CGN Meiya Power Holdings Co Ltd reports 23.5% Net Income decline in 2016 while 6.3 pp EBITDA Margin growth from 23.5% to 29.9%
15/03/2017 • About CGN Meiya Power Holdings Co Ltd (
$1811) • By InTwits
CGN Meiya Power Holdings Co 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 5.2%
- It operates with high leverage: Net Debt/EBITDA is 6.5x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CGN Meiya Power Holdings Co Ltd ($1811) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 948 | 1,055 | 1,380 | 1,152 | 1,074 | -6.7% |
| EBITDA | 144 | 190 | 247 | 271 | 321 | 18.3% |
| Net Income | 20 | 56 | 202 | 104 | 79 | -23.5% |
Balance Sheet
|
|---|
| Cash | 105 | 209 | 321 | 342 | 327 | -4.7% |
| Short Term Debt | 183 | 34 | 203 | 215 | 178 | -17.2% |
| Long Term Debt | 1,235 | 1,708 | 1,187 | 2,451 | 2,218 | -9.5% |
Cash flow
|
|---|
| Capex | 424 | 392 | 184 | 57 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 23.4% | 11.2% | 30.8% | -16.5% | -6.7% | |
| EBITDA growth | 6.6% | 32.5% | 29.6% | 9.9% | 18.3% | |
| EBITDA Margin | 15.1% | 18.1% | 17.9% | 23.5% | 29.9% | 6.3% |
| Net Income Margin | 2.1% | 5.3% | 14.7% | 9.0% | 7.4% | -1.6% |
| CAPEX, % of revenue | 44.7% | 37.2% | 13.4% | 5.0% | | -5.0% |
| ROIC | 4.0% | 4.6% | 6.0% | 5.5% | 5.2% | -0.3% |
| ROE | 3.0% | 7.6% | 27.2% | 14.3% | 10.9% | -3.4% |
| Net Debt/EBITDA | 9.1x | 8.1x | 4.3x | 8.6x | 6.5x | -2.1x |
Revenue and profitability
CGN Meiya Power Holdings Co Ltd's Revenue decreased on 6.7%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 6.3 pp from 23.5% to 29.9% in FY2016.
Net Income marign decreased slightly on 1.6 pp from 9.0% to 7.4% in FY2016.
Return on investment
The company operates at low ROIC (5.23%) and ROE (10.94%). ROIC showed almost no change in FY2016. ROE decreased on 3.4 pp from 14.3% to 10.9% in FY2016.
Leverage (Debt)
Debt level is 6.5x Net Debt / EBITDA and 7.5x Debt / EBITDA. Net Debt / EBITDA dropped on 2.1x from 8.6x to 6.5x in FY2016. Debt dropped on 10.1% while cash decreased on 4.7%.
