Huayu Expressway Group Ltd Debt decreased on 4.8% in 2015 and EBITDA decreased on 3.1%
31/03/2016 • About Huayu Expressway Group Ltd (
$1823) • By InTwits
Huayu Expressway Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Huayu Expressway Group Ltd is a company in decline: 2015 revenue growth was -2.0%, 5 years revenue CAGR was -19.6%
- EBITDA Margin is quite volatile: 76.2% in 2015, 77.1% in 2014, 73.8% in 2013, 46.2% in 2012, -0.5% in 2011
- Huayu Expressway Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's in pair with industry average of 43.9%.
- CAPEX is quite volatile: 0.79 in 2015, 0.16 in 2014, 0.43 in 2013, 32.0 in 2012, 0.97 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.4%
- It operates with high leverage: Net Debt/EBITDA is 9.3x while industry average is 4.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Huayu Expressway Group Ltd ($1823) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,125 | 139 | 168 | 184 | 181 | -2.0% |
| Gross Profit | 25 | 61 | 110 | 118 | 106 | -9.8% |
| SG&A | | | | 26 | 24 | -7.4% |
| EBITDA | -6 | 64 | 124 | 142 | 138 | -3.1% |
| Net Income | -198 | -259 | 6 | -2 | -181 | 7,586.4% |
Balance Sheet
|
|---|
| Cash | 160 | 13 | 21 | 14 | 9 | -35.5% |
| Short Term Debt | 585 | 602 | 608 | 625 | 629 | 0.6% |
| Long Term Debt | 629 | 735 | 754 | 730 | 661 | -9.4% |
Cash flow
|
|---|
| Capex | 1 | 32 | 0 | 0 | 1 | 400.0% |
Ratios
|
|---|
| Revenue growth | 109.2% | -87.6% | 20.8% | 9.9% | -2.0% | |
| EBITDA growth | -53.2% | -1,253.0% | 93.0% | 14.8% | -3.1% | |
| Gross Margin | 2.2% | 43.6% | 65.6% | 64.0% | 58.9% | -5.1% |
| EBITDA Margin | -0.5% | 46.2% | 73.8% | 77.1% | 76.2% | -0.9% |
| Net Income Margin | -17.6% | -186.3% | 3.8% | -1.3% | -100.0% | -98.8% |
| SG&A, % of revenue | | | | 14.1% | 13.4% | -0.8% |
| CAPEX, % of revenue | 0.1% | 23.0% | 0.3% | 0.1% | 0.4% | 0.4% |
| ROIC | -0.5% | 1.9% | 5.7% | 6.5% | 6.4% | -0.1% |
| ROE | -36.4% | -78.5% | 3.1% | -1.1% | -159.6% | -158.5% |
| Net Debt/EBITDA | | 20.6x | 10.8x | 9.4x | 9.3x | -0.1x |
Revenue and profitability
Huayu Expressway Group Ltd's Revenue decreased on 2.0% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 0.89 pp from 77.1% to 76.2% in 2015.
Gross Margin decreased on 5.1 pp from 64.0% to 58.9% in 2015. SG&A as a % of Revenue decreased slightly on 0.78 pp from 14.1% to 13.4% in 2015.
Net Income marign dropped on 98.8 pp from -1.3% to -100% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Huayu Expressway Group Ltd had CAPEX/Revenue of 0.44%. CAPEX/Revenue dropped on 22.6 pp from 23.0% in 2012 to 0.44% in 2015. It's average level of CAPEX/Revenue for the last three years was 0.26%.
Return on investment
The company operates at low but positive ROIC (6.40%) and negative ROE (-159.62%). ROIC showed almost no change in 2015. ROE dropped on 159 pp from -1.1% to -160% in 2015.
Leverage (Debt)
Debt level is 9.3x Net Debt / EBITDA and 9.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 9.4x to 9.3x in 2015. Debt decreased on 4.8% in 2015 while cash dropped on 35.5% in 2015.
