Yuexiu Transport Infrastructure Ltd reports 72.7% Net Income growth in 2016 and 12.6 pp EBITDA Margin growth from 71.6% to 84.1%
13/02/2017 • About Yuexiu Transport Infrastructure Ltd (
$1052) • By InTwits
Yuexiu Transport Infrastructure Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yuexiu Transport Infrastructure Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's in pair with industry average of 5.5%.
- CAPEX is quite volatile: 11.2 in 2016, 11.2 in 2015, 74.0 in 2014, 70.8 in 2013, 77.6 in 2012
- The company has business model with low profitability: ROIC is at 7.3%
- It operates with high leverage: Net Debt/EBITDA is 3.5x while industry average is -1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yuexiu Transport Infrastructure Ltd ($1052) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,485 | 1,753 | 1,859 | 2,226 | 2,519 | 13.2% |
| Gross Profit | 983 | 1,171 | 1,168 | 1,451 | 1,684 | 16.1% |
| SG&A | 195 | 196 | 197 | 194 | | -100.0% |
| EBITDA | 1,162 | 1,306 | 1,376 | 1,593 | 2,120 | 33.1% |
| Net Income | 427 | 554 | 609 | 532 | 919 | 72.7% |
Balance Sheet
|
|---|
| Cash | 1,057 | 1,627 | 1,151 | 877 | 1,046 | 19.3% |
| Short Term Debt | 495 | 595 | 251 | 675 | 235 | -65.2% |
| Long Term Debt | 5,812 | 5,096 | 4,640 | 8,621 | 8,252 | -4.3% |
Cash flow
|
|---|
| Capex | 78 | 71 | 74 | 11 | 11 | -0.2% |
Ratios
|
|---|
| Revenue growth | 12.3% | 18.0% | 6.0% | 19.8% | 13.2% | |
| EBITDA growth | 18.3% | 12.4% | 5.3% | 15.8% | 33.1% | |
| Gross Margin | 66.2% | 66.8% | 62.8% | 65.2% | 66.9% | 1.7% |
| EBITDA Margin | 78.3% | 74.5% | 74.0% | 71.6% | 84.1% | 12.6% |
| Net Income Margin | 28.7% | 31.6% | 32.8% | 23.9% | 36.5% | 12.6% |
| SG&A, % of revenue | 13.1% | 11.2% | 10.6% | 8.7% | | -8.7% |
| CAPEX, % of revenue | 5.2% | 4.0% | 4.0% | 0.5% | 0.4% | -0.1% |
| ROIC | 5.3% | 5.5% | 5.8% | 5.8% | 7.3% | 1.4% |
| ROE | 5.3% | 6.8% | 7.3% | 6.2% | 10.4% | 4.2% |
| Net Debt/EBITDA | 4.5x | 3.1x | 2.7x | 5.3x | 3.5x | -1.8x |
Revenue and profitability
Yuexiu Transport Infrastructure Ltd's Revenue jumped on 13.2%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 12.6 pp from 71.6% to 84.1% in 2016.
Gross Margin increased slightly on 1.7 pp from 65.2% to 66.9% in 2016.
Net Income marign jumped on 12.6 pp from 23.9% to 36.5% in 2016.
Capital expenditures (CAPEX) and working capital investments
Yuexiu Transport Infrastructure Ltd's CAPEX/Revenue was 0.44% in 2016. CAPEX/Revenue decreased on 3.6 pp from 4.0% in 2013 to 0.44% in 2016. For the last three years the average CAPEX/Revenue was 1.6%.
Return on investment
The company operates at low ROIC (7.26%) and ROE (10.41%). ROIC increased slightly on 1.4 pp from 5.8% to 7.3% in 2016. ROE increased on 4.2 pp from 6.2% to 10.4% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.5x and Debt / EBITDA is 4.0x. Net Debt / EBITDA dropped on 1.8x from 5.3x to 3.5x in 2016. Debt decreased on 8.7% while cash jumped on 19.3%.
