Concord New Energy Group Ltd Net Income jumped on 60.2% in 2015 and EBITDA Margin increased slightly on 1.5 pp from 15.1% to 16.6%
30/03/2016 • About Concord New Energy Group Ltd (
$182) • By InTwits
Concord New Energy Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 16.6% in 2015, 15.1% in 2014, 18.0% in 2013, 23.0% in 2012, 42.0% in 2011
- Concord New Energy Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 77.9%. At the same time it's a lot of higher than industry average of 50.5%.
- CAPEX is quite volatile: 2,362 in 2015, 1,872 in 2014, 357 in 2013, 706 in 2012, 1,910 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 4.2x while industry average is 4.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Concord New Energy Group Ltd ($182) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 959 | 1,100 | 1,883 | 3,550 | 4,321 | 21.7% |
| EBITDA | 403 | 253 | 338 | 537 | 717 | 33.6% |
| Net Income | 372 | 40 | 151 | 317 | 508 | 60.2% |
Balance Sheet
|
|---|
| Cash | 1,064 | 731 | 1,850 | 1,105 | 1,905 | 72.4% |
| Short Term Debt | 161 | 393 | 1,068 | 767 | 1,515 | 97.4% |
| Long Term Debt | 974 | 1,298 | 1,262 | 1,515 | 3,391 | 123.9% |
Cash flow
|
|---|
| Capex | 1,910 | 706 | 357 | 1,872 | 2,362 | 26.2% |
Ratios
|
|---|
| Revenue growth | -22.4% | 14.7% | 71.2% | 88.5% | 21.7% | |
| EBITDA growth | 14.7% | -37.2% | 33.7% | 58.6% | 33.6% | |
| EBITDA Margin | 42.0% | 23.0% | 18.0% | 15.1% | 16.6% | 1.5% |
| Net Income Margin | 38.8% | 3.7% | 8.0% | 8.9% | 11.8% | 2.8% |
| CAPEX, % of revenue | 199.2% | 64.2% | 19.0% | 52.7% | 54.7% | 1.9% |
| ROIC | 7.0% | 3.1% | 4.1% | 5.5% | 5.9% | 0.3% |
| ROE | 8.9% | 0.9% | 3.2% | 6.0% | 9.0% | 3.0% |
| Net Debt/EBITDA | 0.2x | 3.8x | 1.4x | 2.2x | 4.2x | 2.0x |
Revenue and profitability
Concord New Energy Group Ltd's Revenue jumped on 21.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.9 pp from 6.9% to 2.0% in FY2015.
Net Income marign increased on 2.8 pp from 8.9% to 11.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 54.7% in 2015. The company's CAPEX/Revenue decreased on 9.5 pp from 64.2% in 2012 to 54.7% in 2015. It's average level of CAPEX/Revenue for the last three years was 42.1%.Concord New Energy Group Ltd has spent a lot to CAPEX (329% of EBITDA) to secure its growth.
Return on investment
The company operates at low ROIC (5.88%) and ROE (9.00%). ROIC showed almost no change in 2015. ROE increased on 3.0 pp from 6.0% to 9.0% in 2015.
Leverage (Debt)
Debt level is 4.2x Net Debt / EBITDA and 6.8x Debt / EBITDA. Net Debt / EBITDA jumped on 2.0x from 2.2x to 4.2x in 2015. Debt surged on 115% in 2015 while cash surged on 72.4% in 2015.
