China State Construction International Holdings Ltd Net Income surged on 20.1% in 2015 and Revenue jumped on 10.1%
22/03/2016 • About China State Construction International Holdings Ltd (
$3311) • By InTwits
China State Construction International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China State Construction International Holdings Ltd is a fast growth stock: 2015 revenue growth was 10.1%, 5 year revenue CAGR was 25.9% at 2015 ROIC 12.1%
- China State Construction International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 7.0%.
- 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 highly profitable business model: ROIC is at 12.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China State Construction International Holdings Ltd ($3311) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16,379 | 21,911 | 27,286 | 34,440 | 37,913 | 10.1% |
| Gross Profit | 1,798 | 2,718 | 3,746 | 4,743 | 5,030 | 6.0% |
| SG&A | 554 | 704 | 960 | | | |
| EBITDA | 1,503 | 2,374 | 3,229 | 4,337 | 5,010 | 15.5% |
| Net Income | 1,507 | 2,131 | 2,750 | 3,457 | 4,153 | 20.1% |
Balance Sheet
|
|---|
| Cash | 5,459 | 6,876 | 8,126 | 7,452 | 8,015 | 7.6% |
| Short Term Debt | 1,298 | 50 | 263 | 588 | 809 | 37.5% |
| Long Term Debt | 4,961 | 10,001 | 12,465 | 14,235 | 16,968 | 19.2% |
Cash flow
|
|---|
| Capex | 527 | 403 | 381 | 514 | 447 | -13.0% |
Ratios
|
|---|
| Revenue growth | 36.7% | 33.8% | 24.5% | 26.2% | 10.1% | |
| EBITDA growth | 54.2% | 57.9% | 36.0% | 34.3% | 15.5% | |
| Gross Margin | 11.0% | 12.4% | 13.7% | 13.8% | 13.3% | -0.5% |
| EBITDA Margin | 9.2% | 10.8% | 11.8% | 12.6% | 13.2% | 0.6% |
| Net Income Margin | 9.2% | 9.7% | 10.1% | 10.0% | 11.0% | 0.9% |
| SG&A, % of revenue | 3.4% | 3.2% | 3.5% | | | 0.0% |
| CAPEX, % of revenue | 3.2% | 1.8% | 1.4% | 1.5% | 1.2% | -0.3% |
| ROIC | 9.9% | 10.2% | 10.7% | 12.2% | 12.1% | -0.1% |
| ROE | 21.4% | 18.5% | 18.7% | 19.3% | 20.3% | 0.9% |
| Net Debt/EBITDA | 0.5x | 1.3x | 1.4x | 1.7x | 1.9x | 0.2x |
Revenue and profitability
The company's Revenue jumped on 10.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.56 pp from 14.2% to 13.6% in 2015.
Gross Margin decreased slightly on 0.51 pp from 13.8% to 13.3% in 2015.
Net Income marign increased slightly on 0.92 pp from 10.0% to 11.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.2%. The company showed small CAPEX/Revenue decline of 0.66 pp from 1.8% in 2012 to 1.2% in 2015. It's average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at high and attractive ROE (20.27%) while ROIC is a bit lower (12.12%). ROIC showed almost no change in 2015. ROE increased slightly on 0.94 pp from 19.3% to 20.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 3.5x. Net Debt / EBITDA surged on 0.2x from 1.7x to 1.9x in 2015. Debt surged on 19.9% in 2015 while cash increased on 7.6% in 2015.
Management team
The company's CEO is Zhou Yong. Zhou Yong has 13 years tenure at the company.
