China Cinda Asset Management Co Ltd revenue surged on 34.5% in 2015 while EBITDA Margin decreased on 4.9 pp from 58.6% to 53.8%
29/03/2016 • About China Cinda Asset Management Co Ltd (
$1359) • By InTwits
China Cinda Asset Management Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Cinda Asset Management Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 6.1%.
- CAPEX is quite volatile: 1,077 in 2015, 360 in 2014, 489 in 2013, 599 in 2012, 671 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.4%
- It operates with high leverage: Net Debt/EBITDA is 9.5x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Cinda Asset Management Co Ltd ($1359) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24,136 | 28,995 | 38,406 | 58,278 | 78,363 | 34.5% |
| EBITDA | 10,591 | 13,282 | 20,060 | 34,174 | 42,136 | 23.3% |
| Net Income | 6,763 | 7,306 | 9,027 | 11,896 | 14,028 | 17.9% |
Balance Sheet
|
|---|
| Cash | 14,563 | 28,943 | 47,123 | 31,394 | 33,135 | 5.5% |
| Short Term Debt | 28,192 | 39,320 | 106,934 | 165,827 | 210,337 | 26.8% |
| Long Term Debt | 8,792 | 56,367 | 95,575 | 154,134 | 221,300 | 43.6% |
Cash flow
|
|---|
| Capex | 671 | 599 | 489 | 360 | 1,077 | 199.5% |
Ratios
|
|---|
| Revenue growth | 1.4% | 20.1% | 32.5% | 51.7% | 34.5% | |
| EBITDA growth | -6.5% | 25.4% | 51.0% | 70.4% | 23.3% | |
| EBITDA Margin | 43.9% | 45.8% | 52.2% | 58.6% | 53.8% | -4.9% |
| Net Income Margin | 28.0% | 25.2% | 23.5% | 20.4% | 17.9% | -2.5% |
| CAPEX, % of revenue | 2.8% | 2.1% | 1.3% | 0.6% | 1.4% | 0.8% |
| ROIC | 10.9% | 7.2% | 5.1% | 4.9% | 4.4% | -0.5% |
| ROE | 18.1% | 15.8% | 13.8% | 14.0% | 14.4% | 0.3% |
| Net Debt/EBITDA | 2.1x | 5.0x | 7.7x | 8.4x | 9.5x | 1.0x |
Revenue and profitability
The company's Revenue jumped on 34.5% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 4.9 pp from 58.6% to 53.8% in 2015.
Net Income marign decreased on 2.5 pp from 20.4% to 17.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Cinda Asset Management Co Ltd's CAPEX/Revenue was 1.4% in 2015. The company showed small CAPEX/Revenue decline of 0.69 pp from 2.1% in 2012 to 1.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at good ROE (14.38%) while ROIC is low (4.38%). ROIC decreased slightly on 0.53 pp from 4.9% to 4.4% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 9.5x and Debt / EBITDA is 10.2x. Net Debt / EBITDA surged on 1.0x from 8.4x to 9.5x in 2015. Debt surged on 34.9% in 2015 while cash increased on 5.5% in 2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide China Cinda Asset Management Co Ltd benchmarking against other companies in Diversified Finan Serv 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 Smarter Energy Group Holdings Ltd ($1004) | | -4.0% | -23.1% | -87.3% | 1,860.5% |
| Crown International Corp Ltd ($727) | | 225.8% | -75.0% | 117.4% | 802.5% |
| Global Strategic Group Ltd ($8007) | | -3.9% | 2.1% | 806.3% | 681.2% |
| Upbest Group Ltd ($335) | | -38.5% | -61.8% | 24.1% | 208.1% |
| GF Securities Co Ltd ($1776) | | 16.3% | 31.8% | 75.0% | 163.9% |
| |
|---|
| Median (58 companies) | -2.4% | 3.6% | 14.9% | 26.5% | 24.0% |
|---|
| China Cinda Asset Management Co Ltd ($1359) | | 20.1% | 32.5% | 51.7% | 34.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | 96.6% |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | 97.4% |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | 92.2% |
| |
|---|
| Median (13 companies) | 80.8% | 64.2% | 75.1% | 88.2% | 91.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -122.8% | -282.7% | -373.2% | -1,524.9% | 212.2% |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 89.3% | 91.3% | 86.4% | 92.9% | 107.0% |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | 83.9% |
| Hong Kong Exchanges and Clearing Ltd ($388) | 83.5% | 81.6% | 73.4% | 75.7% | 82.1% |
| Hong Kong Finance Group Co Ltd ($1273) | 79.8% | 76.9% | 67.5% | 65.2% | 74.8% |
| |
|---|
| Median (59 companies) | 30.3% | 18.8% | 36.2% | 47.2% | 32.2% |
|---|
| China Cinda Asset Management Co Ltd ($1359) | 43.9% | 45.8% | 52.2% | 58.6% | 53.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Aircraft Leasing Group Holdings Ltd ($1848) | 0.4% | 351.0% | 0.1% | 33.3% | 64.6% |
| Willie International Holdings Ltd ($273) | | | 0.3% | 0.8% | 58.0% |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | 51.0% |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | 26.6% |
| Hongkong Chinese Ltd ($655) | | | | 0.1% | 25.6% |
| |
|---|
| Median (58 companies) | 2.2% | 1.9% | 1.9% | 1.1% | 1.5% |
|---|
| China Cinda Asset Management Co Ltd ($1359) | 2.8% | 2.1% | 1.3% | 0.6% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong Exchanges and Clearing Ltd ($388) | 65.6% | 29.1% | 20.1% | 21.5% | 29.1% |
| China Smarter Energy Group Holdings Ltd ($1004) | -8.2% | -19.4% | -23.0% | -14.0% | 22.5% |
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | 30.4% | 32.7% | 20.7% | 14.0% | 15.3% |
| Emperor Capital Group Ltd ($717) | 5.1% | 5.1% | 12.8% | 13.1% | 14.6% |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| |
|---|
| Median (61 companies) | 4.6% | 3.9% | 4.0% | 4.8% | 3.6% |
|---|
| China Cinda Asset Management Co Ltd ($1359) | 10.9% | 7.2% | 5.1% | 4.9% | 4.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South China Financial Holdings Ltd ($619) | | | | | 56.9x |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x |
| Quam Ltd ($952) | 4.9x | 58.9x | 15.9x | 4.1x | 14.8x |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 13.9x | 14.7x | 19.0x | 17.5x | 14.6x |
| Crown International Corp Ltd ($727) | | | | | 9.9x |
| |
|---|
| Median (45 companies) | -1.1x | -0.7x | 0.1x | -0.1x | -0.6x |
|---|
| China Cinda Asset Management Co Ltd ($1359) | 2.1x | 5.0x | 7.7x | 8.4x | 9.5x |