Appendix 1: Peers in Energy-Alternate Sources
Below you can find Concord New Energy Group Ltd benchmarking vs. other companies in Energy-Alternate Sources 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 |
|---|
| HaiTian Hydropower International Ltd ($8261) | | 26.6% | 8.5% | 114.0% | 220.2% |
| Xinyi Solar Holdings Ltd ($968) | | 24.3% | 28.3% | 22.5% | 97.1% |
| Beijing Jingneng Clean Energy Co Ltd ($579) | | 2.5% | 50.7% | 39.6% | 64.4% |
| Canvest Environment Protection Group Co Ltd ($1381) | | 150.6% | 0.8% | 103.5% | 49.2% |
| China Renewable Energy Investment Ltd ($987) | | 10.7% | 14.3% | -14.4% | 36.6% |
| |
|---|
| Median (9 companies) | 221.6% | 7.5% | 12.8% | 28.0% | 36.6% |
|---|
| Concord New Energy Group Ltd ($182) | | 14.7% | 71.2% | 88.5% | 21.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 70.0% | 74.2% | 74.3% | 79.3% | 64.6% |
| Canvest Environment Protection Group Co Ltd ($1381) | 61.5% | 53.4% | 51.9% | 43.1% | 37.1% |
| Xinyi Solar Holdings Ltd ($968) | 35.9% | 17.2% | 30.1% | 31.6% | 36.0% |
| China Renewable Energy Investment Ltd ($987) | 12.2% | 20.2% | 37.1% | 24.7% | 33.3% |
| China Suntien Green Energy Corp Ltd ($956) | 28.8% | 33.5% | 31.3% | 25.2% | 26.5% |
| |
|---|
| Median (7 companies) | 34.5% | 21.6% | 34.2% | 28.4% | 33.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Renewable Energy Investment Ltd ($987) | 28.1% | 54.1% | 66.1% | 64.3% | 74.3% |
| HaiTian Hydropower International Ltd ($8261) | 86.2% | 61.9% | 75.9% | 80.2% | 69.0% |
| China Longyuan Power Group Corp Ltd ($916) | 48.8% | 56.3% | 54.4% | 63.5% | 64.5% |
| Canvest Environment Protection Group Co Ltd ($1381) | 71.0% | 59.3% | 56.6% | 50.3% | 41.8% |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 58.5% | 57.7% | 50.4% | 41.8% | 36.6% |
| |
|---|
| Median (9 companies) | 37.5% | 47.5% | 43.9% | 46.1% | 36.6% |
|---|
| Concord New Energy Group Ltd ($182) | 42.0% | 23.0% | 18.0% | 15.1% | 16.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Suntien Green Energy Corp Ltd ($956) | 101.3% | 41.4% | 25.7% | 35.9% | 128.8% |
| China Longyuan Power Group Corp Ltd ($916) | 83.1% | 79.5% | 54.9% | 100.2% | 77.7% |
| Xinyi Solar Holdings Ltd ($968) | 71.2% | 22.7% | 12.2% | 98.8% | 75.4% |
| International Standard Resources Holdings Ltd ($91) | 13.5% | 51.5% | 2.4% | 11.1% | 69.3% |
| GCL-Poly Energy Holdings Ltd ($3800) | 58.8% | 19.9% | 13.6% | 23.5% | 42.8% |
| |
|---|
| Median (9 companies) | 65.0% | 32.4% | 19.7% | 31.2% | 42.8% |
|---|
| Concord New Energy Group Ltd ($182) | 199.2% | 64.2% | 19.0% | 52.7% | 54.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinyi Solar Holdings Ltd ($968) | 33.6% | 13.8% | 21.6% | 16.9% | 18.7% |
| HaiTian Hydropower International Ltd ($8261) | 9.5% | 6.4% | 7.5% | 7.5% | 11.9% |
| Canvest Environment Protection Group Co Ltd ($1381) | | 27.0% | 18.1% | 12.4% | 10.0% |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 7.0% | 5.8% | 6.8% | 6.3% | 8.1% |
| GCL-Poly Energy Holdings Ltd ($3800) | 15.8% | 0.3% | 2.8% | 6.9% | 7.2% |
| |
|---|
| Median (9 companies) | 7.0% | 6.1% | 6.5% | 6.3% | 7.2% |
|---|
| Concord New Energy Group Ltd ($182) | 7.0% | 3.1% | 4.1% | 5.5% | 5.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Suntien Green Energy Corp Ltd ($956) | 4.7x | 4.5x | 4.1x | 4.9x | 9.5x |
| China Longyuan Power Group Corp Ltd ($916) | 5.9x | 5.5x | 5.3x | 5.8x | 5.7x |
| GCL-Poly Energy Holdings Ltd ($3800) | 2.9x | 11.4x | 7.7x | 5.4x | 5.0x |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 5.0x | 6.7x | 6.3x | 6.7x | 4.4x |
| China Renewable Energy Investment Ltd ($987) | 17.1x | 8.9x | 6.2x | 6.4x | 3.8x |
| |
|---|
| Median (8 companies) | 4.7x | 5.0x | 4.7x | 5.8x | 4.1x |
|---|
| Concord New Energy Group Ltd ($182) | 0.2x | 3.8x | 1.4x | 2.2x | 4.2x |
