ENN Energy Holdings Ltd revenue increased on 6.4% in 2016 and EBITDA Margin decreased slightly on 0.63 pp from 16.5% to 15.8%
21/03/2017 • About ENN Energy Holdings Ltd (
$2688) • By InTwits
ENN Energy Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- ENN Energy Holdings Ltd is a growth stock: FY2016 revenue growth was 6.4%, 5 year revenue CAGR was 17.7% at FY2016 ROIC 13.4%
- The company has highly profitable business model: ROIC is at 13.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ENN Energy Holdings Ltd ($2688) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 18,027 | 22,966 | 29,087 | 32,063 | 34,103 | 6.4% |
| Gross Profit | 4,844 | 5,464 | 6,069 | 6,866 | 7,350 | 7.0% |
| SG&A | 1,838 | 1,934 | 2,253 | 2,500 | 2,757 | 10.3% |
| EBITDA | 3,677 | 3,477 | 5,288 | 5,285 | 5,405 | 2.3% |
| Net Income | 1,482 | 1,252 | 2,968 | 2,036 | 2,151 | 5.6% |
Balance Sheet
|
|---|
| Cash | 6,156 | 6,822 | 10,503 | 7,355 | 7,163 | -2.6% |
| Short Term Debt | 3,945 | 921 | 1,540 | 6,654 | 4,644 | -30.2% |
| Long Term Debt | 7,297 | 11,522 | 13,003 | 9,026 | 12,147 | 34.6% |
Cash flow
|
|---|
| Capex | 2,879 | 3,110 | 2,791 | 2,603 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 19.6% | 27.4% | 26.7% | 10.2% | 6.4% | |
| EBITDA growth | 32.8% | -5.4% | 52.1% | -0.1% | 2.3% | |
| Gross Margin | 26.9% | 23.8% | 20.9% | 21.4% | 21.6% | 0.1% |
| EBITDA Margin | 20.4% | 15.1% | 18.2% | 16.5% | 15.8% | -0.6% |
| Net Income Margin | 8.2% | 5.5% | 10.2% | 6.3% | 6.3% | -0.0% |
| SG&A, % of revenue | 10.2% | 8.4% | 7.7% | 7.8% | 8.1% | 0.3% |
| CAPEX, % of revenue | 16.0% | 13.5% | 9.6% | 8.1% | | -8.1% |
| ROIC | 14.3% | 11.7% | 16.4% | 13.6% | 13.4% | -0.1% |
| ROE | 18.9% | 13.8% | 27.4% | 15.9% | 15.1% | -0.8% |
| Net Debt/EBITDA | 1.4x | 1.6x | 0.8x | 1.6x | 1.8x | 0.2x |
Revenue and profitability
ENN Energy Holdings Ltd's Revenue increased on 6.4%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.63 pp from 16.5% to 15.8% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at good ROIC (13.43%) and ROE (15.13%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.80 pp from 15.9% to 15.1% in FY2016.
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 3.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from 1.6x to 1.8x in FY2016. Debt increased on 7.1% while cash decreased on 2.6%.
Management team
The company's CEO is S J Wang "Sean". S J Wang "Sean" has 1 year tenure at the company. The company's CFO Chau Tien Hsiang has spent 1 year at the company.
