Chinese People Holdings Co Ltd reports 331% Net Income growth and 5.8 pp EBITDA Margin growth from 5.1% to 10.9%
28/06/2015 • About Chinese People Holdings Co Ltd (
$681) • By InTwits
Chinese People Holdings Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 10.9% in FY2015, 5.1% in FY2014, 7.2% in FY2013, 13.7% in FY2012, 12.4% in FY2011
- Chinese People Holdings Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.9%. At the same time it's in pair with industry average of 9.9%.
- CAPEX is quite volatile: 78.2 in FY2015, 70.1 in FY2014, 45.7 in FY2013, 128 in FY2012, 94.9 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chinese People Holdings Co Ltd ($681) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 736.7 | 920.2 | 769.5 | 832.6 | 968.3 | 16.3% |
| Gross Profit | 198.2 | 241.2 | 150.4 | 169.1 | 220.5 | 30.4% |
| SG&A | | | 154.0 | 154.8 | 153.4 | -0.9% |
| EBITDA | 91.2 | 125.9 | 55.2 | 42.7 | 106.0 | 148.2% |
| Net Income | 39.4 | 244.1 | -335.4 | 47.3 | 204.1 | 331.4% |
Balance Sheet
|
|---|
| Cash | 221.3 | 283.7 | 258.5 | 274.1 | 250.8 | -8.5% |
| Short Term Debt | 20.3 | 57.4 | 26.0 | 25.0 | 20.3 | -19.0% |
| Long Term Debt | 162.2 | 199.0 | 0.0 | 0.0 | 162.0 | |
Cash flow
|
|---|
| Capex | 94.9 | 128.1 | 45.7 | 70.1 | 78.2 | 11.5% |
Ratios
|
|---|
| Revenue growth | 18.4% | 24.9% | -16.4% | 8.2% | 16.3% | |
| EBITDA growth | 6.4% | 38.0% | -56.1% | -22.7% | 148.2% | |
| Gross Margin | 26.9% | 26.2% | 19.6% | 20.3% | 22.8% | 2.5% |
| EBITDA Margin | 12.4% | 13.7% | 7.2% | 5.1% | 10.9% | 5.8% |
| Net Income Margin | 5.3% | 26.5% | -43.6% | 5.7% | 21.1% | 15.4% |
| SG&A, % of revenue | | | 20.0% | 18.6% | 15.8% | -2.8% |
| CAPEX, % of revenue | 12.9% | 13.9% | 5.9% | 8.4% | 8.1% | -0.3% |
| ROIC | 5.6% | 5.1% | 0.1% | 1.5% | 4.4% | 2.8% |
| ROE | 4.5% | 21.0% | -26.8% | 4.2% | 14.8% | 10.6% |
| Net Debt/EBITDA | -0.4x | -0.2x | -4.2x | -5.8x | -0.6x | 5.2x |
Revenue and profitability
The company's Revenue jumped on 16.3% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.8 pp from 5.1% to 10.9% in FY2015.
Gross Margin increased on 2.5 pp from 20.3% to 22.8% in FY2015. SG&A as a % of Revenue decreased on 2.8 pp from 18.6% to 15.8% in FY2015.
Net Income marign jumped on 15.4 pp from 5.7% to 21.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Chinese People Holdings Co Ltd's CAPEX/Revenue was 8.1% in FY2015. CAPEX/Revenue decreased on 5.8 pp from 13.9% in FY2012 to 8.1% in FY2015. It's average CAPEX/Revenue for the last three years was 7.5%.The company invested a big chunk of EBITDA (73.8%) to CAPEX to secure its growth.
Return on investment
The company operates at good ROE (14.81%) while ROIC is low (4.36%). ROIC increased on 2.8 pp from 1.5% to 4.4% in FY2015. ROE jumped on 10.6 pp from 4.2% to 14.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 1.7x. Net Debt / EBITDA surged on 5.2x from -5.8x to -0.6x in FY2015. Debt jumped on 629% in FY2015 while cash decreased on 8.5% in FY2015.
Appendix 1: Peers in Pipelines
Below you can find Chinese People Holdings Co Ltd benchmarking vs. other companies in Pipelines 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, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 74.6% | 58.9% | 27.3% | 47.4% | |
| Tianjin Jinran Public Utilities Co Ltd ($1265) | 175.8% | 45.5% | -3.4% | -2.6% | |
| |
|---|
| Median (2 companies) | 125.2% | 52.2% | 12.0% | 22.4% | |
|---|
| Chinese People Holdings Co Ltd ($681) | | 24.9% | -16.4% | 8.2% | 16.3% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 38.1% | 35.1% | 36.5% | 34.3% | |
| Tianjin Jinran Public Utilities Co Ltd ($1265) | 13.1% | 10.2% | 7.1% | 4.9% | |
| |
|---|
| Median (2 companies) | 25.6% | 22.7% | 21.8% | 19.6% | |
|---|
| Chinese People Holdings Co Ltd ($681) | 26.9% | 26.2% | 19.6% | 20.3% | 22.8% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 33.1% | 33.6% | 32.6% | 33.2% | |
| Tianjin Jinran Public Utilities Co Ltd ($1265) | 15.3% | 14.3% | 11.3% | 8.7% | |
| |
|---|
| Median (2 companies) | 24.2% | 24.0% | 22.0% | 21.0% | |
|---|
| Chinese People Holdings Co Ltd ($681) | 12.4% | 13.7% | 7.2% | 5.1% | 10.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 38.0% | 17.2% | 15.8% | 20.4% | |
| Tianjin Jinran Public Utilities Co Ltd ($1265) | 2.8% | 0.9% | 0.7% | 1.1% | |
| |
|---|
| Median (2 companies) | 20.4% | 9.0% | 8.3% | 10.8% | |
|---|
| Chinese People Holdings Co Ltd ($681) | 12.9% | 13.9% | 5.9% | 8.4% | 8.1% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 13.5% | 13.5% | 12.8% | 14.1% | |
| Tianjin Jinran Public Utilities Co Ltd ($1265) | 10.5% | 10.3% | 6.1% | 3.6% | |
| |
|---|
| Median (2 companies) | 12.0% | 11.9% | 9.5% | 8.8% | |
|---|
| Chinese People Holdings Co Ltd ($681) | 5.6% | 5.1% | 0.1% | 1.5% | 4.4% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 1.1x | 1.8x | 1.5x | 2.5x | |
| Tianjin Jinran Public Utilities Co Ltd ($1265) | -1.7x | -1.7x | -1.7x | -0.7x | |
| |
|---|
| Median (2 companies) | -0.3x | 0.1x | -0.1x | 0.9x | |
|---|
| Chinese People Holdings Co Ltd ($681) | -0.4x | -0.2x | -4.2x | -5.8x | -0.6x |
