Yuan Heng Gas Holdings Ltd Net Debt / EBITDA surged on 6.3x from 2.7x to 8.9x in 2015 and Debt increased on 9.6%
30/06/2015 • About Yuan Heng Gas Holdings Ltd (
$332) • By InTwits
Yuan Heng Gas Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yuan Heng Gas Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has potentially unprofitable business model: ROIC is at 3.9%
- It operates with high leverage: Net Debt/EBITDA is 8.9x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yuan Heng Gas Holdings Ltd ($332) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 676 | 2,002 | 6,153 | 12,670 | 8,062 | -36.4% |
| Gross Profit | -7 | 14 | 10 | 503 | 238 | -52.7% |
| SG&A | | 40 | | 176 | 142 | -19.1% |
| EBITDA | -97 | -26 | -0 | 412 | 180 | -56.4% |
| Net Income | -104 | 125 | -3 | 164 | 24 | -85.3% |
Balance Sheet
|
|---|
| Cash | 9 | 113 | 102 | 402 | 33 | -91.9% |
| Short Term Debt | 0 | 122 | 0 | 1,442 | 1,575 | 9.2% |
| Long Term Debt | 0 | 0 | 0 | 56 | 66 | 17.8% |
Cash flow
|
|---|
| Capex | 4 | 0 | 0 | 78 | 62 | -20.1% |
Ratios
|
|---|
| Revenue growth | -20.5% | 196.3% | 207.4% | 105.9% | -36.4% | |
| EBITDA growth | 34.2% | -73.1% | -99.9% | -1,289,025.2% | -56.4% | |
| Gross Margin | -1.0% | 0.7% | 0.2% | 4.0% | 3.0% | -1.0% |
| EBITDA Margin | -14.4% | -1.3% | -0.0% | 3.3% | 2.2% | -1.0% |
| Net Income Margin | -15.4% | 6.2% | -0.0% | 1.3% | 0.3% | -1.0% |
| SG&A, % of revenue | | 2.0% | | 1.4% | 1.8% | 0.4% |
| CAPEX, % of revenue | 0.5% | 0.0% | 0.0% | 0.6% | 0.8% | 0.2% |
| ROIC | | -59.8% | -0.0% | 25.6% | 3.9% | -21.7% |
| ROE | | | -3.2% | 41.4% | 3.4% | -38.0% |
| Net Debt/EBITDA | | | | 2.7x | 8.9x | 6.3x |
Revenue and profitability
The company's Revenue dropped on 36.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.0 pp from 3.3% to 2.2% in FY2015.
Gross Margin decreased slightly on 1.0 pp from 4.0% to 3.0% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign decreased slightly on 1.00 pp from 1.3% to 0.30% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Yuan Heng Gas Holdings Ltd's CAPEX/Revenue was 0.77% in FY2015. The company's CAPEX/Revenue increased slightly on 0.77 pp from 0% in FY2012 to 0.77% in FY2015. For the last three years the average CAPEX/Revenue was 0.46%.
Return on investment
The company operates at low ROIC (3.87%) and ROE (3.42%). ROIC dropped on 21.7 pp from 25.6% to 3.9% in FY2015. ROE dropped on 38.0 pp from 41.4% to 3.4% in FY2015.
Leverage (Debt)
Debt level is 8.9x Net Debt / EBITDA and 9.1x Debt / EBITDA. Net Debt / EBITDA jumped on 6.3x from 2.7x to 8.9x in FY2015. Debt increased on 9.6% in FY2015 while cash dropped on 91.9% in FY2015.
