Anhui Expressway Co Ltd Net Income increased on 9.1% in 2015 while EBITDA Margin decreased slightly on 1.5 pp from 60.4% to 58.8%
28/03/2016 • About Anhui Expressway Co Ltd (
$995) • By InTwits
Anhui Expressway Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Anhui Expressway Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 8.4%.
- CAPEX is quite volatile: 65.9 in 2015, 50.5 in 2014, 49.2 in 2013, 44.7 in 2012, 298 in 2011
- The company has business model with average profitability: ROIC is at 11.8%
- It operates with high leverage: Net Debt/EBITDA is 0.4x while industry average is -20.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Anhui Expressway Co Ltd ($995) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,052 | 3,122 | 3,404 | 3,037 | 3,158 | 4.0% |
| Gross Profit | 1,449 | 1,304 | 1,338 | 1,314 | 1,358 | 3.3% |
| SG&A | 58 | 67 | 68 | 77 | 90 | 15.6% |
| EBITDA | 1,913 | 1,775 | 1,841 | 1,833 | 1,858 | 1.3% |
| Net Income | 861 | 752 | 839 | 852 | 929 | 9.1% |
Balance Sheet
|
|---|
| Cash | 603 | 763 | 546 | 463 | 709 | 53.2% |
| Short Term Debt | 74 | 99 | 2,163 | 443 | 363 | -18.0% |
| Long Term Debt | 2,392 | 2,464 | 577 | 851 | 1,053 | 23.6% |
Cash flow
|
|---|
| Capex | 298 | 45 | 49 | 51 | 66 | 30.4% |
Ratios
|
|---|
| Revenue growth | 19.6% | 2.3% | 9.0% | -10.8% | 4.0% | |
| EBITDA growth | 8.5% | -7.2% | 3.7% | -0.4% | 1.3% | |
| Gross Margin | 47.5% | 41.8% | 39.3% | 43.3% | 43.0% | -0.3% |
| EBITDA Margin | 62.7% | 56.9% | 54.1% | 60.4% | 58.8% | -1.5% |
| Net Income Margin | 28.2% | 24.1% | 24.7% | 28.1% | 29.4% | 1.4% |
| SG&A, % of revenue | 1.9% | 2.1% | 2.0% | 2.5% | 2.8% | 0.3% |
| CAPEX, % of revenue | 9.7% | 1.4% | 1.4% | 1.7% | 2.1% | 0.4% |
| ROIC | 15.3% | 12.4% | 11.8% | 11.4% | 11.8% | 0.4% |
| ROE | 14.0% | 11.5% | 12.2% | 11.5% | 11.7% | 0.2% |
| Net Debt/EBITDA | 1.0x | 1.0x | 1.2x | 0.5x | 0.4x | -0.1x |
Revenue and profitability
The company's Revenue increased on 4.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 18.1 pp from 25.3% to 43.4% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 1.4 pp from 28.1% to 29.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Anhui Expressway Co Ltd had CAPEX/Revenue of 2.1%. The company's CAPEX/Revenue increased slightly on 0.65 pp from 1.4% in 2012 to 2.1% in 2015. Average CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at low ROIC (11.79%) and ROE (11.71%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is 0.8x. Net Debt / EBITDA decreased on 0.1x from 0.5x to 0.4x in 2015. Debt increased on 9.4% in 2015 while cash surged on 53.2% in 2015.
Management team
The company's CEO is Xu Zhen. Xu Zhen has 3 years tenure at the company.
Appendix 1: Peers in Commercial Services
Below we provide Anhui Expressway 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 |
|---|
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Celebrate International Holdings Ltd ($8212) | | -90.1% | 1,437.6% | -6.3% | 117.0% |
| Haier Healthwise Holdings Ltd ($348) | | -22.0% | -50.1% | -7.5% | 101.1% |
| CAR Inc ($699) | | 96.4% | 68.0% | 30.3% | 42.1% |
| Fu Shou Yuan International Group Ltd ($1448) | | 13.9% | 27.5% | 30.0% | 39.3% |
| |
|---|
| Median (51 companies) | 36.1% | 9.0% | 4.7% | 9.9% | 6.3% |
|---|
| Anhui Expressway Co Ltd ($995) | | 2.3% | 9.0% | -10.8% | 4.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| 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% |
| Anxian Yuan China Holdings Ltd ($922) | 58.4% | 74.0% | 54.7% | 39.8% | 70.8% |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| |
|---|
| Median (46 companies) | 32.9% | 31.0% | 29.2% | 30.9% | 29.8% |
|---|
| Anhui Expressway Co Ltd ($995) | 47.5% | 41.8% | 39.3% | 43.3% | 43.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | 61.6% | 84.9% | 75.9% | 80.9% |
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | 73.6% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | 71.6% |
| CAR Inc ($699) | 31.6% | 43.6% | 30.1% | 43.1% | 67.4% |
| Jiangsu Expressway Co Ltd ($177) | 60.8% | 57.0% | 60.7% | 59.3% | 61.5% |
| |
|---|
| Median (51 companies) | 16.0% | 16.0% | 13.4% | 11.0% | 8.8% |
|---|
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | 58.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 11.5% | 21.3% | 9.0% | 13.9% | 47.4% |
| Shenzhen International Holdings Ltd ($152) | 28.3% | 23.0% | 22.1% | 20.9% | 35.0% |
| Celebrate International Holdings Ltd ($8212) | 140.9% | 211.7% | 12.0% | 6.2% | 34.2% |
| China Maple Leaf Educational Systems Ltd ($1317) | 39.5% | 25.7% | 50.9% | 21.1% | 32.8% |
| Qingdao Port International Co Ltd ($6198) | 29.5% | 31.9% | 28.7% | 8.5% | 28.2% |
| |
|---|
| Median (51 companies) | 3.7% | 3.2% | 4.5% | 4.0% | 4.7% |
|---|
| Anhui Expressway Co Ltd ($995) | 9.7% | 1.4% | 1.4% | 1.7% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | 19.8% |
| CAR Inc ($699) | | 5.2% | 2.7% | 12.2% | 19.0% |
| eprint Group Ltd ($1884) | | 33.0% | 34.8% | 15.4% | 18.5% |
| |
|---|
| Median (51 companies) | 5.0% | 6.0% | 5.2% | 4.2% | 3.7% |
|---|
| Anhui Expressway Co Ltd ($995) | 15.3% | 12.4% | 11.8% | 11.4% | 11.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | | 22.2x |
| 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 |
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | 4.1x |
| Speedy Global Holdings Ltd ($540) | -0.1x | -0.3x | -1.1x | -0.3x | 3.6x |
| |
|---|
| Median (33 companies) | -0.1x | -0.1x | -0.8x | -0.5x | -0.6x |
|---|
| Anhui Expressway Co Ltd ($995) | 1.0x | 1.0x | 1.2x | 0.5x | 0.4x |
