China Power International Development Ltd Net Income dropped on 43.0% in 2016 and EBITDA Margin decreased on 8.2 pp from 53.6% to 45.3%
23/03/2017 • About China Power International Development Ltd (
$2380) • By InTwits
China Power International Development 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 6.4%
- It operates with high leverage: Net Debt/EBITDA is 5.4x while industry average is 3.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Power International Development Ltd ($2380) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 17,497 | 18,827 | 20,447 | 20,197 | 18,866 | -6.6% |
| EBITDA | 5,625 | 7,341 | 8,641 | 10,816 | 8,555 | -20.9% |
| Net Income | 1,181 | 2,290 | 2,766 | 4,149 | 2,366 | -43.0% |
Balance Sheet
|
|---|
| Cash | 2,016 | 1,641 | 1,127 | 1,528 | 1,809 | 18.4% |
| Short Term Debt | 9,759 | 10,779 | 12,591 | 10,227 | 16,319 | 59.6% |
| Long Term Debt | 35,840 | 34,911 | 32,957 | 32,461 | 31,416 | -3.2% |
Cash flow
|
|---|
| Capex | 5,579 | 3,982 | 2,690 | 2,823 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 8.8% | 7.6% | 8.6% | -1.2% | -6.6% | |
| EBITDA growth | 38.3% | 30.5% | 17.7% | 25.2% | -20.9% | |
| EBITDA Margin | 32.1% | 39.0% | 42.3% | 53.6% | 45.3% | -8.2% |
| Net Income Margin | 6.8% | 12.2% | 13.5% | 20.5% | 12.5% | -8.0% |
| CAPEX, % of revenue | 31.9% | 21.1% | 13.2% | 14.0% | | -14.0% |
| ROIC | 5.7% | 7.5% | 8.0% | 10.1% | 6.4% | -3.7% |
| ROE | 8.4% | 13.7% | 13.7% | 16.9% | 8.7% | -8.2% |
| Net Debt/EBITDA | 7.7x | 6.0x | 5.1x | 3.8x | 5.4x | 1.6x |
Revenue and profitability
The company's Revenue decreased on 6.6%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 8.2 pp from 53.6% to 45.3% in FY2016.
Net Income marign decreased on 8.0 pp from 20.5% to 12.5% in FY2016.
Return on investment
The company operates at low ROIC (6.44%) and ROE (8.67%). ROIC decreased on 3.7 pp from 10.1% to 6.4% in FY2016. ROE decreased on 8.2 pp from 16.9% to 8.7% in FY2016.
Leverage (Debt)
Debt level is 5.4x Net Debt / EBITDA and 5.6x Debt / EBITDA. Net Debt / EBITDA surged on 1.6x from 3.8x to 5.4x in FY2016. Debt surged on 11.8% while cash jumped on 18.4%.
Management team
The company's CEO Yu Bing has spent 3 years at the company.