Appendix 1: Peers in Electric
Below we provide CGN Meiya Power Holdings Co Ltd benchmarking against other companies in Electric 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 |
|---|
| Huaneng Renewables Corp Ltd ($958) | 26.0% | 46.7% | 4.1% | 19.6% | |
| CGN Power Co Ltd ($1816) | | -1.2% | 19.3% | 12.3% | 41.4% |
| Huadian Fuxin Energy Corp Ltd ($816) | 56.0% | 16.7% | 4.9% | 10.4% | |
| China Datang Corp Renewable Power Co Ltd ($1798) | 14.1% | 28.9% | -7.9% | 7.8% | |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 2.1% | -1.8% | 2.9% | 6.7% | |
| |
|---|
| Median (15 companies) | 5.8% | 11.8% | 4.9% | -1.2% | 19.9% |
|---|
| CGN Meiya Power Holdings Co Ltd ($1811) | | 11.2% | 30.8% | -16.5% | -6.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Power Assets Holdings Ltd ($6) | 60.0% | 63.5% | 85.6% | 99.4% | |
| China Power New Energy Development Co Ltd ($735) | 73.3% | 70.8% | 72.0% | 74.9% | |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 60.1% | 58.6% | 54.0% | 53.7% | |
| CGN Power Co Ltd ($1816) | 46.5% | 46.9% | 48.6% | 47.9% | 43.7% |
| Tianjin Development Hldgs Ltd ($882) | 8.5% | 5.0% | 18.7% | 18.6% | |
| |
|---|
| Median (6 companies) | 46.5% | 52.8% | 48.6% | 50.8% | 43.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huaneng Renewables Corp Ltd ($958) | 94.0% | 80.5% | 91.3% | 93.1% | |
| China Datang Corp Renewable Power Co Ltd ($1798) | 90.5% | 82.8% | 87.0% | 82.4% | |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 72.6% | 77.6% | 73.3% | 71.7% | |
| Power Assets Holdings Ltd ($6) | 66.2% | 68.0% | 2,533.1% | 71.2% | |
| CGN Power Co Ltd ($1816) | 66.0% | 62.6% | 60.5% | 59.4% | 52.9% |
| |
|---|
| Median (15 companies) | 32.1% | 39.0% | 42.3% | 52.1% | 41.7% |
|---|
| CGN Meiya Power Holdings Co Ltd ($1811) | 15.1% | 18.1% | 17.9% | 23.5% | 29.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerchina Holdings Ltd ($622) | 24.1% | 28.3% | 3.8% | 321.6% | |
| Huaneng Renewables Corp Ltd ($958) | 163.4% | 124.0% | 217.8% | 171.9% | |
| China Power New Energy Development Co Ltd ($735) | 82.2% | 80.1% | 119.5% | 99.0% | |
| Huadian Fuxin Energy Corp Ltd ($816) | 62.2% | 54.3% | 91.8% | 96.0% | |
| China Datang Corp Renewable Power Co Ltd ($1798) | 157.1% | 81.7% | 106.3% | 93.4% | |
| |
|---|
| Median (15 companies) | 27.4% | 26.7% | 18.9% | 21.3% | 12.3% |
|---|
| CGN Meiya Power Holdings Co Ltd ($1811) | 44.7% | 37.2% | 13.4% | 5.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CLP Holdings Ltd ($2) | 7.0% | 4.8% | 8.5% | 12.8% | 10.1% |
| China Resources Power Holdings Co Ltd ($836) | 7.7% | 9.7% | 8.0% | 11.0% | |
| China Power International Development Ltd ($2380) | 5.7% | 7.5% | 8.0% | 10.1% | |
| Huadian Power International Corp Ltd ($1071) | 5.0% | 8.4% | 10.4% | 10.0% | |
| Amber Energy Ltd ($90) | 5.4% | 4.6% | 3.6% | 8.6% | |
| |
|---|
| Median (15 companies) | 5.4% | 6.1% | 6.1% | 5.1% | 7.8% |
|---|
| CGN Meiya Power Holdings Co Ltd ($1811) | 4.0% | 4.6% | 6.0% | 5.5% | 5.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Datang Corp Renewable Power Co Ltd ($1798) | 9.1x | 8.2x | 8.7x | 8.5x | |
| CGN Power Co Ltd ($1816) | 6.5x | 6.7x | 7.8x | 8.4x | 9.3x |
| China Power New Energy Development Co Ltd ($735) | 4.8x | 5.5x | 6.4x | 7.9x | |
| Huadian Fuxin Energy Corp Ltd ($816) | 6.9x | 6.2x | 6.5x | 7.4x | |
| Huaneng Renewables Corp Ltd ($958) | 7.7x | 6.6x | 7.3x | 7.1x | |
| |
|---|
| Median (13 companies) | 5.3x | 5.5x | 5.5x | 5.1x | 5.6x |
|---|
| CGN Meiya Power Holdings Co Ltd ($1811) | 9.1x | 8.1x | 4.3x | 8.6x | 6.5x |