Appendix 1: Peers in Engineering&Construction
Below we provide Huayu Expressway Group Ltd benchmarking against other companies in Engineering&Construction 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 |
|---|
| CNQC International Holdings Ltd ($1240) | | 21.6% | 91.0% | 103.7% | 807.4% |
| China National Culture Group Ltd ($745) | | -39.1% | -76.8% | -55.8% | 592.3% |
| Vision Fame International Holding Ltd ($1315) | | -9.9% | 45.9% | -10.5% | 105.6% |
| Sino Credit Holdings Ltd ($628) | | -13.8% | | | 97.4% |
| Grand Ming Group Holdings Ltd ($1271) | | 131.0% | -26.9% | -37.4% | 74.8% |
| |
|---|
| Median (43 companies) | 8.6% | 11.5% | 21.8% | 16.8% | 10.1% |
|---|
| Huayu Expressway Group Ltd ($1823) | | -87.6% | 20.8% | 9.9% | -2.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HNA Infrastructure Company Ltd ($357) | 61.6% | 66.4% | 62.1% | 62.4% | 61.1% |
| Broad Greenstate International Co Ltd ($1253) | 16.7% | 20.1% | 28.7% | 35.8% | 36.7% |
| China National Culture Group Ltd ($745) | -46.6% | 0.9% | 12.1% | 10.3% | 32.3% |
| Kingbo Strike Ltd ($1421) | 22.9% | 32.4% | 44.4% | 40.3% | 30.7% |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 50.1% | 54.1% | 54.3% | 41.5% | 30.1% |
| |
|---|
| Median (38 companies) | 13.1% | 13.3% | 13.7% | 13.8% | 14.2% |
|---|
| Huayu Expressway Group Ltd ($1823) | 2.2% | 43.6% | 65.6% | 64.0% | 58.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HNA Infrastructure Company Ltd ($357) | 60.0% | 62.8% | 63.7% | 62.8% | 61.7% |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 39.8% | 31.2% | 20.6% | 36.2% | 60.9% |
| Beijing Capital International Airport Co Ltd ($694) | 55.1% | 53.4% | 52.9% | 50.3% | 51.6% |
| China National Culture Group Ltd ($745) | -70.3% | -30.4% | -72.7% | -279.2% | 45.3% |
| Chevalier International Holdings Ltd ($25) | 6.7% | 10.4% | 11.9% | 12.8% | 37.5% |
| |
|---|
| Median (43 companies) | 9.3% | 9.4% | 8.3% | 7.4% | 7.6% |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 46.2% | 73.8% | 77.1% | 76.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HNA Infrastructure Company Ltd ($357) | 43.3% | 36.8% | 5.7% | 85.4% | 155.4% |
| Grand Ming Group Holdings Ltd ($1271) | 10.6% | 0.0% | 16.1% | 8.7% | 33.8% |
| Beijing Capital International Airport Co Ltd ($694) | 5.3% | 3.5% | 6.6% | 7.2% | 28.2% |
| Louis XIII Holdings Ltd ($577) | 2.3% | 1.2% | 29.5% | 9.3% | 16.1% |
| PYI Corp Ltd ($498) | 6.6% | 3.7% | 4.2% | 24.5% | 13.1% |
| |
|---|
| Median (43 companies) | 4.3% | 2.3% | 2.5% | 1.7% | 2.2% |
|---|
| Huayu Expressway Group Ltd ($1823) | 0.1% | 23.0% | 0.3% | 0.1% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 98.3% | 54.9% | 43.7% |
| Ngai Shun Holdings Ltd ($1246) | | 68.8% | 77.2% | 45.2% | 31.0% |
| Broad Greenstate International Co Ltd ($1253) | | 33.2% | 85.1% | 51.2% | 26.0% |
| China Saite Group Co Ltd ($153) | 46.3% | 64.0% | 53.2% | 35.3% | 24.5% |
| CNQC International Holdings Ltd ($1240) | 23.1% | 12.2% | 22.3% | 40.4% | 21.8% |
| |
|---|
| Median (45 companies) | 7.0% | 6.5% | 5.8% | 4.4% | 3.6% |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 1.9% | 5.7% | 6.5% | 6.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Deson Development International Holdings ($262) | 3.1x | 3.8x | 4.9x | 13.7x | 47.0x |
| Hsin Chong Construction Group Ltd ($404) | 4.3x | 1.8x | 8.0x | 10.2x | 41.7x |
| China Resources and Transportation Group Ltd ($269) | | | | 66.7x | 29.7x |
| CNC Holdings Ltd ($8356) | -0.7x | | 22.0x | 21.9x | 24.3x |
| Louis XIII Holdings Ltd ($577) | -1.6x | 0.8x | -12.5x | -23.2x | 19.1x |
| |
|---|
| Median (37 companies) | 0.5x | 1.0x | 0.9x | 1.5x | 2.3x |
|---|
| Huayu Expressway Group Ltd ($1823) | | 20.6x | 10.8x | 9.4x | 9.3x |
