Binhai Investment Co Ltd EBITDA surged on 37.0% in 2015 and Revenue showed almost no change
23/03/2016 • About Binhai Investment Co Ltd (
$2886) • By InTwits
Binhai Investment Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 20.7% in 2015, 15.2% in 2014, 17.0% in 2013, 14.8% in 2012, 5.9% in 2011
- Binhai Investment Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.1%. At the same time it's a lot of higher than industry average of 12.4%.
- CAPEX is quite volatile: 34.4 in FY2015, 119 in FY2014, 25.5 in FY2013, 20.9 in FY2012, 158 in FY2011
- The company has highly profitable business model: ROIC is at 14.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.8x while industry average is 2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Binhai Investment Co Ltd ($2886) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,231 | 1,661 | 2,229 | 2,543 | 2,555 | 0.5% |
| Gross Profit | 167 | 335 | 459 | 465 | 543 | 16.8% |
| SG&A | | | | | 163 | |
| EBITDA | 72 | 246 | 379 | 386 | 529 | 37.0% |
| Net Income | 71 | 136 | 136 | 214 | 199 | -6.9% |
Balance Sheet
|
|---|
| Cash | 431 | 818 | 685 | 463 | 331 | -28.5% |
| Short Term Debt | 376 | 594 | 265 | 957 | 261 | -72.7% |
| Long Term Debt | 28 | 1,062 | 1,497 | 847 | 1,533 | 81.1% |
Cash flow
|
|---|
| Capex | 290 | 447 | 401 | 393 | 426 | 8.5% |
Ratios
|
|---|
| Revenue growth | 54.8% | 35.0% | 34.2% | 14.1% | 0.5% | |
| EBITDA growth | -2.5% | 241.1% | 54.1% | 1.9% | 37.0% | |
| Gross Margin | 13.6% | 20.1% | 20.6% | 18.3% | 21.3% | 3.0% |
| EBITDA Margin | 5.9% | 14.8% | 17.0% | 15.2% | 20.7% | 5.5% |
| Net Income Margin | 5.8% | 8.2% | 6.1% | 8.4% | 7.8% | -0.6% |
| SG&A, % of revenue | | | | | 6.4% | 6.4% |
| CAPEX, % of revenue | 23.6% | 26.9% | 18.0% | 15.5% | 16.7% | 1.2% |
| ROIC | 7.6% | 12.2% | 12.2% | 10.9% | 14.7% | 3.8% |
| ROE | | | 79.7% | 53.3% | 31.3% | -22.0% |
| Net Debt/EBITDA | -0.4x | 3.4x | 2.8x | 3.5x | 2.8x | -0.7x |
Revenue and profitability
Binhai Investment Co Ltd's Revenue showed almost no change in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.62 pp from 1.1% to 1.8% in FY2015.
Gross Margin increased on 3.0 pp from 18.3% to 21.3% in 2015.
Net Income marign decreased slightly on 0.62 pp from 8.4% to 7.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
Binhai Investment Co Ltd's CAPEX/Revenue was 16.7% in 2015. CAPEX/Revenue dropped on 10.2 pp from 26.9% in 2012 to 16.7% in 2015. Average CAPEX/Revenue for the last three years was 16.7%.Binhai Investment Co Ltd maintained rich investment policy and has spent a big chunk of EBITDA (80.6%) to CAPEX.
Return on investment
The company operates at high and attractive ROE (31.31%) while ROIC is a bit lower (14.72%). ROIC increased on 3.8 pp from 10.9% to 14.7% in 2015. ROE dropped on 22.0 pp from 53.3% to 31.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 3.4x. Net Debt / EBITDA dropped on 0.7x from 3.5x to 2.8x in 2015. Debt decreased slightly on 0.53% in 2015 while cash dropped on 28.5% in 2015.
Appendix 1: Peers in Gas
Below you can find Binhai Investment Co Ltd benchmarking vs. other companies in Gas 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 |
|---|
| 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% | |
| ENN Energy Holdings Ltd ($2688) | | 19.6% | 27.4% | 26.7% | 10.2% |
| 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% |
| |
|---|
| Median (8 companies) | 52.3% | 11.4% | 27.4% | 18.4% | -2.1% |
|---|
| Binhai Investment Co Ltd ($2886) | | 35.0% | 34.2% | 14.1% | 0.5% |
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% | |
| ENN Energy Holdings Ltd ($2688) | 25.9% | 26.9% | 23.8% | 20.9% | 21.4% |
| China Gas Holdings Ltd ($384) | 18.3% | 19.0% | 21.0% | 20.3% | 20.4% |
| 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) | 21.6% | 21.6% | 21.8% | 19.1% | 20.4% |
|---|
| Binhai Investment Co Ltd ($2886) | 13.6% | 20.1% | 20.6% | 18.3% | 21.3% |
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% |
| ENN Energy Holdings Ltd ($2688) | 18.4% | 20.4% | 15.1% | 18.2% | 16.5% |
| 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% |
| |
|---|
| Median (8 companies) | 18.2% | 19.9% | 17.4% | 17.1% | 16.7% |
|---|
| Binhai Investment Co Ltd ($2886) | 5.9% | 14.8% | 17.0% | 15.2% | 20.7% |
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% |
| 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% | |
| China Gas Holdings Ltd ($384) | 12.2% | 9.4% | 13.7% | 12.3% | 12.3% |
| |
|---|
| Median (8 companies) | 14.3% | 16.0% | 15.1% | 12.4% | 10.2% |
|---|
| Binhai Investment Co Ltd ($2886) | 23.6% | 26.9% | 18.0% | 15.5% | 16.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ENN Energy Holdings Ltd ($2688) | 13.1% | 14.3% | 11.7% | 16.4% | 13.6% |
| China Resources Gas Group Ltd ($1193) | 11.9% | 6.9% | 10.4% | 11.4% | |
| 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) | 8.0% | 7.3% | 8.6% | 7.5% | 6.4% |
|---|
| Binhai Investment Co Ltd ($2886) | 7.6% | 12.2% | 12.2% | 10.9% | 14.7% |
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 |
| 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 | |
| Hong Kong & China Gas Co Ltd ($3) | 2.2x | 2.6x | 2.8x | 2.1x | 2.3x |
| |
|---|
| Median (7 companies) | 1.6x | 2.6x | 1.6x | 2.8x | 2.3x |
|---|
| Binhai Investment Co Ltd ($2886) | -0.4x | 3.4x | 2.8x | 3.5x | 2.8x |
