Guangdong Yueyun Transportation Co Ltd-H reports 89.0% CAPEX growth while 12.0% Revenue decline
18/03/2016 • About Guangdong Yueyun Transportation Co Ltd-H (
$3399) • By InTwits
Guangdong Yueyun Transportation Co Ltd-H reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Guangdong Yueyun Transportation Co Ltd-H has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.0%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 897 in 2015, 475 in 2014, 493 in 2013, 356 in 2012, 413 in 2011
- The company has business model with average profitability: ROIC is at 10.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Guangdong Yueyun Transportation Co Ltd-H ($3399) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,791 | 6,505 | 6,119 | 9,817 | 8,644 | -12.0% |
| Gross Profit | 837 | 842 | 812 | 983 | 1,241 | 26.3% |
| SG&A | 613 | 664 | 567 | 617 | 778 | 26.1% |
| EBITDA | 486 | 434 | 523 | 709 | 863 | 21.8% |
| Net Income | 125 | 73 | 136 | 203 | 266 | 31.2% |
Balance Sheet
|
|---|
| Cash | 2,236 | 1,263 | 1,718 | 1,774 | 1,934 | 9.0% |
| Short Term Debt | 752 | 909 | 1,129 | 1,018 | 490 | -51.9% |
| Long Term Debt | 137 | 368 | 386 | 300 | 1,030 | 243.3% |
Cash flow
|
|---|
| Capex | 413 | 356 | 493 | 475 | 897 | 89.0% |
Ratios
|
|---|
| Revenue growth | 11.7% | -4.2% | -5.9% | 60.4% | -12.0% | |
| EBITDA growth | 82.7% | -10.8% | 20.5% | 35.5% | 21.8% | |
| Gross Margin | 12.3% | 13.0% | 13.3% | 10.0% | 14.4% | 4.3% |
| EBITDA Margin | 7.2% | 6.7% | 8.5% | 7.2% | 10.0% | 2.8% |
| Net Income Margin | 1.8% | 1.1% | 2.2% | 2.1% | 3.1% | 1.0% |
| SG&A, % of revenue | 9.0% | 10.2% | 9.3% | 6.3% | 9.0% | 2.7% |
| CAPEX, % of revenue | 6.1% | 5.5% | 8.1% | 4.8% | 10.4% | 5.5% |
| ROIC | 8.9% | 5.6% | 7.2% | 9.6% | 10.6% | 1.0% |
| ROE | 8.3% | 4.4% | 9.5% | 12.8% | 15.0% | 2.2% |
| Net Debt/EBITDA | -2.8x | 0.0x | -0.4x | -0.6x | -0.5x | 0.2x |
Revenue and profitability
The company's Revenue dropped on 12.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.8 pp from 7.2% to 10.0% in 2015.
Gross Margin increased on 4.3 pp from 10.0% to 14.4% in 2015. SG&A as a % of Revenue increased on 2.7 pp from 6.3% to 9.0% in 2015.
Net Income marign increased slightly on 1.0 pp from 2.1% to 3.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 10.4%. Guangdong Yueyun Transportation Co Ltd-H's CAPEX/Revenue increased on 4.9 pp from 5.5% in 2012 to 10.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 7.8%.Guangdong Yueyun Transportation Co Ltd-H has spent a lot to CAPEX (104% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at good ROE (15.05%) while ROIC is low (10.60%). ROIC increased slightly on 0.98 pp from 9.6% to 10.6% in 2015. ROE increased on 2.2 pp from 12.8% to 15.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.5x and Debt / EBITDA is 1.8x. Net Debt / EBITDA surged on 0.2x from -0.6x to -0.5x in 2015. Debt surged on 15.3% in 2015 while cash increased on 9.0% in 2015.
Appendix 1: Peers in Transportation
Below you can find Guangdong Yueyun Transportation Co Ltd-H 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% | |
| Tianjin Port Development Holdings Ltd ($3382) | 9.8% | 8.7% | 24.9% | 51.9% | |
| CIG Yangtze Ports PLC ($8233) | | 17.9% | 30.6% | 23.5% | 0.1% |
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 15.9% | 10.9% | 27.9% | 15.0% | |
| |
|---|
| Median (28 companies) | 9.8% | 7.2% | 4.6% | 5.1% | -6.2% |
|---|
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | | -4.2% | -5.9% | 60.4% | -12.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.0% | 51.3% | 44.8% | 46.6% | 48.7% |
| 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% |
| |
|---|
| Median (25 companies) | 18.7% | 12.5% | 9.8% | 10.3% | 3.1% |
|---|
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 12.3% | 13.0% | 13.3% | 10.0% | 14.4% |
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% |
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | 39.5% |
| 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% | |
| |
|---|
| Median (29 companies) | 16.5% | 10.0% | 7.4% | 9.1% | 7.8% |
|---|
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 7.2% | 6.7% | 8.5% | 7.2% | 10.0% |
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) | 11.8% | 10.3% | 10.4% | 7.4% | 12.3% |
|---|
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 6.1% | 5.5% | 8.1% | 4.8% | 10.4% |
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% | |
| CIG Yangtze Ports PLC ($8233) | 4.3% | 4.9% | 5.7% | 11.0% | 11.1% |
| Kerry Logistics Network Ltd ($636) | 11.3% | 12.0% | 13.4% | 10.5% | |
| Qinhuangdao Port Co Ltd ($3369) | 9.3% | 9.8% | 9.6% | 9.3% | |
| |
|---|
| Median (29 companies) | 5.0% | 3.2% | 2.8% | 3.2% | 2.2% |
|---|
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 8.9% | 5.6% | 7.2% | 9.6% | 10.6% |
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 | -1.8x |
| 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) | 0.5x | 1.9x | 1.9x | 1.6x | 3.6x |
|---|
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | -2.8x | 0.0x | -0.4x | -0.6x | -0.5x |
