China Everbright Bank Co Ltd revenue increased on 8.4% in 2015
29/03/2016 • About China Everbright Bank Co Ltd (
$6818) • By InTwits
China Everbright Bank Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Everbright Bank Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 14.3%.
- CAPEX is quite volatile: 3,357 in 2015, 2,760 in 2014, 2,902 in 2013, 5,334 in 2012, 9,510 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.2%
- It operates with high leverage: Net Debt/EBITDA is 1.1x 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.
China Everbright Bank Co Ltd ($6818) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 84,907 | 114,263 | 135,583 | 155,784 | 168,887 | 8.4% |
| Net Income | 18,068 | 23,591 | 26,715 | 28,883 | 29,528 | 2.2% |
Balance Sheet
|
|---|
| Cash | 228,666 | 285,478 | 312,643 | 354,185 | 326,735 | -7.8% |
| Short Term Debt | 297,989 | 550,766 | 489,421 | 573,971 | 616,211 | 7.4% |
| Long Term Debt | 16,000 | 52,700 | 39,700 | 52,900 | 55,700 | 5.3% |
Cash flow
|
|---|
| Capex | 1,961 | 2,748 | 2,625 | 2,837 | 1,782 | -37.2% |
Ratios
|
|---|
| Revenue growth | 42.0% | 34.6% | 18.7% | 14.9% | 8.4% | |
| Net Income Margin | 21.3% | 20.6% | 19.7% | 18.5% | 17.5% | -1.1% |
| CAPEX, % of revenue | 2.3% | 2.4% | 1.9% | 1.8% | 1.1% | -0.8% |
| ROIC | 6.0% | 4.9% | 4.4% | 4.7% | 4.2% | -0.5% |
| ROE | 20.4% | 22.4% | 20.0% | 17.4% | 14.7% | -2.7% |
Revenue and profitability
China Everbright Bank Co Ltd's Revenue increased on 8.4% in 2015.
Net Income marign decreased slightly on 1.1 pp from 18.5% to 17.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.1%. China Everbright Bank Co Ltd showed small CAPEX/Revenue decline of 1.3 pp from 2.4% in 2012 to 1.1% in 2015. Average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at good ROE (14.67%) while ROIC is low (4.20%). ROIC showed almost no change in 2015. ROE decreased on 2.7 pp from 17.4% to 14.7% in 2015.
Leverage (Debt)
Debt increased on 7.2% in 2015 while cash decreased on 7.8% in 2015.
Appendix 1: Peers in Banks
Below you can find China Everbright Bank Co Ltd benchmarking vs. other companies in Banks 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 |
|---|
| 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) | 29.3% | 19.6% | 10.4% | 13.8% | 7.2% |
|---|
| China Everbright Bank Co Ltd ($6818) | | 34.6% | 18.7% | 14.9% | 8.4% |
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% | 7.2% |
| 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% |
|---|
| China Everbright Bank Co Ltd ($6818) | 2.3% | 2.4% | 1.9% | 1.8% | 1.1% |
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) | 6.4% | 6.0% | 6.4% | 5.5% | 4.1% |
|---|
| China Everbright Bank Co Ltd ($6818) | 6.0% | 4.9% | 4.4% | 4.7% | 4.2% |
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 |
|---|