Appendix 1: Peers in Commercial Services
Below you can find Yuexiu Transport Infrastructure Ltd benchmarking vs. other companies in Commercial 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 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 99.1% | 14.9% | -88.3% | 271.8% | |
| China Seven Star Holdings Ltd ($245) | 6.7% | -81.8% | -39.3% | 195.3% | |
| China Smartpay Group Holdings Ltd ($8325) | | 274.7% | 75.6% | 124.5% | 79.5% |
| Celebrate International Holdings Ltd ($8212) | | 1,437.6% | -6.3% | 117.0% | -78.1% |
| Haier Healthwise Holdings Ltd ($348) | | -50.1% | -7.5% | 101.1% | -9.4% |
| |
|---|
| Median (67 companies) | 6.2% | 8.6% | 9.9% | 4.0% | 8.7% |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | | 18.0% | 6.0% | 19.8% | 13.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HC International Inc ($2280) | 87.5% | 91.9% | 92.5% | 89.6% | |
| Winto Group Holdings Ltd ($8238) | 90.2% | 93.4% | 92.0% | 88.4% | |
| Dingyi Group Investment Ltd ($508) | 75.8% | | 64.5% | 86.0% | 89.6% |
| Fu Shou Yuan International Group Ltd ($1448) | 80.5% | 80.4% | 80.0% | 77.6% | |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| |
|---|
| Median (61 companies) | 31.5% | 30.5% | 31.0% | 30.9% | 30.1% |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | 66.2% | 66.8% | 62.8% | 65.2% | 66.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | 61.6% | 84.9% | 75.9% | 80.9% | |
| Shenzhen International Holdings Ltd ($152) | 60.2% | 65.8% | 97.1% | 73.6% | |
| CAR Inc ($699) | 43.6% | 30.1% | 43.1% | 67.4% | |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | |
| Dragon Crown Group Holdings Ltd ($935) | 67.3% | 62.9% | 60.2% | 61.1% | |
| |
|---|
| Median (67 companies) | 17.5% | 14.9% | 11.2% | 9.8% | 0.5% |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | 78.3% | 74.5% | 74.0% | 71.6% | 84.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 21.3% | 9.0% | 13.9% | 47.4% | |
| COSCO Pacific Ltd ($1199) | 96.6% | 66.6% | 43.3% | 45.8% | |
| Shenzhen International Holdings Ltd ($152) | 23.0% | 22.1% | 20.9% | 35.0% | |
| Celebrate International Holdings Ltd ($8212) | 211.7% | 12.0% | 6.2% | 34.2% | 18.6% |
| China Maple Leaf Educational Systems Ltd ($1317) | 25.7% | 50.9% | 21.1% | 32.8% | 18.0% |
| |
|---|
| Median (67 companies) | 2.7% | 3.4% | 2.4% | 3.9% | 2.0% |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | 5.2% | 4.0% | 4.0% | 0.5% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bamboos Health Care Holdings Ltd ($8216) | | 71.1% | 50.1% | 58.3% | 40.0% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 51.5% | 26.6% | 30.0% | 29.5% | 19.8% |
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | |
| China Packaging Holdings Development Ltd ($1439) | 52.0% | 46.6% | 34.1% | 19.8% | |
| iOne Holdings Ltd ($982) | 12.5% | 11.1% | 9.4% | 19.2% | |
| |
|---|
| Median (67 companies) | 7.5% | 7.0% | 6.7% | 3.3% | 0.3% |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | 5.3% | 5.5% | 5.8% | 5.8% | 7.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | 22.2x | |
| Kai Yuan Holdings Ltd ($1215) | -143.8x | -0.7x | | 18.8x | |
| Eagle Legend Asia Ltd ($936) | 4.0x | 4.0x | 3.3x | 6.2x | |
| Sichuan Expressway Co Ltd ($107) | 2.7x | 3.8x | 4.3x | 5.5x | |
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 4.8x | 4.7x | 4.1x | |
| |
|---|
| Median (44 companies) | -0.0x | -0.7x | -0.9x | -0.8x | -2.4x |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | 4.5x | 3.1x | 2.7x | 5.3x | 3.5x |
