China Construction Bank Corp revenue increased on 5.5% in 2015
30/03/2016 • About China Construction Bank Corp (
$939) • By InTwits
China Construction Bank Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Construction Bank Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's a lot of higher than industry average of 3.5%.
- CAPEX is quite volatile: 44,663 in FY2015, 41,414 in FY2014, 27,668 in FY2013, 23,980 in FY2012, 18,902 in FY2011
- The company has business model with low profitability: ROIC is at 8.4%
- It operates with high leverage: Net Debt/EBITDA is -1.7x 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 Construction Bank Corp ($939) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 577,967 | 713,982 | 771,070 | 861,353 | 908,448 | 5.5% |
| Net Income | 169,258 | 193,179 | 214,657 | 227,830 | 228,145 | 0.1% |
Balance Sheet
|
|---|
| Cash | 2,379,809 | 2,458,069 | 2,475,001 | 2,610,781 | 2,401,544 | -8.0% |
| Short Term Debt | 1,047,174 | 1,104,024 | 927,169 | 1,297,736 | 1,803,155 | 38.9% |
| Long Term Debt | 119,861 | 161,768 | 163,791 | 191,349 | 244,748 | 27.9% |
Cash flow
|
|---|
| Capex | 23,312 | 34,939 | 38,406 | 35,490 | 28,589 | -19.4% |
Ratios
|
|---|
| Revenue growth | 27.7% | 23.5% | 8.0% | 11.7% | 5.5% | |
| Net Income Margin | 29.3% | 27.1% | 27.8% | 26.5% | 25.1% | -1.3% |
| CAPEX, % of revenue | 4.0% | 4.9% | 5.0% | 4.1% | 3.1% | -1.0% |
| ROIC | 11.6% | 11.1% | 11.7% | 10.8% | 8.4% | -2.4% |
| ROE | 22.4% | 22.0% | 21.4% | 19.7% | 17.2% | -2.6% |
Revenue and profitability
The company's Revenue increased on 5.5% in 2015.
Net Income marign decreased slightly on 1.3 pp from 26.5% to 25.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Construction Bank Corp's CAPEX/Revenue was 3.1% in 2015. The company's CAPEX/Revenue decreased slightly on 1.7 pp from 4.9% in 2012 to 3.1% in 2015. Average CAPEX/Revenue for the last three years was 4.1%.
Return on investment
The company operates at good ROE (17.18%) while ROIC is low (8.43%). ROIC decreased on 2.4 pp from 10.8% to 8.4% in 2015. ROE decreased on 2.6 pp from 19.7% to 17.2% in 2015.
Leverage (Debt)
Debt surged on 37.5% in 2015 while cash decreased on 8.0% in 2015.
Appendix 1: Peers in Banks
Below you can find China Construction Bank Corp 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 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | | -20.6% | 43.4% | 6.8% | 116.4% |
| Huishang Bank Corp Ltd ($3698) | | 33.9% | 22.8% | 24.3% | 24.6% |
| Shengjing Bank Co Ltd ($2066) | | 36.5% | 36.3% | 40.1% | 24.3% |
| Bank of Chongqing Co Ltd ($1963) | | 38.4% | 26.6% | 28.4% | 18.5% |
| BOC Hong Kong Holdings Ltd ($2388) | | 15.1% | 11.4% | -3.0% | 11.6% |
| |
|---|
| Median (20 companies) | 51.3% | 19.6% | 11.7% | 14.8% | 7.2% |
|---|
| China Construction Bank Corp ($939) | | 23.5% | 8.0% | 11.7% | 5.5% |
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 |
|---|
| Dah Sing Banking Group Ltd ($2356) | 7.8% | 3.9% | 4.1% | 2.2% | 7.5% |
| Bank of Communications Co Ltd ($3328) | 3.1% | 3.6% | 5.1% | 5.3% | 7.2% |
| Dah Sing Financial Holdings Ltd ($440) | 5.4% | 3.0% | 3.4% | 1.7% | 5.9% |
| Harbin Bank Co Ltd ($6138) | 20.0% | 19.8% | 9.9% | 6.5% | 5.8% |
| Bank of China Ltd ($3988) | 6.3% | 4.7% | 5.4% | 4.7% | 4.8% |
| |
|---|
| Median (20 companies) | 3.2% | 3.2% | 3.7% | 3.1% | 2.8% |
|---|
| China Construction Bank Corp ($939) | 4.0% | 4.9% | 5.0% | 4.1% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hang Seng Bank Ltd ($11) | 9.0% | 8.6% | 9.5% | 9.0% | 8.3% |
| Industrial & Commercial Bank of China Ltd ($1398) | 10.6% | 9.9% | 10.2% | 9.9% | 8.1% |
| BOC Hong Kong Holdings Ltd ($2388) | 5.1% | 5.9% | 6.4% | 5.8% | 6.2% |
| Dah Sing Financial Holdings Ltd ($440) | 3.2% | 3.8% | 5.1% | 5.2% | 5.9% |
| Chong Hing Bank Ltd ($1111) | 6.3% | 5.5% | 5.2% | 16.4% | 5.7% |
| |
|---|
| Median (20 companies) | 6.3% | 6.0% | 6.3% | 5.4% | 4.3% |
|---|
| China Construction Bank Corp ($939) | 11.6% | 11.1% | 11.7% | 10.8% | 8.4% |
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 |
|---|
