China Longyuan Power Group Corp Ltd reports 16.5% CAPEX decline while 7.8% Revenue growth
22/03/2016 • About China Longyuan Power Group Corp Ltd (
$916) • By InTwits
China Longyuan Power Group Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Longyuan Power Group Corp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 79.1%. At the same time it's a lot of higher than industry average of 37.9%.
- CAPEX is quite volatile: 183 in 2015, 259 in 2014, 431 in 2013, 435 in 2012, 890 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.2%
- It operates with high leverage: Net Debt/EBITDA is 5.7x while industry average is 4.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Longyuan Power Group Corp Ltd ($916) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16,585 | 17,288 | 19,147 | 18,228 | 19,649 | 7.8% |
| SG&A | 308 | 402 | 399 | 378 | 370 | -2.1% |
| EBITDA | 8,101 | 9,742 | 10,412 | 11,572 | 12,680 | 9.6% |
| Net Income | 2,578 | 2,593 | 2,052 | 2,555 | 2,881 | 12.8% |
Balance Sheet
|
|---|
| Cash | 3,358 | 5,081 | 2,719 | 2,396 | 2,887 | 20.5% |
| Short Term Debt | 19,078 | 26,170 | 24,697 | 36,114 | 44,688 | 23.7% |
| Long Term Debt | 31,828 | 32,482 | 33,205 | 33,922 | 29,970 | -11.7% |
Cash flow
|
|---|
| Capex | 13,782 | 13,745 | 10,509 | 18,273 | 15,264 | -16.5% |
Ratios
|
|---|
| Revenue growth | 16.6% | 4.2% | 10.7% | -4.8% | 7.8% | |
| EBITDA growth | 28.4% | 20.3% | 6.9% | 11.1% | 9.6% | |
| EBITDA Margin | 48.8% | 56.3% | 54.4% | 63.5% | 64.5% | 1.1% |
| Net Income Margin | 15.5% | 15.0% | 10.7% | 14.0% | 14.7% | 0.6% |
| SG&A, % of revenue | 1.9% | 2.3% | 2.1% | 2.1% | 1.9% | -0.2% |
| CAPEX, % of revenue | 83.1% | 79.5% | 54.9% | 100.2% | 77.7% | -22.6% |
| ROIC | 7.0% | 6.9% | 6.3% | 6.3% | 6.2% | -0.1% |
| ROE | 10.5% | 9.4% | 6.8% | 8.0% | 8.4% | 0.5% |
| Net Debt/EBITDA | 5.9x | 5.5x | 5.3x | 5.8x | 5.7x | -0.2x |
Revenue and profitability
China Longyuan Power Group Corp Ltd's Revenue increased on 7.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.9 pp from 13.5% to 9.6% in 2015.
SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 0.65 pp from 14.0% to 14.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 77.7% in 2015. The company showed small CAPEX/Revenue decline of 1.8 pp from 79.5% in 2012 to 77.7% in 2015. For the last three years the average CAPEX/Revenue was 77.6%.The company maintained rich investment policy and has spent a lot to CAPEX (120% of EBITDA).
Return on investment
The company operates at low ROIC (6.19%) and ROE (8.45%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 5.7x Net Debt / EBITDA and 5.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 5.8x to 5.7x in 2015. Debt increased on 6.6% in 2015 while cash surged on 20.5% in 2015.
