | 17.7% | 19.3% | 19.9% | 18.9% | 18.8% |
| China Resources Gas Group Ltd ($1193) | 19.6% | 18.2% | 16.2% | 17.4% | 17.7% |
| China Gas Holdings Ltd ($384) | 17.1% | 14.2% | 15.2% | 16.5% | 16.6% |
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 11.6% | 15.1% | 1.1% | 2.7% | -58.0% |
| |
|---|
| Median (5 companies) | 17.7% | 18.7% | 18.0% | 18.2% | 17.7% |
|---|
| ENN Energy Holdings Ltd ($2688) | 19.6% | 18.4% | 20.4% | 15.1% | 18.2% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Towngas China Co Ltd ($1083) | 25.3% | 21.1% | 31.3% | 25.7% | 26.2% |
| Hong Kong & China Gas Co Ltd ($3) | 22.1% | 20.7% | 23.7% | 18.7% | 20.1% |
| China Resources Gas Group Ltd ($1193) | 22.9% | 14.3% | 20.6% | 18.5% | 12.4% |
| China Gas Holdings Ltd ($384) | 11.4% | 12.2% | 9.4% | 13.7% | 12.3% |
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 4.0% | 2.5% | 9.6% | 4.2% | 12.1% |
| |
|---|
| Median (5 companies) | 22.1% | 13.2% | 15.1% | 16.1% | 12.4% |
|---|
| ENN Energy Holdings Ltd ($2688) | 20.8% | 18.4% | 16.0% | 13.5% | 9.6% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China Resources Gas Group Ltd ($1193) | 12.5% | 11.9% | 6.9% | 10.4% | 11.4% |
| China Gas Holdings Ltd ($384) | 7.1% | 6.8% | 8.4% | 8.6% | 10.6% |
| Hong Kong & China Gas Co Ltd ($3) | 7.4% | 8.0% | 7.3% | 7.4% | 7.5% |
| Towngas China Co Ltd ($1083) | 2.9% | 4.1% | 4.5% | 4.8% | 4.9% |
| Chinese Energy Holdings Ltd ($8009) | -10.5% | 0.8% | 7.6% | 29.6% | -8.6% |
| |
|---|
| Median (6 companies) | 7.2% | 7.4% | 7.1% | 8.0% | 6.2% |
|---|
| ENN Energy Holdings Ltd ($2688) | 13.0% | 13.1% | 14.3% | 11.7% | 16.4% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Towngas China Co Ltd ($1083) | 4.6x | 3.6x | 3.5x | 3.7x | 4.1x |
| China Gas Holdings Ltd ($384) | 5.6x | 4.4x | 3.7x | 3.7x | 3.1x |
| Hong Kong & China Gas Co Ltd ($3) | 2.3x | 2.2x | 2.6x | 2.8x | 2.1x |
| China Resources Gas Group Ltd ($1193) | -0.5x | -0.1x | 1.6x | 1.2x | 1.1x |
| Chinese Energy Holdings Ltd ($8009) | | 1.3x | 0.1x | -0.1x | |
| |
|---|
| Median (6 companies) | 2.3x | 1.7x | 2.9x | 2.0x | 2.6x |
|---|
| ENN Energy Holdings Ltd ($2688) | 1.6x | 2.6x | 1.4x | 1.6x | 0.8x |
