Huishang Bank Corp Ltd revenue growth continued from 24.3% in 2014 to 24.6% in 2015
28/03/2016 • About Huishang Bank Corp Ltd (
$3698) • By InTwits
Huishang Bank Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Huishang Bank Corp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 11.6%.
- CAPEX is quite volatile: 3,788 in 2015, 5,909 in 2014, 2,640 in 2013, 2,115 in 2012, 5,386 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.3%
- It operates with high leverage: Net Debt/EBITDA is 5.5x while industry average is -5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Huishang Bank Corp Ltd ($3698) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,863 | 15,883 | 19,510 | 24,248 | 30,205 | 24.6% |
| Net Income | 3,493 | 4,306 | 4,926 | 5,673 | 6,161 | 8.6% |
Balance Sheet
|
|---|
| Cash | 55,829 | 57,649 | 76,178 | 76,421 | 78,414 | 2.6% |
| Short Term Debt | 12,858 | 6,863 | 18,970 | 26,112 | 97,197 | 272.2% |
| Long Term Debt | 3,991 | 3,992 | 8,986 | 9,095 | 24,968 | 174.5% |
Cash flow
|
|---|
| Capex | 231 | 416 | 375 | 419 | 526 | 25.5% |
Ratios
|
|---|
| Revenue growth | 38.7% | 33.9% | 22.8% | 24.3% | 24.6% | |
| Net Income Margin | 29.4% | 27.1% | 25.2% | 23.4% | 20.4% | -3.0% |
| CAPEX, % of revenue | 1.9% | 2.6% | 1.9% | 1.7% | 1.7% | 0.0% |
| ROIC | 9.0% | 8.4% | 6.8% | 5.8% | 4.3% | -1.4% |
| ROE | 22.2% | 22.9% | 18.9% | 16.7% | 15.9% | -0.8% |
Revenue and profitability
Huishang Bank Corp Ltd's Revenue jumped on 24.6% in 2015.
Net Income marign decreased on 3.0 pp from 23.4% to 20.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.7%. Huishang Bank Corp Ltd's CAPEX/Revenue decreased slightly on 0.87 pp from 2.6% in 2012 to 1.7% in 2015. Average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at good ROE (15.89%) while ROIC is low (4.35%). ROIC decreased slightly on 1.4 pp from 5.8% to 4.3% in 2015. ROE decreased slightly on 0.79 pp from 16.7% to 15.9% in 2015.
Leverage (Debt)
Debt surged on 247% in 2015 while cash increased on 2.6% in 2015.
Appendix 1: Peers in Banks
Below we provide Huishang Bank Corp Ltd benchmarking against other companies in Banks 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 |
|---|
| Chong Hing Bank Ltd ($1111) | | 10.0% | -1.2% | 121.1% | -17.4% |
| Shengjing Bank Co Ltd ($2066) | | 36.5% | 36.3% | 40.1% | 24.3% |
| China Merchants Bank Co Ltd ($3968) | 42.3% | 24.0% | 18.6% | 33.9% | |
| Harbin Bank Co Ltd ($6138) | | 58.3% | 12.1% | 29.2% | 10.5% |
| Dah Sing Financial Holdings Ltd ($440) | | 9.9% | -0.1% | 29.0% | -7.8% |
| |
|---|
| Median (22 companies) | 33.3% | 19.6% | 10.4% | 13.8% | 2.1% |
|---|
| Huishang Bank Corp Ltd ($3698) | | 33.9% | 22.8% | 24.3% | 24.6% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | 34.2% | 4.1% | 29.9% | 27.0% | 33.5% |
| |
|---|
| Median (1 company) | 34.2% | 4.1% | 29.9% | 27.0% | 33.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Minsheng Banking Corp Ltd ($1988) | 5.0% | 5.2% | 6.8% | 7.6% | |
| Harbin Bank Co Ltd ($6138) | 20.0% | 19.8% | 9.9% | 6.5% | 5.8% |
| Industrial & Commercial Bank of China Ltd ($1398) | 3.2% | 3.8% | 4.9% | 5.4% | |
| Bank of Communications Co Ltd ($3328) | 3.1% | 3.6% | 5.1% | 5.3% | |
| Shengjing Bank Co Ltd ($2066) | 3.3% | 1.6% | 2.2% | 5.0% | 3.0% |
| |
|---|
| Median (22 companies) | 3.3% | 3.4% | 3.9% | 3.3% | 2.8% |
|---|
| Huishang Bank Corp Ltd ($3698) | 1.9% | 2.6% | 1.9% | 1.7% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chong Hing Bank Ltd ($1111) | 6.3% | 5.5% | 5.2% | 16.4% | 5.7% |
| KVB Kunlun Financial Group Ltd ($8077) | | 1.2% | 16.3% | 12.3% | |
| China Construction Bank Corp ($939) | 11.6% | 11.1% | 11.7% | 10.8% | |
| Industrial & Commercial Bank of China Ltd ($1398) | 10.6% | 9.9% | 10.2% | 9.9% | |
| Agricultural Bank of China Ltd ($1288) | 10.3% | 9.9% | 10.0% | 9.3% | |
| |
|---|
| Median (22 companies) | 6.3% | 6.0% | 6.3% | 5.4% | 4.1% |
|---|
| Huishang Bank Corp Ltd ($3698) | 9.0% | 8.4% | 6.8% | 5.8% | 4.3% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | -5.7x | -66.3x | -7.1x | -10.6x | -5.7x |
| |
|---|
| Median (1 company) | -5.7x | -66.3x | -7.1x | -10.6x | -5.7x |
|---|
