China Oil Gangran Energy Group Holdings Ltd reports 71.1% CAPEX decline and 37.9% Revenue decline
23/06/2015 • About China Oil Gangran Energy Group Holdings Ltd (
$8132) • By InTwits
China Oil Gangran Energy Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Oil Gangran Energy Group Holdings Ltd is a company in decline: FY2015 revenue growth was -37.9%, 5 years revenue CAGR was -13.0%
- The company operates at negative EBITDA Margin: -278.6%
- China Oil Gangran Energy Group Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -38.6% for the sames years0
- China Oil Gangran Energy Group Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.8%. At the same time it's a lot of higher than industry average of 64.8%.
- CAPEX is quite volatile: 4.5 in FY2015, 15.5 in FY2014, 6.2 in FY2013, 16.8 in FY2012, 4.0 in FY2011
- The company has unprofitable business model: ROIC is at -63.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Oil Gangran Energy Group Holdings Ltd ($8132) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 160.2 | 175.5 | 146.1 | 128.3 | 79.6 | -37.9% |
| Gross Profit | 33.9 | 16.5 | 25.1 | 21.0 | 16.1 | -23.3% |
| SG&A | | | 34.4 | 114.5 | 270.8 | 136.5% |
| EBITDA | 24.1 | 2.0 | 3.9 | -74.4 | -221.8 | 198.4% |
| Net Income | 18.0 | -9.0 | -12.7 | -88.7 | -217.1 | 144.8% |
Balance Sheet
|
|---|
| Cash | 6.5 | 19.9 | 12.7 | 91.2 | 100.0 | 9.7% |
| Short Term Debt | 15.2 | 26.1 | 6.7 | 76.4 | 48.5 | -36.5% |
| Long Term Debt | 0.1 | 0.0 | 0.0 | 39.4 | 84.5 | 114.4% |
Cash flow
|
|---|
| Capex | 4.0 | 16.8 | 6.2 | 15.5 | 4.5 | -71.1% |
Ratios
|
|---|
| Revenue growth | 0.1% | 9.5% | -16.8% | -12.2% | -37.9% | |
| EBITDA growth | 29.6% | -91.8% | 97.4% | -1,992.7% | 198.4% | |
| Gross Margin | 21.2% | 9.4% | 17.2% | 16.4% | 20.3% | 3.9% |
| EBITDA Margin | 15.1% | 1.1% | 2.7% | -58.0% | -278.6% | -220.6% |
| Net Income Margin | 11.2% | -5.1% | -8.7% | -69.1% | -272.6% | -203.5% |
| SG&A, % of revenue | | | 23.6% | 89.3% | 340.1% | 250.9% |
| CAPEX, % of revenue | 2.5% | 9.6% | 4.2% | 12.1% | 5.6% | -6.5% |
| ROIC | 31.0% | -4.7% | -4.1% | -39.7% | -63.8% | -24.1% |
| ROE | 46.8% | -17.0% | -21.6% | -64.2% | -89.0% | -24.8% |
| Net Debt/EBITDA | 0.4x | 3.1x | -1.5x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 37.9% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 14.3 pp from -99.3% to -85.0% in 2015.
Gross Margin increased on 3.9 pp from 16.4% to 20.3% in FY2015. SG&A as a % of Revenue surged on 251 pp from 89.3% to 340% in FY2015.
Net Income marign dropped on 203 pp from -69.1% to -273% in FY2015.
Capital expenditures (CAPEX) and working capital investments
China Oil Gangran Energy Group Holdings Ltd's CAPEX/Revenue was 5.6% in FY2015. The company's CAPEX/Revenue decreased on 4.0 pp from 9.6% in FY2012 to 5.6% in FY2015. Average CAPEX/Revenue for the last three years was 7.3%.
Return on investment
The company operates at negative ROIC (-63.85%) and ROE (-88.97%). ROIC dropped on 24.1 pp from -39.7% to -63.8% in FY2015. ROE dropped on 24.8 pp from -64.2% to -89.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt jumped on 14.9% in FY2015 while cash increased on 9.7% in FY2015.
