China Mobile Ltd reports 6.7% EBITDA growth and 6.0% Revenue growth
23/03/2017 • About China Mobile Ltd (
$941) • By InTwits
China Mobile Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Mobile Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.7%. At the same time it's in pair with industry average of 24.8%.
- The company has highly profitable business model: ROIC is at 12.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Mobile Ltd ($941) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 581,835 | 630,177 | 651,509 | 668,335 | 708,421 | 6.0% |
| SG&A | 80,232 | 91,834 | 75,655 | 59,850 | | -100.0% |
| EBITDA | 253,992 | 240,811 | 240,644 | 240,454 | 257,120 | 6.9% |
| Net Income | 129,274 | 121,692 | 109,218 | 108,539 | 108,741 | 0.2% |
Balance Sheet
|
|---|
| Cash | 70,906 | 44,931 | 73,076 | 79,842 | 90,413 | 13.2% |
| Short Term Debt | 68 | 68 | 5,249 | 7,274 | 4,998 | -31.3% |
| Long Term Debt | 28,619 | 4,989 | 4,992 | 4,995 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 125,024 | 140,041 | 175,701 | 173,693 | 189,366 | 9.0% |
Ratios
|
|---|
| Revenue growth | 10.2% | 8.3% | 3.4% | 2.6% | 6.0% | |
| EBITDA growth | 2.1% | -5.2% | -0.1% | -0.1% | 6.9% | |
| EBITDA Margin | 43.7% | 38.2% | 36.9% | 36.0% | 36.3% | 0.3% |
| Net Income Margin | 22.2% | 19.3% | 16.8% | 16.2% | 15.3% | -0.9% |
| SG&A, % of revenue | 13.8% | 14.6% | 11.6% | 9.0% | | -9.0% |
| CAPEX, % of revenue | 21.5% | 22.2% | 27.0% | 26.0% | 26.7% | 0.7% |
| ROIC | 21.4% | 17.6% | 14.0% | 11.4% | 12.6% | 1.1% |
| ROE | 18.8% | 16.1% | 13.0% | 12.0% | 11.5% | -0.6% |
| Net Debt/EBITDA | -0.2x | -0.2x | -0.3x | -0.3x | -0.3x | -0.1x |
China Mobile Ltd ($941) key quoterly financial indicators
| mln. CNY | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 177,500 | 192,851 | 172,349 | 165,721 | | | | |
| Net Income | 23,900 | 36,672 | 27,528 | 20,641 | | | | |
Balance Sheet
|
|---|
Ratios
|
|---|
| Net Income Margin | 13.5% | 19.0% | 16.0% | 12.5% | | | | |
Revenue and profitability
The company's Revenue increased on 6.0%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.67 pp from 16.3% to 17.0% in 2016.
Net Income marign decreased slightly on 0.89 pp from 16.2% to 15.3% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 26.7%. The company showed CAPEX/Revenue growth of 4.5 pp from 22.2% in 2013 to 26.7% in 2016. Average CAPEX/Revenue for the last three years was 26.6%.China Mobile Ltd invested a large share of EBITDA (73.6%) to CAPEX.
Return on investment
The company operates at good ROIC (12.55%) while ROE is low (11.47%). ROIC increased slightly on 1.1 pp from 11.4% to 12.6% in 2016. ROE decreased slightly on 0.56 pp from 12.0% to 11.5% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 0.0x. Net Debt / EBITDA decreased on 0.1x from -0.3x to -0.3x in 2016. Debt dropped on 59.3% while cash surged on 13.2%.
Management team
China Mobile Ltd's CEO Li Yue has spent 8 years at the company. Dong Xin is a The company's CFO. Dong Xin has spent 1 year at the company.
