ENN Energy Holdings Ltd Net Income dropped on 31.4% in 2015 and EBITDA Margin decreased slightly on 1.7 pp from 18.2% to 16.5%
22/03/2016 • About ENN Energy Holdings Ltd (
$2688) • By InTwits
ENN Energy Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- ENN Energy Holdings Ltd is a fast growth stock: 2015 revenue growth was 10.2%, 5 year revenue CAGR was 23.4% at 2015 ROIC 13.6%
- ENN Energy Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.1%. At the same time it's in pair with industry average of 12.3%.
- CAPEX is quite volatile: 721 in 2015, 1,844 in 2014, 1,645 in 2013, 1,403 in 2012, 3,559 in 2011
- The company has highly profitable business model: ROIC is at 13.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ENN Energy Holdings Ltd ($2688) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 15,068 | 18,027 | 22,966 | 29,087 | 32,063 | 10.2% |
| Gross Profit | 3,902 | 4,844 | 5,464 | 6,069 | 6,866 | 13.1% |
| SG&A | 1,530 | 1,838 | 1,934 | 2,253 | 2,500 | 11.0% |
| EBITDA | 2,768 | 3,677 | 3,477 | 5,288 | 5,285 | -0.1% |
| Net Income | 1,253 | 1,482 | 1,252 | 2,968 | 2,036 | -31.4% |
Balance Sheet
|
|---|
| Cash | 3,349 | 6,156 | 6,822 | 10,503 | 7,355 | -30.0% |
| Short Term Debt | 3,213 | 3,945 | 921 | 1,540 | 6,654 | 332.1% |
| Long Term Debt | 7,459 | 7,297 | 11,522 | 13,003 | 9,026 | -30.6% |
Cash flow
|
|---|
| Capex | 2,767 | 2,879 | 3,110 | 2,791 | 2,603 | -6.7% |
Ratios
|
|---|
| Revenue growth | 34.4% | 19.6% | 27.4% | 26.7% | 10.2% | |
| EBITDA growth | 26.2% | 32.8% | -5.4% | 52.1% | -0.1% | |
| Gross Margin | 25.9% | 26.9% | 23.8% | 20.9% | 21.4% | 0.5% |
| EBITDA Margin | 18.4% | 20.4% | 15.1% | 18.2% | 16.5% | -1.7% |
| Net Income Margin | 8.3% | 8.2% | 5.5% | 10.2% | 6.3% | -3.9% |
| SG&A, % of revenue | 10.2% | 10.2% | 8.4% | 7.7% | 7.8% | 0.1% |
| CAPEX, % of revenue | 18.4% | 16.0% | 13.5% | 9.6% | 8.1% | -1.5% |
| ROIC | 13.1% | 14.3% | 11.7% | 16.4% | 13.6% | -2.8% |
| ROE | 19.2% | 18.9% | 13.8% | 27.4% | 15.9% | -11.5% |
| Net Debt/EBITDA | 2.6x | 1.4x | 1.6x | 0.8x | 1.6x | 0.8x |
Revenue and profitability
The company's Revenue surged on 10.2% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from 18.2% to 16.5% in 2015.
Gross Margin increased slightly on 0.55 pp from 20.9% to 21.4% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 3.9 pp from 10.2% to 6.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
ENN Energy Holdings Ltd's CAPEX/Revenue was 8.1% in 2015. ENN Energy Holdings Ltd's CAPEX/Revenue decreased on 7.9 pp from 16.0% in 2012 to 8.1% in 2015. It's average level of CAPEX/Revenue for the last three years was 10.4%.
Return on investment
The company operates at good ROIC (13.57%) and ROE (15.93%). ROIC decreased on 2.8 pp from 16.4% to 13.6% in 2015. ROE dropped on 11.5 pp from 27.4% to 15.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 3.0x. Net Debt / EBITDA surged on 0.8x from 0.8x to 1.6x in 2015. Debt increased on 7.8% in 2015 while cash dropped on 30.0% in 2015.