Appendix 1: Peers in Gas
Below we provide China Oil Gangran Energy Group Holdings Ltd benchmarking against other companies in Gas 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 |
|---|
| 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% | |
| ENN Energy Holdings Ltd ($2688) | 34.4% | 19.6% | 27.4% | 26.7% | |
| China Oil & Gas Group Ltd ($603) | 67.2% | 11.4% | 31.7% | 19.5% | |
| Towngas China Co Ltd ($1083) | 44.9% | 20.0% | 29.6% | 17.4% | |
| |
|---|
| Median (8 companies) | 48.6% | 16.7% | 29.6% | 18.4% | |
|---|
| China Oil Gangran Energy Group Holdings Ltd ($8132) | | 9.5% | -16.8% | -12.2% | -37.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Resources Gas Group Ltd ($1193) | 29.3% | 31.2% | 34.2% | 30.3% | |
| ENN Energy Holdings Ltd ($2688) | 25.9% | 26.9% | 23.8% | 20.9% | |
| China Gas Holdings Ltd ($384) | 18.3% | 19.0% | 21.0% | 20.3% | |
| Binhai Investment Co Ltd ($2886) | 13.6% | 20.1% | 20.6% | 18.3% | |
| Beijing Enterprises Holdings Ltd ($392) | 22.1% | 20.7% | 19.7% | 17.9% | |
| |
|---|
| Median (6 companies) | 21.3% | 21.6% | 21.8% | 19.3% | |
|---|
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 21.2% | 9.4% | 17.2% | 16.4% | 20.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong & China Gas Co Ltd ($3) | 31.1% | 30.0% | 29.6% | 29.2% | |
| Towngas China Co Ltd ($1083) | 19.3% | 19.9% | 18.9% | 18.8% | |
| ENN Energy Holdings Ltd ($2688) | 18.4% | 20.4% | 15.1% | 18.2% | |
| China Resources Gas Group Ltd ($1193) | 18.2% | 16.2% | 17.4% | 17.7% | |
| China Gas Holdings Ltd ($384) | 14.2% | 15.2% | 16.5% | 16.6% | |
| |
|---|
| Median (8 companies) | 18.2% | 19.9% | 17.4% | 17.1% | 7.2% |
|---|
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 15.1% | 1.1% | 2.7% | -58.0% | -278.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Towngas China Co Ltd ($1083) | 21.1% | 31.3% | 25.7% | 26.2% | |
| Hong Kong & China Gas Co Ltd ($3) | 20.7% | 23.7% | 18.7% | 20.1% | |
| Binhai Investment Co Ltd ($2886) | 23.6% | 26.9% | 18.0% | 15.5% | |
| China Oil & Gas Group Ltd ($603) | 17.1% | 15.0% | 18.3% | 15.4% | |
| China Resources Gas Group Ltd ($1193) | 14.3% | 20.6% | 18.5% | 12.4% | |
| |
|---|
| Median (8 companies) | 17.1% | 20.6% | 18.0% | 13.9% | 0.2% |
|---|
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 2.5% | 9.6% | 4.2% | 12.1% | 5.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ENN Energy Holdings Ltd ($2688) | 13.1% | 14.3% | 11.7% | 16.4% | |
| China Resources Gas Group Ltd ($1193) | 11.9% | 6.9% | 10.4% | 11.4% | |
| Binhai Investment Co Ltd ($2886) | 7.6% | 12.2% | 12.2% | 10.9% | |
| China Gas Holdings Ltd ($384) | 6.8% | 8.4% | 8.6% | 10.6% | |
| China Oil & Gas Group Ltd ($603) | 14.0% | 13.7% | 13.2% | 7.6% | |
| |
|---|
| Median (9 companies) | 7.6% | 7.6% | 10.4% | 7.6% | 5.9% |
|---|
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 31.0% | -4.7% | -4.1% | -39.7% | -63.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Beijing Enterprises Holdings Ltd ($392) | 1.6x | 3.1x | 2.6x | 4.7x | |
| Towngas China Co Ltd ($1083) | 3.6x | 3.5x | 3.7x | 4.1x | |
| Binhai Investment Co Ltd ($2886) | -0.4x | 3.4x | 2.8x | 3.5x | |
| China Gas Holdings Ltd ($384) | 4.4x | 3.7x | 3.7x | 3.1x | |
| China Oil & Gas Group Ltd ($603) | -0.8x | -0.0x | 1.0x | 2.8x | |
| |
|---|
| Median (8 companies) | 1.6x | 2.6x | 2.6x | 2.9x | -0.6x |
|---|
