Yuexiu Transport Infrastructure Ltd Debt jumped on 90.1% in 2015 and Revenue surged on 19.8%
22/02/2016 • About Yuexiu Transport Infrastructure Ltd (
$1052) • By InTwits
Yuexiu Transport Infrastructure Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 71.6% in 2015 vs. 74.0% in 2014 vs. 74.3% in 2011
- Yuexiu Transport Infrastructure Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.8%. At the same time it's in pair with industry average of 8.5%.
- CAPEX is quite volatile: 11.2 in 2015, 74.0 in 2014, 70.8 in 2013, 77.6 in 2012, 467 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.8%
- It operates with high leverage: Net Debt/EBITDA is 5.3x while industry average is -22.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yuexiu Transport Infrastructure Ltd ($1052) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,322 | 1,485 | 1,753 | 1,859 | 2,226 | 19.8% |
| Gross Profit | 887 | 983 | 1,171 | 1,168 | 1,451 | 24.2% |
| SG&A | 160 | 195 | 196 | 197 | 194 | -1.4% |
| EBITDA | 982 | 1,162 | 1,306 | 1,376 | 1,593 | 15.8% |
| Net Income | 558 | 427 | 554 | 609 | 532 | -12.7% |
Balance Sheet
|
|---|
| Cash | 1,298 | 1,057 | 1,627 | 1,151 | 877 | -23.8% |
| Short Term Debt | 383 | 495 | 595 | 251 | 675 | 169.2% |
| Long Term Debt | 3,766 | 5,812 | 5,096 | 4,640 | 8,621 | 85.8% |
Cash flow
|
|---|
| Capex | 467 | 78 | 71 | 74 | 11 | -84.9% |
Ratios
|
|---|
| Revenue growth | 5.5% | 12.3% | 18.0% | 6.0% | 19.8% | |
| EBITDA growth | 6.0% | 18.3% | 12.4% | 5.3% | 15.8% | |
| Gross Margin | 67.1% | 66.2% | 66.8% | 62.8% | 65.2% | 2.3% |
| EBITDA Margin | 74.3% | 78.3% | 74.5% | 74.0% | 71.6% | -2.5% |
| Net Income Margin | 42.2% | 28.7% | 31.6% | 32.8% | 23.9% | -8.9% |
| SG&A, % of revenue | 12.1% | 13.1% | 11.2% | 10.6% | 8.7% | -1.9% |
| CAPEX, % of revenue | 35.3% | 5.2% | 4.0% | 4.0% | 0.5% | -3.5% |
| ROIC | 5.2% | 5.3% | 5.5% | 5.8% | 5.8% | -0.0% |
| ROE | 7.1% | 5.3% | 6.8% | 7.3% | 6.2% | -1.0% |
| Net Debt/EBITDA | 2.9x | 4.5x | 3.1x | 2.7x | 5.3x | 2.6x |
Revenue and profitability
Yuexiu Transport Infrastructure Ltd's Revenue surged on 19.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.5 pp from 11.7% to 15.2% in 2015.
Gross Margin increased on 2.3 pp from 62.8% to 65.2% in 2015. SG&A as a % of Revenue decreased slightly on 1.9 pp from 10.6% to 8.7% in 2015.
Net Income marign decreased on 8.9 pp from 32.8% to 23.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Yuexiu Transport Infrastructure Ltd had CAPEX/Revenue of 0.50%. The company's CAPEX/Revenue decreased on 4.7 pp from 5.2% in 2012 to 0.50% in 2015. It's average level of CAPEX/Revenue for the last three years was 2.8%.
Return on investment
The company operates at low ROIC (5.82%) and ROE (6.22%). ROIC showed almost no change in 2015. ROE decreased slightly on 1.0 pp from 7.3% to 6.2% in 2015.
Leverage (Debt)
Debt level is 5.3x Net Debt / EBITDA and 5.8x Debt / EBITDA. Net Debt / EBITDA jumped on 2.6x from 2.7x to 5.3x in 2015. Debt jumped on 90.1% in 2015 while cash dropped on 23.8% in 2015.
Appendix 1: Peers in Commercial Services
Below we provide Yuexiu Transport Infrastructure Ltd benchmarking against other companies in Commercial 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | 429.3% | -61.9% | -27.8% | 2,912.9% | |
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Goldpac Group Ltd ($3315) | 24.4% | 52.3% | 64.4% | 36.8% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| |
|---|
| Median (58 companies) | 19.6% | 6.9% | 4.5% | 9.4% | 7.3% |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | | 12.3% | 18.0% | 6.0% | 19.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| Cross-Harbour Holdings Ltd/The ($32) | 55.3% | 59.2% | 60.0% | 61.1% | |
| |
|---|
| Median (54 companies) | 33.0% | 31.5% | 29.2% | 30.8% | 28.7% |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | 67.1% | 66.2% | 66.8% | 62.8% | 65.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | |
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| Dragon Crown Group Holdings Ltd ($935) | 57.8% | 67.3% | 62.9% | 60.2% | |
| Jiangsu Expressway Co Ltd ($177) | 60.8% | 57.0% | 60.7% | 59.3% | |
| |
|---|
| Median (58 companies) | 15.6% | 15.8% | 12.2% | 9.3% | 1.7% |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | 71.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | |
| |
|---|
| Median (57 companies) | 3.6% | 3.2% | 4.5% | 4.8% | 2.2% |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | 35.3% | 5.2% | 4.0% | 4.0% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mega Expo Holdings Ltd ($1360) | | 270.5% | 481.1% | 54.4% | 10.1% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| PPS International Holdings Ltd ($8201) | | 101.6% | 35.6% | 23.8% | -13.7% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | |
| |
|---|
| Median (58 companies) | 5.0% | 6.2% | 4.2% | 3.2% | -0.1% |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | 5.2% | 5.3% | 5.5% | 5.8% | 5.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | 0.8x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | |
| Jiangsu Expressway Co Ltd ($177) | 1.1x | 1.2x | 1.1x | 2.7x | |
| |
|---|
| Median (37 companies) | -0.1x | -0.1x | -0.9x | -1.0x | -2.4x |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | 5.3x |