Appendix 1: Peers in Gas
Below we provide ENN Energy Holdings Ltd benchmarking against other companies in Gas industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Gas Holdings Ltd ($384) | | 19.4% | -5.2% | 44.8% | 21.8% |
| China Resources Gas Group Ltd ($1193) | 52.3% | -4.1% | 63.6% | 28.8% | |
| China Oil & Gas Group Ltd ($603) | 67.2% | 11.4% | 31.7% | 19.5% | |
| Towngas China Co Ltd ($1083) | | 20.0% | 29.6% | 17.4% | -2.1% |
| Binhai Investment Co Ltd ($2886) | 54.8% | 35.0% | 34.2% | 14.1% | |
| |
|---|
| Median (8 companies) | 53.5% | 11.4% | 29.6% | 15.7% | -4.2% |
|---|
| ENN Energy Holdings Ltd ($2688) | | 19.6% | 27.4% | 26.7% | 10.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Resources Gas Group Ltd ($1193) | 29.3% | 31.2% | 34.2% | 30.3% | |
| China Gas Holdings Ltd ($384) | 18.3% | 19.0% | 21.0% | 20.3% | 20.4% |
| Binhai Investment Co Ltd ($2886) | 13.6% | 20.1% | 20.6% | 18.3% | |
| Beijing Enterprises Holdings Ltd ($392) | 22.1% | 20.7% | 19.7% | 17.9% | |
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 21.2% | 9.4% | 17.2% | 16.4% | 20.3% |
| |
|---|
| Median (6 companies) | 20.8% | 20.4% | 20.8% | 18.1% | 20.3% |
|---|
| ENN Energy Holdings Ltd ($2688) | 25.9% | 26.9% | 23.8% | 20.9% | 21.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong & China Gas Co Ltd ($3) | 31.1% | 30.0% | 29.6% | 29.2% | 30.7% |
| Towngas China Co Ltd ($1083) | 19.3% | 19.9% | 18.9% | 18.8% | 19.2% |
| China Resources Gas Group Ltd ($1193) | 18.2% | 16.2% | 17.4% | 17.7% | |
| China Gas Holdings Ltd ($384) | 14.2% | 15.2% | 16.5% | 16.6% | 16.8% |
| China Oil & Gas Group Ltd ($603) | 17.6% | 21.5% | 21.2% | 16.0% | |
| |
|---|
| Median (8 companies) | 17.6% | 16.2% | 17.4% | 16.3% | 16.8% |
|---|
| ENN Energy Holdings Ltd ($2688) | 18.4% | 20.4% | 15.1% | 18.2% | 16.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Towngas China Co Ltd ($1083) | 21.1% | 31.3% | 25.7% | 26.2% | 26.4% |
| Hong Kong & China Gas Co Ltd ($3) | 20.7% | 23.7% | 18.7% | 20.1% | 21.5% |
| Binhai Investment Co Ltd ($2886) | 23.6% | 26.9% | 18.0% | 15.5% | |
| China Oil & Gas Group Ltd ($603) | 17.1% | 15.0% | 18.3% | 15.4% | |
| China Resources Gas Group Ltd ($1193) | 14.3% | 20.6% | 18.5% | 12.4% | |
| |
|---|
| Median (8 companies) | 14.3% | 20.6% | 18.0% | 13.9% | 12.3% |
|---|
| ENN Energy Holdings Ltd ($2688) | 18.4% | 16.0% | 13.5% | 9.6% | 8.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Resources Gas Group Ltd ($1193) | 11.9% | 6.9% | 10.4% | 11.4% | |
| Binhai Investment Co Ltd ($2886) | 7.6% | 12.2% | 12.2% | 10.9% | |
| China Gas Holdings Ltd ($384) | 6.8% | 8.4% | 8.6% | 10.6% | 10.6% |
| China Oil & Gas Group Ltd ($603) | 14.0% | 13.7% | 13.2% | 7.6% | |
| Hong Kong & China Gas Co Ltd ($3) | 8.0% | 7.3% | 7.4% | 7.5% | 6.9% |
| |
|---|
| Median (9 companies) | 7.6% | 7.3% | 8.6% | 7.5% | 5.9% |
|---|
| ENN Energy Holdings Ltd ($2688) | 13.1% | 14.3% | 11.7% | 16.4% | 13.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Beijing Enterprises Holdings Ltd ($392) | 1.6x | 3.1x | 2.6x | 4.7x | |
| Towngas China Co Ltd ($1083) | 3.6x | 3.5x | 3.7x | 4.1x | 4.5x |
| Binhai Investment Co Ltd ($2886) | -0.4x | 3.4x | 2.8x | 3.5x | |
| China Gas Holdings Ltd ($384) | 4.4x | 3.7x | 3.7x | 3.1x | 2.9x |
| China Oil & Gas Group Ltd ($603) | -0.8x | -0.0x | 1.0x | 2.8x | |
| |
|---|
| Median (7 companies) | 1.3x | 3.1x | 2.6x | 3.1x | 2.6x |
|---|
| ENN Energy Holdings Ltd ($2688) | 2.6x | 1.4x | 1.6x | 0.8x | 1.6x |
