China Primary Energy Holdings Ltd reports 137% CAPEX growth and 83.7% Revenue growth
24/03/2016 • About China Primary Energy Holdings Ltd (
$8117) • By InTwits
China Primary Energy Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Primary Energy Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -11.7%
- The company operates at negative EBITDA Margin: -15.1%
- China Primary Energy Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -35.0% for the sames years0
- China Primary Energy Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.7%. At the same time it's in pair with industry average of 191.0%.
- CAPEX is quite volatile: 42.5 in 2015, 18.0 in 2014, 1.6 in 2013, 9.5 in 2012, 2.0 in 2011
- The company has unprofitable business model: ROIC is at -11.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Primary Energy Holdings Ltd ($8117) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 89.7 | 39.2 | 29.9 | 88.4 | 162.4 | 83.7% |
| Gross Profit | | -4.9 | -11.5 | 0.2 | 27.5 | 13,292.7% |
| EBITDA | -17.9 | -43.5 | -30.9 | -26.7 | -24.5 | -8.5% |
| Net Income | -51.0 | -76.6 | -44.6 | -46.6 | -91.3 | 95.9% |
Balance Sheet
|
|---|
| Cash | 31.5 | 7.1 | 20.9 | 8.7 | 62.3 | 615.0% |
| Short Term Debt | 246.3 | 246.3 | 246.3 | 37.8 | 6.8 | -82.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.7 | 49.4 | 6,972.1% |
Cash flow
|
|---|
| Capex | 2.0 | 9.5 | 1.6 | 18.0 | 42.5 | 136.7% |
Ratios
|
|---|
| Revenue growth | -43.1% | -56.3% | -23.6% | 195.4% | 83.7% | |
| EBITDA growth | -387.8% | 142.8% | -29.0% | -13.5% | -8.5% | |
| Gross Margin | | -12.6% | -38.4% | 0.2% | 16.9% | 16.7% |
| EBITDA Margin | -20.0% | -111.0% | -103.2% | -30.2% | -15.1% | 15.2% |
| Net Income Margin | -56.9% | -195.3% | -148.9% | -52.7% | -56.2% | -3.5% |
| CAPEX, % of revenue | 2.2% | 24.3% | 5.4% | 20.3% | 26.2% | 5.9% |
| ROIC | -4.8% | -9.9% | -8.4% | -10.1% | -11.7% | -1.6% |
| ROE | -15.0% | -26.8% | -19.2% | -20.6% | -30.2% | -9.6% |
Revenue and profitability
The company's Revenue surged on 83.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 11.1 pp from -5.0% to 6.1% in 2015.
Gross Margin surged on 16.7 pp from 0.23% to 16.9% in 2015.
Net Income marign decreased on 3.5 pp from -52.7% to -56.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Primary Energy Holdings Ltd had CAPEX/Revenue of 26.2%. China Primary Energy Holdings Ltd's CAPEX/Revenue increased slightly on 1.8 pp from 24.3% in 2012 to 26.2% in 2015. It's average CAPEX/Revenue for the last three years was 17.3%.
Return on investment
The company operates at negative ROIC (-11.68%) and ROE (-30.24%). ROIC decreased slightly on 1.6 pp from -10.1% to -11.7% in 2015. ROE decreased on 9.6 pp from -20.6% to -30.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt jumped on 45.8% in 2015 while cash surged on 615% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below we provide China Primary Energy Holdings Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | -79.6% |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | | -57.4% | -12.4% | 106.4% | 31.0% |
| Lippo Ltd ($226) | | 26.8% | 724.4% | 90.4% | -55.8% |
| |
|---|
| Median (42 companies) | 11.6% | 12.2% | 4.9% | 12.6% | 7.2% |
|---|
| China Primary Energy Holdings Ltd ($8117) | | -56.3% | -23.6% | 195.4% | 83.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | 22.3% |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | 70.3% |
| |
|---|
| Median (39 companies) | 28.1% | 33.4% | 36.0% | 34.4% | 37.5% |
|---|
| China Primary Energy Holdings Ltd ($8117) | | -12.6% | -38.4% | 0.2% | 16.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | 40.6% |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 6.3% | 2.8% | 2.8% | 7.4% | 4.8% |
|---|
| China Primary Energy Holdings Ltd ($8117) | -20.0% | -111.0% | -103.2% | -30.2% | -15.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | 0.8% |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | 222.5% |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.9% | 2.2% | 3.6% | 6.1% | 12.0% |
|---|
| China Primary Energy Holdings Ltd ($8117) | 2.2% | 24.3% | 5.4% | 20.3% | 26.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | 15.0% |
| |
|---|
| Median (44 companies) | 0.6% | 0.1% | 0.2% | 0.8% | 0.2% |
|---|
| China Primary Energy Holdings Ltd ($8117) | -4.8% | -9.9% | -8.4% | -10.1% | -11.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (27 companies) | 3.0x | 2.5x | 3.1x | 3.0x | 3.1x |
|---|
