China Development Bank International Investment Ltd reports 85.6 pp EBITDA Margin decline from 85.6% to in 2016 in 2016
16/03/2017 • About China Development Bank International Investment Ltd (
$1062) • By InTwits
China Development Bank International Investment 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 6.4%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Development Bank International Investment Ltd ($1062) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 12.9 | 52.2 | 65.5 | 133.2 | 96.8 | -27.3% |
| EBITDA | -9.6 | 13.7 | 45.3 | 114.0 | | -100.0% |
| Net Income | -8.7 | 18.2 | 48.6 | 113.3 | 89.8 | -20.7% |
Balance Sheet
|
|---|
| Cash | 716.9 | 442.7 | 414.9 | 748.6 | 108.8 | -85.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 187.2 | 349.8 | 0.0 | 0.0 | | |
Ratios
|
|---|
| Revenue growth | 290.4% | 303.9% | 25.4% | 103.3% | -27.3% | |
| EBITDA growth | -46.6% | -242.0% | 231.9% | 151.5% | | |
| EBITDA Margin | -74.4% | 26.1% | 69.2% | 85.6% | 0.0% | -85.6% |
| Net Income Margin | -67.0% | 34.8% | 74.1% | 85.0% | 92.7% | 7.7% |
| CAPEX, % of revenue | 1,447.3% | 669.6% | 0.0% | 0.0% | | 0.0% |
| ROIC | -1.4% | 1.3% | 4.2% | 9.7% | 6.4% | -3.3% |
| ROE | -1.3% | 1.7% | 4.5% | 9.7% | 7.1% | -2.6% |
| Net Debt/EBITDA | | -32.4x | -9.2x | -6.6x | | 6.6x |
Revenue and profitability
The company's Revenue dropped on 27.3%.
Net Income marign increased on 7.7 pp from 85.0% to 92.7% in FY2016.
Return on investment
The company operates at low ROIC (6.43%) and ROE (7.10%). ROIC decreased on 3.3 pp from 9.7% to 6.4% in FY2016. ROE decreased on 2.6 pp from 9.7% to 7.1% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 85.5%.
Appendix 1: Peers in Investment Companies
Below you can find China Development Bank International Investment Ltd benchmarking vs. other companies in Investment Companies 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 |
|---|
| CK Hutchison Holdings Ltd ($1) | -41.8% | -11.4% | -90.8% | 10,576.1% | |
| UBA Investments Ltd ($768) | | | -32.2% | 4,559.4% | |
| Capital VC Ltd ($2324) | | | 489.2% | 861.9% | |
| Prosperity Investment Holdings Ltd ($310) | | 20.9% | -48.8% | 559.5% | |
| China Innovation Investment Ltd ($1217) | | | | 517.9% | |
| |
|---|
| Median (22 companies) | -16.7% | 4.1% | 9.5% | 74.8% | 59.6% |
|---|
| China Development Bank International Investment Ltd ($1062) | | 303.9% | 25.4% | 103.3% | -27.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Properties Investment Holdings Ltd ($736) | 47.5% | 40.8% | 46.2% | 87.2% | 44.8% |
| City e-Solutions Ltd ($557) | 81.1% | 81.5% | 81.6% | 79.1% | |
| Eternity Investment Ltd ($764) | | | 86.6% | 48.2% | |
| AVIC Joy Holdings HK Ltd ($260) | 19.5% | 20.9% | 14.0% | 16.3% | |
| Infinity Financial Group Holdings Ltd ($1152) | 19.0% | 17.5% | 22.4% | 15.8% | |
| |
|---|
| Median (7 companies) | 30.2% | 19.2% | 22.4% | 16.3% | 44.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital VC Ltd ($2324) | | 36.7% | 93.1% | 99.3% | |
| Harmony Asset Ltd ($428) | 39.8% | | | 95.7% | |
| Unity Investments Holdings Ltd ($913) | | 89.0% | 90.8% | 95.7% | |
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | | 101.3% | 85.9% | 85.8% | 90.3% |
| China Merchants China Direct Investments Ltd ($133) | 68.6% | 82.2% | 89.3% | 80.2% | |
| |
|---|
| Median (25 companies) | 8.6% | -7.8% | 1.9% | 2.9% | 4.3% |
|---|
| China Development Bank International Investment Ltd ($1062) | -74.4% | 26.1% | 69.2% | 85.6% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Properties Investment Holdings Ltd ($736) | 55.3% | 3.0% | 20.8% | 58.1% | 23.8% |
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | | 13.7% | 17.1% | 39.8% | 9.3% |
| Heritage International Holdings Ltd ($412) | | 10.9% | 7.4% | 37.9% | 3.5% |
| Opes Asia Development Ltd ($810) | | 11.3% | 76.1% | 25.0% | |
| CK Hutchison Holdings Ltd ($1) | 0.7% | 1.0% | 503.6% | 13.5% | |
| |
|---|
| Median (25 companies) | 0.7% | 0.6% | 1.0% | 1.8% | 4.5% |
|---|
| China Development Bank International Investment Ltd ($1062) | 1,447.3% | 669.6% | 0.0% | 0.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital VC Ltd ($2324) | | | 21.8% | 100.7% | -17.2% |
| Harmony Asset Ltd ($428) | 3.2% | -13.7% | -15.4% | 88.0% | |
| Build King Holdings Ltd ($240) | -2.5% | 3.5% | 13.4% | 18.3% | 23.2% |
| Unity Investments Holdings Ltd ($913) | -36.2% | 26.4% | 47.4% | 17.5% | |
| UBA Investments Ltd ($768) | -22.2% | -1.9% | -8.6% | 13.2% | -6.1% |
| |
|---|
| Median (39 companies) | -3.1% | -2.4% | -4.8% | -2.2% | -6.1% |
|---|
| China Development Bank International Investment Ltd ($1062) | -1.4% | 1.3% | 4.2% | 9.7% | 6.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Langham Hospitality Investments and Langham Hospitality Investments Ltd ($1270) | | 12.5x | 9.5x | 11.2x | 10.2x |
| CK Hutchison Holdings Ltd ($1) | 1.9x | 0.6x | 7.2x | 5.5x | |
| COL Capital Ltd ($383) | | | 2.4x | 3.8x | |
| China Financial International Investments Ltd ($721) | | | | 2.4x | |
| Harmony Asset Ltd ($428) | -3.2x | | | -0.1x | |
| |
|---|
| Median (15 companies) | -1.2x | 0.3x | -0.2x | -0.8x | -2.2x |
|---|
| China Development Bank International Investment Ltd ($1062) | | -32.4x | -9.2x | -6.6x | |