Appendix 1: Peers in Gas
Below you can find ENN Energy Holdings Ltd benchmarking vs. other companies in Gas 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 |
|---|
| Beijing Enterprises Holdings Ltd ($392) | 16.7% | 19.1% | 13.2% | 25.5% | |
| China Gas Holdings Ltd ($384) | | -5.2% | 44.8% | 21.8% | -8.0% |
| China Resources Gas Group Ltd ($1193) | -4.1% | 63.6% | 28.8% | 8.3% | |
| Suchuang Gas Corp Ltd ($1430) | 10.3% | 26.9% | 18.4% | 1.3% | |
| Binhai Investment Co Ltd ($2886) | | 34.2% | 14.1% | 0.5% | -16.0% |
| |
|---|
| Median (9 companies) | 10.8% | 28.2% | 17.4% | 0.5% | -7.5% |
|---|
| ENN Energy Holdings Ltd ($2688) | | 27.4% | 26.7% | 10.2% | 6.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Resources Gas Group Ltd ($1193) | 31.2% | 34.2% | 30.3% | 31.5% | |
| Suchuang Gas Corp Ltd ($1430) | 28.9% | 30.1% | 24.2% | 25.2% | |
| Binhai Investment Co Ltd ($2886) | 20.1% | 20.6% | 18.3% | 21.3% | |
| China Gas Holdings Ltd ($384) | 19.0% | 21.0% | 20.3% | 20.4% | 24.1% |
| China Oil Gangran Energy Group Holdings Ltd ($8132) | 9.4% | 17.2% | 16.4% | 20.3% | 10.1% |
| |
|---|
| Median (7 companies) | 20.7% | 21.0% | 18.3% | 20.4% | 17.1% |
|---|
| ENN Energy Holdings Ltd ($2688) | 26.9% | 23.8% | 20.9% | 21.4% | 21.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hong Kong & China Gas Co Ltd ($3) | 30.0% | 29.6% | 29.2% | 30.7% | 32.7% |
| Suchuang Gas Corp Ltd ($1430) | 30.2% | 30.5% | 24.9% | 24.0% | |
| Binhai Investment Co Ltd ($2886) | 14.8% | 17.0% | 15.2% | 20.7% | |
| Towngas China Co Ltd ($1083) | 19.9% | 18.9% | 18.8% | 19.2% | 23.9% |
| China Resources Gas Group Ltd ($1193) | 16.2% | 17.4% | 17.7% | 19.0% | |
| |
|---|
| Median (10 companies) | 18.0% | 18.2% | 16.6% | 17.9% | 20.3% |
|---|
| ENN Energy Holdings Ltd ($2688) | 20.4% | 15.1% | 18.2% | 16.5% | 15.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Towngas China Co Ltd ($1083) | 31.3% | 25.7% | 26.2% | 26.4% | |
| Hong Kong & China Gas Co Ltd ($3) | 23.7% | 18.7% | 20.1% | 21.5% | |
| Binhai Investment Co Ltd ($2886) | 26.9% | 18.0% | 15.5% | 16.7% | |
| China Resources Gas Group Ltd ($1193) | 20.6% | 18.5% | 12.4% | 12.3% | |
| China Gas Holdings Ltd ($384) | 9.4% | 13.7% | 12.3% | 12.3% | 10.2% |
| |
|---|
| Median (10 companies) | 21.2% | 16.6% | 12.4% | 11.7% | 6.5% |
|---|
| ENN Energy Holdings Ltd ($2688) | 16.0% | 13.5% | 9.6% | 8.1% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Suchuang Gas Corp Ltd ($1430) | 13.6% | 19.4% | 23.9% | 20.8% | |
| Binhai Investment Co Ltd ($2886) | 12.2% | 12.2% | 10.9% | 14.7% | |
| China Resources Gas Group Ltd ($1193) | 6.9% | 10.4% | 11.4% | 12.5% | |
| China Gas Holdings Ltd ($384) | 8.4% | 8.6% | 10.6% | 10.6% | 11.2% |
| Hong Kong & China Gas Co Ltd ($3) | 7.3% | 7.4% | 7.5% | 6.9% | 7.0% |
| |
|---|
| Median (10 companies) | 7.5% | 9.5% | 7.5% | 6.4% | 5.2% |
|---|
| ENN Energy Holdings Ltd ($2688) | 14.3% | 11.7% | 16.4% | 13.6% | 13.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Oil & Gas Group Ltd ($603) | -0.0x | 1.0x | 2.8x | 6.0x | |
| Towngas China Co Ltd ($1083) | 3.5x | 3.7x | 4.1x | 4.5x | 3.8x |
| Beijing Enterprises Holdings Ltd ($392) | 3.1x | 2.6x | 4.7x | 3.6x | |
| China Gas Holdings Ltd ($384) | 3.7x | 3.7x | 3.1x | 2.9x | 2.8x |
| Binhai Investment Co Ltd ($2886) | 3.4x | 2.8x | 3.5x | 2.8x | |
| |
|---|
| Median (9 companies) | 3.1x | 2.4x | 2.9x | 2.8x | 2.8x |
|---|
| ENN Energy Holdings Ltd ($2688) | 1.4x | 1.6x | 0.8x | 1.6x | 1.8x |
