China Natural Investment Co Ltd reports 4,159% CAPEX growth in 2016 and 11.6% Revenue growth
27/09/2016 • About China Natural Investment Co Ltd (
$8250) • By InTwits
China Natural Investment Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Natural Investment Co Ltd is a fast growth stock: FY2016 revenue growth was 11.6%, 5 year revenue CAGR was 54.3% at FY2016 ROIC 18.4%
- China Natural Investment Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.5%. At the same time it's a lot of higher than industry average of 57.3%.
- CAPEX is quite volatile: 24.2 in FY2016, 0.57 in FY2015, 5.7 in FY2014, 7.4 in FY2013, 18.8 in FY2012
- The company has highly profitable business model: ROIC is at 18.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Natural Investment Co Ltd ($8250) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 51.3 | 44.2 | 269.4 | 328.5 | 366.6 | 11.6% |
| Gross Profit | 19.5 | 14.3 | 28.5 | 40.7 | 122.5 | 201.0% |
| SG&A | 36.1 | 30.0 | 45.8 | 52.3 | 51.4 | -1.9% |
| EBITDA | -17.1 | -17.5 | -19.3 | -31.6 | 185.7 | |
| Net Income | -16.2 | 11.7 | -3.6 | -63.9 | -130.0 | |
Balance Sheet
|
|---|
| Cash | 32.8 | 121.0 | 62.0 | 100.9 | 216.1 | 114.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 145.3 | |
Cash flow
|
|---|
| Capex | 18.8 | 7.4 | 5.7 | 0.6 | 24.2 | 4,159.3% |
Ratios
|
|---|
| Revenue growth | 22.3% | -13.8% | 509.5% | 21.9% | 11.6% | |
| EBITDA growth | 63.8% | 2.2% | 10.4% | 63.9% | -687.5% | |
| Gross Margin | 38.1% | 32.4% | 10.6% | 12.4% | 33.4% | 21.0% |
| EBITDA Margin | -33.3% | -39.5% | -7.2% | -9.6% | 50.7% | 60.3% |
| Net Income Margin | -31.6% | 26.4% | -1.3% | -19.4% | -35.5% | -16.0% |
| SG&A, % of revenue | 70.4% | 68.0% | 17.0% | 15.9% | 14.0% | -1.9% |
| CAPEX, % of revenue | 36.8% | 16.8% | 2.1% | 0.2% | 6.6% | 6.4% |
| ROIC | -6.4% | -4.9% | -4.5% | -5.6% | 18.4% | 24.1% |
| ROE | -5.3% | 3.0% | -0.7% | -10.3% | -19.0% | -8.6% |
| Net Debt/EBITDA | | | | | -0.4x | -0.4x |
Revenue and profitability
The company's Revenue surged on 11.6%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 60.3 pp from -9.6% to 50.7% in FY2016.
Gross Margin jumped on 21.0 pp from 12.4% to 33.4% in FY2016. SG&A as a % of Revenue decreased slightly on 1.9 pp from 15.9% to 14.0% in FY2016.
Net Income marign dropped on 16.0 pp from -19.4% to -35.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
China Natural Investment Co Ltd's CAPEX/Revenue was 6.6% in FY2016. CAPEX/Revenue dropped on 10.2 pp from 16.8% in FY2013 to 6.6% in FY2016. Average CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at low but positive ROIC (18.44%) and negative ROE (-18.96%). ROIC surged on 24.1 pp from -5.6% to 18.4% in FY2016. ROE decreased on 8.6 pp from -10.3% to -19.0% in FY2016.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA dropped0.4x from to -0.4x in FY2016. Debt surged while cash surged on 114%.
Appendix 1: Peers in Healthcare-Services
Below you can find China Natural Investment Co Ltd benchmarking vs. other companies in Healthcare-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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Town Health International Medical Group Ltd ($3886) | 0.7% | 3.7% | 39.5% | 127.0% | |
| SkyOcean International Holdings Ltd ($593) | 15.7% | -7.4% | -30.5% | 38.1% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 48.8% | 17.1% | 35.9% | 13.8% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | | 10.1% | 11.0% | -20.6% | -11.6% |
| |
|---|
| Median (4 companies) | 15.7% | 6.9% | 23.5% | 25.9% | -11.6% |
|---|
| China Natural Investment Co Ltd ($8250) | | -13.8% | 509.5% | 21.9% | 11.6% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Town Health International Medical Group Ltd ($3886) | 34.7% | 33.9% | 32.5% | 42.7% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 24.4% | 24.0% | 24.7% | 24.0% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | 12.8% | 11.8% | 12.0% | 15.6% | 17.7% |
| |
|---|
| Median (3 companies) | 24.4% | 24.0% | 24.7% | 24.0% | 17.7% |
|---|
| China Natural Investment Co Ltd ($8250) | 38.1% | 32.4% | 10.6% | 12.4% | 33.4% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SkyOcean International Holdings Ltd ($593) | 28.4% | 31.5% | -151.1% | 29.4% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 26.5% | 26.5% | 25.8% | 20.4% | |
| Town Health International Medical Group Ltd ($3886) | -135.5% | -44.4% | -0.3% | 19.4% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | 5.5% | 4.6% | 5.2% | 2.1% | -0.2% |
| |
|---|
| Median (4 companies) | 16.0% | 15.6% | 2.5% | 19.9% | -0.2% |
|---|
| China Natural Investment Co Ltd ($8250) | -33.3% | -39.5% | -7.2% | -9.6% | 50.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SkyOcean International Holdings Ltd ($593) | 0.9% | 1.3% | 4.8% | 385.3% | |
| Town Health International Medical Group Ltd ($3886) | 5.0% | 48.6% | 16.8% | 22.1% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 3.7% | 2.4% | 3.0% | 2.3% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | 0.9% | 0.5% | 0.5% | 1.2% | |
| |
|---|
| Median (4 companies) | 2.3% | 1.8% | 3.9% | 12.2% | |
|---|
| China Natural Investment Co Ltd ($8250) | 36.8% | 16.8% | 2.1% | 0.2% | 6.6% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 17.9% | 14.3% | 14.6% | 12.8% | |
| Town Health International Medical Group Ltd ($3886) | -29.7% | -10.9% | -2.3% | 4.4% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | 7.5% | 6.5% | 8.1% | 2.2% | -3.8% |
| SkyOcean International Holdings Ltd ($593) | 2.8% | 2.4% | -5.2% | 0.7% | |
| |
|---|
| Median (4 companies) | 5.2% | 4.5% | 2.9% | 3.3% | -3.8% |
|---|
| China Natural Investment Co Ltd ($8250) | -6.4% | -4.9% | -4.5% | -5.6% | 18.4% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SkyOcean International Holdings Ltd ($593) | -20.7x | -0.8x | | 83.1x | |
| Hua Xia Healthcare Holdings Ltd ($8143) | 1.7x | 1.9x | 0.9x | 3.5x | |
| Phoenix Healthcare Group Co Ltd ($1515) | 0.6x | -3.8x | -3.2x | -3.4x | |
| Town Health International Medical Group Ltd ($3886) | | | | -7.7x | |
| |
|---|
| Median (4 companies) | 0.6x | -0.8x | -1.1x | 0.1x | |
|---|
