Shengjing Bank Co Ltd revenue growth decelerated from 24.3% in FY2015 to 17.5% in FY2016
17/03/2017 • About Shengjing Bank Co Ltd (
$2066) • By InTwits
Shengjing Bank Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shengjing Bank Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's in pair with industry average of 3.0%.
- CAPEX is quite volatile: 894 in FY2016, 989 in FY2015, 1,338 in FY2014, 424 in FY2013, 220 in FY2012
- The company has potentially unprofitable business model: ROIC is at 2.3%
- It operates with high leverage: Net Debt/EBITDA is 3.2x 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.
Shengjing Bank Co Ltd ($2066) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 14,035 | 19,136 | 26,808 | 33,318 | 39,160 | 17.5% |
| Net Income | 3,497 | 4,866 | 5,405 | 6,211 | 6,865 | 10.5% |
Balance Sheet
|
|---|
| Cash | 53,692 | 65,238 | 72,079 | 63,788 | 71,376 | 11.9% |
| Short Term Debt | 44,174 | 42,517 | 95,741 | 111,988 | 250,409 | 123.6% |
| Long Term Debt | 2,100 | 900 | 3,100 | 85,285 | 138,000 | 61.8% |
Cash flow
|
|---|
| Capex | 220 | 424 | 1,338 | 989 | 894 | -9.6% |
Ratios
|
|---|
| Revenue growth | 36.5% | 36.3% | 40.1% | 24.3% | 17.5% | |
| Net Income Margin | 24.9% | 25.4% | 20.2% | 18.6% | 17.5% | -1.1% |
| CAPEX, % of revenue | 1.6% | 2.2% | 5.0% | 3.0% | 2.3% | -0.7% |
| ROIC | 6.0% | 6.6% | 5.3% | 3.5% | 2.3% | -1.2% |
| ROE | 27.3% | 27.5% | 19.0% | 16.1% | 15.8% | -0.4% |
Revenue and profitability
The company's Revenue surged on 17.5%.
Net Income marign decreased slightly on 1.1 pp from 18.6% to 17.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.3% in FY2016. Shengjing Bank Co Ltd's CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at good ROE (15.77%) while ROIC is low (2.26%). ROIC decreased slightly on 1.2 pp from 3.5% to 2.3% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt jumped on 96.9% while cash jumped on 11.9%.
Appendix 1: Peers in Banks
Below we provide Shengjing Bank Co Ltd benchmarking against other companies in Banks 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 |
|---|
| 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% | |
| 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% | |
| Harbin Bank Co Ltd ($6138) | 58.3% | 12.1% | 29.2% | 10.5% | |
| |
|---|
| Median (13 companies) | 17.6% | 11.7% | 19.6% | 2.1% | -5.3% |
|---|
| Shengjing Bank Co Ltd ($2066) | | 36.3% | 40.1% | 24.3% | 17.5% |
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% | |
| Chongqing Rural Commercial Bank Co Ltd ($3618) | 4.0% | 4.3% | 4.8% | 4.4% | 2.0% |
| Hang Seng Bank Ltd ($11) | 0.8% | 7.7% | 1.3% | 2.9% | 1.8% |
| |
|---|
| Median (13 companies) | 2.8% | 3.2% | 1.7% | 2.3% | 1.8% |
|---|
| Shengjing Bank Co Ltd ($2066) | 1.6% | 2.2% | 5.0% | 3.0% | 2.3% |
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% | 5.9% | 5.4% | 4.8% | 3.1% |
|---|
| Shengjing Bank Co Ltd ($2066) | 6.0% | 6.6% | 5.3% | 3.5% | 2.3% |
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 | |
|---|
