CITIC Telecom International Holdings Ltd revenue decreased on 7.8% in 2016 while EBITDA Margin increased on 2.2 pp from 24.1% to 26.3%
20/03/2017 • About CITIC Telecom International Holdings Ltd (
$1883) • By InTwits
CITIC Telecom International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has business model with low profitability: ROIC is at 8.7%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CITIC Telecom International Holdings Ltd ($1883) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,610 | 6,019 | 8,184 | 8,350 | 7,699 | -7.8% |
| Gross Profit | 1,082 | 2,083 | 3,304 | 3,408 | 3,470 | 1.8% |
| EBITDA | 504 | 1,953 | 1,918 | 2,010 | 2,025 | 0.7% |
| Net Income | 461 | 1,068 | 724 | 802 | 850 | 6.0% |
Balance Sheet
|
|---|
| Cash | 351 | 855 | 1,393 | 1,074 | 1,459 | 35.9% |
| Short Term Debt | 262 | 100 | 100 | 100 | 47 | -53.3% |
| Long Term Debt | 0 | 7,617 | 7,868 | 7,372 | 7,861 | 6.6% |
Cash flow
|
|---|
| Capex | 160 | 471 | 719 | 734 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 12.9% | 66.7% | 36.0% | 2.0% | -7.8% | |
| EBITDA growth | 0.5% | 287.3% | -1.8% | 4.8% | 0.7% | |
| Gross Margin | 30.0% | 34.6% | 40.4% | 40.8% | 45.1% | 4.3% |
| EBITDA Margin | 14.0% | 32.5% | 23.4% | 24.1% | 26.3% | 2.2% |
| Net Income Margin | 12.8% | 17.7% | 8.8% | 9.6% | 11.0% | 1.4% |
| CAPEX, % of revenue | 4.4% | 7.8% | 8.8% | 8.8% | | -8.8% |
| ROIC | 9.7% | 16.8% | 8.3% | 8.8% | 8.7% | -0.1% |
| ROE | 14.0% | 22.2% | 11.4% | 11.8% | 11.4% | -0.4% |
| Net Debt/EBITDA | -0.2x | 3.5x | 3.4x | 3.2x | 3.2x | 0.0x |
Revenue and profitability
CITIC Telecom International Holdings Ltd's Revenue decreased on 7.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 24.1% to 26.3% in FY2016.
Gross Margin increased on 4.3 pp from 40.8% to 45.1% in FY2016.
Net Income marign increased slightly on 1.4 pp from 9.6% to 11.0% in FY2016.
Return on investment
The company operates at low ROIC (8.75%) and ROE (11.41%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 3.2x Net Debt / EBITDA and 3.9x Debt / EBITDA. Net Debt / EBITDA showed almost no change in FY2016. Debt increased on 5.8% while cash surged on 35.9%.
Management team
Lin Zhenhui "Tiger" is a the company's CEO. Lin Zhenhui "Tiger" has spent 3 years at the company. Chan Tin Wai is a CITIC Telecom International Holdings Ltd's CFO. Chan Tin Wai has spent 12 years at the company.
