China Oil Gangran Energy Group Holdings Ltd CAPEX jumped on 184% and Revenue jumped on 145%
19/06/2016 • About China Oil Gangran Energy Group Holdings Ltd (
$8132) • By InTwits
China Oil Gangran Energy Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Oil Gangran Energy Group Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -30.7%
- The company operates at negative EBITDA Margin: -43.2%
- China Oil Gangran Energy Group Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -51.7% for the sames years0
- China Oil Gangran Energy Group Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.6%. At the same time it's a lot of higher than industry average of 31.6%.
- CAPEX is quite volatile: 12.7 in FY2016, 4.5 in FY2015, 15.5 in FY2014, 6.2 in FY2013, 16.8 in FY2012
- The company has unprofitable business model: ROIC is at -30.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Oil Gangran Energy Group Holdings Ltd ($8132) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 175.5 | 146.1 | 128.3 | 79.6 | 194.8 | 144.6% |
| Gross Profit | 16.5 | 25.1 | 21.0 | 16.1 | 19.8 | 22.5% |
| SG&A | | 34.4 | 114.5 | 270.8 | 118.3 | -56.3% |
| EBITDA | 2.0 | 3.9 | -74.4 | -221.8 | -84.2 | |
| Net Income | -9.0 | -12.7 | -88.7 | -217.1 | -109.6 | |
Balance Sheet
|
|---|
| Cash | 19.9 | 12.7 | 91.2 | 100.0 | 38.2 | -61.8% |
| Short Term Debt | 26.1 | 6.7 | 76.4 | 48.5 | 59.6 | 22.8% |
| Long Term Debt | 0.0 | 0.0 | 39.4 | 84.5 | 50.4 | -40.4% |
Cash flow
|
|---|
| Capex | 16.8 | 6.2 | 15.5 | 4.5 | 12.7 | 184.3% |
Ratios
|
|---|
| Revenue growth | 9.5% | -16.8% | -12.2% | -37.9% | 144.6% | |
| EBITDA growth | -91.8% | 97.4% | -1,992.7% | 198.4% | -62.1% | |
| Gross Margin | 9.4% | 17.2% | 16.4% | 20.3% | 10.1% | -10.1% |
| EBITDA Margin | 1.1% | 2.7% | -58.0% | -278.6% | -43.2% | 235.4% |
| Net Income Margin | -5.1% | -8.7% | -69.1% | -272.6% | -56.2% | 216.4% |
| SG&A, % of revenue | | 23.6% | 89.3% | 340.1% | 60.7% | -279.4% |
| CAPEX, % of revenue | 9.6% | 4.2% | 12.1% | 5.6% | 6.5% | 0.9% |
| ROIC | -4.7% | -4.1% | -39.7% | -63.8% | -30.7% | 33.1% |
| ROE | -17.0% | -21.6% | -64.2% | -89.0% | -45.0% | 44.0% |
| Net Debt/EBITDA | 3.1x | -1.5x | | | | 0.0x |
Revenue and profitability
The company's Revenue surged on 145%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 24.1 pp from -18.3% to 5.7% in FY2016.
Gross Margin dropped on 10.1 pp from 20.3% to 10.1% in FY2016. SG&A as a % of Revenue dropped on 279 pp from 340% to 60.7% in FY2016.
Net Income marign jumped on 216 pp from -273% to -56.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
China Oil Gangran Energy Group Holdings Ltd's CAPEX/Revenue was 6.5% in FY2016. CAPEX/Revenue increased on 2.3 pp from 4.2% in FY2013 to 6.5% in FY2016. Average CAPEX/Revenue for the last three years was 8.1%.
Return on investment
The company operates at negative ROIC (-30.70%) and ROE (-44.98%). ROIC surged on 33.1 pp from -63.8% to -30.7% in FY2016. ROE surged on 44.0 pp from -89.0% to -45.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 17.3% while cash dropped on 61.8%.
