Beijing Jingneng Clean Energy Co Ltd reports 64.4% revenue growth in 2015 and 5.2 pp EBITDA Margin decline from 41.8% to 36.6%
29/03/2016 • About Beijing Jingneng Clean Energy Co Ltd (
$579) • By InTwits
Beijing Jingneng Clean Energy 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: 36.6% in 2015 vs. 41.8% in 2014 vs. 58.5% in 2011
- Beijing Jingneng Clean Energy Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 79.3%. At the same time it's a lot of higher than industry average of 50.4%.
- CAPEX is quite volatile: 753 in 2015, 610 in 2014, 563 in 2013, 332 in 2012, 286 in 2011
- The company has business model with low profitability: ROIC is at 8.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 4.4x while industry average is 4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beijing Jingneng Clean Energy Co Ltd ($579) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,051 | 4,152 | 6,255 | 8,729 | 14,346 | 64.4% |
| EBITDA | 2,368 | 2,397 | 3,154 | 3,652 | 5,258 | 44.0% |
| Net Income | 846 | 910 | 1,146 | 1,208 | 1,952 | 61.6% |
Balance Sheet
|
|---|
| Cash | 2,747 | 2,178 | 2,320 | 4,207 | 2,115 | -49.7% |
| Short Term Debt | 6,127 | 4,267 | 5,418 | 10,484 | 9,558 | -8.8% |
| Long Term Debt | 8,365 | 13,889 | 16,666 | 18,181 | 15,586 | -14.3% |
Cash flow
|
|---|
| Capex | 3,669 | 4,068 | 6,928 | 5,707 | 4,577 | -19.8% |
Ratios
|
|---|
| Revenue growth | 11.2% | 2.5% | 50.7% | 39.6% | 64.4% | |
| EBITDA growth | 33.2% | 1.2% | 31.6% | 15.8% | 44.0% | |
| EBITDA Margin | 58.5% | 57.7% | 50.4% | 41.8% | 36.6% | -5.2% |
| Net Income Margin | 20.9% | 21.9% | 18.3% | 13.8% | 13.6% | -0.2% |
| CAPEX, % of revenue | 90.6% | 98.0% | 110.8% | 65.4% | 31.9% | -33.5% |
| ROIC | 7.0% | 5.8% | 6.8% | 6.3% | 8.1% | 1.9% |
| ROE | 9.5% | 9.0% | 11.6% | 10.4% | 14.4% | 3.9% |
| Net Debt/EBITDA | 5.0x | 6.7x | 6.3x | 6.7x | 4.4x | -2.3x |
Revenue and profitability
Beijing Jingneng Clean Energy Co Ltd's Revenue surged on 64.4% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 5.2 pp from 41.8% to 36.6% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Beijing Jingneng Clean Energy Co Ltd's CAPEX/Revenue was 31.9% in 2015. Beijing Jingneng Clean Energy Co Ltd's CAPEX/Revenue dropped on 66.1 pp from 98.0% in 2012 to 31.9% in 2015. It's average CAPEX/Revenue for the last three years was 69.4%.Beijing Jingneng Clean Energy Co Ltd invested a big chunk of EBITDA (87.1%) to CAPEX to fuel its growth.
Return on investment
The company operates at good ROE (14.37%) while ROIC is low (8.14%). ROIC increased slightly on 1.9 pp from 6.3% to 8.1% in 2015. ROE increased on 3.9 pp from 10.4% to 14.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.4x and Debt / EBITDA is 4.8x. Net Debt / EBITDA dropped on 2.3x from 6.7x to 4.4x in 2015. Debt dropped on 12.3% in 2015 while cash dropped on 49.7% in 2015.