Appendix 1: Peers in Energy-Alternate Sources
Below you can find China Longyuan Power Group Corp Ltd benchmarking vs. other companies in Energy-Alternate Sources 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 |
|---|
| United Photovoltaics Group Ltd ($686) | 221.6% | -74.0% | -83.5% | 1,168.8% | |
| HaiTian Hydropower International Ltd ($8261) | | 26.6% | 8.5% | 114.0% | 220.2% |
| Canvest Environment Protection Group Co Ltd ($1381) | | 150.6% | 0.8% | 103.5% | 49.2% |
| Concord New Energy Group Ltd ($182) | -22.4% | 14.7% | 71.2% | 88.5% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 11.2% | 2.5% | 50.7% | 39.6% | |
| |
|---|
| Median (10 companies) | 21.4% | 12.7% | 20.1% | 36.5% | 73.2% |
|---|
| China Longyuan Power Group Corp Ltd ($916) | | 4.2% | 10.7% | -4.8% | 7.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Photovoltaics Group Ltd ($686) | 17.9% | -29.8% | 99.3% | 90.7% | |
| HaiTian Hydropower International Ltd ($8261) | 70.0% | 74.2% | 74.3% | 79.3% | 64.6% |
| Canvest Environment Protection Group Co Ltd ($1381) | 61.5% | 53.4% | 51.9% | 43.1% | 37.1% |
| Xinyi Solar Holdings Ltd ($968) | 35.9% | 17.2% | 30.1% | 31.6% | 36.0% |
| China Suntien Green Energy Corp Ltd ($956) | 28.8% | 33.5% | 31.3% | 25.2% | |
| |
|---|
| Median (8 companies) | 34.5% | 21.6% | 34.2% | 28.4% | 36.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Photovoltaics Group Ltd ($686) | 13.0% | -42.6% | -230.5% | 92.9% | |
| HaiTian Hydropower International Ltd ($8261) | 86.2% | 61.9% | 75.9% | 80.2% | 69.0% |
| China Renewable Energy Investment Ltd ($987) | 28.1% | 54.1% | 66.1% | 64.3% | 74.3% |
| Canvest Environment Protection Group Co Ltd ($1381) | 71.0% | 59.3% | 56.6% | 50.3% | 41.8% |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 58.5% | 57.7% | 50.4% | 41.8% | |
| |
|---|
| Median (10 companies) | 37.5% | 31.9% | 30.6% | 36.9% | 55.4% |
|---|
| China Longyuan Power Group Corp Ltd ($916) | 48.8% | 56.3% | 54.4% | 63.5% | 64.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Renewable Energy Investment Ltd ($987) | 44.5% | 23.4% | 118.5% | 126.1% | 32.4% |
| Xinyi Solar Holdings Ltd ($968) | 71.2% | 22.7% | 12.2% | 98.8% | 75.4% |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 90.6% | 98.0% | 110.8% | 65.4% | |
| Concord New Energy Group Ltd ($182) | 199.2% | 64.2% | 19.0% | 52.7% | |
| China Suntien Green Energy Corp Ltd ($956) | 101.3% | 41.4% | 25.7% | 35.9% | |
| |
|---|
| Median (10 companies) | 65.0% | 32.4% | 16.3% | 31.2% | 31.7% |
|---|
| China Longyuan Power Group Corp Ltd ($916) | 83.1% | 79.5% | 54.9% | 100.2% | 77.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinyi Solar Holdings Ltd ($968) | 33.6% | 13.8% | 21.6% | 16.9% | 18.7% |
| Canvest Environment Protection Group Co Ltd ($1381) | | 27.0% | 18.1% | 12.4% | 10.0% |
| HaiTian Hydropower International Ltd ($8261) | 9.5% | 6.4% | 7.5% | 7.5% | 11.9% |
| GCL-Poly Energy Holdings Ltd ($3800) | 15.8% | 0.3% | 2.8% | 6.9% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 7.0% | 5.8% | 6.8% | 6.3% | |
| |
|---|
| Median (10 companies) | 7.0% | 4.4% | 5.4% | 6.0% | 11.0% |
|---|
| China Longyuan Power Group Corp Ltd ($916) | 7.0% | 6.9% | 6.3% | 6.3% | 6.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 4.5x | 1.4x | 2.6x | 10.5x | 2.4x |
| United Photovoltaics Group Ltd ($686) | 5.1x | | | 7.8x | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 5.0x | 6.7x | 6.3x | 6.7x | |
| China Renewable Energy Investment Ltd ($987) | 17.1x | 8.9x | 6.2x | 6.4x | 3.8x |
| GCL-Poly Energy Holdings Ltd ($3800) | 2.9x | 11.4x | 7.7x | 5.4x | |
| |
|---|
| Median (9 companies) | 4.5x | 4.1x | 3.4x | 5.4x | 2.2x |
|---|
| China Longyuan Power Group Corp Ltd ($916) | 5.9x | 5.5x | 5.3x | 5.8x | 5.7x |
