China COSCO Holdings Co Ltd EBITDA surged on 25.4% in 2015 and EBITDA Margin increased on 3.6 pp from 7.8% to 11.5%
30/03/2016 • About China COSCO Holdings Co Ltd (
$1919) • By InTwits
China COSCO Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China COSCO Holdings Co Ltd is a company in decline: 2015 revenue growth was -14.2%, 5 years revenue CAGR was -9.9%
- EBITDA Margin is expanding: 11.5% in 2015 vs. 7.8% in 2014 vs. -7.4% in 2011
- EBITDA Margin is quite volatile: 11.5% in 2015, 7.8% in 2014, 3.9% in 2013, -6.4% in 2012, -7.4% in 2011
- China COSCO Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.2%. At the same time it's in pair with industry average of 17.7%.
- CAPEX is quite volatile: 12,347 in 2015, 12,873 in 2014, 6,930 in 2013, 2,087 in 2012, 2,998 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.9%
- It operates with high leverage: Net Debt/EBITDA is 8.1x while industry average is 2.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China COSCO Holdings Co Ltd ($1919) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 84,639 | 68,268 | 66,138 | 66,901 | 57,404 | -14.2% |
| Gross Profit | -4,947 | -3,869 | -892 | 4,024 | 2,161 | -46.3% |
| SG&A | 5,541 | 4,274 | 4,176 | 4,308 | 4,293 | -0.4% |
| EBITDA | -6,300 | -4,339 | 2,565 | 5,247 | 6,580 | 25.4% |
| Net Income | -10,495 | -9,559 | 235 | 363 | 283 | -21.8% |
Balance Sheet
|
|---|
| Cash | 46,963 | 46,361 | 48,206 | 39,706 | 32,691 | -17.7% |
| Short Term Debt | 21,713 | 14,118 | 28,044 | 18,886 | 10,998 | -41.8% |
| Long Term Debt | 55,314 | 79,086 | 68,351 | 68,057 | 75,047 | 10.3% |
Cash flow
|
|---|
| Capex | 8,546 | 11,394 | 10,629 | 6,958 | 7,228 | 3.9% |
Ratios
|
|---|
| Revenue growth | -12.3% | -19.3% | -3.1% | 1.2% | -14.2% | |
| EBITDA growth | -154.7% | -31.1% | -159.1% | 104.6% | 25.4% | |
| Gross Margin | -5.8% | -5.7% | -1.3% | 6.0% | 3.8% | -2.3% |
| EBITDA Margin | -7.4% | -6.4% | 3.9% | 7.8% | 11.5% | 3.6% |
| Net Income Margin | -12.4% | -14.0% | 0.4% | 0.5% | 0.5% | -0.0% |
| SG&A, % of revenue | 6.5% | 6.3% | 6.3% | 6.4% | 7.5% | 1.0% |
| CAPEX, % of revenue | 10.1% | 16.7% | 16.1% | 10.4% | 12.6% | 2.2% |
| ROIC | -7.7% | -6.1% | -1.0% | 0.8% | 1.9% | 1.1% |
| ROE | -25.4% | -32.0% | 1.0% | 1.5% | 1.2% | -0.3% |
| Net Debt/EBITDA | | | 18.8x | 9.0x | 8.1x | -0.9x |
Revenue and profitability
The company's Revenue dropped on 14.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.6 pp from 7.8% to 11.5% in 2015.
Gross Margin decreased on 2.3 pp from 6.0% to 3.8% in 2015. SG&A as a % of Revenue increased slightly on 1.0 pp from 6.4% to 7.5% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 12.6% in 2015. CAPEX/Revenue decreased on 4.1 pp from 16.7% in 2012 to 12.6% in 2015. Average CAPEX/Revenue for the last three years was 13.0%.The company has spent a lot to CAPEX (110% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (1.92%) and ROE (1.16%). ROIC increased slightly on 1.1 pp from 0.83% to 1.9% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.1x and Debt / EBITDA is 13.1x. Net Debt / EBITDA dropped on 0.9x from 9.0x to 8.1x in 2015. Debt decreased slightly on 1.0% in 2015 while cash dropped on 17.7% in 2015.
