Datang Intl Power Generation Debt dropped on 14.1% in 2015 and Revenue dropped on 12.8%
29/03/2016 • About Datang Intl Power Generation (
$991) • By InTwits
Datang Intl Power Generation reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 38.0% in 2015 vs. 34.8% in 2014 vs. 25.0% in 2011
- Datang Intl Power Generation has high CAPEX intensity: 5 year average CAPEX/Revenue was 34.4%. At the same time it's in pair with industry average of 29.7%.
- CAPEX is quite volatile: 1,282 in 2015, 907 in 2014, 330 in 2013, 408 in 2012, 304 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 7.5x while industry average is 7.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Datang Intl Power Generation ($991) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 72,382 | 77,598 | 75,227 | 70,194 | 61,196 | -12.8% |
| Gross Profit | | | | | 18,789 | |
| SG&A | | | | | 3,827 | |
| EBITDA | 18,117 | 22,296 | 25,262 | 24,396 | 23,234 | -4.8% |
| Net Income | 1,971 | 4,019 | 3,403 | 1,767 | 2,809 | 58.9% |
Balance Sheet
|
|---|
| Cash | 4,467 | 4,613 | 7,881 | 5,288 | 5,524 | 4.4% |
| Short Term Debt | 38,470 | 40,165 | 41,186 | 45,841 | 33,550 | -26.8% |
| Long Term Debt | 132,410 | 151,038 | 161,470 | 162,496 | 145,471 | -10.5% |
Cash flow
|
|---|
| Capex | 26,010 | 26,616 | 32,515 | 20,242 | 18,187 | -10.2% |
Ratios
|
|---|
| Revenue growth | 19.3% | 7.2% | -3.1% | -6.7% | -12.8% | |
| EBITDA growth | 9.2% | 23.1% | 13.3% | -3.4% | -4.8% | |
| Gross Margin | | | | | 30.7% | 30.7% |
| EBITDA Margin | 25.0% | 28.7% | 33.6% | 34.8% | 38.0% | 3.2% |
| Net Income Margin | 2.7% | 5.2% | 4.5% | 2.5% | 4.6% | 2.1% |
| SG&A, % of revenue | | | | | 6.3% | 6.3% |
| CAPEX, % of revenue | 35.9% | 34.3% | 43.2% | 28.8% | 29.7% | 0.9% |
| ROIC | 4.6% | 5.7% | 5.9% | 4.8% | 4.6% | -0.2% |
| ROE | 5.6% | 10.0% | 8.0% | 4.0% | 6.3% | 2.3% |
| Net Debt/EBITDA | 9.2x | 8.4x | 7.7x | 8.3x | 7.5x | -0.9x |
Revenue and profitability
Datang Intl Power Generation's Revenue dropped on 12.8% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.2 pp from 34.8% to 38.0% in 2015.
Net Income marign increased on 2.1 pp from 2.5% to 4.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Datang Intl Power Generation's CAPEX/Revenue was 29.7% in 2015. CAPEX/Revenue decreased on 4.6 pp from 34.3% in 2012 to 29.7% in 2015. It's average level of CAPEX/Revenue for the last three years was 33.9%.Battling declining revenue Datang Intl Power Generation invested a large share of EBITDA (78.3%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (4.63%) and ROE (6.30%). ROIC showed almost no change in 2015. ROE increased on 2.3 pp from 4.0% to 6.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.5x and Debt / EBITDA is 7.7x. Net Debt / EBITDA dropped on 0.9x from 8.3x to 7.5x in 2015. Debt dropped on 14.1% in 2015 while cash increased on 4.4% in 2015.
Appendix 1: Peers in Electricity
Below you can find Datang Intl Power Generation benchmarking vs. other companies in Electricity 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.
