China Renewable Energy Investment Ltd Net Income jumped on 180% in 2015 and Revenue jumped on 36.6%
22/03/2016 • About China Renewable Energy Investment Ltd (
$987) • By InTwits
China Renewable Energy Investment Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Renewable Energy Investment Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.9%
- China Renewable Energy Investment Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 69.0%. At the same time it's a lot of higher than industry average of 37.9%.
- CAPEX is quite volatile: 43.1 in 2015, 123 in 2014, 135 in 2013, 23.3 in 2012, 40.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.8x 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 Renewable Energy Investment Ltd ($987) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 89.9 | 99.5 | 113.7 | 97.3 | 132.9 | 36.6% |
| Gross Profit | 11.0 | 20.1 | 42.2 | 24.0 | 44.3 | 84.5% |
| SG&A | | | | 21.5 | 23.6 | 10.1% |
| EBITDA | 25.3 | 53.8 | 75.1 | 62.5 | 98.8 | 57.9% |
| Net Income | 13.2 | -82.7 | 28.2 | 14.5 | 40.5 | 179.7% |
Balance Sheet
|
|---|
| Cash | 338.8 | 238.2 | 271.1 | 278.3 | 181.3 | -34.9% |
| Short Term Debt | 151.0 | 164.4 | 174.2 | 89.9 | 84.9 | -5.6% |
| Long Term Debt | 618.3 | 552.2 | 562.2 | 589.9 | 471.9 | -20.0% |
Cash flow
|
|---|
| Capex | 40.0 | 23.3 | 134.8 | 122.8 | 43.1 | -64.9% |
Ratios
|
|---|
| Revenue growth | 402.3% | 10.7% | 14.3% | -14.4% | 36.6% | |
| EBITDA growth | -180.6% | 113.2% | 39.6% | -16.7% | 57.9% | |
| Gross Margin | 12.2% | 20.2% | 37.1% | 24.7% | 33.3% | 8.6% |
| EBITDA Margin | 28.1% | 54.1% | 66.1% | 64.3% | 74.3% | 10.1% |
| Net Income Margin | 14.7% | -83.1% | 24.8% | 14.9% | 30.4% | 15.6% |
| SG&A, % of revenue | | | | 22.0% | 17.8% | -4.3% |
| CAPEX, % of revenue | 44.5% | 23.4% | 118.5% | 126.1% | 32.4% | -93.7% |
| ROIC | -1.7% | -0.6% | 0.5% | 0.0% | 0.9% | 0.9% |
| ROE | 0.8% | -4.7% | 1.6% | 0.8% | 2.4% | 1.6% |
| Net Debt/EBITDA | 17.1x | 8.9x | 6.2x | 6.4x | 3.8x | -2.6x |
Revenue and profitability
China Renewable Energy Investment Ltd's Revenue surged on 36.6% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 10.1 pp from 64.3% to 74.3% in 2015.
Gross Margin increased on 8.6 pp from 24.7% to 33.3% in 2015. SG&A as a % of Revenue decreased on 4.3 pp from 22.0% to 17.8% in 2015.
Net Income marign jumped on 15.6 pp from 14.9% to 30.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 32.4%. CAPEX/Revenue increased on 9.1 pp from 23.4% in 2012 to 32.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 92.4%.
Return on investment
The company operates at low ROIC (0.88%) and ROE (2.41%). ROIC increased slightly on 0.85 pp from 0.034% to 0.88% in 2015. ROE increased slightly on 1.6 pp from 0.82% to 2.4% in 2015.
Leverage (Debt)
Debt level is 3.8x Net Debt / EBITDA and 5.6x Debt / EBITDA. Net Debt / EBITDA dropped on 2.6x from 6.4x to 3.8x in 2015. Debt dropped on 18.1% in 2015 while cash dropped on 34.9% in 2015.
Appendix 1: Peers in Energy-Alternate Sources
Below you can find China Renewable Energy Investment 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% | 9.5% | 18.6% | 36.5% | 73.2% |
|---|
| China Renewable Energy Investment Ltd ($987) | | 10.7% | 14.3% | -14.4% | 36.6% |
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 (7 companies) | 35.9% | 22.9% | 31.3% | 31.6% | 37.1% |
|---|
| China Renewable Energy Investment Ltd ($987) | 12.2% | 20.2% | 37.1% | 24.7% | 33.3% |
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 Longyuan Power Group Corp Ltd ($916) | 48.8% | 56.3% | 54.4% | 63.5% | 64.5% |
| 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) | 40.6% | 31.9% | 30.6% | 36.9% | 53.2% |
|---|
| China Renewable Energy Investment Ltd ($987) | 28.1% | 54.1% | 66.1% | 64.3% | 74.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Longyuan Power Group Corp Ltd ($916) | 83.1% | 79.5% | 54.9% | 100.2% | 77.7% |
| 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) | 75.1% | 46.5% | 16.3% | 31.2% | 53.2% |
|---|
| China Renewable Energy Investment Ltd ($987) | 44.5% | 23.4% | 118.5% | 126.1% | 32.4% |
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% | |
| China Longyuan Power Group Corp Ltd ($916) | 7.0% | 6.9% | 6.3% | 6.3% | 6.2% |
| |
|---|
| Median (10 companies) | 7.0% | 6.1% | 6.5% | 6.3% | 11.0% |
|---|
| China Renewable Energy Investment Ltd ($987) | -1.7% | -0.6% | 0.5% | 0.0% | 0.9% |
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 Longyuan Power Group Corp Ltd ($916) | 5.9x | 5.5x | 5.3x | 5.8x | 5.7x |
| 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 Renewable Energy Investment Ltd ($987) | 17.1x | 8.9x | 6.2x | 6.4x | 3.8x |
