China Datang Corp Renewable Power Co Ltd revenue increased on 7.8% in 2015 while EBITDA Margin decreased on 4.6 pp from 87.0% to 82.4%
28/03/2016 • About China Datang Corp Renewable Power Co Ltd (
$1798) • By InTwits
China Datang Corp Renewable Power Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Datang Corp Renewable Power Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 142.4%. At the same time it's a lot of higher than industry average of 57.6%.
- CAPEX is quite volatile: 5,218 in 2015, 5,513 in 2014, 4,601 in 2013, 6,864 in 2012, 10,469 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.8%
- It operates with high leverage: Net Debt/EBITDA is 8.5x while industry average is -0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Datang Corp Renewable Power Co Ltd ($1798) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,829 | 4,368 | 5,630 | 5,186 | 5,588 | 7.8% |
| EBITDA | 3,837 | 3,952 | 4,660 | 4,509 | 4,604 | 2.1% |
| Net Income | 730 | 112 | 237 | -150 | 14 | -109.1% |
Balance Sheet
|
|---|
| Cash | 4,162 | 2,104 | 1,001 | 2,190 | 1,078 | -50.8% |
| Short Term Debt | 5,667 | 5,457 | 5,412 | 6,223 | 10,574 | 69.9% |
| Long Term Debt | 29,514 | 32,705 | 33,766 | 35,020 | 29,724 | -15.1% |
Cash flow
|
|---|
| Capex | 10,469 | 6,864 | 4,601 | 5,513 | 5,218 | -5.3% |
Ratios
|
|---|
| Revenue growth | 60.9% | 14.1% | 28.9% | -7.9% | 7.8% | |
| EBITDA growth | 59.4% | 3.0% | 17.9% | -3.2% | 2.1% | |
| EBITDA Margin | 100.2% | 90.5% | 82.8% | 87.0% | 82.4% | -4.6% |
| Net Income Margin | 19.1% | 2.6% | 4.2% | -2.9% | 0.2% | 3.1% |
| CAPEX, % of revenue | 273.4% | 157.1% | 81.7% | 106.3% | 93.4% | -12.9% |
| ROIC | 5.9% | 4.3% | 4.9% | 4.1% | 3.8% | -0.2% |
| ROE | 8.4% | 1.3% | 2.6% | -1.6% | 0.2% | 1.8% |
| Net Debt/EBITDA | 8.1x | 9.1x | 8.2x | 8.7x | 8.5x | -0.1x |
Revenue and profitability
China Datang Corp Renewable Power Co Ltd's Revenue increased on 7.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 9.1% to 10.3% in 2015.
Net Income marign increased on 3.1 pp from -2.9% to 0.25% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Datang Corp Renewable Power Co Ltd's CAPEX/Revenue was 93.4% in 2015. China Datang Corp Renewable Power Co Ltd showed big decline in CAPEX/Revenue of 63.8 pp from 157% in 2012 to 93.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 93.8%.China Datang Corp Renewable Power Co Ltd maintained rich investment policy and has spent a lot to CAPEX (113% of EBITDA).
Return on investment
The company operates at low ROIC (3.83%) and ROE (0.15%). ROIC showed almost no change in 2015. ROE increased slightly on 1.8 pp from -1.6% to 0.15% in 2015.
Leverage (Debt)
Debt level is 8.5x Net Debt / EBITDA and 8.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 8.7x to 8.5x in 2015. Debt decreased on 2.3% in 2015 while cash dropped on 50.8% in 2015.
