Chongqing Rural Commercial Bank Co Ltd reports 7.6% revenue growth in 2015
18/03/2016 • About Chongqing Rural Commercial Bank Co Ltd (
$3618) • By InTwits
Chongqing Rural Commercial Bank Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chongqing Rural Commercial Bank Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's a lot of higher than industry average of 3.3%.
- CAPEX is quite volatile: 1,161 in FY2015, 1,939 in FY2014, 1,111 in FY2013, 839 in FY2012, 533 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.3%
- It operates with high leverage: Net Debt/EBITDA is 1.9x 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.
Chongqing Rural Commercial Bank Co Ltd ($3618) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 17,896 | 22,706 | 27,634 | 34,166 | 36,755 | 7.6% |
| Net Income | 4,246 | 5,362 | 5,991 | 6,828 | 7,223 | 5.8% |
Balance Sheet
|
|---|
| Cash | 50,663 | 58,964 | 68,782 | 79,334 | 78,500 | -1.1% |
| Short Term Debt | 27,257 | 49,094 | 66,345 | 95,018 | 99,858 | 5.1% |
| Long Term Debt | 2,330 | 2,410 | 2,485 | 11,776 | 40,566 | 244.5% |
Cash flow
|
|---|
| Capex | 759 | 913 | 1,181 | 1,631 | 1,622 | -0.6% |
Ratios
|
|---|
| Revenue growth | 51.1% | 26.9% | 21.7% | 23.6% | 7.6% | |
| Net Income Margin | 23.7% | 23.6% | 21.7% | 20.0% | 19.7% | -0.3% |
| CAPEX, % of revenue | 4.2% | 4.0% | 4.3% | 4.8% | 4.4% | -0.4% |
| ROIC | 6.5% | 6.3% | 5.7% | 5.2% | 4.3% | -0.9% |
| ROE | 16.9% | 17.9% | 17.6% | 17.6% | 16.4% | -1.2% |
Revenue and profitability
The company's Revenue increased on 7.6% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.4% in 2015. Chongqing Rural Commercial Bank Co Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 4.5%.
Return on investment
The company operates at good ROE (16.38%) while ROIC is low (4.30%). ROIC decreased slightly on 0.88 pp from 5.2% to 4.3% in 2015. ROE decreased slightly on 1.2 pp from 17.6% to 16.4% in 2015.
Leverage (Debt)
Debt surged on 31.5% in 2015 while cash decreased slightly on 1.1% in 2015.
Appendix 1: Peers in Banks
Below you can find Chongqing Rural Commercial Bank Co Ltd benchmarking vs. other companies in Banks 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 |
|---|
| 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% |
|---|
| Chongqing Rural Commercial Bank Co Ltd ($3618) | | 26.9% | 21.7% | 23.6% | 7.6% |
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% | 2.1% |
|---|
| Chongqing Rural Commercial Bank Co Ltd ($3618) | 4.2% | 4.0% | 4.3% | 4.8% | 4.4% |
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) | 6.3% | 6.0% | 6.4% | 5.5% | 3.7% |
|---|
| Chongqing Rural Commercial Bank Co Ltd ($3618) | 6.5% | 6.3% | 5.7% | 5.2% | 4.3% |
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 |
|---|
