China Power International Development Ltd Net Income surged on 50.0% in 2015 and EBITDA Margin jumped on 11.3 pp from 42.3% to 53.6%
23/03/2016 • About China Power International Development Ltd (
$2380) • By InTwits
China Power International Development Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 53.6% in 2015 vs. 42.3% in 2014 vs. 25.3% in 2011
- China Power International Development Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.1%. At the same time it's in pair with industry average of 45.0%.
- CAPEX is quite volatile: 1,848 in 2015, 1,809 in 2014, 3,365 in 2013, 1,945 in 2012, 760 in 2011
- The company has business model with average profitability: ROIC is at 10.1%
- It operates with high leverage: Net Debt/EBITDA is 3.8x while industry average is 0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Power International Development Ltd ($2380) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16,082 | 17,497 | 18,827 | 20,447 | 20,197 | -1.2% |
| EBITDA | 4,068 | 5,625 | 7,341 | 8,641 | 10,816 | 25.2% |
| Net Income | 505 | 1,181 | 2,290 | 2,766 | 4,149 | 50.0% |
Balance Sheet
|
|---|
| Cash | 1,180 | 2,016 | 1,641 | 1,127 | 1,528 | 35.6% |
| Short Term Debt | 9,370 | 9,759 | 10,779 | 12,591 | 10,227 | -18.8% |
| Long Term Debt | 32,730 | 35,840 | 34,911 | 32,957 | 32,461 | -1.5% |
Cash flow
|
|---|
| Capex | 4,037 | 5,579 | 3,982 | 2,690 | 2,823 | 4.9% |
Ratios
|
|---|
| Revenue growth | 11.4% | 8.8% | 7.6% | 8.6% | -1.2% | |
| EBITDA growth | -4.9% | 38.3% | 30.5% | 17.7% | 25.2% | |
| EBITDA Margin | 25.3% | 32.1% | 39.0% | 42.3% | 53.6% | 11.3% |
| Net Income Margin | 3.1% | 6.8% | 12.2% | 13.5% | 20.5% | 7.0% |
| CAPEX, % of revenue | 25.1% | 31.9% | 21.1% | 13.2% | 14.0% | 0.8% |
| ROIC | 4.0% | 5.7% | 7.5% | 8.0% | 10.1% | 2.1% |
| ROE | 4.0% | 8.4% | 13.7% | 13.7% | 16.9% | 3.1% |
| Net Debt/EBITDA | 10.1x | 7.7x | 6.0x | 5.1x | 3.8x | -1.3x |
Revenue and profitability
China Power International Development Ltd's Revenue decreased slightly on 1.2% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 11.3 pp from 42.3% to 53.6% in 2015.
Net Income marign increased on 7.0 pp from 13.5% to 20.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 14.0%. The company showed big decline in CAPEX/Revenue of 17.9 pp from 31.9% in 2012 to 14.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 16.1%.
Return on investment
The company operates at good ROE (16.87%) while ROIC is low (10.11%). ROIC increased on 2.1 pp from 8.0% to 10.1% in 2015. ROE increased on 3.1 pp from 13.7% to 16.9% in 2015.
Leverage (Debt)
Debt level is 3.8x Net Debt / EBITDA and 3.9x Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from 5.1x to 3.8x in 2015. Debt decreased on 6.3% in 2015 while cash jumped on 35.6% in 2015.
Management team
Yu Bing is a the company's CEO. Yu Bing has spent 3 years at the company.
