China Everbright International Ltd revenue growth accelerated to 63.7% in FY2016 vs. 34.3% a year earliner
28/02/2017 • About China Everbright International Ltd (
$257) • By InTwits
China Everbright International Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Everbright International Ltd is a growth stock: FY2016 revenue growth was 63.7%, 5 year revenue CAGR was 32.0% at FY2016 ROIC 11.4%
- The company has business model with average profitability: ROIC is at 11.4%
- It operates with high leverage: Net Debt/EBITDA is 3.0x while industry average is -0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Everbright International Ltd ($257) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,410 | 5,320 | 6,355 | 8,535 | 13,971 | 63.7% |
| Gross Profit | 1,684 | 2,375 | 2,969 | 3,909 | 5,310 | 35.8% |
| SG&A | 297 | 392 | 540 | 768 | | -100.0% |
| EBITDA | 1,522 | 2,167 | 2,769 | 3,764 | 5,015 | 33.2% |
| Net Income | 1,123 | 1,325 | 1,703 | 2,085 | 2,785 | 33.6% |
Balance Sheet
|
|---|
| Cash | 2,750 | 5,771 | 4,918 | 6,118 | 6,385 | 4.4% |
| Short Term Debt | 1,635 | 1,780 | 2,611 | 3,410 | 4,412 | 29.4% |
| Long Term Debt | 4,369 | 5,141 | 6,525 | 12,411 | 17,203 | 38.6% |
Cash flow
|
|---|
| Capex | 628 | 56 | 216 | 661 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -2.2% | 56.0% | 19.5% | 34.3% | 63.7% | |
| EBITDA growth | 17.1% | 42.4% | 27.8% | 35.9% | 33.2% | |
| Gross Margin | 49.4% | 44.7% | 46.7% | 45.8% | 38.0% | -7.8% |
| EBITDA Margin | 44.6% | 40.7% | 43.6% | 44.1% | 35.9% | -8.2% |
| Net Income Margin | 32.9% | 24.9% | 26.8% | 24.4% | 19.9% | -4.5% |
| SG&A, % of revenue | 8.7% | 7.4% | 8.5% | 9.0% | | -9.0% |
| CAPEX, % of revenue | 18.4% | 1.1% | 3.4% | 7.7% | | -7.7% |
| ROIC | 10.4% | 11.2% | 10.5% | 10.8% | 11.4% | 0.7% |
| ROE | 15.5% | 12.2% | 11.5% | 12.5% | 16.1% | 3.6% |
| Net Debt/EBITDA | 2.1x | 0.5x | 1.5x | 2.6x | 3.0x | 0.5x |
Revenue and profitability
The company's Revenue surged on 63.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.4 pp from 21.5% to 19.1% in FY2016.
Gross Margin decreased on 7.8 pp from 45.8% to 38.0% in FY2016.
Net Income marign decreased on 4.5 pp from 24.4% to 19.9% in FY2016.
Return on investment
The company operates at good ROE (16.10%) while ROIC is low (11.42%). ROIC increased slightly on 0.67 pp from 10.8% to 11.4% in FY2016. ROE increased on 3.6 pp from 12.5% to 16.1% in FY2016.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and 4.3x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 2.6x to 3.0x in FY2016. Debt surged on 36.6% while cash increased on 4.4%.
Management team
The company's CEO is Chen Xiaoping. Chen Xiaoping has 17 years tenure at the company. Wong Kam Chung "Raymond" is a China Everbright International Ltd's CFO. Wong Kam Chung "Raymond" has spent 15 years at the company.