Appendix 1: Peers in Telecommunications
Below we provide China Mobile Ltd benchmarking against other companies in Telecommunications 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 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 107.4% | -82.2% | 8,010.0% | 65.8% |
| Hanny Holdings Ltd ($275) | | 131.2% | -85.2% | 349.3% | -78.5% |
| CCT Fortis Holdings Ltd ($138) | -24.1% | -55.3% | -71.3% | 207.1% | |
| Xi'an Haitian Antenna Technologies Co Ltd ($8227) | -8.5% | -45.9% | -56.2% | 111.6% | |
| China Trends Holdings Ltd ($8171) | | -70.2% | -16.7% | 106.0% | -22.7% |
| |
|---|
| Median (54 companies) | 12.2% | 9.8% | 9.6% | 6.1% | -2.7% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HKBN Ltd ($1310) | | 84.3% | 86.5% | 86.9% | 83.8% |
| Netel Technology Holdings Ltd ($8256) | 27.9% | 42.1% | 54.9% | 72.3% | 73.1% |
| Great World Co Holdings Ltd ($8003) | -11.0% | 43.0% | 45.5% | 67.9% | 42.0% |
| APT Satellite Holdings Ltd ($1045) | 58.7% | 64.1% | 62.5% | 61.0% | |
| Cisco Systems Inc ($4333) | 61.2% | 60.6% | 58.9% | 60.4% | 62.9% |
| |
|---|
| Median (51 companies) | 23.6% | 24.3% | 25.0% | 22.7% | 35.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 86.5% | 85.8% | 81.6% | 82.4% | 81.5% |
| APT Satellite Holdings Ltd ($1045) | 81.0% | 78.9% | 77.5% | 78.8% | |
| Synertone Communication Corp ($1613) | 44.9% | 48.5% | 49.4% | 51.5% | -77.6% |
| HKBN Ltd ($1310) | | 39.2% | 40.1% | 39.0% | 35.2% |
| HKT Trust & HKT Ltd ($6823) | 36.3% | 35.0% | 35.9% | 34.9% | 37.2% |
| |
|---|
| Median (54 companies) | 7.2% | 5.5% | 5.4% | 8.3% | 8.9% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| APT Satellite Holdings Ltd ($1045) | 74.3% | 2.5% | 27.2% | 115.8% | |
| Hong Kong Television Network Ltd ($1137) | 12,435.9% | 504.9% | 1,283.5% | 79.4% | |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 93.8% | 71.7% | 75.0% | 52.8% | |
| China Fiber Optic Network System Group Ltd ($3777) | 4.8% | 16.3% | 13.1% | 31.9% | |
| Directel Holdings Ltd ($8337) | 2.1% | 0.1% | 0.6% | 30.2% | |
| |
|---|
| Median (54 companies) | 2.1% | 2.9% | 2.9% | 2.6% | 8.4% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Telecom Service One Holdings Ltd ($8145) | 95.0% | 5.4% | 26.7% | 39.8% | 37.4% |
| VTech Holdings Ltd ($303) | 37.6% | 39.5% | 40.0% | 39.8% | 37.9% |
| Coolpad Group Ltd ($2369) | 8.1% | 6.0% | 9.6% | 29.1% | |
| Telecom Digital Holdings Ltd ($8336) | | 13.3% | 20.2% | 18.9% | 16.7% |
| SmarTone Telecommunications Holdings Ltd ($315) | 37.2% | 23.1% | 12.8% | 17.7% | 14.5% |
| |
|---|
| Median (55 companies) | 7.3% | 6.0% | 5.8% | 5.4% | 5.2% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CCT Land Holdings Ltd ($261) | 10.1x | 23.8x | 48.4x | 44.8x | |
| China Energine International Holdings Ltd ($1185) | | | 13.3x | 31.7x | |
| China Ground Source Energy Industry Group Ltd ($8128) | -1.6x | 3.5x | 14.3x | 11.3x | |
| China Electronics Corp Holdings Co Ltd ($85) | -2.0x | -1.3x | 12.5x | 7.6x | |
| China All Access Holdings Ltd ($633) | 0.9x | 1.8x | 5.2x | 5.6x | |
| |
|---|
| Median (39 companies) | -0.2x | 0.6x | 0.6x | 0.6x | 1.7x |
|---|
