China Coal Energy Co Ltd Net Debt / EBITDA dropped on 7.2x from 14.4x to 7.2x in 2016 and Revenue decreased slightly on 0.91%
22/03/2017 • About China Coal Energy Co Ltd (
$1898) • By InTwits
China Coal Energy Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Coal Energy Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 25.0%. At the same time it's in pair with industry average of 23.7%.
- CAPEX is quite volatile: 9,016 in 2016, 11,441 in 2015, 19,695 in 2014, 25,375 in 2013, 27,560 in 2012
- The company has potentially unprofitable business model: ROIC is at 2.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Coal Energy Co Ltd ($1898) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 87,292 | 82,316 | 70,664 | 59,271 | 58,731 | -0.9% |
| Gross Profit | 17,303 | 11,396 | 7,196 | 4,104 | 18,411 | 348.6% |
| SG&A | 4,275 | 4,213 | 4,338 | 3,775 | 11,575 | 206.6% |
| EBITDA | 17,499 | 12,081 | 7,929 | 7,079 | 11,822 | 67.0% |
| Net Income | 8,842 | 3,805 | 141 | -3,267 | 2,027 | |
Balance Sheet
|
|---|
| Cash | 13,223 | 11,233 | 18,132 | 11,196 | 13,349 | 19.2% |
| Short Term Debt | 6,541 | 10,320 | 12,837 | 32,650 | 28,781 | -11.9% |
| Long Term Debt | 40,077 | 59,643 | 81,871 | 80,376 | 69,397 | -13.7% |
Cash flow
|
|---|
| Capex | 27,560 | 25,375 | 19,695 | 11,441 | 9,016 | -21.2% |
Ratios
|
|---|
| Revenue growth | -3.9% | -5.7% | -14.2% | -16.1% | -0.9% | |
| EBITDA growth | -7.7% | -31.0% | -34.4% | -10.7% | 67.0% | |
| Gross Margin | 19.8% | 13.8% | 10.2% | 6.9% | 31.3% | 24.4% |
| EBITDA Margin | 20.0% | 14.7% | 11.2% | 11.9% | 20.1% | 8.2% |
| Net Income Margin | 10.1% | 4.6% | 0.2% | -5.5% | 3.5% | 9.0% |
| SG&A, % of revenue | 4.9% | 5.1% | 6.1% | 6.4% | 19.7% | 13.3% |
| CAPEX, % of revenue | 31.6% | 30.8% | 27.9% | 19.3% | 15.4% | -4.0% |
| ROIC | 8.7% | 4.0% | 1.3% | 0.0% | 2.6% | 2.6% |
| ROE | 10.4% | 4.4% | 0.2% | -3.8% | 2.4% | 6.2% |
| Net Debt/EBITDA | 1.9x | 4.9x | 9.7x | 14.4x | 7.2x | -7.2x |
Revenue and profitability
The company's Revenue decreased slightly on 0.91%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.2 pp from 11.9% to 20.1% in 2016.
Gross Margin surged on 24.4 pp from 6.9% to 31.3% in 2016. SG&A as a % of Revenue surged on 13.3 pp from 6.4% to 19.7% in 2016.
Net Income marign increased on 9.0 pp from -5.5% to 3.5% in 2016.
Capital expenditures (CAPEX) and working capital investments
China Coal Energy Co Ltd's CAPEX/Revenue was 15.4% in 2016. CAPEX/Revenue dropped on 15.5 pp from 30.8% in 2013 to 15.4% in 2016. Average CAPEX/Revenue for the last three years was 20.8%.Battling declining revenue the company invested a large share of EBITDA (76.3%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (2.61%) and ROE (2.39%). ROIC increased on 2.6 pp from 0.020% to 2.6% in 2016. ROE increased on 6.2 pp from -3.8% to 2.4% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.2x and Debt / EBITDA is 8.3x. Net Debt / EBITDA dropped on 7.2x from 14.4x to 7.2x in 2016. Debt dropped on 13.1% while cash jumped on 19.2%.