Appendix 1: Peers in Telecommunications
Below you can find CITIC Telecom International Holdings Ltd benchmarking vs. other companies in Telecommunications 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 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 107.4% | -82.2% | 8,010.0% | |
| Hanny Holdings Ltd ($275) | | 131.2% | -85.2% | 349.3% | -78.5% |
| CCT Fortis Holdings Ltd ($138) | -24.1% | -55.3% | -71.3% | 207.1% | |
| Xi'an Haitian Antenna Technologies Co Ltd ($8227) | -8.5% | -45.9% | -56.2% | 111.6% | |
| China Trends Holdings Ltd ($8171) | | -70.2% | -16.7% | 106.0% | -22.7% |
| |
|---|
| Median (52 companies) | -0.3% | 8.1% | 9.6% | 8.5% | -2.5% |
|---|
| CITIC Telecom International Holdings Ltd ($1883) | | 66.7% | 36.0% | 2.0% | -7.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HKBN Ltd ($1310) | | 84.3% | 86.5% | 86.9% | 83.8% |
| Netel Technology Holdings Ltd ($8256) | 27.9% | 42.1% | 54.9% | 72.3% | 73.1% |
| Great World Co Holdings Ltd ($8003) | -11.0% | 43.0% | 45.5% | 67.9% | 42.0% |
| APT Satellite Holdings Ltd ($1045) | 58.7% | 64.1% | 62.5% | 61.0% | |
| Cisco Systems Inc ($4333) | 61.2% | 60.6% | 58.9% | 60.4% | 62.9% |
| |
|---|
| Median (49 companies) | 23.6% | 24.3% | 25.0% | 22.7% | 35.6% |
|---|
| CITIC Telecom International Holdings Ltd ($1883) | 30.0% | 34.6% | 40.4% | 40.8% | 45.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 86.5% | 85.8% | 81.6% | 82.4% | 81.5% |
| APT Satellite Holdings Ltd ($1045) | 81.0% | 78.9% | 77.5% | 78.8% | |
| Synertone Communication Corp ($1613) | 44.9% | 48.5% | 49.4% | 51.5% | -77.6% |
| HKBN Ltd ($1310) | | 39.2% | 40.1% | 39.0% | 35.2% |
| HKT Trust & HKT Ltd ($6823) | 36.3% | 35.0% | 35.9% | 34.9% | 37.2% |
| |
|---|
| Median (52 companies) | 6.7% | 5.5% | 5.4% | 8.3% | 8.9% |
|---|
| CITIC Telecom International Holdings Ltd ($1883) | 14.0% | 32.5% | 23.4% | 24.1% | 26.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| APT Satellite Holdings Ltd ($1045) | 74.3% | 2.5% | 27.2% | 115.8% | |
| Hong Kong Television Network Ltd ($1137) | 12,435.9% | 504.9% | 1,283.5% | 79.4% | |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 93.8% | 71.7% | 75.0% | 52.8% | |
| China Fiber Optic Network System Group Ltd ($3777) | 4.8% | 16.3% | 13.1% | 31.9% | |
| Directel Holdings Ltd ($8337) | 2.1% | 0.1% | 0.6% | 30.2% | |
| |
|---|
| Median (52 companies) | 2.1% | 2.9% | 2.9% | 2.6% | 8.4% |
|---|
| CITIC Telecom International Holdings Ltd ($1883) | 4.4% | 7.8% | 8.8% | 8.8% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Telecom Service One Holdings Ltd ($8145) | 95.0% | 5.4% | 26.7% | 39.8% | 37.4% |
| VTech Holdings Ltd ($303) | 37.6% | 39.5% | 40.0% | 39.8% | 37.9% |
| Coolpad Group Ltd ($2369) | 8.1% | 6.0% | 9.6% | 29.1% | |
| Telecom Digital Holdings Ltd ($8336) | | 13.3% | 20.2% | 18.9% | 16.7% |
| SmarTone Telecommunications Holdings Ltd ($315) | 37.2% | 23.1% | 12.8% | 17.7% | 14.5% |
| |
|---|
| Median (53 companies) | 7.1% | 5.8% | 5.8% | 5.4% | 6.0% |
|---|
| CITIC Telecom International Holdings Ltd ($1883) | 9.7% | 16.8% | 8.3% | 8.8% | 8.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CCT Land Holdings Ltd ($261) | 10.1x | 23.8x | 48.4x | 44.8x | |
| China Energine International Holdings Ltd ($1185) | | | 13.3x | 31.7x | |
| China Ground Source Energy Industry Group Ltd ($8128) | -1.6x | 3.5x | 14.3x | 11.3x | |
| China Electronics Corp Holdings Co Ltd ($85) | -2.0x | -1.3x | 12.5x | 7.6x | |
| China All Access Holdings Ltd ($633) | 0.9x | 1.8x | 5.2x | 5.6x | |
| |
|---|
| Median (38 companies) | -0.4x | 0.6x | 0.6x | 0.5x | 1.7x |
|---|
| CITIC Telecom International Holdings Ltd ($1883) | -0.2x | 3.5x | 3.4x | 3.2x | 3.2x |
