China CITIC Bank Corp Ltd revenue growth decelerated to 1.5% in 2016 vs. 7.3% a year earliner
22/03/2017 • About China CITIC Bank Corp Ltd (
$998) • By InTwits
China CITIC Bank Corp Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China CITIC Bank Corp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's a lot of higher than industry average of 2.3%.
- CAPEX is quite volatile: 7,708 in 2016, 6,427 in 2015, 11,432 in 2014, 5,292 in 2013, 3,588 in 2012
- The company has potentially unprofitable business model: ROIC is at 3.0%
- It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China CITIC Bank Corp Ltd ($998) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 153,908 | 183,991 | 237,278 | 254,551 | 258,002 | 1.4% |
| Net Income | 31,032 | 39,175 | 40,692 | 41,158 | 41,629 | 1.1% |
Balance Sheet
|
|---|
| Cash | 428,167 | 496,476 | 538,486 | 511,189 | 553,328 | 8.2% |
| Short Term Debt | 388,002 | 601,619 | 707,940 | 1,332,601 | 1,065,169 | -20.1% |
| Long Term Debt | 44,809 | 73,901 | 148,685 | 111,826 | 291,580 | 160.7% |
Cash flow
|
|---|
| Capex | 3,588 | 5,292 | 11,432 | 6,427 | 7,708 | 19.9% |
Ratios
|
|---|
| Revenue growth | 30.5% | 19.5% | 29.0% | 7.3% | 1.4% | |
| Net Income Margin | 20.2% | 21.3% | 17.1% | 16.2% | 16.1% | -0.0% |
| CAPEX, % of revenue | 2.3% | 2.9% | 4.8% | 2.5% | 3.0% | 0.5% |
| ROIC | 5.7% | 6.5% | 5.0% | 3.5% | 3.0% | -0.5% |
| ROE | 16.6% | 18.5% | 16.8% | 14.3% | 12.6% | -1.7% |
China CITIC Bank Corp Ltd ($998) key quoterly financial indicators
| mln. CNY | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 66,354 | 66,036 | 63,341 | 97,044 | | | | |
| Net Income | 11,200 | 12,400 | 10,943 | 7,086 | | | | |
Balance Sheet
|
|---|
| Cash | 582,208 | 613,571 | 529,776 | 553,328 | | | | |
| Short Term Debt | 1,247,828 | 1,193,663 | 1,120,724 | 1,065,169 | | | | |
| Long Term Debt | 422,317 | 488,523 | 550,031 | 291,580 | | | | |
Ratios
|
|---|
| Net Income Margin | 16.9% | 18.8% | 17.3% | 7.3% | | | | |
Revenue and profitability
China CITIC Bank Corp Ltd's Revenue increased slightly on 1.4%.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
China CITIC Bank Corp Ltd's CAPEX/Revenue was 3.0% in 2016. CAPEX/Revenue showed almost no change from 2013 to 2016. It's average CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at good ROE (12.58%) while ROIC is low (3.01%). ROIC decreased slightly on 0.52 pp from 3.5% to 3.0% in 2016. ROE decreased slightly on 1.7 pp from 14.3% to 12.6% in 2016.
Leverage (Debt)
Debt decreased on 6.1% while cash increased on 8.2%.
Appendix 1: Peers in Banks
Below you can find China CITIC Bank Corp Ltd benchmarking vs. other companies in Banks 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 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | | 43.4% | 6.8% | 116.4% | |
| Huishang Bank Corp Ltd ($3698) | 33.9% | 22.8% | 24.3% | 24.6% | |
| Shengjing Bank Co Ltd ($2066) | | 36.3% | 40.1% | 24.3% | 17.5% |
| Bank of Chongqing Co Ltd ($1963) | | 26.6% | 28.4% | 18.5% | |
| BOC Hong Kong Holdings Ltd ($2388) | 15.1% | 11.4% | -3.0% | 11.6% | |
| |
|---|
| Median (14 companies) | 33.9% | 12.1% | 23.6% | 4.8% | -4.7% |
|---|
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | 4.1% | 29.9% | 27.0% | 33.5% | |
| |
|---|
| Median (1 company) | 4.1% | 29.9% | 27.0% | 33.5% | |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dah Sing Banking Group Ltd ($2356) | 3.9% | 4.1% | 2.2% | 7.5% | |
| Dah Sing Financial Holdings Ltd ($440) | 3.0% | 3.4% | 1.7% | 5.9% | |
| Harbin Bank Co Ltd ($6138) | 19.8% | 9.9% | 6.5% | 5.8% | |
| Chongqing Rural Commercial Bank Co Ltd ($3618) | 4.0% | 4.3% | 4.8% | 4.4% | 2.0% |
| Shengjing Bank Co Ltd ($2066) | 1.6% | 2.2% | 5.0% | 3.0% | 2.3% |
| |
|---|
| Median (14 companies) | 2.6% | 2.9% | 1.8% | 2.5% | 1.8% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hang Seng Bank Ltd ($11) | 8.6% | 9.5% | 9.0% | 8.3% | 8.1% |
| BOC Hong Kong Holdings Ltd ($2388) | 5.9% | 6.4% | 5.8% | 6.2% | |
| Dah Sing Financial Holdings Ltd ($440) | 3.8% | 5.1% | 5.2% | 5.9% | |
| Chong Hing Bank Ltd ($1111) | 5.5% | 5.2% | 16.4% | 5.7% | 5.6% |
| Dah Sing Banking Group Ltd ($2356) | 4.2% | 5.4% | 5.4% | 5.5% | |
| |
|---|
| Median (14 companies) | 6.0% | 6.2% | 5.4% | 4.3% | 2.3% |
|---|
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | -66.3x | -7.1x | -10.6x | -5.7x | |
| |
|---|
| Median (1 company) | -66.3x | -7.1x | -10.6x | -5.7x | |
|---|