Appendix 1: Peers in Electric
Below we provide China Power International Development Ltd benchmarking against other companies in Electric 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 |
|---|
| Huaneng Renewables Corp Ltd ($958) | 26.0% | 46.7% | 4.1% | 19.6% | |
| CGN Power Co Ltd ($1816) | | -1.2% | 19.3% | 12.3% | 41.4% |
| Huadian Fuxin Energy Corp Ltd ($816) | 56.0% | 16.7% | 4.9% | 10.4% | |
| China Datang Corp Renewable Power Co Ltd ($1798) | | 28.9% | -7.9% | 7.8% | 3.5% |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | | -1.8% | 2.9% | 6.7% | 1.9% |
| |
|---|
| Median (15 companies) | 9.7% | 11.8% | 4.9% | -3.5% | 1.9% |
|---|
| China Power International Development Ltd ($2380) | | 7.6% | 8.6% | -1.2% | -6.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Power Assets Holdings Ltd ($6) | 60.0% | 63.5% | 85.6% | 99.4% | 99.5% |
| China Power New Energy Development Co Ltd ($735) | 73.3% | 70.8% | 72.0% | 74.9% | |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 60.1% | 58.6% | 54.0% | 53.7% | 53.0% |
| CGN Power Co Ltd ($1816) | 46.5% | 46.9% | 48.6% | 47.9% | 43.7% |
| Tianjin Development Hldgs Ltd ($882) | 8.5% | 5.0% | 18.7% | 18.6% | |
| |
|---|
| Median (6 companies) | 46.5% | 52.8% | 48.6% | 50.8% | 48.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huaneng Renewables Corp Ltd ($958) | 94.0% | 80.5% | 91.3% | 93.1% | |
| China Datang Corp Renewable Power Co Ltd ($1798) | 90.5% | 82.8% | 87.0% | 82.4% | |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 72.6% | 77.6% | 73.3% | 71.7% | 70.4% |
| Power Assets Holdings Ltd ($6) | 66.2% | 68.0% | 2,533.1% | 71.2% | -84.2% |
| CGN Power Co Ltd ($1816) | 66.0% | 62.6% | 60.5% | 59.4% | 52.9% |
| |
|---|
| Median (15 companies) | 28.5% | 33.9% | 34.1% | 41.9% | 30.5% |
|---|
| China Power International Development Ltd ($2380) | 32.1% | 39.0% | 42.3% | 53.6% | 45.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerchina Holdings Ltd ($622) | 24.1% | 28.3% | 3.8% | 321.6% | |
| Huaneng Renewables Corp Ltd ($958) | 163.4% | 124.0% | 217.8% | 171.9% | |
| China Power New Energy Development Co Ltd ($735) | 82.2% | 80.1% | 119.5% | 99.0% | |
| Huadian Fuxin Energy Corp Ltd ($816) | 62.2% | 54.3% | 91.8% | 96.0% | |
| China Datang Corp Renewable Power Co Ltd ($1798) | 157.1% | 81.7% | 106.3% | 93.4% | |
| |
|---|
| Median (15 companies) | 27.4% | 30.9% | 18.9% | 21.3% | 18.5% |
|---|
| China Power International Development Ltd ($2380) | 31.9% | 21.1% | 13.2% | 14.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CLP Holdings Ltd ($2) | 7.0% | 4.8% | 8.5% | 12.8% | 10.1% |
| China Resources Power Holdings Co Ltd ($836) | 7.7% | 9.7% | 8.0% | 11.0% | 9.2% |
| Huadian Power International Corp Ltd ($1071) | 5.0% | 8.4% | 10.4% | 10.0% | |
| Amber Energy Ltd ($90) | 5.4% | 4.6% | 3.6% | 8.6% | |
| Huadian Fuxin Energy Corp Ltd ($816) | 7.5% | 8.1% | 7.7% | 6.2% | |
| |
|---|
| Median (15 companies) | 5.0% | 5.8% | 6.0% | 5.1% | 5.2% |
|---|
| China Power International Development Ltd ($2380) | 5.7% | 7.5% | 8.0% | 10.1% | 6.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CGN Meiya Power Holdings Co Ltd ($1811) | 9.1x | 8.1x | 4.3x | 8.6x | 6.5x |
| China Datang Corp Renewable Power Co Ltd ($1798) | 9.1x | 8.2x | 8.7x | 8.5x | |
| CGN Power Co Ltd ($1816) | 6.5x | 6.7x | 7.8x | 8.4x | 9.3x |
| China Power New Energy Development Co Ltd ($735) | 4.8x | 5.5x | 6.4x | 7.9x | |
| Huadian Fuxin Energy Corp Ltd ($816) | 6.9x | 6.2x | 6.5x | 7.4x | |
| |
|---|
| Median (13 companies) | 5.3x | 5.5x | 5.2x | 5.2x | 4.9x |
|---|
| China Power International Development Ltd ($2380) | 7.7x | 6.0x | 5.1x | 3.8x | 5.4x |
