China State Construction International Holdings Ltd EBITDA surged on 31.1% in 2016 and Revenue surged on 21.9%
21/03/2017 • About China State Construction International Holdings Ltd (
$3311) • By InTwits
China State Construction International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China State Construction International Holdings Ltd is a fast growth stock: FY2016 revenue growth was 21.9%, 5 year revenue CAGR was 23.1% at FY2016 ROIC 13.2%
- The company has highly profitable business model: ROIC is at 13.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China State Construction International Holdings Ltd ($3311) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 21,911 | 27,286 | 34,440 | 37,913 | 46,208 | 21.9% |
| Gross Profit | 2,718 | 3,746 | 4,743 | 5,030 | 5,983 | 18.9% |
| SG&A | 704 | 960 | | | | |
| EBITDA | 2,374 | 3,229 | 4,337 | 5,010 | 6,567 | 31.1% |
| Net Income | 2,131 | 2,750 | 3,457 | 4,153 | 5,130 | 23.5% |
Balance Sheet
|
|---|
| Cash | 6,876 | 8,126 | 7,452 | 8,015 | 11,485 | 43.3% |
| Short Term Debt | 50 | 263 | 588 | 809 | 1,456 | 80.0% |
| Long Term Debt | 10,001 | 12,465 | 14,235 | 16,968 | 19,740 | 16.3% |
Cash flow
|
|---|
| Capex | 403 | 381 | 514 | 447 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 33.8% | 24.5% | 26.2% | 10.1% | 21.9% | |
| EBITDA growth | 57.9% | 36.0% | 34.3% | 15.5% | 31.1% | |
| Gross Margin | 12.4% | 13.7% | 13.8% | 13.3% | 12.9% | -0.3% |
| EBITDA Margin | 10.8% | 11.8% | 12.6% | 13.2% | 14.2% | 1.0% |
| Net Income Margin | 9.7% | 10.1% | 10.0% | 11.0% | 11.1% | 0.1% |
| SG&A, % of revenue | 3.2% | 3.5% | | | | 0.0% |
| CAPEX, % of revenue | 1.8% | 1.4% | 1.5% | 1.2% | | -1.2% |
| ROIC | 10.2% | 10.7% | 12.2% | 12.1% | 13.2% | 1.1% |
| ROE | 18.5% | 18.7% | 19.3% | 20.3% | 22.0% | 1.7% |
| Net Debt/EBITDA | 1.3x | 1.4x | 1.7x | 1.9x | 1.5x | -0.5x |
Revenue and profitability
The company's Revenue surged on 21.9%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.00 pp from 13.2% to 14.2% in FY2016.
Gross Margin showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at high and attractive ROE (22.02%) while ROIC is a bit lower (13.25%). ROIC increased slightly on 1.1 pp from 12.1% to 13.2% in FY2016. ROE increased slightly on 1.7 pp from 20.3% to 22.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.5x and Debt / EBITDA is 3.2x. Net Debt / EBITDA dropped on 0.5x from 1.9x to 1.5x in FY2016. Debt jumped on 19.2% while cash jumped on 43.3%.
Management team
China State Construction International Holdings Ltd's CEO is Zhou Yong. Zhou Yong has 13 years tenure at the company.
