Xiamen International Port Co Ltd reports 36.0% Net Income decline and almost no change in EBITDA Margin of 15.3%
24/03/2016 • About Xiamen International Port Co Ltd (
$3378) • By InTwits
Xiamen International Port Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Xiamen International Port Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.1%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 608 in 2015, 805 in 2014, 653 in 2013, 328 in 2012, 311 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.5%
- It operates with high leverage: Net Debt/EBITDA is 1.9x 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.
Xiamen International Port Co Ltd ($3378) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,070 | 3,746 | 4,678 | 6,092 | 6,506 | 6.8% |
| Gross Profit | 588 | 617 | 656 | 846 | 861 | 1.9% |
| SG&A | | 214 | 236 | 278 | 273 | -1.9% |
| EBITDA | 641 | 683 | 765 | 958 | 996 | 4.0% |
| Net Income | 284 | 304 | 333 | 430 | 275 | -36.0% |
Balance Sheet
|
|---|
| Cash | 926 | 827 | 873 | 648 | 776 | 19.8% |
| Short Term Debt | 318 | 490 | 1,084 | 1,525 | 1,615 | 5.9% |
| Long Term Debt | 291 | 1,316 | 1,016 | 894 | 1,030 | 15.2% |
Cash flow
|
|---|
| Capex | 311 | 328 | 653 | 805 | 608 | -24.4% |
Ratios
|
|---|
| Revenue growth | 36.9% | 22.0% | 24.9% | 30.2% | 6.8% | |
| EBITDA growth | 6.7% | 6.5% | 12.1% | 25.1% | 4.0% | |
| Gross Margin | 19.1% | 16.5% | 14.0% | 13.9% | 13.2% | -0.6% |
| EBITDA Margin | 20.9% | 18.2% | 16.4% | 15.7% | 15.3% | -0.4% |
| Net Income Margin | 9.3% | 8.1% | 7.1% | 7.1% | 4.2% | -2.8% |
| SG&A, % of revenue | | 5.7% | 5.0% | 4.6% | 4.2% | -0.4% |
| CAPEX, % of revenue | 10.1% | 8.8% | 14.0% | 13.2% | 9.3% | -3.9% |
| ROIC | 7.6% | 6.0% | 4.9% | 5.2% | 5.5% | 0.2% |
| ROE | 7.3% | 6.7% | 6.9% | 9.2% | 5.7% | -3.5% |
| Net Debt/EBITDA | -0.5x | 1.4x | 1.6x | 1.8x | 1.9x | 0.0x |
Revenue and profitability
Xiamen International Port Co Ltd's Revenue increased on 6.8% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 31.1 pp from 24.6% to 55.7% in 2015.
Gross Margin decreased slightly on 0.64 pp from 13.9% to 13.2% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 2.8 pp from 7.1% to 4.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 9.3%. Xiamen International Port Co Ltd showed small growth in CAPEX/Revenue of 0.59 pp from 8.8% in 2012 to 9.3% in 2015. It's average CAPEX/Revenue for the last three years was 12.2%.Xiamen International Port Co Ltd maintained rich investment policy and has spent a big chunk of EBITDA (61.1%) to CAPEX.
Return on investment
The company operates at low ROIC (5.48%) and ROE (5.68%). ROIC showed almost no change in 2015. ROE decreased on 3.5 pp from 9.2% to 5.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 2.7x. Net Debt / EBITDA increased on 0.026x from 1.8x to 1.9x in 2015. Debt increased on 9.3% in 2015 while cash jumped on 19.8% in 2015.
Appendix 1: Peers in Commercial Services
Below we provide Xiamen International Port 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% |
|---|
| Xiamen International Port Co Ltd ($3378) | | 22.0% | 24.9% | 30.2% | 6.8% |
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) | 33.0% | 31.5% | 30.5% | 31.0% | 31.5% |
|---|
| Xiamen International Port Co Ltd ($3378) | 19.1% | 16.5% | 14.0% | 13.9% | 13.2% |
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% |
|---|
| Xiamen International Port Co Ltd ($3378) | 20.9% | 18.2% | 16.4% | 15.7% | 15.3% |
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% |
|---|
| Xiamen International Port Co Ltd ($3378) | 10.1% | 8.8% | 14.0% | 13.2% | 9.3% |
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) | 5.0% | 6.2% | 5.7% | 4.5% | 3.4% |
|---|
| Xiamen International Port Co Ltd ($3378) | 7.6% | 6.0% | 4.9% | 5.2% | 5.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | 4.1x |
| 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 |
| |
|---|
| Median (41 companies) | -0.1x | -0.1x | -0.8x | -0.5x | -0.6x |
|---|
| Xiamen International Port Co Ltd ($3378) | -0.5x | 1.4x | 1.6x | 1.8x | 1.9x |
