China Longyuan Power Group Corp Ltd reports 23.2% Net Income growth while 2.3 pp EBITDA Margin decline from 64.5% to 62.3%
14/03/2017 • About China Longyuan Power Group Corp Ltd (
$916) • By InTwits
China Longyuan Power Group Corp 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 6.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 5.4x while industry average is 5.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Longyuan Power Group Corp Ltd ($916) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 17,288 | 19,147 | 18,228 | 19,649 | 22,304 | 13.5% |
| SG&A | 402 | 399 | 378 | 370 | | -100.0% |
| EBITDA | 9,742 | 10,412 | 11,572 | 12,680 | 13,889 | 9.5% |
| Net Income | 2,593 | 2,052 | 2,555 | 2,881 | 3,549 | 23.2% |
Balance Sheet
|
|---|
| Cash | 5,081 | 2,719 | 2,396 | 2,887 | 1,905 | -34.0% |
| Short Term Debt | 26,170 | 24,697 | 36,114 | 44,688 | 44,511 | -0.4% |
| Long Term Debt | 32,482 | 33,205 | 33,922 | 29,970 | 31,788 | 6.1% |
Cash flow
|
|---|
| Capex | 13,745 | 10,509 | 18,273 | 15,264 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 4.2% | 10.7% | -4.8% | 7.8% | 13.5% | |
| EBITDA growth | 20.3% | 6.9% | 11.1% | 9.6% | 9.5% | |
| EBITDA Margin | 56.3% | 54.4% | 63.5% | 64.5% | 62.3% | -2.3% |
| Net Income Margin | 15.0% | 10.7% | 14.0% | 14.7% | 15.9% | 1.2% |
| SG&A, % of revenue | 2.3% | 2.1% | 2.1% | 1.9% | | -1.9% |
| CAPEX, % of revenue | 79.5% | 54.9% | 100.2% | 77.7% | | -77.7% |
| ROIC | 6.9% | 6.3% | 6.3% | 6.2% | 6.2% | 0.0% |
| ROE | 9.4% | 6.8% | 8.0% | 8.4% | 9.4% | 0.9% |
| Net Debt/EBITDA | 5.5x | 5.3x | 5.8x | 5.7x | 5.4x | -0.3x |
Revenue and profitability
China Longyuan Power Group Corp Ltd's Revenue jumped on 13.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.60 pp from 28.0% to 27.4% in FY2016.
Net Income marign increased slightly on 1.2 pp from 14.7% to 15.9% in FY2016.
Return on investment
The company operates at low ROIC (6.20%) and ROE (9.36%). ROIC showed almost no change in FY2016. ROE increased slightly on 0.91 pp from 8.4% to 9.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.4x and Debt / EBITDA is 5.5x. Net Debt / EBITDA dropped on 0.3x from 5.7x to 5.4x in FY2016. Debt increased on 2.2% while cash dropped on 34.0%.
Appendix 1: Peers in Energy-Alternate Sources
Below you can find China Longyuan Power Group Corp Ltd benchmarking vs. other companies in Energy-Alternate Sources 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 |
|---|
| 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) | 3.1% | 20.1% | 36.5% | 42.9% | 6.6% |
|---|
| China Longyuan Power Group Corp Ltd ($916) | | 10.7% | -4.8% | 7.8% | 13.5% |
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% | 33.5% |
| |
|---|
| Median (8 companies) | 21.6% | 34.2% | 28.4% | 34.7% | 39.6% |
|---|
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% | 71.6% |
| HaiTian Hydropower International Ltd ($8261) | 61.9% | 75.9% | 80.2% | 69.0% | 66.8% |
| Canvest Environment Protection Group Co Ltd ($1381) | 59.3% | 56.6% | 50.3% | 41.8% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 57.7% | 50.4% | 41.8% | 36.6% | |
| |
|---|
| Median (10 companies) | 31.9% | 30.6% | 36.9% | 36.2% | 66.8% |
|---|
| China Longyuan Power Group Corp Ltd ($916) | 56.3% | 54.4% | 63.5% | 64.5% | 62.3% |
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% | |
| 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% | |
| Concord New Energy Group Ltd ($182) | 64.2% | 19.0% | 52.7% | 54.7% | |
| GCL-Poly Energy Holdings Ltd ($3800) | 19.9% | 13.6% | 23.5% | 42.8% | |
| |
|---|
| Median (10 companies) | 32.4% | 16.3% | 31.2% | 37.6% | |
|---|
| China Longyuan Power Group Corp Ltd ($916) | 79.5% | 54.9% | 100.2% | 77.7% | |
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) | 4.4% | 5.4% | 6.0% | 6.5% | 8.4% |
|---|
| China Longyuan Power Group Corp Ltd ($916) | 6.9% | 6.3% | 6.3% | 6.2% | 6.2% |
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 | |
| 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 | |
| Concord New Energy Group Ltd ($182) | 3.8x | 1.4x | 2.2x | 4.2x | |
| |
|---|
| Median (9 companies) | 4.1x | 3.4x | 5.4x | 4.2x | 2.1x |
|---|
| China Longyuan Power Group Corp Ltd ($916) | 5.5x | 5.3x | 5.8x | 5.7x | 5.4x |
