CLP Holdings Ltd reports 39.8% Net Income growth while 12.5% Revenue decline
29/02/2016 • About CLP Holdings Ltd (
$2) • By InTwits
CLP Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CLP Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.7%. At the same time it's in pair with industry average of 6.1%.
- CAPEX is quite volatile: 1,594 in 2015, 1,879 in 2014, 3,298 in 2013, 4,912 in 2012, 6,063 in 2011
- The company has highly profitable business model: ROIC is at 12.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CLP Holdings Ltd ($2) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 91,634 | 104,861 | 104,530 | 92,259 | 80,700 | -12.5% |
| EBITDA | 19,501 | 20,172 | 16,425 | 21,812 | 28,840 | 32.2% |
| Net Income | 9,288 | 8,312 | 6,060 | 11,373 | 15,903 | 39.8% |
Balance Sheet
|
|---|
| Cash | 3,866 | 13,026 | 5,233 | 4,393 | 3,799 | -13.5% |
| Short Term Debt | 14,796 | 9,301 | 9,881 | 9,637 | 13,189 | 36.9% |
| Long Term Debt | 78,121 | 83,952 | 74,146 | 57,825 | 42,294 | -26.9% |
Cash flow
|
|---|
| Capex | 12,109 | 9,056 | 8,462 | 9,192 | 10,871 | 18.3% |
Ratios
|
|---|
| Revenue growth | 56.9% | 14.4% | -0.3% | -11.7% | -12.5% | |
| EBITDA growth | 12.2% | 3.4% | -18.6% | 32.8% | 32.2% | |
| EBITDA Margin | 21.3% | 19.2% | 15.7% | 23.6% | 35.7% | 12.1% |
| Net Income Margin | 10.1% | 7.9% | 5.8% | 12.3% | 19.7% | 7.4% |
| CAPEX, % of revenue | 13.2% | 8.6% | 8.1% | 10.0% | 13.5% | 3.5% |
| ROIC | 7.8% | 7.0% | 4.8% | 8.5% | 12.8% | 4.3% |
| ROE | 11.5% | 9.6% | 6.8% | 12.8% | 17.3% | 4.5% |
| Net Debt/EBITDA | 4.6x | 4.0x | 4.8x | 2.9x | 1.8x | -1.1x |
Revenue and profitability
The company's Revenue dropped on 12.5% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 12.1 pp from 23.6% to 35.7% in 2015.
Net Income marign increased on 7.4 pp from 12.3% to 19.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
CLP Holdings Ltd's CAPEX/Revenue was 13.5% in 2015. The company showed CAPEX/Revenue growth of 4.8 pp from 8.6% in 2012 to 13.5% in 2015. Average CAPEX/Revenue for the last three years was 10.5%.
Return on investment
The company operates at good ROIC (12.78%) and ROE (17.29%). ROIC increased on 4.3 pp from 8.5% to 12.8% in 2015. ROE increased on 4.5 pp from 12.8% to 17.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.8x and Debt / EBITDA is 1.9x. Net Debt / EBITDA dropped on 1.1x from 2.9x to 1.8x in 2015. Debt dropped on 17.8% in 2015 while cash dropped on 13.5% in 2015.
Management team
Richard Kendall Lancaster is a CLP Holdings Ltd's CEO. Richard Kendall Lancaster has spent 5 years at the company. The company's CFO is Geert Herman August Peeters. Geert Herman August Peeters has 4 years tenure at the company.
