Sinotrans Ltd revenue increased on 2.8% in 2016 and EBITDA Margin showed almost no change
21/03/2017 • About Sinotrans Ltd (
$598) • By InTwits
Sinotrans Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has potentially unprofitable business model: ROIC is at 6.1%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sinotrans Ltd ($598) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 47,482 | 45,402 | 45,660 | 45,528 | 46,784 | 2.8% |
| EBITDA | 1,147 | 1,746 | 1,839 | 2,233 | 2,184 | -2.2% |
| Net Income | 649 | 904 | 1,231 | 1,493 | 1,629 | 9.1% |
Balance Sheet
|
|---|
| Cash | 5,595 | 5,387 | 5,332 | 6,133 | 7,119 | 16.1% |
| Short Term Debt | 2,832 | 1,402 | 2,748 | 4,566 | 1,324 | -71.0% |
| Long Term Debt | 2,845 | 4,345 | 2,993 | 1,036 | 4,619 | 345.6% |
Cash flow
|
|---|
| Capex | 1,482 | 1,688 | 1,261 | 1,648 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 8.5% | -4.4% | 0.6% | -0.3% | 2.8% | |
| EBITDA growth | -11.3% | 52.3% | 5.3% | 21.4% | -2.2% | |
| EBITDA Margin | 2.4% | 3.8% | 4.0% | 4.9% | 4.7% | -0.2% |
| Net Income Margin | 1.4% | 2.0% | 2.7% | 3.3% | 3.5% | 0.2% |
| CAPEX, % of revenue | 3.1% | 3.7% | 2.8% | 3.6% | | -3.6% |
| ROIC | 3.8% | 5.9% | 5.8% | 6.9% | 6.1% | -0.8% |
| ROE | 6.4% | 8.3% | 9.9% | 10.5% | 10.4% | -0.0% |
| Net Debt/EBITDA | 0.1x | 0.2x | 0.2x | -0.2x | -0.5x | -0.3x |
Revenue and profitability
The company's Revenue increased on 2.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.1 pp from 3.9% to 1.8% in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at low ROIC (6.12%) and ROE (10.45%). ROIC decreased slightly on 0.75 pp from 6.9% to 6.1% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.5x and Debt / EBITDA is 2.7x. Net Debt / EBITDA dropped on 0.3x from -0.2x to -0.5x in FY2016. Debt increased on 6.1% while cash surged on 16.1%.
Appendix 1: Peers in Transportation
Below we provide Sinotrans Ltd benchmarking against other companies in Transportation 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 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | | | 2,388.3% | 326.5% |
| China Best Group Holding Ltd ($370) | 202.4% | -53.6% | 459.4% | 25.9% | |
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 10.9% | 27.9% | 15.0% | 13.3% | |
| Kwoon Chung Bus Holdings Ltd ($306) | | 7.9% | 5.5% | 7.9% | 1.1% |
| Guangshen Railway Co Ltd ($525) | 2.7% | 4.7% | -6.9% | 6.9% | |
| |
|---|
| Median (31 companies) | 9.1% | 4.6% | 5.6% | -6.7% | -13.7% |
|---|
| Sinotrans Ltd ($598) | | -4.4% | 0.6% | -0.3% | 2.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.3% | 44.8% | 46.6% | 48.7% | |
| Qinhuangdao Port Co Ltd ($3369) | 43.1% | 42.4% | 43.3% | 40.5% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 18.9% | 20.4% | 22.7% | 26.8% | 27.5% |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 23.1% | 25.1% | 24.1% | 23.1% | |
| Tianjin Port Development Holdings Ltd ($3382) | 22.5% | 18.4% | 13.6% | 22.7% | |
| |
|---|
| Median (28 companies) | 13.1% | 11.2% | 10.8% | 12.1% | -1.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| MTR Corp Ltd ($66) | 42.7% | 37.6% | 45.2% | 41.6% | 34.9% |
| Qinhuangdao Port Co Ltd ($3369) | 46.0% | 44.6% | 46.5% | 41.1% | |
| CIG Yangtze Ports PLC ($8233) | 30.2% | 27.6% | 38.5% | 39.5% | |
| China Shipping Development Co Ltd ($1138) | 12.5% | 3.0% | 24.7% | 26.7% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 13.3% | 16.1% | 20.7% | 26.1% | 25.7% |
| |
|---|
| Median (31 companies) | 9.9% | 7.4% | 7.8% | 9.5% | 4.4% |
|---|
| Sinotrans Ltd ($598) | 2.4% | 3.8% | 4.0% | 4.9% | 4.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Harvest Maeta Group Holdings Ltd ($3683) | 4.0% | 6.1% | 40.7% | 164.7% | 8.7% |
| Frontier Services Group Ltd ($500) | 6.3% | 3.6% | 63.3% | 75.9% | |
| MTR Corp Ltd ($66) | 31.1% | 34.5% | 30.8% | 52.0% | |
| CIG Yangtze Ports PLC ($8233) | 17.8% | 24.8% | 2.1% | 50.7% | |
| Transport International Holdings Ltd ($62) | 7.9% | 16.2% | 16.0% | 26.2% | |
| |
|---|
| Median (31 companies) | 7.9% | 9.0% | 7.4% | 9.2% | 8.7% |
|---|
| Sinotrans Ltd ($598) | 3.1% | 3.7% | 2.8% | 3.6% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 21.1% | 20.9% | 19.1% | 19.3% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 3.6% | 5.7% | 9.2% | 14.6% | 12.4% |
| SITC International Holdings Co Ltd ($1308) | 8.2% | 9.1% | 9.1% | 11.2% | |
| CIG Yangtze Ports PLC ($8233) | 4.9% | 5.7% | 11.0% | 11.1% | |
| On Time Logistics Holdings Ltd ($6123) | 15.6% | 15.5% | 16.7% | 11.1% | |
| |
|---|
| Median (31 companies) | 3.3% | 2.8% | 3.2% | 3.3% | -2.1% |
|---|
| Sinotrans Ltd ($598) | 3.8% | 5.9% | 5.8% | 6.9% | 6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jinhui Holdings Co Ltd ($137) | 5.0x | 4.2x | 17.5x | 19.6x | |
| China Shipping Development Co Ltd ($1138) | 20.2x | 92.8x | 12.8x | 11.4x | |
| China COSCO Holdings Co Ltd ($1919) | | 18.8x | 9.0x | 8.1x | |
| Pacific Basin Shipping Ltd ($2343) | 2.1x | 4.6x | | 4.7x | 12.0x |
| AMS Public Transport Holdings Ltd ($77) | 1.2x | 11.6x | 7.7x | 4.5x | 1.6x |
| |
|---|
| Median (20 companies) | 1.2x | 1.5x | 0.9x | 1.3x | 1.9x |
|---|
| Sinotrans Ltd ($598) | 0.1x | 0.2x | 0.2x | -0.2x | -0.5x |
