China Resources Gas Group Ltd reports 16.4% EBITDA growth and 8.3% Revenue growth
30/03/2016 • About China Resources Gas Group Ltd (
$1193) • By InTwits
China Resources Gas Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Resources Gas Group Ltd is a fast growth stock: 2015 revenue growth was 8.3%, 5 year revenue CAGR was 27.2% at 2015 ROIC 12.5%
- China Resources Gas Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.6%. At the same time it's a lot of higher than industry average of 11.6%.
- CAPEX is quite volatile: 3,788 in 2015, 5,909 in 2014, 2,640 in 2013, 2,115 in 2012, 5,386 in 2011
- The company has highly profitable business model: ROIC is at 12.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Resources Gas Group Ltd ($1193) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 14,208 | 13,622 | 22,288 | 28,717 | 31,096 | 8.3% |
| Gross Profit | 4,166 | 4,253 | 7,622 | 8,714 | 9,789 | 12.3% |
| SG&A | 2,520 | 2,626 | 4,604 | 5,083 | 5,631 | 10.8% |
| EBITDA | 2,585 | 2,207 | 3,887 | 5,070 | 5,903 | 16.4% |
| Net Income | 1,176 | 1,646 | 2,161 | 2,480 | 2,838 | 14.4% |
Balance Sheet
|
|---|
| Cash | 7,124 | 10,540 | 9,584 | 9,708 | 10,751 | 10.7% |
| Short Term Debt | 1,691 | 2,591 | 875 | 3,319 | 4,243 | 27.8% |
| Long Term Debt | 5,076 | 11,534 | 13,261 | 11,814 | 10,869 | -8.0% |
Cash flow
|
|---|
| Capex | 2,029 | 2,807 | 4,132 | 3,558 | 3,823 | 7.5% |
Ratios
|
|---|
| Revenue growth | 52.3% | -4.1% | 63.6% | 28.8% | 8.3% | |
| EBITDA growth | 41.7% | -14.6% | 76.2% | 30.4% | 16.4% | |
| Gross Margin | 29.3% | 31.2% | 34.2% | 30.3% | 31.5% | 1.1% |
| EBITDA Margin | 18.2% | 16.2% | 17.4% | 17.7% | 19.0% | 1.3% |
| Net Income Margin | 8.3% | 12.1% | 9.7% | 8.6% | 9.1% | 0.5% |
| SG&A, % of revenue | 17.7% | 19.3% | 20.7% | 17.7% | 18.1% | 0.4% |
| CAPEX, % of revenue | 14.3% | 20.6% | 18.5% | 12.4% | 12.3% | -0.1% |
| ROIC | 11.9% | 6.9% | 10.4% | 11.4% | 12.5% | 1.1% |
| ROE | 15.5% | 15.7% | 16.7% | 16.4% | 17.2% | 0.8% |
| Net Debt/EBITDA | -0.1x | 1.6x | 1.2x | 1.1x | 0.7x | -0.3x |
Revenue and profitability
The company's Revenue increased on 8.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 12.2% to 14.1% in 2015.
Gross Margin increased slightly on 1.1 pp from 30.3% to 31.5% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
China Resources Gas Group Ltd's CAPEX/Revenue was 12.3% in 2015. China Resources Gas Group Ltd's CAPEX/Revenue decreased on 8.3 pp from 20.6% in 2012 to 12.3% in 2015. It's average CAPEX/Revenue for the last three years was 14.4%.The company invested a large share of EBITDA (64.8%) to CAPEX.
Return on investment
The company operates at good ROIC (12.47%) and ROE (17.16%). ROIC increased slightly on 1.1 pp from 11.4% to 12.5% in 2015. ROE increased slightly on 0.76 pp from 16.4% to 17.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is 2.6x. Net Debt / EBITDA dropped on 0.3x from 1.1x to 0.7x in 2015. Debt showed almost no change in 2015 while cash surged on 10.7% in 2015.
Management team
The company's CEO Shi Shanbo has spent 6 years at the company.
