China CITIC Bank Corp Ltd revenue increased on 7.3% in 2015
23/03/2016 • About China CITIC Bank Corp Ltd (
$998) • By InTwits
China CITIC Bank Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China CITIC Bank Corp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's in pair with industry average of 3.5%.
- CAPEX is quite volatile: 6,427 in 2015, 11,432 in 2014, 5,292 in 2013, 3,588 in 2012, 1,973 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.5%
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is -5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China CITIC Bank Corp Ltd ($998) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 117,912 | 153,908 | 183,991 | 237,278 | 254,551 | 7.3% |
| Net Income | 30,819 | 31,032 | 39,175 | 40,692 | 41,158 | 1.1% |
Balance Sheet
|
|---|
| Cash | 366,391 | 428,167 | 496,476 | 538,486 | 511,189 | -5.1% |
| Short Term Debt | 540,222 | 388,002 | 601,619 | 707,940 | 1,332,601 | 88.2% |
| Long Term Debt | 25,154 | 44,809 | 73,901 | 148,685 | 111,826 | -24.8% |
Cash flow
|
|---|
| Capex | 1,973 | 3,588 | 5,292 | 11,432 | 6,427 | -43.8% |
Ratios
|
|---|
| Revenue growth | 46.7% | 30.5% | 19.5% | 29.0% | 7.3% | |
| Net Income Margin | 26.1% | 20.2% | 21.3% | 17.1% | 16.2% | -1.0% |
| CAPEX, % of revenue | 1.7% | 2.3% | 2.9% | 4.8% | 2.5% | -2.3% |
| ROIC | 7.5% | 5.7% | 6.5% | 5.0% | 3.5% | -1.5% |
| ROE | 20.9% | 16.6% | 18.5% | 16.8% | 14.3% | -2.5% |
Revenue and profitability
The company's Revenue increased on 7.3% in 2015.
Net Income marign decreased slightly on 0.98 pp from 17.1% to 16.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
China CITIC Bank Corp Ltd's CAPEX/Revenue was 2.5% in 2015. China CITIC Bank Corp Ltd showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at good ROE (14.26%) while ROIC is low (3.53%). ROIC decreased slightly on 1.5 pp from 5.0% to 3.5% in 2015. ROE decreased on 2.5 pp from 16.8% to 14.3% in 2015.
Leverage (Debt)
Debt jumped on 68.6% in 2015 while cash decreased on 5.1% in 2015.
Appendix 1: Peers in Banks
Below you can find China CITIC Bank Corp Ltd benchmarking vs. other companies in Banks 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 |
|---|
| Chong Hing Bank Ltd ($1111) | | 10.0% | -1.2% | 121.1% | -17.4% |
| Shengjing Bank Co Ltd ($2066) | | 36.5% | 36.3% | 40.1% | 24.3% |
| China Merchants Bank Co Ltd ($3968) | 42.3% | 24.0% | 18.6% | 33.9% | |
| Harbin Bank Co Ltd ($6138) | | 58.3% | 12.1% | 29.2% | 10.5% |
| Dah Sing Financial Holdings Ltd ($440) | | 9.9% | -0.1% | 29.0% | -7.8% |
| |
|---|
| Median (22 companies) | 33.4% | 19.6% | 10.4% | 13.8% | 1.7% |
|---|
| China CITIC Bank Corp Ltd ($998) | | 30.5% | 19.5% | 29.0% | 7.3% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | 34.2% | 4.1% | 29.9% | 27.0% | 33.5% |
| |
|---|
| Median (1 company) | 34.2% | 4.1% | 29.9% | 27.0% | 33.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Minsheng Banking Corp Ltd ($1988) | 5.0% | 5.2% | 6.8% | 7.6% | |
| Harbin Bank Co Ltd ($6138) | 20.0% | 19.8% | 9.9% | 6.5% | 5.8% |
| Industrial & Commercial Bank of China Ltd ($1398) | 3.2% | 3.8% | 4.9% | 5.4% | |
| Bank of Communications Co Ltd ($3328) | 3.1% | 3.6% | 5.1% | 5.3% | |
| Shengjing Bank Co Ltd ($2066) | 3.3% | 1.6% | 2.2% | 5.0% | 3.0% |
| |
|---|
| Median (22 companies) | 3.3% | 3.4% | 3.9% | 3.1% | 2.8% |
|---|
| China CITIC Bank Corp Ltd ($998) | 1.7% | 2.3% | 2.9% | 4.8% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chong Hing Bank Ltd ($1111) | 6.3% | 5.5% | 5.2% | 16.4% | 5.7% |
| KVB Kunlun Financial Group Ltd ($8077) | | 1.2% | 16.3% | 12.3% | |
| China Construction Bank Corp ($939) | 11.6% | 11.1% | 11.7% | 10.8% | |
| Industrial & Commercial Bank of China Ltd ($1398) | 10.6% | 9.9% | 10.2% | 9.9% | |
| Agricultural Bank of China Ltd ($1288) | 10.3% | 9.9% | 10.0% | 9.3% | |
| |
|---|
| Median (22 companies) | 6.3% | 6.0% | 6.3% | 5.5% | 4.3% |
|---|
| China CITIC Bank Corp Ltd ($998) | 7.5% | 5.7% | 6.5% | 5.0% | 3.5% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | -5.7x | -66.3x | -7.1x | -10.6x | -5.7x |
| |
|---|
| Median (1 company) | -5.7x | -66.3x | -7.1x | -10.6x | -5.7x |
|---|
