China Aluminum International Engineering Corp Ltd reports 7.5% EBITDA decline and 0.68 pp EBITDA Margin decline from 6.8% to 6.1%
01/04/2016 • About China Aluminum International Engineering Corp Ltd (
$2068) • By InTwits
China Aluminum International Engineering Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Aluminum International Engineering Corp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 37.9%.
- CAPEX is quite volatile: 183 in 2015, 259 in 2014, 431 in 2013, 435 in 2012, 890 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Aluminum International Engineering Corp Ltd ($2068) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,194 | 16,466 | 18,145 | 18,923 | 19,450 | 2.8% |
| Gross Profit | 2,266 | 2,707 | 2,077 | 2,445 | 2,240 | -8.4% |
| SG&A | | 1,345 | 1,423 | 1,186 | 1,136 | -4.2% |
| EBITDA | 1,312 | 1,620 | 900 | 1,292 | 1,196 | -7.5% |
| Net Income | 808 | 1,072 | 1,702 | 715 | 541 | -24.3% |
Balance Sheet
|
|---|
| Cash | 2,154 | 2,760 | 6,456 | 4,208 | 4,848 | 15.2% |
| Short Term Debt | 1,589 | 2,474 | 7,911 | 7,377 | 7,462 | 1.1% |
| Long Term Debt | 0 | 190 | 290 | 1,164 | 1,211 | 4.0% |
Cash flow
|
|---|
| Capex | 475 | 360 | 431 | 253 | 237 | -6.3% |
Ratios
|
|---|
| Revenue growth | 8.6% | 35.0% | 10.2% | 4.3% | 2.8% | |
| EBITDA growth | 20.4% | 23.4% | -44.4% | 43.6% | -7.5% | |
| Gross Margin | 18.6% | 16.4% | 11.4% | 12.9% | 11.5% | -1.4% |
| EBITDA Margin | 10.8% | 9.8% | 5.0% | 6.8% | 6.1% | -0.7% |
| Net Income Margin | 6.6% | 6.5% | 9.4% | 3.8% | 2.8% | -1.0% |
| SG&A, % of revenue | | 8.2% | 7.8% | 6.3% | 5.8% | -0.4% |
| CAPEX, % of revenue | 3.9% | 2.2% | 2.4% | 1.3% | 1.2% | -0.1% |
| ROIC | 28.4% | 23.0% | 6.1% | 6.7% | 5.5% | -1.1% |
| ROE | 29.4% | 26.9% | 29.7% | 11.0% | 7.8% | -3.1% |
| Net Debt/EBITDA | -0.4x | -0.1x | 1.9x | 3.4x | 3.2x | -0.2x |
Revenue and profitability
The company's Revenue increased on 2.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.9 pp from 13.5% to 9.6% in 2015.
Gross Margin decreased slightly on 1.4 pp from 12.9% to 11.5% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 1.00 pp from 3.8% to 2.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Aluminum International Engineering Corp Ltd's CAPEX/Revenue was 1.2% in 2015. CAPEX/Revenue decreased slightly on 0.97 pp from 2.2% in 2012 to 1.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at low ROIC (5.54%) and ROE (7.82%). ROIC decreased slightly on 1.1 pp from 6.7% to 5.5% in 2015. ROE decreased on 3.1 pp from 11.0% to 7.8% in 2015.
Leverage (Debt)
Debt level is 3.2x Net Debt / EBITDA and 7.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 3.4x to 3.2x in 2015. Debt increased slightly on 1.5% in 2015 while cash surged on 15.2% in 2015.
Appendix 1: Peers in Engineering&Construction
Below we provide China Aluminum International Engineering Corp 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 (44 companies) | | 9.7% | 21.8% | 16.8% | 9.9% |
|---|
| China Aluminum International Engineering Corp Ltd ($2068) | | 35.0% | 10.2% | 4.3% | 2.8% |
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% |
| Huayu Expressway Group Ltd ($1823) | 2.2% | 43.6% | 65.6% | 64.0% | 58.9% |
| 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% |
| |
|---|
| Median (39 companies) | 12.0% | 13.3% | 15.1% | 14.5% | 15.1% |
|---|
| China Aluminum International Engineering Corp Ltd ($2068) | 18.6% | 16.4% | 11.4% | 12.9% | 11.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 46.2% | 73.8% | 77.1% | 76.2% |
| 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% |
| |
|---|
| Median (44 companies) | 8.5% | 9.4% | 8.8% | 8.1% | 7.8% |
|---|
| China Aluminum International Engineering Corp Ltd ($2068) | 10.8% | 9.8% | 5.0% | 6.8% | 6.1% |
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 (44 companies) | 4.3% | 2.5% | 2.5% | 1.7% | 2.1% |
|---|
| China Aluminum International Engineering Corp Ltd ($2068) | 3.9% | 2.2% | 2.4% | 1.3% | 1.2% |
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 (46 companies) | 6.9% | 6.4% | 5.6% | 4.4% | 4.5% |
|---|
| China Aluminum International Engineering Corp Ltd ($2068) | 28.4% | 23.0% | 6.1% | 6.7% | 5.5% |
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 (38 companies) | 0.5x | 1.2x | 0.9x | 1.5x | 2.4x |
|---|
| China Aluminum International Engineering Corp Ltd ($2068) | -0.4x | -0.1x | 1.9x | 3.4x | 3.2x |