Appendix 1: Peers in Engineering&Construction
Below you can find China State Construction International Holdings Ltd benchmarking vs. other companies in Engineering&Construction 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 |
|---|
| CNQC International Holdings Ltd ($1240) | 21.6% | 91.0% | 103.7% | 807.4% | |
| China National Culture Group Ltd ($745) | | -76.8% | -55.8% | 592.3% | 86.7% |
| Vision Fame International Holding Ltd ($1315) | | 45.9% | -10.5% | 105.6% | 40.9% |
| Sino Credit Holdings Ltd ($628) | | | | 97.4% | -40.3% |
| Grand Ming Group Holdings Ltd ($1271) | | -26.9% | -37.4% | 74.8% | 14.3% |
| |
|---|
| Median (44 companies) | 9.2% | 24.2% | 20.8% | 10.8% | 6.1% |
|---|
| China State Construction International Holdings Ltd ($3311) | | 24.5% | 26.2% | 10.1% | 21.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HNA Infrastructure Company Ltd ($357) | 66.4% | 62.1% | 62.4% | 61.1% | |
| Huayu Expressway Group Ltd ($1823) | 43.6% | 65.6% | 64.0% | 58.9% | |
| Broad Greenstate International Co Ltd ($1253) | 20.1% | 28.7% | 35.8% | 36.7% | 37.4% |
| Sam Woo Construction Group Ltd ($3822) | 33.2% | 27.3% | 33.6% | 36.0% | 19.8% |
| China National Culture Group Ltd ($745) | 0.9% | 12.1% | 10.3% | 32.3% | 19.2% |
| |
|---|
| Median (39 companies) | 17.5% | 16.9% | 16.1% | 16.3% | 12.2% |
|---|
| China State Construction International Holdings Ltd ($3311) | 12.4% | 13.7% | 13.8% | 13.3% | 12.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huayu Expressway Group Ltd ($1823) | 46.2% | 73.8% | 77.1% | 76.2% | |
| HNA Infrastructure Company Ltd ($357) | 62.8% | 63.7% | 62.8% | 61.7% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 31.2% | 20.6% | 36.2% | 60.9% | 38.4% |
| Beijing Capital International Airport Co Ltd ($694) | 53.4% | 52.9% | 50.3% | 51.6% | 50.9% |
| China National Culture Group Ltd ($745) | -30.4% | -72.7% | -279.2% | 45.3% | -14.6% |
| |
|---|
| Median (44 companies) | 9.9% | 10.4% | 9.2% | 8.3% | 5.1% |
|---|
| China State Construction International Holdings Ltd ($3311) | 10.8% | 11.8% | 12.6% | 13.2% | 14.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HNA Infrastructure Company Ltd ($357) | 36.8% | 5.7% | 85.4% | 155.4% | |
| Grand Ming Group Holdings Ltd ($1271) | 0.0% | 16.1% | 8.7% | 33.8% | 14.0% |
| Beijing Capital International Airport Co Ltd ($694) | 3.5% | 6.6% | 7.2% | 28.2% | |
| NEW Concepts Holdings Ltd ($2221) | 1.7% | 1.2% | 3.1% | 20.5% | 0.3% |
| Louis XIII Holdings Ltd ($577) | 1.2% | 29.5% | 9.3% | 16.1% | 47.3% |
| |
|---|
| Median (44 companies) | 2.3% | 3.3% | 1.8% | 2.1% | 2.4% |
|---|
| China State Construction International Holdings Ltd ($3311) | 1.8% | 1.4% | 1.5% | 1.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| In Construction Holdings Ltd ($1500) | | 52.8% | 37.0% | 49.4% | 40.4% |
| Chun Sing Engineering Holdings Ltd ($2277) | | 98.3% | 54.9% | 43.7% | 21.6% |
| NEW Concepts Holdings Ltd ($2221) | | 51.0% | 78.8% | 39.0% | 23.3% |
| Sam Woo Construction Group Ltd ($3822) | | 28.2% | 28.7% | 33.5% | 18.3% |
| Ngai Shun Holdings Ltd ($1246) | 68.8% | 77.2% | 45.2% | 31.0% | -2.9% |
| |
|---|
| Median (46 companies) | 5.8% | 5.9% | 4.4% | 5.5% | 2.0% |
|---|
| China State Construction International Holdings Ltd ($3311) | 10.2% | 10.7% | 12.2% | 12.1% | 13.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Deson Development International Holdings ($262) | 3.8x | 4.9x | 13.7x | 47.0x | |
| Hsin Chong Construction Group Ltd ($404) | 1.8x | 8.0x | 10.2x | 41.7x | |
| China Resources and Transportation Group Ltd ($269) | | | 66.7x | 29.7x | |
| CNC Holdings Ltd ($8356) | | 22.0x | 21.9x | 24.3x | 2.7x |
| Louis XIII Holdings Ltd ($577) | 0.8x | -12.5x | -23.2x | 19.1x | |
| |
|---|
| Median (38 companies) | 0.7x | 0.2x | 0.2x | 0.7x | 0.6x |
|---|
| China State Construction International Holdings Ltd ($3311) | 1.3x | 1.4x | 1.7x | 1.9x | 1.5x |
