China Renewable Energy Investment Ltd reports 51.0% Net Income growth in 2016 while 2.7 pp EBITDA Margin decline from 74.3% to 71.6%
14/03/2017 • About China Renewable Energy Investment Ltd (
$987) • By InTwits
China Renewable Energy Investment Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Renewable Energy Investment Ltd doesn't have a profitable business model yet: FY2016 ROIC is 0.9%
- The company has potentially unprofitable business model: ROIC is at 0.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Renewable Energy Investment Ltd ($987) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 99.5 | 113.7 | 97.3 | 132.9 | 131.0 | -1.4% |
| Gross Profit | 20.1 | 42.2 | 24.0 | 44.3 | 43.8 | -1.0% |
| SG&A | | | 21.5 | 23.6 | 22.8 | -3.7% |
| EBITDA | 53.8 | 75.1 | 62.5 | 98.8 | 93.8 | -5.0% |
| Net Income | -82.7 | 28.2 | 14.5 | 40.5 | 61.1 | 51.0% |
Balance Sheet
|
|---|
| Cash | 238.2 | 271.1 | 278.3 | 181.3 | 200.7 | 10.7% |
| Short Term Debt | 164.4 | 174.2 | 89.9 | 84.9 | 82.4 | -2.9% |
| Long Term Debt | 552.2 | 562.2 | 589.9 | 471.9 | 383.0 | -18.8% |
Cash flow
|
|---|
| Capex | 23.3 | 134.8 | 122.8 | 43.1 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 10.7% | 14.3% | -14.4% | 36.6% | -1.4% | |
| EBITDA growth | 113.2% | 39.6% | -16.7% | 57.9% | -5.0% | |
| Gross Margin | 20.2% | 37.1% | 24.7% | 33.3% | 33.5% | 0.2% |
| EBITDA Margin | 54.1% | 66.1% | 64.3% | 74.3% | 71.6% | -2.7% |
| Net Income Margin | -83.1% | 24.8% | 14.9% | 30.4% | 46.6% | 16.2% |
| SG&A, % of revenue | | | 22.0% | 17.8% | 17.4% | -0.4% |
| CAPEX, % of revenue | 23.4% | 118.5% | 126.1% | 32.4% | | -32.4% |
| ROIC | -0.6% | 0.5% | 0.0% | 0.9% | 0.9% | 0.1% |
| ROE | -4.7% | 1.6% | 0.8% | 2.4% | 3.9% | 1.4% |
| Net Debt/EBITDA | 8.9x | 6.2x | 6.4x | 3.8x | 2.8x | -1.0x |
Revenue and profitability
The company's Revenue decreased slightly on 1.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.7 pp from 74.3% to 71.6% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign surged on 16.2 pp from 30.4% to 46.6% in FY2016.
Return on investment
The company operates at low ROIC (0.94%) and ROE (3.85%). ROIC showed almost no change in FY2016. ROE increased slightly on 1.4 pp from 2.4% to 3.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 5.0x. Net Debt / EBITDA dropped on 1.0x from 3.8x to 2.8x in FY2016. Debt dropped on 16.4% while cash surged on 10.7%.
Appendix 1: Peers in Energy-Alternate Sources
Below we provide China Renewable Energy Investment 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) | 3.1% | 18.6% | 36.5% | 35.5% | 14.0% |
|---|
| China Renewable Energy Investment Ltd ($987) | | 14.3% | -14.4% | 36.6% | -1.4% |
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 Suntien Green Energy Corp Ltd ($956) | 33.5% | 31.3% | 25.2% | 26.5% | |
| |
|---|
| Median (7 companies) | 22.9% | 31.3% | 31.6% | 36.0% | 45.8% |
|---|
| China Renewable Energy Investment Ltd ($987) | 20.2% | 37.1% | 24.7% | 33.3% | 33.5% |
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% | |
| 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% | 62.3% |
| 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% | 62.3% |
|---|
| China Renewable Energy Investment Ltd ($987) | 54.1% | 66.1% | 64.3% | 74.3% | 71.6% |
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% | |
| Concord New Energy Group Ltd ($182) | 64.2% | 19.0% | 52.7% | 54.7% | |
| |
|---|
| Median (10 companies) | 46.5% | 16.3% | 31.2% | 48.7% | |
|---|
| China Renewable Energy Investment Ltd ($987) | 23.4% | 118.5% | 126.1% | 32.4% | |
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% | 9.0% |
|---|
| China Renewable Energy Investment Ltd ($987) | -0.6% | 0.5% | 0.0% | 0.9% | 0.9% |
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 | 5.4x |
| 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) | 4.1x | 3.4x | 5.4x | 4.4x | 2.1x |
|---|
| China Renewable Energy Investment Ltd ($987) | 8.9x | 6.2x | 6.4x | 3.8x | 2.8x |
