Chongqing Rural Commercial Bank Co Ltd Net Income increased on 10.0% in 2016
17/03/2017 • About Chongqing Rural Commercial Bank Co Ltd (
$3618) • By InTwits
Chongqing Rural Commercial Bank Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chongqing Rural Commercial Bank Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: 709 in FY2016, 1,622 in FY2015, 1,631 in FY2014, 1,181 in FY2013, 913 in FY2012
- The company has potentially unprofitable business model: ROIC is at 4.1%
- It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is -5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chongqing Rural Commercial Bank Co Ltd ($3618) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 22,706 | 27,634 | 34,166 | 36,755 | 35,036 | -4.7% |
| Net Income | 5,362 | 5,991 | 6,828 | 7,223 | 7,945 | 10.0% |
Balance Sheet
|
|---|
| Cash | 58,964 | 68,782 | 79,334 | 78,500 | 85,836 | 9.3% |
| Short Term Debt | 49,094 | 66,345 | 95,018 | 99,858 | 125,038 | 25.2% |
| Long Term Debt | 2,410 | 2,485 | 11,776 | 40,566 | 83,442 | 105.7% |
Cash flow
|
|---|
| Capex | 913 | 1,181 | 1,631 | 1,622 | 709 | -56.3% |
Ratios
|
|---|
| Revenue growth | 26.9% | 21.7% | 23.6% | 7.6% | -4.7% | |
| Net Income Margin | 23.6% | 21.7% | 20.0% | 19.7% | 22.7% | 3.0% |
| CAPEX, % of revenue | 4.0% | 4.3% | 4.8% | 4.4% | 2.0% | -2.4% |
| ROIC | 6.3% | 5.7% | 5.2% | 4.3% | 4.1% | -0.2% |
| ROE | 17.9% | 17.6% | 17.6% | 16.4% | 16.0% | -0.4% |
Revenue and profitability
Chongqing Rural Commercial Bank Co Ltd's Revenue decreased on 4.7%.
Net Income marign increased on 3.0 pp from 19.7% to 22.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Chongqing Rural Commercial Bank Co Ltd's CAPEX/Revenue was 2.0% in FY2016. The company showed decline in CAPEX/Revenue of 2.2 pp from 4.3% in FY2013 to 2.0% in FY2016. Average CAPEX/Revenue for the last three years was 3.7%.
Return on investment
The company operates at good ROE (15.99%) while ROIC is low (4.07%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt jumped on 48.5% while cash increased on 9.3%.
Appendix 1: Peers in Banks
Below you can find Chongqing Rural Commercial Bank Co Ltd benchmarking vs. other companies in Banks 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 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | -20.6% | 43.4% | 6.8% | 116.4% | |
| Huishang Bank Corp Ltd ($3698) | 33.9% | 22.8% | 24.3% | 24.6% | |
| Shengjing Bank Co Ltd ($2066) | | 36.3% | 40.1% | 24.3% | 17.5% |
| Bank of Chongqing Co Ltd ($1963) | 38.4% | 26.6% | 28.4% | 18.5% | |
| BOC Hong Kong Holdings Ltd ($2388) | 15.1% | 11.4% | -3.0% | 11.6% | |
| |
|---|
| Median (13 companies) | 17.6% | 11.7% | 19.9% | 2.1% | -4.0% |
|---|
| Chongqing Rural Commercial Bank Co Ltd ($3618) | | 21.7% | 23.6% | 7.6% | -4.7% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | 4.1% | 29.9% | 27.0% | 33.5% | |
| |
|---|
| Median (1 company) | 4.1% | 29.9% | 27.0% | 33.5% | |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dah Sing Banking Group Ltd ($2356) | 3.9% | 4.1% | 2.2% | 7.5% | |
| Dah Sing Financial Holdings Ltd ($440) | 3.0% | 3.4% | 1.7% | 5.9% | |
| Harbin Bank Co Ltd ($6138) | 19.8% | 9.9% | 6.5% | 5.8% | |
| Shengjing Bank Co Ltd ($2066) | 1.6% | 2.2% | 5.0% | 3.0% | 2.3% |
| Hang Seng Bank Ltd ($11) | 0.8% | 7.7% | 1.3% | 2.9% | 1.8% |
| |
|---|
| Median (13 companies) | 2.4% | 2.6% | 1.7% | 2.3% | 1.8% |
|---|
| Chongqing Rural Commercial Bank Co Ltd ($3618) | 4.0% | 4.3% | 4.8% | 4.4% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hang Seng Bank Ltd ($11) | 8.6% | 9.5% | 9.0% | 8.3% | 8.1% |
| BOC Hong Kong Holdings Ltd ($2388) | 5.9% | 6.4% | 5.8% | 6.2% | |
| Dah Sing Financial Holdings Ltd ($440) | 3.8% | 5.1% | 5.2% | 5.9% | |
| Chong Hing Bank Ltd ($1111) | 5.5% | 5.2% | 16.4% | 5.7% | 5.6% |
| Dah Sing Banking Group Ltd ($2356) | 4.2% | 5.4% | 5.4% | 5.5% | |
| |
|---|
| Median (13 companies) | 6.0% | 6.3% | 5.4% | 4.8% | 2.2% |
|---|
| Chongqing Rural Commercial Bank Co Ltd ($3618) | 6.3% | 5.7% | 5.2% | 4.3% | 4.1% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | -66.3x | -7.1x | -10.6x | -5.7x | |
| |
|---|
| Median (1 company) | -66.3x | -7.1x | -10.6x | -5.7x | |
|---|