Appendix 1: Peers in Coal
Below you can find China Coal Energy Co Ltd benchmarking vs. other companies in Coal 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 |
|---|
| Sino Resources Group Ltd ($223) | | -44.8% | 14.7% | 354.5% | 0.4% |
| Asia Coal Ltd ($835) | | -15.3% | 43.2% | 133.6% | -60.1% |
| Dowell Property Holdings Ltd ($668) | -19.2% | -55.7% | -35.8% | 83.2% | |
| Capital Finance Holdings Ltd ($8239) | | -5.2% | -5.5% | 70.6% | -27.2% |
| Up Energy Development Group Ltd ($307) | | | | 60.5% | |
| |
|---|
| Median (22 companies) | -16.0% | -9.4% | -5.5% | -22.9% | -18.1% |
|---|
| China Coal Energy Co Ltd ($1898) | | -5.7% | -14.2% | -16.1% | -0.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital Finance Holdings Ltd ($8239) | 6.4% | 7.2% | 8.7% | 98.2% | |
| Nan Nan Resources Enterprise Ltd ($1229) | 23.9% | 17.6% | 18.1% | 44.3% | 41.0% |
| Agritrade Resources Ltd ($1131) | 22.9% | 29.4% | 31.8% | 30.0% | 30.9% |
| Shougang Fushan Resources Group Ltd ($639) | 63.5% | 50.9% | 40.1% | 24.5% | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 35.2% | 33.7% | 27.4% | 19.2% | |
| |
|---|
| Median (21 companies) | 20.0% | 17.5% | 8.7% | 2.8% | 6.2% |
|---|
| China Coal Energy Co Ltd ($1898) | 19.8% | 13.8% | 10.2% | 6.9% | 31.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital Finance Holdings Ltd ($8239) | -27.2% | -23.7% | -56.2% | 71.5% | |
| Nan Nan Resources Enterprise Ltd ($1229) | 19.1% | 14.1% | -0.2% | 40.5% | 24.1% |
| Agritrade Resources Ltd ($1131) | 41.6% | 37.3% | 33.4% | 31.1% | 56.3% |
| Feishang Anthracite Resources Ltd ($1738) | -13.1% | -32.9% | 19.0% | 15.9% | |
| Kinetic Mines and Energy Ltd ($1277) | -277.0% | -51.9% | 29.3% | 15.8% | |
| |
|---|
| Median (22 companies) | -3.8% | -7.8% | -11.6% | -18.8% | -8.4% |
|---|
| China Coal Energy Co Ltd ($1898) | 20.0% | 14.7% | 11.2% | 11.9% | 20.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Siberian Mining Group Co Ltd ($1142) | 4.6% | 78.8% | 217.3% | 279.7% | 23.0% |
| Feishang Anthracite Resources Ltd ($1738) | 244.9% | 159.7% | 80.9% | 90.2% | |
| Up Energy Development Group Ltd ($307) | | | 279.5% | 75.2% | |
| King Stone Energy Group Ltd ($663) | 58.5% | 135.3% | 205.7% | 69.3% | |
| SouthGobi Resources Ltd ($1878) | 124.8% | 20.2% | 11.5% | 52.6% | |
| |
|---|
| Median (20 companies) | 12.5% | 25.8% | 18.3% | 16.8% | 7.0% |
|---|
| China Coal Energy Co Ltd ($1898) | 31.6% | 30.8% | 27.9% | 19.3% | 15.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital Finance Holdings Ltd ($8239) | -25.1% | -14.9% | -26.9% | 21.0% | |
| Nan Nan Resources Enterprise Ltd ($1229) | 6.4% | 1.6% | -1.2% | 10.0% | 1.5% |
| Agritrade Resources Ltd ($1131) | 2.7% | 5.8% | 6.4% | 6.9% | 9.4% |
| Kinetic Mines and Energy Ltd ($1277) | -6.6% | -5.7% | 8.5% | 3.2% | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 28.5% | 15.2% | 8.5% | 2.0% | |
| |
|---|
| Median (22 companies) | -3.2% | -3.8% | -5.7% | -5.8% | -5.1% |
|---|
| China Coal Energy Co Ltd ($1898) | 8.7% | 4.0% | 1.3% | 0.0% | 2.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Feishang Anthracite Resources Ltd ($1738) | | | 24.3x | 32.6x | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 0.4x | 1.7x | 3.5x | 9.8x | |
| Yanzhou Coal Mining Co Ltd ($1171) | 2.9x | 6.2x | 4.9x | 9.0x | |
| Kinetic Mines and Energy Ltd ($1277) | | | 4.5x | 5.9x | |
| Capital Finance Holdings Ltd ($8239) | | | | 3.6x | |
| |
|---|
| Median (7 companies) | 4.4x | 4.4x | 4.5x | 5.9x | 0.8x |
|---|
| China Coal Energy Co Ltd ($1898) | 1.9x | 4.9x | 9.7x | 14.4x | 7.2x |