Appendix 1: Peers in Gas
Below we provide China Oil Gangran Energy Group Holdings 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Beijing Enterprises Holdings Ltd ($392) | 16.7% | 19.1% | 13.2% | 25.5% | |
| 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% | |
| China Resources Gas Group Ltd ($1193) | -4.1% | 63.6% | 28.8% | 8.3% | |
| Suchuang Gas Corp Ltd ($1430) | 10.3% | 26.9% | 18.4% | 1.3% | |
| |
|---|
| Median (9 companies) | 14.0% | 28.5% | 18.4% | 1.3% | |
|---|
| China Oil Gangran Energy Group Holdings Ltd ($8132) | | -16.8% | -12.2% | -37.9% | 144.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Resources Gas Group Ltd ($1193) | 31.2% | 34.2% | 30.3% | 31.5% | |
| Suchuang Gas Corp Ltd ($1430) | 28.9% | 30.1% | 24.2% | 25.2% | |
| ENN Energy Holdings Ltd ($2688) | 26.9% | 23.8% | 20.9% | 21.4% | |
| Binhai Investment Co Ltd ($2886) | 20.1% | 20.6% | 18.3% | 21.3% | |
| China Gas Holdings Ltd ($384) | 19.0% | 21.0% | 20.3% | 20.4% | |
| |
|---|
| Median (7 companies) | 22.5% | 22.6% | 20.3% | 21.3% | |
|---|
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 9.4% | 17.2% | 16.4% | 20.3% | 10.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hong Kong & China Gas Co Ltd ($3) | 30.0% | 29.6% | 29.2% | 30.7% | |
| Suchuang Gas Corp Ltd ($1430) | 30.2% | 30.5% | 24.9% | 24.0% | |
| Binhai Investment Co Ltd ($2886) | 14.8% | 17.0% | 15.2% | 20.7% | |
| Towngas China Co Ltd ($1083) | 19.9% | 18.9% | 18.8% | 19.2% | |
| China Resources Gas Group Ltd ($1193) | 16.2% | 17.4% | 17.7% | 19.0% | |
| |
|---|
| Median (10 companies) | 20.1% | 18.2% | 17.7% | 17.9% | |
|---|
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 1.1% | 2.7% | -58.0% | -278.6% | -43.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Towngas China Co Ltd ($1083) | 31.3% | 25.7% | 26.2% | 26.4% | |
| Hong Kong & China Gas Co Ltd ($3) | 23.7% | 18.7% | 20.1% | 21.5% | |
| Binhai Investment Co Ltd ($2886) | 26.9% | 18.0% | 15.5% | 16.7% | |
| China Resources Gas Group Ltd ($1193) | 20.6% | 18.5% | 12.4% | 12.3% | |
| China Gas Holdings Ltd ($384) | 9.4% | 13.7% | 12.3% | 12.3% | |
| |
|---|
| Median (10 companies) | 21.2% | 16.6% | 12.4% | 11.7% | |
|---|
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 9.6% | 4.2% | 12.1% | 5.6% | 6.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Suchuang Gas Corp Ltd ($1430) | 13.6% | 19.4% | 23.9% | 20.8% | |
| Binhai Investment Co Ltd ($2886) | 12.2% | 12.2% | 10.9% | 14.7% | |
| ENN Energy Holdings Ltd ($2688) | 14.3% | 11.7% | 16.4% | 13.6% | |
| China Resources Gas Group Ltd ($1193) | 6.9% | 10.4% | 11.4% | 12.5% | |
| China Gas Holdings Ltd ($384) | 8.4% | 8.6% | 10.6% | 10.6% | |
| |
|---|
| Median (10 companies) | 8.0% | 11.0% | 9.1% | 8.8% | |
|---|
| China Oil Gangran Energy Group Holdings Ltd ($8132) | -4.7% | -4.1% | -39.7% | -63.8% | -30.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Oil & Gas Group Ltd ($603) | -0.0x | 1.0x | 2.8x | 6.0x | |
| Towngas China Co Ltd ($1083) | 3.5x | 3.7x | 4.1x | 4.5x | |
| Beijing Enterprises Holdings Ltd ($392) | 3.1x | 2.6x | 4.7x | 3.6x | |
| China Gas Holdings Ltd ($384) | 3.7x | 3.7x | 3.1x | 2.9x | |
| Binhai Investment Co Ltd ($2886) | 3.4x | 2.8x | 3.5x | 2.8x | |
| |
|---|
| Median (10 companies) | 2.9x | 2.4x | 2.8x | 2.5x | |
|---|