Appendix 1: Peers in Energy-Alternate Sources
Below we provide Beijing Jingneng Clean Energy Co Ltd benchmarking against other companies in Energy-Alternate Sources 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 |
|---|
| HaiTian Hydropower International Ltd ($8261) | | 26.6% | 8.5% | 114.0% | 220.2% |
| Xinyi Solar Holdings Ltd ($968) | | 24.3% | 28.3% | 22.5% | 97.1% |
| Canvest Environment Protection Group Co Ltd ($1381) | | 150.6% | 0.8% | 103.5% | 49.2% |
| China Renewable Energy Investment Ltd ($987) | | 10.7% | 14.3% | -14.4% | 36.6% |
| China Longyuan Power Group Corp Ltd ($916) | | 4.2% | 10.7% | -4.8% | 7.8% |
| |
|---|
| Median (8 companies) | 99.6% | 12.7% | 12.8% | 28.0% | 22.2% |
|---|
| Beijing Jingneng Clean Energy Co Ltd ($579) | | 2.5% | 50.7% | 39.6% | 64.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 70.0% | 74.2% | 74.3% | 79.3% | 64.6% |
| Canvest Environment Protection Group Co Ltd ($1381) | 61.5% | 53.4% | 51.9% | 43.1% | 37.1% |
| Xinyi Solar Holdings Ltd ($968) | 35.9% | 17.2% | 30.1% | 31.6% | 36.0% |
| China Renewable Energy Investment Ltd ($987) | 12.2% | 20.2% | 37.1% | 24.7% | 33.3% |
| China Suntien Green Energy Corp Ltd ($956) | 28.8% | 33.5% | 31.3% | 25.2% | 26.5% |
| |
|---|
| Median (7 companies) | 34.5% | 21.6% | 34.2% | 28.4% | 33.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Renewable Energy Investment Ltd ($987) | 28.1% | 54.1% | 66.1% | 64.3% | 74.3% |
| HaiTian Hydropower International Ltd ($8261) | 86.2% | 61.9% | 75.9% | 80.2% | 69.0% |
| China Longyuan Power Group Corp Ltd ($916) | 48.8% | 56.3% | 54.4% | 63.5% | 64.5% |
| Canvest Environment Protection Group Co Ltd ($1381) | 71.0% | 59.3% | 56.6% | 50.3% | 41.8% |
| GCL-Poly Energy Holdings Ltd ($3800) | 35.6% | 13.3% | 20.1% | 31.3% | 35.8% |
| |
|---|
| Median (8 companies) | 37.5% | 31.9% | 30.6% | 41.1% | 38.8% |
|---|
| Beijing Jingneng Clean Energy Co Ltd ($579) | 58.5% | 57.7% | 50.4% | 41.8% | 36.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Suntien Green Energy Corp Ltd ($956) | 101.3% | 41.4% | 25.7% | 35.9% | 128.8% |
| China Longyuan Power Group Corp Ltd ($916) | 83.1% | 79.5% | 54.9% | 100.2% | 77.7% |
| Xinyi Solar Holdings Ltd ($968) | 71.2% | 22.7% | 12.2% | 98.8% | 75.4% |
| International Standard Resources Holdings Ltd ($91) | 13.5% | 51.5% | 2.4% | 11.1% | 69.3% |
| GCL-Poly Energy Holdings Ltd ($3800) | 58.8% | 19.9% | 13.6% | 23.5% | 42.8% |
| |
|---|
| Median (8 companies) | 65.0% | 32.4% | 16.3% | 31.2% | 56.0% |
|---|
| Beijing Jingneng Clean Energy Co Ltd ($579) | 90.6% | 98.0% | 110.8% | 65.4% | 31.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinyi Solar Holdings Ltd ($968) | 33.6% | 13.8% | 21.6% | 16.9% | 18.7% |
| HaiTian Hydropower International Ltd ($8261) | 9.5% | 6.4% | 7.5% | 7.5% | 11.9% |
| Canvest Environment Protection Group Co Ltd ($1381) | | 27.0% | 18.1% | 12.4% | 10.0% |
| GCL-Poly Energy Holdings Ltd ($3800) | 15.8% | 0.3% | 2.8% | 6.9% | 7.2% |
| China Longyuan Power Group Corp Ltd ($916) | 7.0% | 6.9% | 6.3% | 6.3% | 6.2% |
| |
|---|
| Median (8 companies) | 7.0% | 4.8% | 5.2% | 6.1% | 6.7% |
|---|
| Beijing Jingneng Clean Energy Co Ltd ($579) | 7.0% | 5.8% | 6.8% | 6.3% | 8.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Suntien Green Energy Corp Ltd ($956) | 4.7x | 4.5x | 4.1x | 4.9x | 9.5x |
| China Longyuan Power Group Corp Ltd ($916) | 5.9x | 5.5x | 5.3x | 5.8x | 5.7x |
| GCL-Poly Energy Holdings Ltd ($3800) | 2.9x | 11.4x | 7.7x | 5.4x | 5.0x |
| China Renewable Energy Investment Ltd ($987) | 17.1x | 8.9x | 6.2x | 6.4x | 3.8x |
| HaiTian Hydropower International Ltd ($8261) | 4.5x | 1.4x | 2.6x | 10.5x | 2.4x |
| |
|---|
| Median (7 companies) | 4.5x | 4.1x | 3.4x | 5.4x | 3.8x |
|---|
| Beijing Jingneng Clean Energy Co Ltd ($579) | 5.0x | 6.7x | 6.3x | 6.7x | 4.4x |