Appendix 1: Peers in Electric
Below you can find China Power International Development Ltd benchmarking vs. other companies in Electric 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 |
|---|
| Huaneng Renewables Corp Ltd ($958) | | 26.0% | 46.7% | 4.1% | 19.6% |
| CGN Power Co Ltd ($1816) | | 10.7% | -1.2% | 19.3% | 12.3% |
| Huadian Fuxin Energy Corp Ltd ($816) | | 56.0% | 16.7% | 4.9% | 10.4% |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | | 2.1% | -1.8% | 2.9% | 6.7% |
| China Power New Energy Development Co Ltd ($735) | | -2.3% | 20.3% | 7.2% | 2.6% |
| |
|---|
| Median (13 companies) | 20.1% | 8.8% | 11.6% | 4.8% | -3.5% |
|---|
| China Power International Development Ltd ($2380) | | 8.8% | 7.6% | 8.6% | -1.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Assets Holdings Ltd ($6) | 60.5% | 60.0% | 63.5% | 85.6% | 99.4% |
| China Power New Energy Development Co Ltd ($735) | 57.1% | 73.3% | 70.8% | 72.0% | 74.9% |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 60.5% | 60.1% | 58.6% | 54.0% | 53.7% |
| CGN Power Co Ltd ($1816) | 48.3% | 46.5% | 46.9% | 48.6% | 47.9% |
| Huadian Power International Corp Ltd ($1071) | 8.9% | | | 27.1% | |
| |
|---|
| Median (8 companies) | 48.3% | 46.5% | 52.8% | 37.9% | 50.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaneng Renewables Corp Ltd ($958) | 110.2% | 94.0% | 80.5% | 91.3% | 93.1% |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 72.8% | 72.6% | 77.6% | 73.3% | 71.7% |
| Power Assets Holdings Ltd ($6) | 64.6% | 66.2% | 68.0% | 2,533.1% | 71.2% |
| CGN Power Co Ltd ($1816) | 64.2% | 66.0% | 62.6% | 60.5% | 59.4% |
| China Power New Energy Development Co Ltd ($735) | 41.6% | 54.6% | 51.6% | 54.5% | 55.1% |
| |
|---|
| Median (13 companies) | 22.3% | 25.5% | 32.1% | 33.7% | 41.9% |
|---|
| China Power International Development Ltd ($2380) | 25.3% | 32.1% | 39.0% | 42.3% | 53.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Enerchina Holdings Ltd ($622) | 54.3% | 24.1% | 28.3% | 3.8% | 321.6% |
| Huaneng Renewables Corp Ltd ($958) | 240.9% | 163.4% | 124.0% | 217.8% | 171.9% |
| China Power New Energy Development Co Ltd ($735) | 21.5% | 82.2% | 80.1% | 119.5% | 99.0% |
| Huadian Fuxin Energy Corp Ltd ($816) | 78.6% | 62.2% | 54.3% | 91.8% | 96.0% |
| CGN Power Co Ltd ($1816) | 78.4% | 47.5% | 57.2% | 94.5% | 50.0% |
| |
|---|
| Median (13 companies) | 22.9% | 26.2% | 28.3% | 18.5% | 20.0% |
|---|
| China Power International Development Ltd ($2380) | 25.1% | 31.9% | 21.1% | 13.2% | 14.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CLP Holdings Ltd ($2) | 7.8% | 7.0% | 4.8% | 8.5% | 12.8% |
| China Resources Power Holdings Co Ltd ($836) | 5.9% | 7.7% | 9.7% | 8.0% | 11.0% |
| Huaneng Power International Inc ($902) | 4.0% | 7.3% | 10.3% | 11.3% | 10.9% |
| Amber Energy Ltd ($90) | 7.6% | 5.4% | 4.6% | 3.6% | 8.6% |
| Huadian Fuxin Energy Corp Ltd ($816) | 5.0% | 7.5% | 8.1% | 7.7% | 6.2% |
| |
|---|
| Median (13 companies) | 5.2% | 5.2% | 6.0% | 6.0% | 5.5% |
|---|
| China Power International Development Ltd ($2380) | 4.0% | 5.7% | 7.5% | 8.0% | 10.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Datang Corp Renewable Power Co Ltd ($1798) | 8.1x | 9.1x | 8.2x | 8.7x | |
| CGN Power Co Ltd ($1816) | 4.7x | 6.5x | 6.7x | 7.8x | 8.4x |
| Amber Energy Ltd ($90) | 3.0x | 5.8x | 6.4x | 7.3x | 5.2x |
| Huaneng Renewables Corp Ltd ($958) | 6.0x | 7.7x | 6.6x | 7.3x | 7.1x |
| Huadian Fuxin Energy Corp Ltd ($816) | 9.3x | 6.9x | 6.2x | 6.5x | 7.4x |
| |
|---|
| Median (15 companies) | 5.9x | 5.6x | 5.5x | 4.6x | 5.2x |
|---|
| China Power International Development Ltd ($2380) | 10.1x | 7.7x | 6.0x | 5.1x | 3.8x |
