CIG Yangtze Ports PLC reports 2,322% CAPEX growth and almost no change in Revenue of 187
11/03/2016 • About CIG Yangtze Ports PLC (
$8233) • By InTwits
CIG Yangtze Ports PLC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CIG Yangtze Ports PLC has high CAPEX intensity: 5 year average CAPEX/Revenue was 25.3%. At the same time it's a lot of higher than industry average of 20.8%.
- CAPEX is quite volatile: 94.6 in 2015, 3.9 in 2014, 37.5 in 2013, 20.6 in 2012, 30.8 in 2011
- The company has business model with average profitability: ROIC is at 11.1%
- It operates with high leverage: Net Debt/EBITDA is 3.6x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CIG Yangtze Ports PLC ($8233) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 98.1 | 115.6 | 151.0 | 186.5 | 186.7 | 0.1% |
| Gross Profit | 50.0 | 59.3 | 67.7 | 86.9 | 90.8 | 4.6% |
| SG&A | | 27.5 | 31.5 | 27.2 | 28.9 | 6.1% |
| EBITDA | 29.3 | 34.9 | 41.6 | 71.9 | 73.7 | 2.5% |
| Net Income | 0.9 | 2.1 | 4.7 | 25.6 | 24.6 | -4.0% |
Balance Sheet
|
|---|
| Cash | 23.4 | 33.5 | 46.3 | 43.8 | 19.3 | -56.0% |
| Short Term Debt | 24.4 | 75.8 | 41.0 | 123.2 | 144.5 | 17.3% |
| Long Term Debt | 219.5 | 172.6 | 265.7 | 184.5 | 137.5 | -25.5% |
Cash flow
|
|---|
| Capex | 30.8 | 20.6 | 37.5 | 3.9 | 94.6 | 2,322.3% |
Ratios
|
|---|
| Revenue growth | 71.2% | 17.9% | 30.6% | 23.5% | 0.1% | |
| EBITDA growth | 78.2% | 19.2% | 19.3% | 72.6% | 2.5% | |
| Gross Margin | 51.0% | 51.3% | 44.8% | 46.6% | 48.7% | 2.1% |
| EBITDA Margin | 29.9% | 30.2% | 27.6% | 38.5% | 39.5% | 0.9% |
| Net Income Margin | 0.9% | 1.8% | 3.1% | 13.7% | 13.2% | -0.6% |
| SG&A, % of revenue | | 23.8% | 20.8% | 14.6% | 15.5% | 0.9% |
| CAPEX, % of revenue | 31.4% | 17.8% | 24.8% | 2.1% | 50.7% | 48.6% |
| ROIC | 4.3% | 4.9% | 5.7% | 11.0% | 11.1% | 0.0% |
| ROE | 0.7% | 1.5% | 3.2% | 15.6% | 13.5% | -2.1% |
| Net Debt/EBITDA | 7.5x | 6.2x | 6.3x | 3.7x | 3.6x | -0.1x |
Revenue and profitability
The company's Revenue showed almost no change in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.92 pp from 38.5% to 39.5% in 2015.
Gross Margin increased on 2.1 pp from 46.6% to 48.7% in 2015. SG&A as a % of Revenue increased slightly on 0.88 pp from 14.6% to 15.5% in 2015.
Net Income marign decreased slightly on 0.56 pp from 13.7% to 13.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 50.7% in 2015. CAPEX/Revenue jumped on 32.9 pp from 17.8% in 2012 to 50.7% in 2015. Average CAPEX/Revenue for the last three years was 25.9%.The company investments to CAPEX were large: 128% of EBITDA.
Return on investment
The company operates at good ROE (13.53%) while ROIC is low (11.08%). ROIC showed almost no change in 2015. ROE decreased on 2.1 pp from 15.6% to 13.5% in 2015.
Leverage (Debt)
Debt level is 3.6x Net Debt / EBITDA and 3.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 3.7x to 3.6x in 2015. Debt decreased on 8.4% in 2015 while cash dropped on 56.0% in 2015.
