Concord New Energy Group Ltd revenue started to decline in FY2016: dropped 58.7% vs. 21.7% growth a year earliner
08/03/2017 • About Concord New Energy Group Ltd (
$182) • By InTwits
Concord New Energy Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has potentially unprofitable business model: ROIC is at 5.0%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Concord New Energy Group Ltd ($182) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,100 | 1,883 | 3,550 | 4,321 | 1,785 | -58.7% |
| Gross Profit | | | | | 518 | |
| SG&A | | | | | 175 | |
| EBITDA | 253 | 338 | 537 | 717 | | -100.0% |
| Net Income | 40 | 151 | 317 | 508 | 458 | -9.9% |
Balance Sheet
|
|---|
| Cash | 731 | 1,850 | 1,105 | 1,905 | 1,891 | -0.7% |
| Short Term Debt | 393 | 1,068 | 767 | 1,515 | 1,100 | -27.4% |
| Long Term Debt | 1,298 | 1,262 | 1,515 | 3,391 | 3,301 | -2.7% |
Cash flow
|
|---|
| Capex | 706 | 357 | 1,872 | 2,362 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 14.7% | 71.2% | 88.5% | 21.7% | -58.7% | |
| EBITDA growth | -37.2% | 33.7% | 58.6% | 33.6% | | |
| Gross Margin | | | | | 29.0% | 29.0% |
| EBITDA Margin | 23.0% | 18.0% | 15.1% | 16.6% | 0.0% | -16.6% |
| Net Income Margin | 3.7% | 8.0% | 8.9% | 11.8% | 25.6% | 13.9% |
| SG&A, % of revenue | | | | | 9.8% | 9.8% |
| CAPEX, % of revenue | 64.2% | 19.0% | 52.7% | 54.7% | | -54.7% |
| ROIC | 3.1% | 4.1% | 5.5% | 5.9% | 5.0% | -0.9% |
| ROE | 0.9% | 3.2% | 6.0% | 9.0% | 8.6% | -0.4% |
| Net Debt/EBITDA | 3.8x | 1.4x | 2.2x | 4.2x | | -4.2x |
Revenue and profitability
Concord New Energy Group Ltd's Revenue dropped on 58.7%.
Net Income marign surged on 13.9 pp from 11.8% to 25.6% in FY2016.
Return on investment
The company operates at low ROIC (5.00%) and ROE (8.55%). ROIC decreased slightly on 0.88 pp from 5.9% to 5.0% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt dropped on 10.3% while cash decreased slightly on 0.73%.
Appendix 1: Peers in Energy-Alternate Sources
Below we provide Concord New Energy Group Ltd benchmarking against other companies in Energy-Alternate Sources 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 |
|---|
| HaiTian Hydropower International Ltd ($8261) | | 8.5% | 114.0% | 220.2% | 14.6% |
| Xinyi Solar Holdings Ltd ($968) | | 28.3% | 22.5% | 97.1% | 26.5% |
| United Photovoltaics Group Ltd ($686) | -74.0% | -83.5% | 1,168.8% | 66.2% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 2.5% | 50.7% | 39.6% | 64.4% | |
| Canvest Environment Protection Group Co Ltd ($1381) | 150.6% | 0.8% | 103.5% | 49.2% | |
| |
|---|
| Median (10 companies) | 3.9% | 12.8% | 28.0% | 42.9% | 20.5% |
|---|
| Concord New Energy Group Ltd ($182) | | 71.2% | 88.5% | 21.7% | -58.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 74.2% | 74.3% | 79.3% | 64.6% | 64.6% |
| United Photovoltaics Group Ltd ($686) | -29.8% | 99.3% | 90.7% | 54.0% | |
| Canvest Environment Protection Group Co Ltd ($1381) | 53.4% | 51.9% | 43.1% | 37.1% | |
| Xinyi Solar Holdings Ltd ($968) | 17.2% | 30.1% | 31.6% | 36.0% | 45.8% |
| China Renewable Energy Investment Ltd ($987) | 20.2% | 37.1% | 24.7% | 33.3% | |
| |
|---|
| Median (8 companies) | 21.6% | 34.2% | 28.4% | 34.7% | 55.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Photovoltaics Group Ltd ($686) | -42.6% | -230.5% | 92.9% | 83.5% | |
| China Renewable Energy Investment Ltd ($987) | 54.1% | 66.1% | 64.3% | 74.3% | |
| HaiTian Hydropower International Ltd ($8261) | 61.9% | 75.9% | 80.2% | 69.0% | 66.8% |
| China Longyuan Power Group Corp Ltd ($916) | 56.3% | 54.4% | 63.5% | 64.5% | |
| Canvest Environment Protection Group Co Ltd ($1381) | 59.3% | 56.6% | 50.3% | 41.8% | |
| |
|---|
| Median (10 companies) | 47.5% | 43.9% | 46.1% | 39.2% | 57.0% |
|---|
| Concord New Energy Group Ltd ($182) | 23.0% | 18.0% | 15.1% | 16.6% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Suntien Green Energy Corp Ltd ($956) | 41.4% | 25.7% | 35.9% | 128.8% | |
| China Longyuan Power Group Corp Ltd ($916) | 79.5% | 54.9% | 100.2% | 77.7% | |
| Xinyi Solar Holdings Ltd ($968) | 22.7% | 12.2% | 98.8% | 75.4% | |
| International Standard Resources Holdings Ltd ($91) | 51.5% | 2.4% | 11.1% | 69.3% | |
| GCL-Poly Energy Holdings Ltd ($3800) | 19.9% | 13.6% | 23.5% | 42.8% | |
| |
|---|
| Median (10 companies) | 32.4% | 19.7% | 31.2% | 37.6% | |
|---|
| Concord New Energy Group Ltd ($182) | 64.2% | 19.0% | 52.7% | 54.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Xinyi Solar Holdings Ltd ($968) | 13.8% | 21.6% | 16.9% | 18.7% | 19.7% |
| HaiTian Hydropower International Ltd ($8261) | 6.4% | 7.5% | 7.5% | 11.9% | 11.7% |
| Canvest Environment Protection Group Co Ltd ($1381) | 27.0% | 18.1% | 12.4% | 10.0% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 5.8% | 6.8% | 6.3% | 8.1% | |
| GCL-Poly Energy Holdings Ltd ($3800) | 0.3% | 2.8% | 6.9% | 7.2% | |
| |
|---|
| Median (10 companies) | 6.1% | 6.5% | 6.3% | 6.7% | 15.7% |
|---|
| Concord New Energy Group Ltd ($182) | 3.1% | 4.1% | 5.5% | 5.9% | 5.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Photovoltaics Group Ltd ($686) | | | 7.8x | 13.2x | |
| China Suntien Green Energy Corp Ltd ($956) | 4.5x | 4.1x | 4.9x | 9.5x | |
| China Longyuan Power Group Corp Ltd ($916) | 5.5x | 5.3x | 5.8x | 5.7x | |
| GCL-Poly Energy Holdings Ltd ($3800) | 11.4x | 7.7x | 5.4x | 5.0x | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 6.7x | 6.3x | 6.7x | 4.4x | |
| |
|---|
| Median (9 companies) | 5.0x | 4.7x | 5.8x | 4.4x | 1.5x |
|---|
| Concord New Energy Group Ltd ($182) | 3.8x | 1.4x | 2.2x | 4.2x | |