Appendix 1: Peers in Transportation
Below we provide China COSCO Holdings Co Ltd benchmarking against other companies in Transportation 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 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | | | | 2,388.3% |
| Changan Minsheng APLL Logistics Co Ltd ($1292) | | 10.9% | 27.9% | 15.0% | 13.3% |
| Kwoon Chung Bus Holdings Ltd ($306) | | -8.6% | 7.9% | 5.5% | 7.9% |
| Guangshen Railway Co Ltd ($525) | | 2.7% | 4.7% | -6.9% | 6.9% |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | | 9.4% | 6.9% | 12.9% | 5.1% |
| |
|---|
| Median (29 companies) | 121.3% | 7.2% | 4.6% | 5.6% | -5.7% |
|---|
| China COSCO Holdings Co Ltd ($1919) | | -19.3% | -3.1% | 1.2% | -14.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.0% | 51.3% | 44.8% | 46.6% | 48.7% |
| Qinhuangdao Port Co Ltd ($3369) | 43.2% | 43.1% | 42.4% | 43.3% | 40.5% |
| Kwoon Chung Bus Holdings Ltd ($306) | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 21.5% | 23.1% | 25.1% | 24.1% | 23.1% |
| Tianjin Port Development Holdings Ltd ($3382) | 21.7% | 22.5% | 18.4% | 13.6% | 22.7% |
| |
|---|
| Median (25 companies) | 18.7% | 13.2% | 11.3% | 11.3% | 13.0% |
|---|
| China COSCO Holdings Co Ltd ($1919) | -5.8% | -5.7% | -1.3% | 6.0% | 3.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| MTR Corp Ltd ($66) | 49.1% | 42.7% | 37.6% | 45.2% | 41.6% |
| Qinhuangdao Port Co Ltd ($3369) | 45.3% | 46.0% | 44.6% | 46.5% | 41.1% |
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | 39.5% |
| China Shipping Development Co Ltd ($1138) | 24.7% | 12.5% | 3.0% | 24.7% | 26.7% |
| Kwoon Chung Bus Holdings Ltd ($306) | 15.4% | 13.3% | 16.1% | 20.7% | 26.1% |
| |
|---|
| Median (29 companies) | 15.8% | 9.9% | 7.4% | 7.2% | 9.5% |
|---|
| China COSCO Holdings Co Ltd ($1919) | -7.4% | -6.4% | 3.9% | 7.8% | 11.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Harvest Maeta Group Holdings Ltd ($3683) | 150.5% | 4.0% | 6.1% | 40.7% | 164.7% |
| MTR Corp Ltd ($66) | 30.0% | 31.1% | 34.5% | 30.8% | 52.0% |
| CIG Yangtze Ports PLC ($8233) | 31.4% | 17.8% | 24.8% | 2.1% | 50.7% |
| Transport International Holdings Ltd ($62) | 10.9% | 7.9% | 16.2% | 16.0% | 26.2% |
| Qinhuangdao Port Co Ltd ($3369) | 47.2% | 57.9% | 35.8% | 46.3% | 21.0% |
| |
|---|
| Median (29 companies) | 11.1% | 7.7% | 8.5% | 6.8% | 9.0% |
|---|
| China COSCO Holdings Co Ltd ($1919) | 10.1% | 16.7% | 16.1% | 10.4% | 12.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 34.2% | 21.1% | 20.9% | 19.1% | 19.3% |
| Kwoon Chung Bus Holdings Ltd ($306) | 6.9% | 3.6% | 5.7% | 9.2% | 14.6% |
| SITC International Holdings Co Ltd ($1308) | 9.0% | 8.2% | 9.1% | 9.1% | 11.2% |
| CIG Yangtze Ports PLC ($8233) | 4.3% | 4.9% | 5.7% | 11.0% | 11.1% |
| On Time Logistics Holdings Ltd ($6123) | | 15.6% | 15.5% | 16.7% | 11.1% |
| |
|---|
| Median (29 companies) | 5.3% | 3.5% | 3.7% | 3.7% | 5.0% |
|---|
| China COSCO Holdings Co Ltd ($1919) | -7.7% | -6.1% | -1.0% | 0.8% | 1.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jinhui Holdings Co Ltd ($137) | 2.8x | 5.0x | 4.2x | 17.5x | 19.6x |
| China Shipping Development Co Ltd ($1138) | 7.2x | 20.2x | 92.8x | 12.8x | 11.4x |
| Pacific Basin Shipping Ltd ($2343) | 0.8x | 2.1x | 4.6x | | 4.7x |
| AMS Public Transport Holdings Ltd ($77) | 0.7x | 1.2x | 11.6x | 7.7x | 4.5x |
| Orient Overseas International Ltd ($316) | 2.0x | 2.7x | 5.1x | 3.4x | 3.9x |
| |
|---|
| Median (20 companies) | 0.2x | 1.1x | 1.5x | 0.8x | 0.8x |
|---|
| China COSCO Holdings Co Ltd ($1919) | | | 18.8x | 9.0x | 8.1x |