Appendix 1: Peers in Electric
Below you can find China Datang Corp Renewable Power Co Ltd benchmarking vs. other companies in Electric 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 |
|---|
| Huaneng Renewables Corp Ltd ($958) | | 26.0% | 46.7% | 4.1% | 19.6% |
| CGN Power Co Ltd ($1816) | | 10.7% | -1.2% | 19.3% | 12.3% |
| Huadian Fuxin Energy Corp Ltd ($816) | | 56.0% | 16.7% | 4.9% | 10.4% |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | | 2.1% | -1.8% | 2.9% | 6.7% |
| China Power New Energy Development Co Ltd ($735) | | -2.3% | 20.3% | 7.2% | 2.6% |
| |
|---|
| Median (15 companies) | 9.1% | 8.8% | 11.3% | 6.1% | -3.5% |
|---|
| China Datang Corp Renewable Power Co Ltd ($1798) | | 14.1% | 28.9% | -7.9% | 7.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Assets Holdings Ltd ($6) | 60.5% | 60.0% | 63.5% | 85.6% | 99.4% |
| China Power New Energy Development Co Ltd ($735) | 57.1% | 73.3% | 70.8% | 72.0% | 74.9% |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 60.5% | 60.1% | 58.6% | 54.0% | 53.7% |
| CGN Power Co Ltd ($1816) | 48.3% | 46.5% | 46.9% | 48.6% | 47.9% |
| Huadian Power International Corp Ltd ($1071) | 8.9% | | | 27.1% | |
| |
|---|
| Median (8 companies) | 48.3% | 46.5% | 52.8% | 37.9% | 50.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaneng Renewables Corp Ltd ($958) | 110.2% | 94.0% | 80.5% | 91.3% | 93.1% |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 72.8% | 72.6% | 77.6% | 73.3% | 71.7% |
| Power Assets Holdings Ltd ($6) | 64.6% | 66.2% | 68.0% | 2,533.1% | 71.2% |
| CGN Power Co Ltd ($1816) | 64.2% | 66.0% | 62.6% | 60.5% | 59.4% |
| China Power New Energy Development Co Ltd ($735) | 41.6% | 54.6% | 51.6% | 54.5% | 55.1% |
| |
|---|
| Median (15 companies) | 22.3% | 25.5% | 32.1% | 33.7% | 41.9% |
|---|
| China Datang Corp Renewable Power Co Ltd ($1798) | 100.2% | 90.5% | 82.8% | 87.0% | 82.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Enerchina Holdings Ltd ($622) | 54.3% | 24.1% | 28.3% | 3.8% | 321.6% |
| Huaneng Renewables Corp Ltd ($958) | 240.9% | 163.4% | 124.0% | 217.8% | 171.9% |
| China Power New Energy Development Co Ltd ($735) | 21.5% | 82.2% | 80.1% | 119.5% | 99.0% |
| Huadian Fuxin Energy Corp Ltd ($816) | 78.6% | 62.2% | 54.3% | 91.8% | 96.0% |
| CGN Power Co Ltd ($1816) | 78.4% | 47.5% | 57.2% | 94.5% | 50.0% |
| |
|---|
| Median (15 companies) | 22.9% | 26.2% | 25.1% | 16.9% | 20.0% |
|---|
| China Datang Corp Renewable Power Co Ltd ($1798) | 273.4% | 157.1% | 81.7% | 106.3% | 93.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CLP Holdings Ltd ($2) | 7.8% | 7.0% | 4.8% | 8.5% | 12.8% |
| China Resources Power Holdings Co Ltd ($836) | 5.9% | 7.7% | 9.7% | 8.0% | 11.0% |
| Huaneng Power International Inc ($902) | 4.0% | 7.3% | 10.3% | 11.3% | 10.9% |
| China Power International Development Ltd ($2380) | 4.0% | 5.7% | 7.5% | 8.0% | 10.1% |
| Huadian Power International Corp Ltd ($1071) | 2.7% | 5.0% | 8.4% | 10.4% | 10.0% |
| |
|---|
| Median (15 companies) | 4.6% | 5.4% | 6.8% | 6.7% | 6.1% |
|---|
| China Datang Corp Renewable Power Co Ltd ($1798) | 5.9% | 4.3% | 4.9% | 4.1% | 3.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CGN Meiya Power Holdings Co Ltd ($1811) | 5.7x | 9.1x | 8.1x | 4.3x | 8.6x |
| CGN Power Co Ltd ($1816) | 4.7x | 6.5x | 6.7x | 7.8x | 8.4x |
| China Power New Energy Development Co Ltd ($735) | 5.9x | 4.8x | 5.5x | 6.4x | 7.9x |
| Huadian Fuxin Energy Corp Ltd ($816) | 9.3x | 6.9x | 6.2x | 6.5x | 7.4x |
| Huaneng Renewables Corp Ltd ($958) | 6.0x | 7.7x | 6.6x | 7.3x | 7.1x |
| |
|---|
| Median (13 companies) | 5.9x | 5.6x | 5.5x | 4.6x | 5.1x |
|---|
| China Datang Corp Renewable Power Co Ltd ($1798) | 8.1x | 9.1x | 8.2x | 8.7x | 8.5x |
