Datang Intl Power Generation Debt dropped on 20.0% in 2016 and Net Debt / EBITDA dropped on 1.3x from 7.5x to 6.1x
15/03/2017 • About Datang Intl Power Generation (
$991) • By InTwits
Datang Intl Power Generation reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Datang Intl Power Generation is a company in decline: 2016 revenue growth was -4.8%, 5 years revenue CAGR was -4.2%
- Datang Intl Power Generation has high CAPEX intensity: 5 year average CAPEX/Revenue was 32.8%. At the same time it's in pair with industry average of 28.1%.
- CAPEX is quite volatile: 917 in FY2016, 2,003 in FY2015, 1,189 in FY2014, 917 in FY2013, 867 in FY2012
- The company has potentially unprofitable business model: ROIC is at 4.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 6.1x while industry average is 6.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Datang Intl Power Generation ($991) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 77,598 | 75,227 | 70,194 | 61,196 | 58,261 | -4.8% |
| Gross Profit | | | | 18,789 | 14,645 | -22.1% |
| SG&A | | | | 3,827 | 3,833 | 0.2% |
| EBITDA | 22,296 | 25,262 | 24,396 | 23,234 | 22,664 | -2.5% |
| Net Income | 4,019 | 3,403 | 1,767 | 2,809 | -2,623 | -193.4% |
Balance Sheet
|
|---|
| Cash | 4,613 | 7,881 | 5,288 | 5,524 | 4,501 | -18.5% |
| Short Term Debt | 40,165 | 41,186 | 45,841 | 33,550 | 37,636 | 12.2% |
| Long Term Debt | 151,038 | 161,470 | 162,496 | 145,471 | 105,593 | -27.4% |
Cash flow
|
|---|
| Capex | 26,616 | 32,515 | 20,242 | 18,187 | 16,392 | -9.9% |
Ratios
|
|---|
| Revenue growth | 7.2% | -3.1% | -6.7% | -12.8% | -4.8% | |
| EBITDA growth | 23.1% | 13.3% | -3.4% | -4.8% | -2.5% | |
| Gross Margin | | | | 30.7% | 25.1% | -5.6% |
| EBITDA Margin | 28.7% | 33.6% | 34.8% | 38.0% | 38.9% | 0.9% |
| Net Income Margin | 5.2% | 4.5% | 2.5% | 4.6% | -4.5% | -9.1% |
| SG&A, % of revenue | | | | 6.3% | 6.6% | 0.3% |
| CAPEX, % of revenue | 34.3% | 43.2% | 28.8% | 29.7% | 28.1% | -1.6% |
| ROIC | 5.7% | 5.9% | 4.8% | 4.6% | 4.8% | 0.2% |
| ROE | 10.0% | 8.0% | 4.0% | 6.3% | -6.2% | -12.5% |
| Net Debt/EBITDA | 8.4x | 7.7x | 8.3x | 7.5x | 6.1x | -1.3x |
Revenue and profitability
The company's Revenue decreased on 4.8% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.93 pp from 38.0% to 38.9% in 2016.
Gross Margin decreased on 5.6 pp from 30.7% to 25.1% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign decreased on 9.1 pp from 4.6% to -4.5% in 2016.
Capital expenditures (CAPEX) and working capital investments
Datang Intl Power Generation's CAPEX/Revenue was 28.1% in 2016. CAPEX/Revenue dropped on 15.1 pp from 43.2% in 2013 to 28.1% in 2016. Average CAPEX/Revenue for the last three years was 28.9%.Battling declining revenue the company invested a large share of EBITDA (72.3%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (4.84%) and negative ROE (-6.19%). ROIC showed almost no change in 2016. ROE dropped on 12.5 pp from 6.3% to -6.2% in 2016.
Leverage (Debt)
Debt level is 6.1x Net Debt / EBITDA and 6.3x Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from 7.5x to 6.1x in 2016. Debt dropped on 20.0% in 2016 while cash dropped on 18.5% in 2016.
Appendix 1: Peers in Electricity
Below you can find Datang Intl Power Generation benchmarking vs. other companies in Electricity 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.