Appendix 1: Peers in Gas
Below we provide China Resources Gas Group Ltd benchmarking against other companies in Gas 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 Gas Holdings Ltd ($384) | | 19.4% | -5.2% | 44.8% | 21.8% |
| ENN Energy Holdings Ltd ($2688) | | 19.6% | 27.4% | 26.7% | 10.2% |
| Suchuang Gas Corp Ltd ($1430) | | 10.3% | 26.9% | 18.4% | 1.3% |
| Binhai Investment Co Ltd ($2886) | | 35.0% | 34.2% | 14.1% | 0.5% |
| Towngas China Co Ltd ($1083) | | 20.0% | 29.6% | 17.4% | -2.1% |
| |
|---|
| Median (8 companies) | 10.4% | 14.0% | 27.1% | 17.4% | -0.8% |
|---|
| China Resources Gas Group Ltd ($1193) | | -4.1% | 63.6% | 28.8% | 8.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suchuang Gas Corp Ltd ($1430) | 26.6% | 28.9% | 30.1% | 24.2% | 25.2% |
| ENN Energy Holdings Ltd ($2688) | 25.9% | 26.9% | 23.8% | 20.9% | 21.4% |
| Binhai Investment Co Ltd ($2886) | 13.6% | 20.1% | 20.6% | 18.3% | 21.3% |
| China Gas Holdings Ltd ($384) | 18.3% | 19.0% | 21.0% | 20.3% | 20.4% |
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 21.2% | 9.4% | 17.2% | 16.4% | 20.3% |
| |
|---|
| Median (6 companies) | 21.2% | 20.7% | 21.0% | 18.3% | 20.8% |
|---|
| China Resources Gas Group Ltd ($1193) | 29.3% | 31.2% | 34.2% | 30.3% | 31.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong & China Gas Co Ltd ($3) | 31.1% | 30.0% | 29.6% | 29.2% | 30.7% |
| Suchuang Gas Corp Ltd ($1430) | 28.4% | 30.2% | 30.5% | 24.9% | 24.0% |
| Binhai Investment Co Ltd ($2886) | 5.9% | 14.8% | 17.0% | 15.2% | 20.7% |
| Towngas China Co Ltd ($1083) | 19.3% | 19.9% | 18.9% | 18.8% | 19.2% |
| China Gas Holdings Ltd ($384) | 14.2% | 15.2% | 16.5% | 16.6% | 16.8% |
| |
|---|
| Median (9 companies) | 18.0% | 20.1% | 17.9% | 16.6% | 16.8% |
|---|
| China Resources Gas Group Ltd ($1193) | 18.2% | 16.2% | 17.4% | 17.7% | 19.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Towngas China Co Ltd ($1083) | 21.1% | 31.3% | 25.7% | 26.2% | 26.4% |
| Hong Kong & China Gas Co Ltd ($3) | 20.7% | 23.7% | 18.7% | 20.1% | 21.5% |
| Binhai Investment Co Ltd ($2886) | 23.6% | 26.9% | 18.0% | 15.5% | 16.7% |
| China Gas Holdings Ltd ($384) | 12.2% | 9.4% | 13.7% | 12.3% | 12.3% |
| China Oil & Gas Group Ltd ($603) | 17.1% | 15.0% | 18.3% | 15.4% | 11.1% |
| |
|---|
| Median (9 companies) | 17.7% | 18.9% | 14.9% | 12.3% | 11.1% |
|---|
| China Resources Gas Group Ltd ($1193) | 14.3% | 20.6% | 18.5% | 12.4% | 12.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suchuang Gas Corp Ltd ($1430) | | 13.6% | 19.4% | 23.9% | 20.8% |
| Binhai Investment Co Ltd ($2886) | 7.6% | 12.2% | 12.2% | 10.9% | 14.7% |
| ENN Energy Holdings Ltd ($2688) | 13.1% | 14.3% | 11.7% | 16.4% | 13.6% |
| China Gas Holdings Ltd ($384) | 6.8% | 8.4% | 8.6% | 10.6% | 10.6% |
| Hong Kong & China Gas Co Ltd ($3) | 8.0% | 7.3% | 7.4% | 7.5% | 6.9% |
| |
|---|
| Median (9 companies) | 7.6% | 8.0% | 10.1% | 7.5% | 6.9% |
|---|
| China Resources Gas Group Ltd ($1193) | 11.9% | 6.9% | 10.4% | 11.4% | 12.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Oil & Gas Group Ltd ($603) | -0.8x | -0.0x | 1.0x | 2.8x | 6.0x |
| Towngas China Co Ltd ($1083) | 3.6x | 3.5x | 3.7x | 4.1x | 4.5x |
| China Gas Holdings Ltd ($384) | 4.4x | 3.7x | 3.7x | 3.1x | 2.9x |
| Binhai Investment Co Ltd ($2886) | -0.4x | 3.4x | 2.8x | 3.5x | 2.8x |
| Hong Kong & China Gas Co Ltd ($3) | 2.2x | 2.6x | 2.8x | 2.1x | 2.3x |
| |
|---|
| Median (8 companies) | 1.9x | 3.1x | 2.4x | 2.9x | 2.5x |
|---|
| China Resources Gas Group Ltd ($1193) | -0.1x | 1.6x | 1.2x | 1.1x | 0.7x |