Appendix 1: Peers in Electric
Below you can find CLP Holdings Ltd benchmarking vs. other companies in Electric 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tianjin Development Hldgs Ltd ($882) | 9.1% | 10.6% | 27.3% | 37.6% | |
| Enerchina Holdings Ltd ($622) | 193.3% | -15.4% | 6.8% | 28.5% | |
| Amber Energy Ltd ($90) | 10.1% | -14.7% | 21.2% | 20.1% | |
| Huadian Power International Corp Ltd ($1071) | 20.1% | 8.8% | 11.8% | 15.1% | |
| China Power International Development Ltd ($2380) | 11.4% | 8.8% | 7.6% | 8.6% | |
| |
|---|
| Median (14 companies) | 17.0% | 2.8% | 14.2% | 4.8% | |
|---|
| CLP Holdings Ltd ($2) | | 14.4% | -0.3% | -11.7% | -12.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Assets Holdings Ltd ($6) | 60.5% | 60.0% | 63.5% | 85.6% | |
| China Power New Energy Development Co Ltd ($735) | 57.1% | 73.3% | 70.8% | 72.0% | |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 60.5% | 60.1% | 58.6% | 54.0% | |
| Huadian Power International Corp Ltd ($1071) | 8.9% | | | 27.1% | |
| Huaneng Power International Inc ($902) | | | | 24.8% | |
| |
|---|
| Median (7 companies) | 33.0% | 34.5% | 58.6% | 27.1% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Assets Holdings Ltd ($6) | 64.6% | 66.2% | 68.0% | 2,533.1% | |
| Huaneng Renewables Corp Ltd ($958) | 110.2% | 94.0% | 80.5% | 91.3% | |
| China Datang Corp Renewable Power Co Ltd ($1798) | 100.2% | 90.5% | 82.8% | 87.0% | |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 72.8% | 72.6% | 77.6% | 73.3% | |
| Huadian Fuxin Energy Corp Ltd ($816) | 43.8% | 46.5% | 49.6% | 54.8% | |
| |
|---|
| Median (14 companies) | 25.3% | 30.3% | 36.4% | 38.2% | |
|---|
| CLP Holdings Ltd ($2) | 21.3% | 19.2% | 15.7% | 23.6% | 35.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaneng Renewables Corp Ltd ($958) | 240.9% | 163.4% | 124.0% | 217.8% | |
| China Power New Energy Development Co Ltd ($735) | 21.5% | 82.2% | 80.1% | 119.5% | |
| China Datang Corp Renewable Power Co Ltd ($1798) | 273.4% | 157.1% | 81.7% | 106.3% | |
| Huadian Fuxin Energy Corp Ltd ($816) | 78.6% | 62.2% | 54.3% | 91.8% | |
| China Resources Power Holdings Co Ltd ($836) | 20.4% | 16.6% | 33.4% | 34.6% | |
| |
|---|
| Median (14 companies) | 24.3% | 26.2% | 25.1% | 18.5% | |
|---|
| CLP Holdings Ltd ($2) | 13.2% | 8.6% | 8.1% | 10.0% | 13.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Assets Holdings Ltd ($6) | 5.4% | 5.5% | 6.1% | 46.5% | |
| Huaneng Power International Inc ($902) | 4.0% | 7.3% | 10.3% | 11.3% | |
| Huadian Power International Corp Ltd ($1071) | 2.7% | 5.0% | 8.4% | 10.4% | |
| China Resources Power Holdings Co Ltd ($836) | 5.9% | 7.7% | 9.7% | 8.0% | |
| China Power International Development Ltd ($2380) | 4.0% | 5.7% | 7.5% | 8.0% | |
| |
|---|
| Median (14 companies) | 4.6% | 5.2% | 6.8% | 6.5% | |
|---|
| CLP Holdings Ltd ($2) | 7.8% | 7.0% | 4.8% | 8.5% | 12.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Datang Corp Renewable Power Co Ltd ($1798) | 8.1x | 9.1x | 8.2x | 8.7x | |
| Amber Energy Ltd ($90) | 3.0x | 5.8x | 6.4x | 7.3x | |
| Huaneng Renewables Corp Ltd ($958) | 6.0x | 7.7x | 6.6x | 7.3x | |
| Huadian Fuxin Energy Corp Ltd ($816) | 9.3x | 6.9x | 6.2x | 6.5x | |
| China Power New Energy Development Co Ltd ($735) | 5.9x | 4.8x | 5.5x | 6.4x | |
| |
|---|
| Median (13 companies) | 6.0x | 5.6x | 5.5x | 5.1x | |
|---|
| CLP Holdings Ltd ($2) | 4.6x | 4.0x | 4.8x | 2.9x | 1.8x |