Appendix 1: Peers in Environmental Control
Below you can find China Everbright International Ltd benchmarking vs. other companies in Environmental Control 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 |
|---|
| Sky Forever Supply Chain Management Group Ltd ($8047) | | 446.4% | -62.3% | 12,494.5% | 1.5% |
| Pan Asia Environmental Protection Group Ltd ($556) | -13.7% | 43.1% | -1.8% | 85.0% | |
| CT Environmental Group Ltd ($1363) | -18.7% | 23.1% | 112.9% | 75.4% | |
| ELL Environmental Holdings Ltd ($1395) | 5.3% | 38.8% | 30.9% | 70.8% | |
| Ozner Water International Holding Ltd ($2014) | 183.9% | 38.5% | 27.2% | 45.7% | |
| |
|---|
| Median (24 companies) | 4.8% | 18.1% | 23.6% | 3.1% | 41.1% |
|---|
| China Everbright International Ltd ($257) | | 56.0% | 19.5% | 34.3% | 63.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| EverChina International Holdings Co Ltd ($202) | 51.8% | 53.4% | 95.3% | 95.4% | 93.5% |
| Ozner Water International Holding Ltd ($2014) | 64.5% | 67.8% | 65.4% | 58.9% | |
| CT Environmental Group Ltd ($1363) | 65.8% | 63.1% | 56.4% | 49.9% | |
| Kangda International Environmental Co Ltd ($6136) | 44.2% | 38.3% | 40.0% | 47.6% | |
| China Water Affairs Group Ltd ($855) | 44.0% | 43.1% | 41.8% | 47.3% | 47.1% |
| |
|---|
| Median (23 companies) | 33.2% | 30.5% | 31.3% | 32.7% | 25.8% |
|---|
| China Everbright International Ltd ($257) | 49.4% | 44.7% | 46.7% | 45.8% | 38.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CT Environmental Group Ltd ($1363) | 63.6% | 62.8% | 58.7% | 64.6% | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 57.5% | 56.6% | 57.8% | 57.9% | |
| China Water Affairs Group Ltd ($855) | 38.2% | 38.1% | 37.1% | 40.3% | 40.2% |
| Kangda International Environmental Co Ltd ($6136) | 37.1% | 33.6% | 32.4% | 36.6% | |
| New Universe International Group Ltd ($8068) | 40.2% | 37.8% | 39.3% | 36.6% | |
| |
|---|
| Median (24 companies) | 9.9% | 10.8% | 3.1% | 13.1% | -15.6% |
|---|
| China Everbright International Ltd ($257) | 44.6% | 40.7% | 43.6% | 44.1% | 35.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chaoyue Group Ltd ($147) | | 18.1% | 9.2% | 100.9% | 1.4% |
| Ozner Water International Holding Ltd ($2014) | 94.9% | 102.2% | 148.5% | 90.9% | |
| Integrated Waste Solutions Group Holdings Ltd ($923) | 13.2% | 10.6% | 41.7% | 88.1% | 36.5% |
| Green Energy Group Ltd ($979) | 169.0% | 270.8% | 41.9% | 59.0% | |
| CT Environmental Group Ltd ($1363) | 65.0% | 27.1% | 51.4% | 40.5% | |
| |
|---|
| Median (23 companies) | 11.7% | 13.0% | 8.8% | 3.2% | 2.6% |
|---|
| China Everbright International Ltd ($257) | 18.4% | 1.1% | 3.4% | 7.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CT Environmental Group Ltd ($1363) | 25.9% | 20.5% | 20.8% | 20.1% | |
| Sound Global Ltd ($967) | 12.8% | 11.5% | 10.8% | 9.3% | |
| Baguio Green Group Ltd ($1397) | 20.1% | 29.2% | 9.6% | 9.0% | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 7.1% | 6.8% | 7.8% | 8.8% | |
| Kangda International Environmental Co Ltd ($6136) | 12.5% | 11.8% | 10.7% | 8.8% | |
| |
|---|
| Median (24 companies) | 0.5% | 4.0% | 2.5% | 3.2% | -4.4% |
|---|
| China Everbright International Ltd ($257) | 10.4% | 11.2% | 10.5% | 10.8% | 11.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kangda International Environmental Co Ltd ($6136) | 4.4x | 5.1x | 4.8x | 5.2x | |
| China Water Affairs Group Ltd ($855) | 2.6x | 2.7x | 3.2x | 3.4x | 3.0x |
| Dynagreen Environmental Protection Group Co Ltd ($1330) | 3.2x | | | 3.2x | |
| Sound Global Ltd ($967) | -0.1x | 0.3x | 1.9x | 2.8x | |
| Dongjiang Environmental Co Ltd ($895) | -1.7x | -1.5x | 0.9x | 2.5x | |
| |
|---|
| Median (15 companies) | 2.3x | 0.3x | 0.9x | 1.2x | 1.0x |
|---|
| China Everbright International Ltd ($257) | 2.1x | 0.5x | 1.5x | 2.6x | 3.0x |