Appendix 1: Peers in Transportation
Below you can find CIG Yangtze Ports PLC benchmarking vs. other companies in Transportation 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 |
|---|
| Frontier Services Group Ltd ($500) | -90.5% | -10.8% | -49.9% | 1,021.1% | |
| China Best Group Holding Ltd ($370) | 333.1% | 202.4% | -53.6% | 459.4% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 11.7% | -4.2% | -5.9% | 60.4% | |
| Tianjin Port Development Holdings Ltd ($3382) | 9.8% | 8.7% | 24.9% | 51.9% | |
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 15.9% | 10.9% | 27.9% | 15.0% | |
| |
|---|
| Median (28 companies) | 9.4% | 5.1% | 4.0% | 5.1% | -6.7% |
|---|
| CIG Yangtze Ports PLC ($8233) | | 17.9% | 30.6% | 23.5% | 0.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Frontier Services Group Ltd ($500) | 80.7% | 83.8% | 65.9% | 44.8% | |
| Qinhuangdao Port Co Ltd ($3369) | 43.2% | 43.1% | 42.4% | 43.3% | |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 21.5% | 23.1% | 25.1% | 24.1% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% |
| ASR Logistics Holdings Ltd ($1803) | 30.7% | 27.4% | 26.6% | 18.0% | |
| |
|---|
| Median (25 companies) | 17.0% | 12.5% | 9.8% | 10.0% | 3.1% |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.0% | 51.3% | 44.8% | 46.6% | 48.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Qinhuangdao Port Co Ltd ($3369) | 45.3% | 46.0% | 44.6% | 46.5% | |
| MTR Corp Ltd ($66) | 49.1% | 42.7% | 37.6% | 45.2% | 41.6% |
| Great Harvest Maeta Group Holdings Ltd ($3683) | 61.3% | 56.3% | 18.7% | 32.6% | -8.5% |
| China Shipping Development Co Ltd ($1138) | 24.7% | 12.5% | 3.0% | 24.7% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 15.4% | 13.3% | 16.1% | 20.7% | 26.1% |
| |
|---|
| Median (29 companies) | 15.8% | 9.9% | 7.4% | 7.8% | 9.5% |
|---|
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | 39.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | 0.0% | | 296.6% | 1.4% |
| Frontier Services Group Ltd ($500) | 5.4% | 6.3% | 3.6% | 63.3% | |
| China Shipping Development Co Ltd ($1138) | 68.9% | 55.8% | 34.0% | 54.9% | |
| Courage Marine Group Ltd ($1145) | 78.9% | 235.0% | 37.7% | 50.4% | 9.2% |
| Qinhuangdao Port Co Ltd ($3369) | 47.2% | 57.9% | 35.8% | 46.3% | |
| |
|---|
| Median (29 companies) | 11.1% | 7.9% | 9.0% | 7.4% | 11.6% |
|---|
| CIG Yangtze Ports PLC ($8233) | 31.4% | 17.8% | 24.8% | 2.1% | 50.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 34.2% | 21.1% | 20.9% | 19.1% | |
| ASR Logistics Holdings Ltd ($1803) | 79.6% | 54.7% | 38.9% | 13.4% | |
| Kerry Logistics Network Ltd ($636) | 11.3% | 12.0% | 13.4% | 10.5% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 8.9% | 5.6% | 7.2% | 9.6% | |
| Qinhuangdao Port Co Ltd ($3369) | 9.3% | 9.8% | 9.6% | 9.3% | |
| |
|---|
| Median (29 companies) | 5.3% | 3.2% | 2.8% | 3.2% | 1.0% |
|---|
| CIG Yangtze Ports PLC ($8233) | 4.3% | 4.9% | 5.7% | 11.0% | 11.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jinhui Holdings Co Ltd ($137) | 2.8x | 5.0x | 4.2x | 17.5x | 19.6x |
| China Shipping Development Co Ltd ($1138) | 7.2x | 20.2x | 92.8x | 12.8x | |
| Tianjin Binhai Teda Logistics Group Corp Ltd ($8348) | -0.5x | 9.7x | 9.3x | 9.5x | |
| China COSCO Holdings Co Ltd ($1919) | | | 18.8x | 9.0x | |
| AMS Public Transport Holdings Ltd ($77) | 0.7x | 1.2x | 11.6x | 7.7x | 4.5x |
| |
|---|
| Median (22 companies) | -0.0x | 1.2x | 1.5x | 0.8x | 3.9x |
|---|
| CIG Yangtze Ports PLC ($8233) | 7.5x | 6.2x | 6.3x | 3.7x | 3.6x |
