Dalian Port PDA Co Ltd CAPEX surged on 22.5% in 2015 and Revenue jumped on 12.0%
24/03/2016 • About Dalian Port PDA Co Ltd (
$2880) • By InTwits
Dalian Port PDA Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 17.5% in 2015 vs. 18.6% in 2014 vs. 39.9% in 2011
- EBITDA Margin is quite volatile: 17.5% in 2015, 18.6% in 2014, 23.3% in 2013, 35.2% in 2012, 39.9% in 2011
- Dalian Port PDA Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.2%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 1,013 in 2015, 827 in 2014, 919 in 2013, 863 in 2012, 1,951 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.2%
- It operates with high leverage: Net Debt/EBITDA is 4.1x while industry average is -20.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dalian Port PDA Co Ltd ($2880) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,795 | 4,454 | 6,842 | 7,901 | 8,845 | 12.0% |
| Gross Profit | 1,307 | 1,397 | 1,447 | 1,333 | 1,413 | 6.0% |
| SG&A | 449 | 491 | 559 | 586 | 624 | 6.4% |
| EBITDA | 1,513 | 1,566 | 1,592 | 1,472 | 1,550 | 5.3% |
| Net Income | 666 | 600 | 683 | 521 | 484 | -7.0% |
Balance Sheet
|
|---|
| Cash | 2,254 | 2,507 | 2,339 | 2,446 | 2,933 | 19.9% |
| Short Term Debt | 905 | 1,840 | 3,639 | 1,485 | 1,160 | -21.9% |
| Long Term Debt | 10,028 | 9,553 | 6,370 | 7,849 | 8,169 | 4.1% |
Cash flow
|
|---|
| Capex | 1,951 | 863 | 919 | 827 | 1,013 | 22.5% |
Ratios
|
|---|
| Revenue growth | 19.5% | 17.4% | 53.6% | 15.5% | 12.0% | |
| EBITDA growth | 3.3% | 3.5% | 1.7% | -7.6% | 5.3% | |
| Gross Margin | 34.5% | 31.4% | 21.2% | 16.9% | 16.0% | -0.9% |
| EBITDA Margin | 39.9% | 35.2% | 23.3% | 18.6% | 17.5% | -1.1% |
| Net Income Margin | 17.6% | 13.5% | 10.0% | 6.6% | 5.5% | -1.1% |
| SG&A, % of revenue | 11.8% | 11.0% | 8.2% | 7.4% | 7.1% | -0.4% |
| CAPEX, % of revenue | 51.4% | 19.4% | 13.4% | 10.5% | 11.5% | 1.0% |
| ROIC | 4.0% | 3.6% | 3.5% | 3.0% | 3.2% | 0.2% |
| ROE | 5.4% | 4.7% | 5.2% | 3.8% | 3.5% | -0.3% |
| Net Debt/EBITDA | 5.7x | 5.7x | 4.8x | 4.7x | 4.1x | -0.6x |
Revenue and profitability
Dalian Port PDA Co Ltd's Revenue jumped on 12.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.8 pp from 0.80% to 2.6% in 2015.
Gross Margin decreased slightly on 0.89 pp from 16.9% to 16.0% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 1.1 pp from 6.6% to 5.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Dalian Port PDA Co Ltd's CAPEX/Revenue was 11.5% in 2015. The company showed decline in CAPEX/Revenue of 7.9 pp from 19.4% in 2012 to 11.5% in 2015. It's average CAPEX/Revenue for the last three years was 11.8%.The company invested a big chunk of EBITDA (65.4%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (3.22%) and ROE (3.49%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.1x and Debt / EBITDA is 6.0x. Net Debt / EBITDA dropped on 0.6x from 4.7x to 4.1x in 2015. Debt showed almost no change in 2015 while cash surged on 19.9% in 2015.
Appendix 1: Peers in Commercial Services
Below we provide Dalian Port PDA Co Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | | -61.9% | -27.8% | 2,912.9% | 19.7% |
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | | 34.6% | 86.9% | 37.2% |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Goldpac Group Ltd ($3315) | | 52.3% | 64.4% | 36.8% | 10.8% |
| |
|---|
| Median (62 companies) | 34.2% | 8.8% | 4.7% | 9.4% | 6.1% |
|---|
| Dalian Port PDA Co Ltd ($2880) | | 17.4% | 53.6% | 15.5% | 12.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | 77.6% |
| U Banquet Group Holding Ltd ($8107) | | | | 76.5% | 74.5% |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| |
|---|
| Median (57 companies) | 32.9% | 31.1% | 30.5% | 31.0% | 31.5% |
|---|
| Dalian Port PDA Co Ltd ($2880) | 34.5% | 31.4% | 21.2% | 16.9% | 16.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | 73.6% |
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | 53.0% |
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | 61.6% | 84.9% | 75.9% | 80.9% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | 71.6% |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| |
|---|
| Median (62 companies) | 16.0% | 16.0% | 13.4% | 11.0% | 8.5% |
|---|
| Dalian Port PDA Co Ltd ($2880) | 39.9% | 35.2% | 23.3% | 18.6% | 17.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | 13.0% |
| |
|---|
| Median (61 companies) | 3.7% | 3.1% | 4.0% | 3.6% | 4.3% |
|---|
| Dalian Port PDA Co Ltd ($2880) | 51.4% | 19.4% | 13.4% | 10.5% | 11.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mega Expo Holdings Ltd ($1360) | | 270.5% | 481.1% | 54.4% | 10.1% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| U Banquet Group Holding Ltd ($8107) | | 98.5% | 23.9% | 28.0% | -3.7% |
| PPS International Holdings Ltd ($8201) | | 101.6% | 35.6% | 23.8% | -13.7% |
| |
|---|
| Median (62 companies) | 5.2% | 6.2% | 5.7% | 5.5% | 3.7% |
|---|
| Dalian Port PDA Co Ltd ($2880) | 4.0% | 3.6% | 3.5% | 3.0% | 3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | 0.8x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | 6.2x |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | 5.3x |
| Jiangsu Expressway Co Ltd ($177) | 1.1x | 1.2x | 1.1x | 2.7x | |
| |
|---|
| Median (41 companies) | -0.1x | -0.1x | -0.8x | -0.5x | -0.6x |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | 4.1x |