Appendix 1: Peers in Oil&Gas Services
Below we provide Yuan Heng Gas 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIMC Enric Holdings Ltd ($3899) | 70.8% | 18.4% | -0.3% | 39.7% | |
| TSC Group Holdings Ltd ($206) | -2.8% | 31.7% | 9.9% | 34.0% | |
| China Oilfield Services Ltd ($2883) | 4.9% | 20.0% | 23.8% | 20.6% | |
| Sinopec Engineering Group Co Ltd ($2386) | 2.4% | 25.9% | 13.1% | 13.3% | |
| Jutal Offshore Oil Services Ltd ($3303) | 15.3% | 23.4% | 46.2% | 6.9% | |
| |
|---|
| Median (12 companies) | 16.9% | 24.7% | 9.1% | 0.5% | |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | | 196.3% | 207.4% | 105.9% | -36.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hilong Holding Ltd ($1623) | 41.0% | 39.5% | 40.3% | 39.6% | |
| Anton Oilfield Services Group/Hong Kong ($3337) | 41.5% | 45.0% | 44.3% | 31.2% | |
| TSC Group Holdings Ltd ($206) | 38.0% | 30.7% | 31.6% | 27.8% | |
| Jutal Offshore Oil Services Ltd ($3303) | 20.3% | 21.7% | 25.1% | 19.6% | |
| CIMC Enric Holdings Ltd ($3899) | 18.7% | 19.5% | 20.4% | 18.8% | |
| |
|---|
| Median (9 companies) | 20.3% | 19.5% | 20.4% | 18.8% | |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | -1.0% | 0.7% | 0.2% | 4.0% | 3.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hans Energy Co Ltd ($554) | -38.3% | 40.4% | 45.0% | 42.8% | |
| China Oilfield Services Ltd ($2883) | 43.7% | 39.8% | 40.0% | 37.0% | |
| Hilong Holding Ltd ($1623) | 28.5% | 25.9% | 27.8% | 28.8% | |
| SPT Energy Group Inc ($1251) | 24.7% | 23.8% | 19.8% | 14.1% | |
| TSC Group Holdings Ltd ($206) | 11.7% | 11.4% | 14.0% | 13.2% | |
| |
|---|
| Median (12 companies) | 12.8% | 16.0% | 16.9% | 12.5% | |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | -14.4% | -1.3% | -0.0% | 3.3% | 2.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Petro-King Oilfield Services Ltd ($2178) | 8.2% | 13.3% | 13.3% | 75.4% | |
| Hilong Holding Ltd ($1623) | 17.1% | 16.7% | 18.9% | 48.1% | |
| China Oilfield Services Ltd ($2883) | 24.9% | 16.5% | 30.9% | 29.8% | |
| Anton Oilfield Services Group/Hong Kong ($3337) | 13.3% | 12.6% | 32.2% | 22.8% | |
| Jutal Offshore Oil Services Ltd ($3303) | 6.6% | 12.8% | 8.4% | 12.9% | |
| |
|---|
| Median (12 companies) | 6.8% | 10.0% | 6.3% | 7.3% | |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | 0.5% | 0.0% | 0.0% | 0.6% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIMC Enric Holdings Ltd ($3899) | 19.4% | 20.3% | 20.0% | 21.3% | |
| Sinopec Engineering Group Co Ltd ($2386) | 59.6% | 77.5% | 33.3% | 18.6% | |
| Hilong Holding Ltd ($1623) | 19.0% | 15.5% | 14.8% | 12.0% | |
| China Oilfield Services Ltd ($2883) | 8.6% | 8.9% | 11.2% | 11.6% | |
| TSC Group Holdings Ltd ($206) | 5.2% | 6.7% | 9.1% | 10.5% | |
| |
|---|
| Median (12 companies) | 8.4% | 11.8% | 12.2% | 7.9% | |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | | -59.8% | -0.0% | 25.6% | 3.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hans Energy Co Ltd ($554) | | 14.0x | 11.9x | 12.9x | |
| Anton Oilfield Services Group/Hong Kong ($3337) | -0.5x | 0.0x | 0.9x | 7.4x | |
| Hilong Holding Ltd ($1623) | 0.8x | 0.9x | 1.1x | 2.6x | |
| Sinopec Kantons Holdings Ltd ($934) | -1.2x | -7.1x | -7.4x | 2.5x | |
| Jutal Offshore Oil Services Ltd ($3303) | 1.0x | 0.4x | 1.7x | 1.8x | |
| |
|---|
| Median (11 companies) | -0.2x | 0.0x | -0.2x | 1.8x | |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | | | | 2.7x | 8.9x |