Appendix 1: Peers in Engineering&Construction
Below you can find China State Construction International Holdings Ltd benchmarking vs. other companies in Engineering&Construction 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 |
|---|
| Richly Field China Development Ltd ($313) | | | -45.0% | 464.2% | -65.7% |
| Junefield Department Store Group Ltd ($758) | 22.9% | -20.3% | -24.9% | 126.6% | |
| CNQC International Holdings Ltd ($1240) | 401.9% | 21.6% | 91.0% | 103.7% | |
| Wison Engineering Services Co Ltd ($2236) | 1.2% | -2.9% | -24.9% | 90.3% | |
| China Resources and Transportation Group Ltd ($269) | | 939.8% | 3,196.3% | 87.9% | -41.6% |
| |
|---|
| Median (42 companies) | 8.6% | 9.7% | 21.0% | 14.0% | 14.0% |
|---|
| China State Construction International Holdings Ltd ($3311) | | 33.8% | 24.5% | 26.2% | 10.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | 2.2% | 43.6% | 65.6% | 64.0% | |
| HNA Infrastructure Company Ltd ($357) | 61.6% | 66.4% | 62.1% | 62.4% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 50.1% | 54.1% | 54.3% | 41.5% | |
| Kingbo Strike Ltd ($1421) | 22.9% | 32.4% | 44.4% | 40.3% | 30.7% |
| Broad Greenstate International Co Ltd ($1253) | 16.7% | 20.1% | 28.7% | 35.8% | 36.7% |
| |
|---|
| Median (37 companies) | 12.0% | 13.3% | 12.1% | 12.9% | 12.9% |
|---|
| China State Construction International Holdings Ltd ($3311) | 11.0% | 12.4% | 13.7% | 13.8% | 13.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 46.2% | 73.8% | 77.1% | |
| HNA Infrastructure Company Ltd ($357) | 60.0% | 62.8% | 63.7% | 62.8% | |
| Beijing Capital International Airport Co Ltd ($694) | 55.1% | 53.4% | 52.9% | 50.3% | 51.6% |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 39.8% | 31.2% | 20.6% | 36.2% | 60.9% |
| Grand Ming Group Holdings Ltd ($1271) | 17.5% | 10.0% | 15.8% | 31.0% | 19.0% |
| |
|---|
| Median (43 companies) | 8.5% | 9.2% | 7.8% | 6.8% | 7.6% |
|---|
| China State Construction International Holdings Ltd ($3311) | 9.2% | 10.8% | 11.8% | 12.6% | 13.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HNA Infrastructure Company Ltd ($357) | 43.3% | 36.8% | 5.7% | 85.4% | |
| PYI Corp Ltd ($498) | 6.6% | 3.7% | 4.2% | 24.5% | 13.1% |
| Shun Cheong Holdings ($650) | 7.2% | 16.4% | 8.0% | 23.9% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 6.1% | 4.2% | 7.7% | 20.2% | |
| KFM Kingdom Holdings Ltd ($3816) | 6.5% | 4.6% | 11.5% | 14.9% | 9.6% |
| |
|---|
| Median (43 companies) | 4.4% | 2.5% | 2.9% | 1.8% | 2.7% |
|---|
| China State Construction International Holdings Ltd ($3311) | 3.2% | 1.8% | 1.4% | 1.5% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 98.3% | 54.9% | 43.7% |
| Broad Greenstate International Co Ltd ($1253) | | 33.2% | 85.1% | 51.2% | 26.0% |
| Kingbo Strike Ltd ($1421) | | 56.9% | 125.4% | 48.9% | 11.4% |
| Ngai Shun Holdings Ltd ($1246) | | 68.8% | 77.2% | 45.2% | 31.0% |
| CNQC International Holdings Ltd ($1240) | 23.1% | 12.2% | 22.3% | 40.4% | |
| |
|---|
| Median (44 companies) | 6.9% | 5.8% | 5.3% | 4.1% | 2.7% |
|---|
| China State Construction International Holdings Ltd ($3311) | 9.9% | 10.2% | 10.7% | 12.2% | 12.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Resources and Transportation Group Ltd ($269) | | | | 66.7x | 29.7x |
| CNC Holdings Ltd ($8356) | -0.7x | | 22.0x | 21.9x | 24.3x |
| Deson Development International Holdings ($262) | 3.1x | 3.8x | 4.9x | 13.7x | 47.0x |
| Chun Wo Development Holdings Ltd ($711) | | 14.3x | 8.1x | 12.6x | 15.9x |
| Hsin Chong Construction Group Ltd ($404) | 4.3x | 1.8x | 8.0x | 10.2x | |
| |
|---|
| Median (36 companies) | 0.5x | 1.4x | 1.5x | 2.4x | 2.4x |
|---|
| China State Construction International Holdings Ltd ($3311) | 0.5x | 1.3x | 1.4x | 1.7x | 1.9x |
