Chinese People Holdings Co Ltd reports 172% Net Income decline in 2016 while 2.2 pp EBITDA Margin growth from 10.9% to 13.1%
30/06/2016 • About Chinese People Holdings Co Ltd (
$681) • By InTwits
Chinese People Holdings Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 13.1% in FY2016, 10.9% in FY2015, 5.1% in FY2014, 7.2% in FY2013, 13.7% in FY2012
- Chinese People Holdings Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.6%. At the same time it's a lot of higher than industry average of 6.9%.
- CAPEX is quite volatile: 62.2 in FY2016, 78.2 in FY2015, 70.1 in FY2014, 45.7 in FY2013, 128 in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.3%
- It operates with high leverage: Net Debt/EBITDA is -0.9x while industry average is -4.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chinese People Holdings Co Ltd ($681) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 920.2 | 769.5 | 832.6 | 968.3 | 954.3 | -1.4% |
| Gross Profit | 241.2 | 150.4 | 169.1 | 220.5 | 268.9 | 22.0% |
| SG&A | | 154.0 | 154.8 | 153.4 | 191.8 | 25.0% |
| EBITDA | 125.9 | 55.2 | 42.7 | 106.0 | 125.2 | 18.2% |
| Net Income | 244.1 | -335.4 | 47.3 | 204.1 | -147.3 | -172.2% |
Balance Sheet
|
|---|
| Cash | 283.7 | 258.5 | 274.1 | 250.8 | 305.1 | 21.7% |
| Short Term Debt | 57.4 | 26.0 | 25.0 | 20.3 | 14.2 | -29.9% |
| Long Term Debt | 199.0 | 0.0 | 0.0 | 162.0 | 173.4 | 7.0% |
Cash flow
|
|---|
| Capex | 128.1 | 45.7 | 70.1 | 78.2 | 62.2 | -20.5% |
Ratios
|
|---|
| Revenue growth | 24.9% | -16.4% | 8.2% | 16.3% | -1.4% | |
| EBITDA growth | 38.0% | -56.1% | -22.7% | 148.2% | 18.2% | |
| Gross Margin | 26.2% | 19.6% | 20.3% | 22.8% | 28.2% | 5.4% |
| EBITDA Margin | 13.7% | 7.2% | 5.1% | 10.9% | 13.1% | 2.2% |
| Net Income Margin | 26.5% | -43.6% | 5.7% | 21.1% | -15.4% | -36.5% |
| SG&A, % of revenue | | 20.0% | 18.6% | 15.8% | 20.1% | 4.3% |
| CAPEX, % of revenue | 13.9% | 5.9% | 8.4% | 8.1% | 6.5% | -1.6% |
| ROIC | 5.1% | 0.1% | 1.5% | 4.4% | 3.3% | -1.0% |
| ROE | 21.0% | -26.8% | 4.2% | 14.8% | -9.7% | -24.5% |
| Net Debt/EBITDA | -0.2x | -4.2x | -5.8x | -0.6x | -0.9x | -0.3x |
Revenue and profitability
The company's Revenue decreased slightly on 1.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 10.9% to 13.1% in FY2016.
Gross Margin increased on 5.4 pp from 22.8% to 28.2% in FY2016. SG&A as a % of Revenue increased on 4.3 pp from 15.8% to 20.1% in FY2016.
Net Income marign dropped on 36.5 pp from 21.1% to -15.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.5% in FY2016. Chinese People Holdings Co Ltd's CAPEX/Revenue increased slightly on 0.57 pp from 5.9% in FY2013 to 6.5% in FY2016. For the last three years the average CAPEX/Revenue was 7.7%.
Return on investment
The company operates at low but positive ROIC (3.34%) and negative ROE (-9.73%). ROIC decreased slightly on 1.0 pp from 4.4% to 3.3% in FY2016. ROE dropped on 24.5 pp from 14.8% to -9.7% in FY2016.
Leverage (Debt)
Debt level is -0.9x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from -0.6x to -0.9x in FY2016. Debt increased on 2.9% while cash surged on 21.7%.
Appendix 1: Peers in Pipelines
Below you can find Chinese People Holdings Co Ltd benchmarking vs. other companies in Pipelines 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 58.9% | 27.3% | 47.4% | 67.6% | |
| Tianjin Jinran Public Utilities Co Ltd ($1265) | 45.5% | -3.4% | -2.6% | -8.7% | |
| |
|---|
| Median (2 companies) | 52.2% | 12.0% | 22.4% | 29.4% | |
|---|
| Chinese People Holdings Co Ltd ($681) | | -16.4% | 8.2% | 16.3% | -1.4% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 35.1% | 36.5% | 34.3% | 27.0% | |
| Tianjin Jinran Public Utilities Co Ltd ($1265) | 10.2% | 7.1% | 4.9% | 2.0% | |
| |
|---|
| Median (2 companies) | 22.7% | 21.8% | 19.6% | 14.5% | |
|---|
| Chinese People Holdings Co Ltd ($681) | 26.2% | 19.6% | 20.3% | 22.8% | 28.2% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 33.6% | 32.6% | 33.2% | 29.4% | |
| Tianjin Jinran Public Utilities Co Ltd ($1265) | 14.3% | 11.3% | 8.7% | 5.3% | |
| |
|---|
| Median (2 companies) | 24.0% | 22.0% | 21.0% | 17.4% | |
|---|
| Chinese People Holdings Co Ltd ($681) | 13.7% | 7.2% | 5.1% | 10.9% | 13.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 17.2% | 15.8% | 20.4% | 11.9% | |
| Tianjin Jinran Public Utilities Co Ltd ($1265) | 0.9% | 0.7% | 1.1% | 2.1% | |
| |
|---|
| Median (2 companies) | 9.0% | 8.3% | 10.8% | 7.0% | |
|---|
| Chinese People Holdings Co Ltd ($681) | 13.9% | 5.9% | 8.4% | 8.1% | 6.5% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 13.5% | 12.8% | 14.1% | 11.6% | |
| Tianjin Jinran Public Utilities Co Ltd ($1265) | 10.3% | 6.1% | 3.6% | 0.8% | |
| |
|---|
| Median (2 companies) | 11.9% | 9.5% | 8.8% | 6.2% | |
|---|
| Chinese People Holdings Co Ltd ($681) | 5.1% | 0.1% | 1.5% | 4.4% | 3.3% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Tian Lun Gas Holdings Ltd ($1600) | 1.8x | 1.5x | 2.5x | 3.2x | |
| Tianjin Jinran Public Utilities Co Ltd ($1265) | -1.7x | -1.7x | -0.7x | -14.2x | |
| |
|---|
| Median (2 companies) | 0.1x | -0.1x | 0.9x | -5.5x | |
|---|
| Chinese People Holdings Co Ltd ($681) | -0.2x | -4.2x | -5.8x | -0.6x | -0.9x |
