Chong Hing Bank Ltd Net Income surged on 19.0% in 2016
28/02/2017 • About Chong Hing Bank Ltd (
$1111) • By InTwits
Chong Hing Bank Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chong Hing Bank Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 10.4%.
- CAPEX is quite volatile: 82.4 in FY2016, 72.2 in FY2015, 33.9 in FY2014, 33.1 in FY2013, 70.1 in FY2012
- The company has potentially unprofitable business model: ROIC is at 5.6%
- It operates with high leverage: Net Debt/EBITDA is 15.8x while industry average is -5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chong Hing Bank Ltd ($1111) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,127 | 2,103 | 4,649 | 3,842 | 3,867 | 0.7% |
| Net Income | 543 | 557 | 2,742 | 1,193 | 1,420 | 19.0% |
Balance Sheet
|
|---|
| Cash | 6,859 | 4,356 | 4,555 | 8,938 | 7,106 | -20.5% |
| Short Term Debt | 1,843 | 1,674 | 4,414 | 5,728 | 2,697 | -52.9% |
| Long Term Debt | 1,899 | 1,766 | 1,816 | 1,820 | 3,456 | 89.9% |
Cash flow
|
|---|
| Capex | 70 | 33 | 34 | 72 | 82 | 14.1% |
Ratios
|
|---|
| Revenue growth | 10.0% | -1.2% | 121.1% | -17.4% | 0.7% | |
| Net Income Margin | 25.5% | 26.5% | 59.0% | 31.1% | 36.7% | 5.7% |
| CAPEX, % of revenue | 3.3% | 1.6% | 0.7% | 1.9% | 2.1% | 0.3% |
| ROIC | 5.5% | 5.2% | 16.4% | 5.7% | 5.6% | -0.2% |
| ROE | 7.6% | 7.4% | 33.8% | 9.8% | 9.6% | -0.2% |
Revenue and profitability
Chong Hing Bank Ltd's Revenue increased slightly on 0.66%.
Net Income marign increased on 5.7 pp from 31.1% to 36.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 2.1%. The company showed small growth in CAPEX/Revenue of 0.55 pp from 1.6% in FY2013 to 2.1% in FY2016. It's average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at low ROIC (5.57%) and ROE (9.61%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt dropped on 18.5% while cash dropped on 20.5%.
Appendix 1: Peers in Banks
Below we provide Chong Hing Bank Ltd benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | -20.6% | 43.4% | 6.8% | 116.4% | |
| Huishang Bank Corp Ltd ($3698) | 33.9% | 22.8% | 24.3% | 24.6% | |
| Shengjing Bank Co Ltd ($2066) | 36.5% | 36.3% | 40.1% | 24.3% | |
| Bank of Chongqing Co Ltd ($1963) | 38.4% | 26.6% | 28.4% | 18.5% | |
| BOC Hong Kong Holdings Ltd ($2388) | 15.1% | 11.4% | -3.0% | 11.6% | |
| |
|---|
| Median (13 companies) | 26.9% | 12.5% | 19.6% | 7.6% | -11.0% |
|---|
| Chong Hing Bank Ltd ($1111) | | -1.2% | 121.1% | -17.4% | 0.7% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | 4.1% | 29.9% | 27.0% | 33.5% | |
| |
|---|
| Median (1 company) | 4.1% | 29.9% | 27.0% | 33.5% | |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dah Sing Banking Group Ltd ($2356) | 3.9% | 4.1% | 2.2% | 7.5% | |
| Dah Sing Financial Holdings Ltd ($440) | 3.0% | 3.4% | 1.7% | 5.9% | |
| Harbin Bank Co Ltd ($6138) | 19.8% | 9.9% | 6.5% | 5.8% | |
| Chongqing Rural Commercial Bank Co Ltd ($3618) | 4.0% | 4.3% | 4.8% | 4.4% | |
| Shengjing Bank Co Ltd ($2066) | 1.6% | 2.2% | 5.0% | 3.0% | |
| |
|---|
| Median (13 companies) | 2.4% | 3.2% | 1.8% | 2.8% | 1.8% |
|---|
| Chong Hing Bank Ltd ($1111) | 3.3% | 1.6% | 0.7% | 1.9% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hang Seng Bank Ltd ($11) | 8.6% | 9.5% | 9.0% | 8.3% | 8.1% |
| BOC Hong Kong Holdings Ltd ($2388) | 5.9% | 6.4% | 5.8% | 6.2% | |
| Dah Sing Financial Holdings Ltd ($440) | 3.8% | 5.1% | 5.2% | 5.9% | |
| Dah Sing Banking Group Ltd ($2356) | 4.2% | 5.4% | 5.4% | 5.5% | |
| Harbin Bank Co Ltd ($6138) | 8.4% | 5.6% | 5.2% | 5.3% | |
| |
|---|
| Median (13 companies) | 6.0% | 6.3% | 5.3% | 4.3% | 1.5% |
|---|
| Chong Hing Bank Ltd ($1111) | 5.5% | 5.2% | 16.4% | 5.7% | 5.6% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | -66.3x | -7.1x | -10.6x | -5.7x | |
| |
|---|
| Median (1 company) | -66.3x | -7.1x | -10.6x | -5.7x | |
|---|
