Qinhuangdao Port Co Ltd reports 56.8% CAPEX decline and 4.6% Revenue decline
23/03/2016 • About Qinhuangdao Port Co Ltd (
$3369) • By InTwits
Qinhuangdao Port Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Qinhuangdao Port Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 41.6%. At the same time it's a lot of higher than industry average of 19.7%.
- CAPEX is quite volatile: 418 in FY2015, 262 in FY2014, 113 in FY2013, 162 in FY2012, 175 in FY2011
- The company has business model with low profitability: ROIC is at 7.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.2x while industry average is 2.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Qinhuangdao Port Co Ltd ($3369) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,734 | 6,250 | 7,028 | 7,187 | 6,855 | -4.6% |
| Gross Profit | 2,480 | 2,696 | 2,982 | 3,110 | 2,776 | -10.8% |
| SG&A | 607 | 741 | 821 | 873 | 1,073 | 22.8% |
| EBITDA | 2,596 | 2,875 | 3,137 | 3,344 | 2,818 | -15.8% |
| Net Income | 1,084 | 1,385 | 1,764 | 1,980 | 1,344 | -32.1% |
Balance Sheet
|
|---|
| Cash | 5,506 | 3,493 | 5,945 | 3,095 | 2,483 | -19.8% |
| Short Term Debt | 4,194 | 2,565 | 3,395 | 2,023 | 2,129 | 5.2% |
| Long Term Debt | 6,523 | 7,355 | 7,368 | 8,987 | 9,456 | 5.2% |
Cash flow
|
|---|
| Capex | 2,705 | 3,622 | 2,518 | 3,330 | 1,437 | -56.8% |
Ratios
|
|---|
| Revenue growth | 12.2% | 9.0% | 12.4% | 2.3% | -4.6% | |
| EBITDA growth | 15.1% | 10.7% | 9.1% | 6.6% | -15.8% | |
| Gross Margin | 43.2% | 43.1% | 42.4% | 43.3% | 40.5% | -2.8% |
| EBITDA Margin | 45.3% | 46.0% | 44.6% | 46.5% | 41.1% | -5.4% |
| Net Income Margin | 18.9% | 22.2% | 25.1% | 27.6% | 19.6% | -7.9% |
| SG&A, % of revenue | 10.6% | 11.9% | 11.7% | 12.1% | 15.6% | 3.5% |
| CAPEX, % of revenue | 47.2% | 57.9% | 35.8% | 46.3% | 21.0% | -25.4% |
| ROIC | 9.3% | 9.8% | 9.6% | 9.3% | 7.0% | -2.3% |
| ROE | 14.0% | 15.8% | 16.7% | 16.4% | 11.2% | -5.2% |
| Net Debt/EBITDA | 2.0x | 2.2x | 1.5x | 2.4x | 3.2x | 0.9x |
Revenue and profitability
Qinhuangdao Port Co Ltd's Revenue decreased on 4.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.96 pp from 21.9% to 22.8% in 2015.
Gross Margin decreased on 2.8 pp from 43.3% to 40.5% in 2015. SG&A as a % of Revenue increased on 3.5 pp from 12.1% to 15.6% in 2015.
Net Income marign decreased on 7.9 pp from 27.6% to 19.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 21.0%. The company showed big decline in CAPEX/Revenue of 37.0 pp from 57.9% in 2012 to 21.0% in 2015. It's average CAPEX/Revenue for the last three years was 34.4%.The company invested a big chunk of EBITDA (51.0%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (7.01%) and ROE (11.18%). ROIC decreased on 2.3 pp from 9.3% to 7.0% in 2015. ROE decreased on 5.2 pp from 16.4% to 11.2% in 2015.
Leverage (Debt)
Debt level is 3.2x Net Debt / EBITDA and 4.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.9x from 2.4x to 3.2x in 2015. Debt increased on 5.2% in 2015 while cash dropped on 19.8% in 2015.
Appendix 1: Peers in Transportation
Below you can find Qinhuangdao Port Co Ltd benchmarking vs. other companies in Transportation 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 |
|---|
| 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) | 9.4% | 3.4% | 3.5% | 5.5% | -6.2% |
|---|
| Qinhuangdao Port Co Ltd ($3369) | | 9.0% | 12.4% | 2.3% | -4.6% |
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% | |
| 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% |
| ASR Logistics Holdings Ltd ($1803) | 30.7% | 27.4% | 26.6% | 18.0% | |
| |
|---|
| Median (26 companies) | 17.6% | 12.7% | 10.6% | 10.2% | 11.6% |
|---|
| Qinhuangdao Port Co Ltd ($3369) | 43.2% | 43.1% | 42.4% | 43.3% | 40.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 15.4% | 13.3% | 16.1% | 20.7% | 26.1% |
| |
|---|
| Median (30 companies) | 15.4% | 9.4% | 7.1% | 7.5% | 7.8% |
|---|
| Qinhuangdao Port Co Ltd ($3369) | 45.3% | 46.0% | 44.6% | 46.5% | 41.1% |
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% |
| Great Harvest Maeta Group Holdings Ltd ($3683) | 150.5% | 4.0% | 6.1% | 40.7% | 164.7% |
| |
|---|
| Median (30 companies) | 10.9% | 7.8% | 8.7% | 7.1% | 9.8% |
|---|
| Qinhuangdao Port Co Ltd ($3369) | 47.2% | 57.9% | 35.8% | 46.3% | 21.0% |
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% | 10.9% |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 8.9% | 5.6% | 7.2% | 9.6% | 10.6% |
| |
|---|
| Median (30 companies) | 5.0% | 3.2% | 2.8% | 3.1% | 3.6% |
|---|
| Qinhuangdao Port Co Ltd ($3369) | 9.3% | 9.8% | 9.6% | 9.3% | 7.0% |
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) | 0.2x | 1.1x | 1.7x | 0.8x | 1.3x |
|---|
| Qinhuangdao Port Co Ltd ($3369) | 2.0x | 2.2x | 1.5x | 2.4x | 3.2x |
