CIMC Enric Holdings Ltd reports 279% Net Income decline
21/03/2017 • About CIMC Enric Holdings Ltd (
$3899) • By InTwits
CIMC Enric Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: in FY2016 vs. 10.6% in FY2015 vs. 13.1% in FY2012
- It operates with high leverage: Net Debt/EBITDA is 6.4x while industry average is 4.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CIMC Enric Holdings Ltd ($3899) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,083 | 8,063 | 11,267 | 8,241 | 7,968 | -3.3% |
| Gross Profit | 1,578 | 1,645 | 2,123 | 1,533 | | -100.0% |
| SG&A | 824 | 846 | 1,147 | 1,020 | | -100.0% |
| EBITDA | 1,056 | 1,126 | 1,409 | 874 | | -100.0% |
| Net Income | 760 | 776 | 1,028 | 519 | -929 | -278.9% |
Balance Sheet
|
|---|
| Cash | 945 | 1,204 | 1,682 | 2,035 | | -100.0% |
| Short Term Debt | 461 | 670 | 170 | 815 | | -100.0% |
| Long Term Debt | 137 | 28 | 25 | 933 | | -100.0% |
Cash flow
|
|---|
| Capex | 428 | 262 | 388 | 209 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 18.4% | -0.3% | 39.7% | -26.9% | -3.3% | |
| EBITDA growth | 26.2% | 6.7% | 25.1% | -38.0% | | |
| Gross Margin | 19.5% | 20.4% | 18.8% | 18.6% | | -18.6% |
| EBITDA Margin | 13.1% | 14.0% | 12.5% | 10.6% | 0.0% | -10.6% |
| Net Income Margin | 9.4% | 9.6% | 9.1% | 6.3% | -11.7% | -18.0% |
| SG&A, % of revenue | 10.2% | 10.5% | 10.2% | 12.4% | | -12.4% |
| CAPEX, % of revenue | 5.3% | 3.3% | 3.4% | 2.5% | | -2.5% |
| ROIC | 20.3% | 20.0% | 21.3% | 8.9% | | -8.9% |
| ROE | 19.6% | 19.0% | 20.1% | 8.4% | | -8.4% |
| Net Debt/EBITDA | -0.3x | -0.4x | -1.1x | -0.3x | | 0.3x |
Revenue and profitability
CIMC Enric Holdings Ltd's Revenue decreased on 3.3%.
Net Income marign dropped on 18.0 pp from 6.3% to -11.7% in FY2016.
Appendix 1: Peers in Oil&Gas Services
Below you can find CIMC Enric Holdings Ltd benchmarking vs. other companies in Oil&Gas Services 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 |
|---|
| Hans Energy Co Ltd ($554) | 40.8% | 8.0% | -4.0% | 5.5% | |
| Hilong Holding Ltd ($1623) | 23.5% | 8.3% | 5.0% | -3.6% | |
| Sinopec Engineering Group Co Ltd ($2386) | | 13.1% | 13.3% | -7.8% | -13.5% |
| Petro-King Oilfield Services Ltd ($2178) | 543.3% | 0.3% | -33.5% | -10.5% | |
| Anton Oilfield Services Group/Hong Kong ($3337) | 59.2% | 26.4% | -18.2% | -11.5% | |
| |
|---|
| Median (12 companies) | 27.6% | 11.5% | 0.5% | -28.7% | -15.8% |
|---|
| CIMC Enric Holdings Ltd ($3899) | | -0.3% | 39.7% | -26.9% | -3.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sinopec Kantons Holdings Ltd ($934) | 1.1% | 0.7% | 4.4% | 41.1% | |
| Hilong Holding Ltd ($1623) | 39.5% | 40.3% | 39.6% | 32.6% | |
| Anton Oilfield Services Group/Hong Kong ($3337) | 45.0% | 44.3% | 31.2% | 31.8% | |
| TSC Group Holdings Ltd ($206) | 30.7% | 31.6% | 27.8% | 27.9% | |
| Jutal Offshore Oil Services Ltd ($3303) | 21.7% | 25.1% | 19.6% | 19.6% | |
| |
|---|
| Median (9 companies) | 14.3% | 14.7% | 12.7% | 19.6% | 1.5% |
|---|
| CIMC Enric Holdings Ltd ($3899) | 19.5% | 20.4% | 18.8% | 18.6% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sinopec Kantons Holdings Ltd ($934) | 1.5% | 0.9% | 6.6% | 63.8% | |
| Hans Energy Co Ltd ($554) | 40.4% | 45.0% | 42.8% | 42.7% | |
| China Oilfield Services Ltd ($2883) | 39.8% | 40.0% | 37.0% | 25.2% | -46.7% |
| Hilong Holding Ltd ($1623) | 25.9% | 27.8% | 28.8% | 22.7% | |
| Anton Oilfield Services Group/Hong Kong ($3337) | 24.5% | 28.0% | 12.5% | 17.2% | |
| |
|---|
| Median (12 companies) | 15.4% | 16.9% | 11.0% | 8.6% | -22.9% |
|---|
| CIMC Enric Holdings Ltd ($3899) | 13.1% | 14.0% | 12.5% | 10.6% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Oilfield Services Ltd ($2883) | 16.5% | 30.9% | 29.8% | 25.3% | 14.2% |
| SPT Energy Group Inc ($1251) | 7.4% | 5.6% | 7.9% | 23.5% | |
| Sinopec Kantons Holdings Ltd ($934) | 0.8% | 1.7% | 6.7% | 15.8% | |
| Petro-King Oilfield Services Ltd ($2178) | 13.3% | 13.3% | 75.4% | 12.3% | |
| Hilong Holding Ltd ($1623) | 16.7% | 18.9% | 48.1% | 9.6% | |
| |
|---|
| Median (12 companies) | 10.0% | 6.3% | 7.3% | 8.9% | 7.2% |
|---|
| CIMC Enric Holdings Ltd ($3899) | 5.3% | 3.3% | 3.4% | 2.5% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sinopec Engineering Group Co Ltd ($2386) | 77.5% | 33.3% | 18.6% | 15.3% | 7.8% |
| Hilong Holding Ltd ($1623) | 15.5% | 14.8% | 12.0% | 6.0% | |
| Sinopec Kantons Holdings Ltd ($934) | 3.5% | 0.4% | 6.0% | 5.0% | |
| Yuan Heng Gas Holdings Ltd ($332) | -59.8% | -0.0% | 25.6% | 3.9% | -0.4% |
| China Oilfield Services Ltd ($2883) | 8.9% | 11.2% | 11.6% | 2.1% | -14.3% |
| |
|---|
| Median (12 companies) | 7.8% | 10.1% | 7.9% | 1.8% | -0.4% |
|---|
| CIMC Enric Holdings Ltd ($3899) | 20.3% | 20.0% | 21.3% | 8.9% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hans Energy Co Ltd ($554) | 14.0x | 11.9x | 12.9x | 11.3x | |
| Yuan Heng Gas Holdings Ltd ($332) | | | 2.7x | 8.9x | 18.1x |
| Anton Oilfield Services Group/Hong Kong ($3337) | 0.0x | 0.9x | 7.4x | 6.4x | |
| China Oilfield Services Ltd ($2883) | 2.7x | 1.9x | 1.8x | 3.9x | |
| Hilong Holding Ltd ($1623) | 0.9x | 1.1x | 2.6x | 3.3x | |
| |
|---|
| Median (10 companies) | 0.1x | -0.0x | 1.8x | 2.8x | 18.1x |
|---|
| CIMC Enric Holdings Ltd ($3899) | -0.3x | -0.4x | -1.1x | -0.3x | |
