China Resources and Transportation Group Ltd Net Debt / EBITDA dropped on 36.9x from 66.7x to 29.7x in 2015 and Revenue dropped on 41.6%
19/06/2015 • About China Resources and Transportation Group Ltd (
$269) • By InTwits
China Resources and Transportation Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Resources and Transportation Group Ltd doesn't have a profitable business model yet: FY2015 ROIC is -0.7%
- EBITDA Margin is expanding: 12.3% in FY2015 vs. 2.7% in FY2014 vs. -1,078.0% in FY2011
- China Resources and Transportation Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 101.8%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 23.4 in FY2015, 1,202 in FY2014, 51.7 in FY2013, 26.6 in FY2012, 63.3 in FY2011
- The company has unprofitable business model: ROIC is at -0.7%
- It operates with high leverage: Net Debt/EBITDA is 29.7x while industry average is 4.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Resources and Transportation Group Ltd ($269) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 13 | 139 | 4,570 | 8,586 | 5,017 | -41.6% |
| Gross Profit | -3 | -10 | 78 | 183 | 201 | 9.6% |
| SG&A | 64 | 186 | 164 | 263 | 195 | -26.1% |
| EBITDA | -144 | -382 | -120 | 231 | 618 | 167.8% |
| Net Income | -154 | -419 | -272 | -590 | -1,766 | 199.1% |
Balance Sheet
|
|---|
| Cash | 592 | 196 | 2,033 | 1,703 | 298 | -82.5% |
| Short Term Debt | 291 | 685 | 6,121 | 3,540 | 4,798 | 35.6% |
| Long Term Debt | 263 | 2,307 | 3,505 | 13,539 | 13,869 | 2.4% |
Cash flow
|
|---|
| Capex | 63 | 27 | 52 | 1,202 | 23 | -98.1% |
Ratios
|
|---|
| Revenue growth | -37.0% | 939.8% | 3,196.3% | 87.9% | -41.6% | |
| EBITDA growth | 598.6% | 165.9% | -68.6% | -291.9% | 167.8% | |
| Gross Margin | -23.6% | -7.0% | 1.7% | 2.1% | 4.0% | 1.9% |
| EBITDA Margin | -1,078.0% | -275.6% | -2.6% | 2.7% | 12.3% | 9.6% |
| Net Income Margin | -1,152.6% | -302.5% | -5.9% | -6.9% | -35.2% | -28.3% |
| SG&A, % of revenue | 481.5% | 134.0% | 3.6% | 3.1% | 3.9% | 0.8% |
| CAPEX, % of revenue | 474.4% | 19.2% | 1.1% | 14.0% | 0.5% | -13.5% |
| ROIC | -6.3% | -7.9% | -1.5% | -0.3% | -0.7% | -0.4% |
| ROE | -7.8% | -17.2% | -10.2% | -16.9% | -52.3% | -35.3% |
| Net Debt/EBITDA | | | | 66.7x | 29.7x | -36.9x |
Revenue and profitability
China Resources and Transportation Group Ltd's Revenue dropped on 41.6% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 9.6 pp from 2.7% to 12.3% in FY2015.
Gross Margin increased slightly on 1.9 pp from 2.1% to 4.0% in FY2015. SG&A as a % of Revenue increased slightly on 0.81 pp from 3.1% to 3.9% in FY2015.
Net Income marign dropped on 28.3 pp from -6.9% to -35.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 China Resources and Transportation Group Ltd had CAPEX/Revenue of 0.47%. The company's CAPEX/Revenue dropped on 18.7 pp from 19.2% in FY2012 to 0.47% in FY2015. It's average CAPEX/Revenue for the last three years was 5.2%.
Return on investment
The company operates at negative ROIC (-0.70%) and ROE (-52.27%). ROIC showed almost no change in FY2015. ROE dropped on 35.3 pp from -16.9% to -52.3% in FY2015.
Leverage (Debt)
Debt level is 29.7x Net Debt / EBITDA and 30.2x Debt / EBITDA. Net Debt / EBITDA dropped on 36.9x from 66.7x to 29.7x in FY2015. Debt increased on 9.3% in FY2015 while cash dropped on 82.5% in FY2015.
