Yuan Heng Gas Holdings Ltd Net Debt / EBITDA surged on 9.1x from 8.9x to 18.1x in 2016 while EBITDA dropped on 59.5%
30/06/2016 • About Yuan Heng Gas Holdings Ltd (
$332) • By InTwits
Yuan Heng Gas Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yuan Heng Gas Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -0.4%
- EBITDA Margin is quite volatile: 0.9% in FY2016, 2.2% in FY2015, 3.3% in FY2014, -0.0% in FY2013, -1.3% in FY2012
- Yuan Heng Gas Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has unprofitable business model: ROIC is at -0.4%
- It operates with high leverage: Net Debt/EBITDA is 18.1x while industry average is 3.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yuan Heng Gas Holdings Ltd ($332) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,002 | 6,153 | 12,670 | 8,062 | 8,348 | 3.6% |
| Gross Profit | 14 | 10 | 503 | 238 | 129 | -45.9% |
| SG&A | 40 | | 176 | 142 | 137 | -4.1% |
| EBITDA | -26 | -0 | 412 | 180 | 73 | -59.5% |
| Net Income | 125 | -3 | 164 | 24 | 12 | -51.0% |
Balance Sheet
|
|---|
| Cash | 113 | 102 | 402 | 33 | 73 | 125.5% |
| Short Term Debt | 122 | 0 | 1,442 | 1,575 | 1,256 | -20.3% |
| Long Term Debt | 0 | 0 | 56 | 66 | 135 | 105.6% |
Cash flow
|
|---|
| Capex | 0 | 0 | 78 | 62 | 13 | -79.0% |
Ratios
|
|---|
| Revenue growth | 196.3% | 207.4% | 105.9% | -36.4% | 3.6% | |
| EBITDA growth | -73.1% | -99.9% | -1,289,025.2% | -56.4% | -59.5% | |
| Gross Margin | 0.7% | 0.2% | 4.0% | 3.0% | 1.5% | -1.4% |
| EBITDA Margin | -1.3% | -0.0% | 3.3% | 2.2% | 0.9% | -1.4% |
| Net Income Margin | 6.2% | -0.0% | 1.3% | 0.3% | 0.1% | -0.2% |
| SG&A, % of revenue | 2.0% | | 1.4% | 1.8% | 1.6% | -0.1% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.6% | 0.8% | 0.2% | -0.6% |
| ROIC | -59.8% | -0.0% | 25.6% | 3.9% | -0.4% | -4.2% |
| ROE | | -3.2% | 41.4% | 3.4% | 1.4% | -2.0% |
| Net Debt/EBITDA | | | 2.7x | 8.9x | 18.1x | 9.1x |
Revenue and profitability
The company's Revenue increased on 3.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 24.1% to 26.3% in FY2016.
Gross Margin decreased slightly on 1.4 pp from 3.0% to 1.5% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Yuan Heng Gas Holdings Ltd had CAPEX/Revenue of 0.16%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 0.51%.
Return on investment
The company operates at negative ROIC (-0.35%) and low but positive ROE (1.44%). ROIC decreased on 4.2 pp from 3.9% to -0.35% in FY2016. ROE decreased slightly on 2.0 pp from 3.4% to 1.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 18.1x and Debt / EBITDA is 19.1x. Net Debt / EBITDA surged on 9.1x from 8.9x to 18.1x in FY2016. Debt dropped on 15.3% while cash surged on 125%.
