Shenzhen International Holdings Ltd reports 76.8% CAPEX growth and 5.8% Revenue growth
22/03/2016 • About Shenzhen International Holdings Ltd (
$152) • By InTwits
Shenzhen International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shenzhen International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 25.9%. At the same time it's a lot of higher than industry average of 8.9%.
- CAPEX is quite volatile: 143 in 2015, 60.8 in 2014, 73.9 in 2013, 136 in 2012, 284 in 2011
- The company has business model with low profitability: ROIC is at 8.2%
- It operates with high leverage: Net Debt/EBITDA is -0.0x while industry average is -21.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shenzhen International Holdings Ltd ($152) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,581 | 5,740 | 5,963 | 6,370 | 6,738 | 5.8% |
| Gross Profit | 2,742 | 2,638 | 2,937 | 3,142 | 2,865 | -8.8% |
| SG&A | 359 | 384 | 395 | 455 | 569 | 24.9% |
| EBITDA | 3,865 | 3,456 | 3,925 | 6,186 | 4,958 | -19.9% |
| Net Income | 1,745 | 1,878 | 1,641 | 2,229 | 2,198 | -1.4% |
Balance Sheet
|
|---|
| Cash | 3,724 | 4,866 | 4,950 | 7,161 | 13,254 | 85.1% |
| Short Term Debt | 1,413 | 3,898 | 2,297 | 2,392 | 3,876 | 62.0% |
| Long Term Debt | 15,321 | 14,072 | 15,025 | 13,355 | 9,161 | -31.4% |
Cash flow
|
|---|
| Capex | 1,581 | 1,318 | 1,319 | 1,334 | 2,358 | 76.8% |
Ratios
|
|---|
| Revenue growth | 9.2% | 2.8% | 3.9% | 6.8% | 5.8% | |
| EBITDA growth | 16.1% | -10.6% | 13.6% | 57.6% | -19.9% | |
| Gross Margin | 49.1% | 46.0% | 49.3% | 49.3% | 42.5% | -6.8% |
| EBITDA Margin | 69.3% | 60.2% | 65.8% | 97.1% | 73.6% | -23.5% |
| Net Income Margin | 31.3% | 32.7% | 27.5% | 35.0% | 32.6% | -2.4% |
| SG&A, % of revenue | 6.4% | 6.7% | 6.6% | 7.1% | 8.4% | 1.3% |
| CAPEX, % of revenue | 28.3% | 23.0% | 22.1% | 20.9% | 35.0% | 14.1% |
| ROIC | 8.0% | 6.0% | 6.4% | 11.2% | 8.2% | -2.9% |
| ROE | 15.8% | 15.7% | 12.3% | 14.1% | 12.3% | -1.8% |
| Net Debt/EBITDA | 3.4x | 3.8x | 3.2x | 1.4x | -0.0x | -1.4x |
Revenue and profitability
Shenzhen International Holdings Ltd's Revenue increased on 5.8% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 23.5 pp from 97.1% to 73.6% in 2015.
Gross Margin decreased on 6.8 pp from 49.3% to 42.5% in 2015. SG&A as a % of Revenue increased slightly on 1.3 pp from 7.1% to 8.4% in 2015.
Net Income marign decreased on 2.4 pp from 35.0% to 32.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Shenzhen International Holdings Ltd had CAPEX/Revenue of 35.0%. The company showed fast CAPEX/Revenue growth of 12.0 pp from 23.0% in 2012 to 35.0% in 2015. Average CAPEX/Revenue for the last three years was 26.0%.
Return on investment
The company operates at good ROE (12.26%) while ROIC is low (8.24%). ROIC decreased on 2.9 pp from 11.2% to 8.2% in 2015. ROE decreased slightly on 1.8 pp from 14.1% to 12.3% in 2015.
Leverage (Debt)
Debt level is -0.0x Net Debt / EBITDA and 2.6x Debt / EBITDA. Net Debt / EBITDA dropped on 1.4x from 1.4x to -0.044x in 2015. Debt dropped on 17.2% in 2015 while cash surged on 85.1% in 2015.
Appendix 1: Peers in Commercial Services
Below you can find Shenzhen International Holdings Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | 429.3% | -61.9% | -27.8% | 2,912.9% | |
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Goldpac Group Ltd ($3315) | | 52.3% | 64.4% | 36.8% | 10.8% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| |
|---|
| Median (60 companies) | 25.5% | 8.9% | 4.7% | 9.4% | 4.7% |
|---|
| Shenzhen International Holdings Ltd ($152) | | 2.8% | 3.9% | 6.8% | 5.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | 77.6% |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 67.1% | 66.2% | 66.8% | 62.8% | 65.2% |
| |
|---|
| Median (56 companies) | 32.9% | 31.0% | 29.2% | 30.8% | 28.7% |
|---|
| Shenzhen International Holdings Ltd ($152) | 49.1% | 46.0% | 49.3% | 49.3% | 42.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | 53.0% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | 71.6% |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| Dragon Crown Group Holdings Ltd ($935) | 57.8% | 67.3% | 62.9% | 60.2% | |
| Jiangsu Expressway Co Ltd ($177) | 60.8% | 57.0% | 60.7% | 59.3% | |
| |
|---|
| Median (60 companies) | 16.4% | 16.0% | 13.4% | 10.9% | 5.4% |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | 73.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | |
| |
|---|
| Median (59 companies) | 3.8% | 3.2% | 4.0% | 4.0% | 2.7% |
|---|
| Shenzhen International Holdings Ltd ($152) | 28.3% | 23.0% | 22.1% | 20.9% | 35.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mega Expo Holdings Ltd ($1360) | | 270.5% | 481.1% | 54.4% | 10.1% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| PPS International Holdings Ltd ($8201) | | 101.6% | 35.6% | 23.8% | -13.7% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% |
| |
|---|
| Median (60 companies) | 5.0% | 5.9% | 4.2% | 3.2% | 3.7% |
|---|
| Shenzhen International Holdings Ltd ($152) | 8.0% | 6.0% | 6.4% | 11.2% | 8.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | 0.8x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | 6.2x |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | 5.3x |
| |
|---|
| Median (39 companies) | -0.1x | -0.1x | -0.8x | -1.0x | -1.3x |
|---|
| Shenzhen International Holdings Ltd ($152) | 3.4x | 3.8x | 3.2x | 1.4x | -0.0x |
