Sinotrans Ltd reports 21.4% EBITDA growth and almost no change in Revenue of 45,528
22/03/2016 • About Sinotrans Ltd (
$598) • By InTwits
Sinotrans Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sinotrans Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 676 in FY2015, 566 in FY2014, 388 in FY2013, 307 in FY2012, 127 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sinotrans Ltd ($598) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 43,747 | 47,482 | 45,402 | 45,660 | 45,528 | -0.3% |
| EBITDA | 1,293 | 1,147 | 1,746 | 1,839 | 2,233 | 21.4% |
| Net Income | 643 | 649 | 904 | 1,231 | 1,493 | 21.3% |
Balance Sheet
|
|---|
| Cash | 5,521 | 5,595 | 5,387 | 5,332 | 6,133 | 15.0% |
| Short Term Debt | 4,465 | 2,832 | 1,402 | 2,748 | 4,566 | 66.2% |
| Long Term Debt | 748 | 2,845 | 4,345 | 2,993 | 1,036 | -65.4% |
Cash flow
|
|---|
| Capex | 1,478 | 1,482 | 1,688 | 1,261 | 1,648 | 30.7% |
Ratios
|
|---|
| Revenue growth | 2.8% | 8.5% | -4.4% | 0.6% | -0.3% | |
| EBITDA growth | 8.8% | -11.3% | 52.3% | 5.3% | 21.4% | |
| EBITDA Margin | 3.0% | 2.4% | 3.8% | 4.0% | 4.9% | 0.9% |
| Net Income Margin | 1.5% | 1.4% | 2.0% | 2.7% | 3.3% | 0.6% |
| CAPEX, % of revenue | 3.4% | 3.1% | 3.7% | 2.8% | 3.6% | 0.9% |
| ROIC | 5.0% | 3.8% | 5.9% | 5.8% | 6.9% | 1.1% |
| ROE | 6.6% | 6.4% | 8.3% | 9.9% | 10.5% | 0.6% |
| Net Debt/EBITDA | -0.2x | 0.1x | 0.2x | 0.2x | -0.2x | -0.5x |
Revenue and profitability
Sinotrans Ltd's Revenue showed almost no change in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.88 pp from 4.0% to 4.9% in 2015.
Net Income marign increased slightly on 0.58 pp from 2.7% to 3.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.6% in 2015. Sinotrans Ltd showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 3.4%.Sinotrans Ltd invested a big chunk of EBITDA (73.8%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (6.87%) and ROE (10.46%). ROIC increased slightly on 1.1 pp from 5.8% to 6.9% in 2015. ROE increased slightly on 0.59 pp from 9.9% to 10.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is 2.5x. Net Debt / EBITDA dropped on 0.5x from 0.2x to -0.2x in 2015. Debt decreased on 2.4% in 2015 while cash jumped on 15.0% in 2015.
Appendix 1: Peers in Transportation
Below we provide Sinotrans Ltd benchmarking against other companies in Transportation 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 |
|---|
| Frontier Services Group Ltd ($500) | -90.5% | -10.8% | -49.9% | 1,021.1% | |
| China Best Group Holding Ltd ($370) | 333.1% | 202.4% | -53.6% | 459.4% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | | -4.2% | -5.9% | 60.4% | -12.0% |
| Tianjin Port Development Holdings Ltd ($3382) | 9.8% | 8.7% | 24.9% | 51.9% | |
| CIG Yangtze Ports PLC ($8233) | | 17.9% | 30.6% | 23.5% | 0.1% |
| |
|---|
| Median (29 companies) | 11.0% | 3.4% | 4.5% | 5.5% | -7.7% |
|---|
| Sinotrans Ltd ($598) | | 8.5% | -4.4% | 0.6% | -0.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.0% | 51.3% | 44.8% | 46.6% | 48.7% |
| Frontier Services Group Ltd ($500) | 80.7% | 83.8% | 65.9% | 44.8% | |
| Qinhuangdao Port Co Ltd ($3369) | 43.2% | 43.1% | 42.4% | 43.3% | |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 21.5% | 23.1% | 25.1% | 24.1% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% |
| |
|---|
| Median (27 companies) | 18.7% | 13.0% | 10.9% | 10.3% | 7.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Qinhuangdao Port Co Ltd ($3369) | 45.3% | 46.0% | 44.6% | 46.5% | |
| MTR Corp Ltd ($66) | 49.1% | 42.7% | 37.6% | 45.2% | 41.6% |
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | 39.5% |
| Great Harvest Maeta Group Holdings Ltd ($3683) | 61.3% | 56.3% | 18.7% | 32.6% | -8.5% |
| China Shipping Development Co Ltd ($1138) | 24.7% | 12.5% | 3.0% | 24.7% | |
| |
|---|
| Median (30 companies) | 16.3% | 9.9% | 7.8% | 8.5% | 7.8% |
|---|
| Sinotrans Ltd ($598) | 3.0% | 2.4% | 3.8% | 4.0% | 4.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | 0.0% | | 296.6% | 1.4% |
| Frontier Services Group Ltd ($500) | 5.4% | 6.3% | 3.6% | 63.3% | |
| China Shipping Development Co Ltd ($1138) | 68.9% | 55.8% | 34.0% | 54.9% | |
| Courage Marine Group Ltd ($1145) | 78.9% | 235.0% | 37.7% | 50.4% | 9.2% |
| Qinhuangdao Port Co Ltd ($3369) | 47.2% | 57.9% | 35.8% | 46.3% | |
| |
|---|
| Median (30 companies) | 11.3% | 9.1% | 9.2% | 7.4% | 11.0% |
|---|
| Sinotrans Ltd ($598) | 3.4% | 3.1% | 3.7% | 2.8% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 34.2% | 21.1% | 20.9% | 19.1% | |
| ASR Logistics Holdings Ltd ($1803) | 79.6% | 54.7% | 38.9% | 13.4% | |
| CIG Yangtze Ports PLC ($8233) | 4.3% | 4.9% | 5.7% | 11.0% | 11.1% |
| Kerry Logistics Network Ltd ($636) | 11.3% | 12.0% | 13.4% | 10.5% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 8.9% | 5.6% | 7.2% | 9.6% | 10.6% |
| |
|---|
| Median (30 companies) | 5.3% | 3.2% | 2.8% | 3.1% | 2.2% |
|---|
| Sinotrans Ltd ($598) | 5.0% | 3.8% | 5.9% | 5.8% | 6.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jinhui Holdings Co Ltd ($137) | 2.8x | 5.0x | 4.2x | 17.5x | 19.6x |
| China Shipping Development Co Ltd ($1138) | 7.2x | 20.2x | 92.8x | 12.8x | |
| Tianjin Binhai Teda Logistics Group Corp Ltd ($8348) | -0.5x | 9.7x | 9.3x | 9.5x | -1.8x |
| China COSCO Holdings Co Ltd ($1919) | | | 18.8x | 9.0x | |
| AMS Public Transport Holdings Ltd ($77) | 0.7x | 1.2x | 11.6x | 7.7x | 4.5x |
| |
|---|
| Median (22 companies) | 0.5x | 1.6x | 1.7x | 1.6x | 2.5x |
|---|
| Sinotrans Ltd ($598) | -0.2x | 0.1x | 0.2x | 0.2x | -0.2x |