Appendix 1: Peers in Oil&Gas Services
Below you can find Yuan Heng Gas Holdings Ltd benchmarking vs. other companies in Oil&Gas Services 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hans Energy Co Ltd ($554) | 40.8% | 8.0% | -4.0% | 5.5% | |
| Hilong Holding Ltd ($1623) | 23.5% | 8.3% | 5.0% | -3.6% | |
| Sinopec Engineering Group Co Ltd ($2386) | 25.9% | 13.1% | 13.3% | -7.8% | |
| Petro-King Oilfield Services Ltd ($2178) | 543.3% | 0.3% | -33.5% | -10.5% | |
| Anton Oilfield Services Group/Hong Kong ($3337) | 59.2% | 26.4% | -18.2% | -11.5% | |
| |
|---|
| Median (12 companies) | 24.7% | 9.1% | 0.5% | -27.4% | |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | | 207.4% | 105.9% | -36.4% | 3.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sinopec Kantons Holdings Ltd ($934) | 1.1% | 0.7% | 4.4% | 41.1% | |
| Hilong Holding Ltd ($1623) | 39.5% | 40.3% | 39.6% | 32.6% | |
| Anton Oilfield Services Group/Hong Kong ($3337) | 45.0% | 44.3% | 31.2% | 31.8% | |
| TSC Group Holdings Ltd ($206) | 30.7% | 31.6% | 27.8% | 27.9% | |
| Jutal Offshore Oil Services Ltd ($3303) | 21.7% | 25.1% | 19.6% | 19.6% | |
| |
|---|
| Median (9 companies) | 19.5% | 20.4% | 18.8% | 19.6% | |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | 0.7% | 0.2% | 4.0% | 3.0% | 1.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sinopec Kantons Holdings Ltd ($934) | 1.5% | 0.9% | 6.6% | 63.8% | |
| Hans Energy Co Ltd ($554) | 40.4% | 45.0% | 42.8% | 42.7% | |
| China Oilfield Services Ltd ($2883) | 39.8% | 40.0% | 37.0% | 25.2% | |
| Hilong Holding Ltd ($1623) | 25.9% | 27.8% | 28.8% | 22.7% | |
| Anton Oilfield Services Group/Hong Kong ($3337) | 24.5% | 28.0% | 12.5% | 17.2% | |
| |
|---|
| Median (12 companies) | 16.0% | 16.9% | 12.5% | 10.0% | |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | -1.3% | -0.0% | 3.3% | 2.2% | 0.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Oilfield Services Ltd ($2883) | 16.5% | 30.9% | 29.8% | 25.3% | |
| SPT Energy Group Inc ($1251) | 7.4% | 5.6% | 7.9% | 23.5% | |
| Sinopec Kantons Holdings Ltd ($934) | 0.8% | 1.7% | 6.7% | 15.8% | |
| Petro-King Oilfield Services Ltd ($2178) | 13.3% | 13.3% | 75.4% | 12.3% | |
| Hilong Holding Ltd ($1623) | 16.7% | 18.9% | 48.1% | 9.6% | |
| |
|---|
| Median (12 companies) | 10.0% | 6.3% | 7.3% | 8.9% | |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | 0.0% | 0.0% | 0.6% | 0.8% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sinopec Engineering Group Co Ltd ($2386) | 77.5% | 33.3% | 18.6% | 15.3% | |
| CIMC Enric Holdings Ltd ($3899) | 20.3% | 20.0% | 21.3% | 8.9% | |
| Hilong Holding Ltd ($1623) | 15.5% | 14.8% | 12.0% | 6.0% | |
| Sinopec Kantons Holdings Ltd ($934) | 3.5% | 0.4% | 6.0% | 5.0% | |
| China Oilfield Services Ltd ($2883) | 8.9% | 11.2% | 11.6% | 2.1% | |
| |
|---|
| Median (12 companies) | 11.8% | 12.2% | 7.9% | 1.8% | |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | -59.8% | -0.0% | 25.6% | 3.9% | -0.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hans Energy Co Ltd ($554) | 14.0x | 11.9x | 12.9x | 11.3x | |
| Anton Oilfield Services Group/Hong Kong ($3337) | 0.0x | 0.9x | 7.4x | 6.4x | |
| China Oilfield Services Ltd ($2883) | 2.7x | 1.9x | 1.8x | 3.9x | |
| Hilong Holding Ltd ($1623) | 0.9x | 1.1x | 2.6x | 3.3x | |
| Sinopec Kantons Holdings Ltd ($934) | -7.1x | -7.4x | 2.5x | 2.2x | |
| |
|---|
| Median (10 companies) | 0.0x | -0.2x | 1.8x | 2.1x | |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | | | 2.7x | 8.9x | 18.1x |
