Bank of Chongqing Co Ltd revenue jumped on 18.5% in 2015
18/03/2016 • About Bank of Chongqing Co Ltd (
$1963) • By InTwits
Bank of Chongqing Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bank of Chongqing Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's a lot of higher than industry average of 3.3%.
- CAPEX is quite volatile: 4,504 in 2015, 2,754 in 2014, 1,936 in 2013, 1,039 in 2012, 303 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.9%
- It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is -5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bank of Chongqing Co Ltd ($1963) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,395 | 8,854 | 11,213 | 14,396 | 17,054 | 18.5% |
| Net Income | 1,488 | 1,925 | 2,329 | 2,827 | 3,170 | 12.1% |
Balance Sheet
|
|---|
| Cash | 19,340 | 25,243 | 32,823 | 35,699 | 38,201 | 7.0% |
| Short Term Debt | 28,446 | 27,659 | 33,750 | 81,636 | 73,236 | -10.3% |
| Long Term Debt | 995 | 1,790 | 4,778 | 3,785 | 18,491 | 388.5% |
Cash flow
|
|---|
| Capex | 369 | 412 | 746 | 472 | 396 | -16.0% |
Ratios
|
|---|
| Revenue growth | 51.8% | 38.4% | 26.6% | 28.4% | 18.5% | |
| Net Income Margin | 23.3% | 21.7% | 20.8% | 19.6% | 18.6% | -1.0% |
| CAPEX, % of revenue | 5.8% | 4.7% | 6.6% | 3.3% | 2.3% | -1.0% |
| ROIC | 5.5% | 6.6% | 6.6% | 4.8% | 3.9% | -0.9% |
| ROE | 25.9% | 26.2% | 21.4% | 19.2% | 17.0% | -2.2% |
Revenue and profitability
The company's Revenue surged on 18.5% in 2015.
Net Income marign decreased slightly on 1.0 pp from 19.6% to 18.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.3% in 2015. The company's CAPEX/Revenue decreased on 2.3 pp from 4.7% in 2012 to 2.3% in 2015. It's average CAPEX/Revenue for the last three years was 4.1%.
Return on investment
The company operates at good ROE (17.05%) while ROIC is low (3.90%). ROIC decreased slightly on 0.93 pp from 4.8% to 3.9% in 2015. ROE decreased on 2.2 pp from 19.2% to 17.0% in 2015.
Leverage (Debt)
Debt increased on 7.4% in 2015 while cash increased on 7.0% in 2015.
Appendix 1: Peers in Banks
Below we provide Bank of Chongqing Co Ltd benchmarking against other companies in Banks 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 |
|---|
| Chong Hing Bank Ltd ($1111) | | 10.0% | -1.2% | 121.1% | -17.4% |
| Shengjing Bank Co Ltd ($2066) | | 36.5% | 36.3% | 40.1% | 24.3% |
| China Merchants Bank Co Ltd ($3968) | 42.3% | 24.0% | 18.6% | 33.9% | |
| Harbin Bank Co Ltd ($6138) | 104.6% | 58.3% | 12.1% | 29.2% | |
| Dah Sing Financial Holdings Ltd ($440) | 15.3% | 9.9% | -0.1% | 29.0% | |
| |
|---|
| Median (22 companies) | 33.4% | 19.6% | 10.4% | 13.8% | -1.4% |
|---|
| Bank of Chongqing Co Ltd ($1963) | | 38.4% | 26.6% | 28.4% | 18.5% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | 34.2% | 4.1% | 29.9% | 27.0% | 33.5% |
| |
|---|
| Median (1 company) | 34.2% | 4.1% | 29.9% | 27.0% | 33.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Minsheng Banking Corp Ltd ($1988) | 5.0% | 5.2% | 6.8% | 7.6% | |
| Harbin Bank Co Ltd ($6138) | 20.0% | 19.8% | 9.9% | 6.5% | |
| Industrial & Commercial Bank of China Ltd ($1398) | 3.2% | 3.8% | 4.9% | 5.4% | |
| Bank of Communications Co Ltd ($3328) | 3.1% | 3.6% | 5.1% | 5.3% | |
| Shengjing Bank Co Ltd ($2066) | 3.3% | 1.6% | 2.2% | 5.0% | 3.0% |
| |
|---|
| Median (22 companies) | 3.2% | 3.2% | 3.7% | 3.1% | 2.3% |
|---|
| Bank of Chongqing Co Ltd ($1963) | 5.8% | 4.7% | 6.6% | 3.3% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chong Hing Bank Ltd ($1111) | 6.3% | 5.5% | 5.2% | 16.4% | 5.7% |
| KVB Kunlun Financial Group Ltd ($8077) | | 1.2% | 16.3% | 12.3% | |
| China Construction Bank Corp ($939) | 11.6% | 11.1% | 11.7% | 10.8% | |
| Industrial & Commercial Bank of China Ltd ($1398) | 10.6% | 9.9% | 10.2% | 9.9% | |
| Agricultural Bank of China Ltd ($1288) | 10.3% | 9.9% | 10.0% | 9.3% | |
| |
|---|
| Median (22 companies) | 6.4% | 6.0% | 6.3% | 5.5% | 3.7% |
|---|
| Bank of Chongqing Co Ltd ($1963) | 5.5% | 6.6% | 6.6% | 4.8% | 3.9% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | -5.7x | -66.3x | -7.1x | -10.6x | -5.7x |
| |
|---|
| Median (1 company) | -5.7x | -66.3x | -7.1x | -10.6x | -5.7x |
|---|