Appendix 1: Peers in Engineering&Construction
Below we provide China Resources and Transportation Group Ltd benchmarking against other companies in Engineering&Construction 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Richly Field China Development Ltd ($313) | | | -45.0% | 464.2% | |
| Junefield Department Store Group Ltd ($758) | 22.9% | -20.3% | -24.9% | 126.6% | |
| CNQC International Holdings Ltd ($1240) | 401.9% | 21.6% | 91.0% | 103.7% | |
| Wison Engineering Services Co Ltd ($2236) | 1.2% | -2.9% | -24.9% | 90.3% | |
| UDL Holdings Ltd ($620) | -47.3% | -59.6% | 180.0% | 75.6% | |
| |
|---|
| Median (39 companies) | 9.2% | 9.2% | 20.8% | 10.8% | 8.7% |
|---|
| China Resources and Transportation Group Ltd ($269) | | 939.8% | 3,196.3% | 87.9% | -41.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | 2.2% | 43.6% | 65.6% | 64.0% | |
| HNA Infrastructure Company Ltd ($357) | 61.6% | 66.4% | 62.1% | 62.4% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 50.1% | 54.1% | 54.3% | 41.5% | |
| Grand Ming Group Holdings Ltd ($1271) | 20.4% | 11.0% | 18.1% | 35.7% | 19.7% |
| China Saite Group Co Ltd ($153) | 29.4% | 32.1% | 33.7% | 29.8% | |
| |
|---|
| Median (34 companies) | 11.5% | 11.7% | 11.9% | 12.4% | 7.0% |
|---|
| China Resources and Transportation Group Ltd ($269) | -23.6% | -7.0% | 1.7% | 2.1% | 4.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 46.2% | 73.8% | 77.1% | |
| HNA Infrastructure Company Ltd ($357) | 60.0% | 62.8% | 63.7% | 62.8% | |
| Beijing Capital International Airport Co Ltd ($694) | 55.1% | 53.4% | 52.9% | 50.3% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 39.8% | 31.2% | 20.6% | 36.2% | |
| Grand Ming Group Holdings Ltd ($1271) | 17.5% | 10.0% | 15.8% | 31.0% | 19.0% |
| |
|---|
| Median (40 companies) | 9.2% | 8.7% | 7.4% | 6.2% | 2.7% |
|---|
| China Resources and Transportation Group Ltd ($269) | -1,078.0% | -275.6% | -2.6% | 2.7% | 12.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HNA Infrastructure Company Ltd ($357) | 43.3% | 36.8% | 5.7% | 85.4% | |
| PYI Corp Ltd ($498) | 6.6% | 3.7% | 4.2% | 24.5% | 13.1% |
| Shun Cheong Holdings ($650) | 7.2% | 16.4% | 8.0% | 23.9% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 6.1% | 4.2% | 7.7% | 20.2% | |
| KFM Kingdom Holdings Ltd ($3816) | 6.5% | 4.6% | 11.5% | 14.9% | |
| |
|---|
| Median (40 companies) | 4.4% | 2.4% | 3.1% | 1.7% | 2.7% |
|---|
| China Resources and Transportation Group Ltd ($269) | 474.4% | 19.2% | 1.1% | 14.0% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 98.3% | 54.9% | |
| CNQC International Holdings Ltd ($1240) | 23.1% | 12.2% | 22.3% | 40.4% | |
| China Saite Group Co Ltd ($153) | 46.3% | 64.0% | 53.2% | 35.3% | |
| Excel Development Holdings Ltd ($1372) | | 33.1% | 27.2% | 16.4% | 8.6% |
| China Machinery Engineering Corp ($1829) | 35.5% | 24.9% | 20.4% | 16.0% | |
| |
|---|
| Median (41 companies) | 7.0% | 5.6% | 5.2% | 3.8% | 2.9% |
|---|
| China Resources and Transportation Group Ltd ($269) | -6.3% | -7.9% | -1.5% | -0.3% | -0.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CNC Holdings Ltd ($8356) | -0.7x | | 22.0x | 21.9x | 24.3x |
| Deson Development International Holdings ($262) | 3.1x | 3.8x | 4.9x | 13.7x | |
| Chun Wo Development Holdings Ltd ($711) | | 14.3x | 8.1x | 12.6x | |
| Hsin Chong Construction Group Ltd ($404) | 4.3x | 1.8x | 8.0x | 10.2x | |
| Huayu Expressway Group Ltd ($1823) | | 20.6x | 10.8x | 9.4x | |
| |
|---|
| Median (33 companies) | 0.8x | 1.8x | 2.5x | 2.6x | 4.6x |
|---|
| China Resources and Transportation Group Ltd ($269) | | | | 66.7x | 29.7x |
