Huishang Bank Corp Ltd revenue surged on 17.3% in 2016
23/03/2017 • About Huishang Bank Corp Ltd (
$3698) • By InTwits
Huishang Bank Corp Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Huishang Bank Corp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 2.3%.
- CAPEX is quite volatile: 894 in FY2016, 989 in FY2015, 1,338 in FY2014, 424 in FY2013, 220 in FY2012
- The company has potentially unprofitable business model: ROIC is at 4.0%
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Huishang Bank Corp Ltd ($3698) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 15,883 | 19,510 | 24,248 | 30,205 | 35,421 | 17.3% |
| Net Income | 4,306 | 4,926 | 5,673 | 6,161 | 6,870 | 11.5% |
Balance Sheet
|
|---|
| Cash | 57,649 | 76,178 | 76,421 | 78,414 | 88,059 | 12.3% |
| Short Term Debt | 6,863 | 18,970 | 26,112 | 97,197 | 98,568 | 1.4% |
| Long Term Debt | 3,992 | 8,986 | 9,095 | 24,968 | 32,179 | 28.9% |
Cash flow
|
|---|
| Capex | 416 | 375 | 419 | 526 | 560 | 6.3% |
Ratios
|
|---|
| Revenue growth | 33.9% | 22.8% | 24.3% | 24.6% | 17.3% | |
| Net Income Margin | 27.1% | 25.2% | 23.4% | 20.4% | 19.4% | -1.0% |
| CAPEX, % of revenue | 2.6% | 1.9% | 1.7% | 1.7% | 1.6% | -0.2% |
| ROIC | 8.4% | 6.8% | 5.8% | 4.3% | 4.0% | -0.4% |
| ROE | 22.9% | 18.9% | 16.7% | 15.9% | 14.8% | -1.1% |
Revenue and profitability
The company's Revenue surged on 17.3%.
Net Income marign decreased slightly on 1.00 pp from 20.4% to 19.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 1.6%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 1.7%.
Return on investment
The company operates at good ROE (14.77%) while ROIC is low (3.97%). ROIC showed almost no change in FY2016. ROE decreased slightly on 1.1 pp from 15.9% to 14.8% in FY2016.
Leverage (Debt)
Debt increased on 7.0% while cash jumped on 12.3%.
Appendix 1: Peers in Banks
Below we provide Huishang Bank Corp Ltd benchmarking against other companies in Banks 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 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | | 43.4% | 6.8% | 116.4% | |
| 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% | |
| Harbin Bank Co Ltd ($6138) | 58.3% | 12.1% | 29.2% | 10.5% | |
| |
|---|
| Median (13 companies) | 36.7% | 11.7% | 19.6% | 2.1% | -4.7% |
|---|
| Huishang Bank Corp Ltd ($3698) | | 22.8% | 24.3% | 24.6% | 17.3% |
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 (13 companies) | 2.6% | 3.2% | 1.8% | 2.8% | 1.8% |
|---|
| Huishang Bank Corp Ltd ($3698) | 2.6% | 1.9% | 1.7% | 1.7% | 1.6% |
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% |
| Chong Hing Bank Ltd ($1111) | 5.5% | 5.2% | 16.4% | 5.7% | 5.6% |
| Chongqing Rural Commercial Bank Co Ltd ($3618) | 6.3% | 5.7% | 5.2% | 4.3% | 4.1% |
| Shengjing Bank Co Ltd ($2066) | 6.0% | 6.6% | 5.3% | 3.5% | 2.3% |
| Bank of East Asia Ltd/The ($23) | 6.0% | 6.2% | 5.6% | 3.7% | 2.1% |
| |
|---|
| Median (11 companies) | 6.0% | 5.9% | 5.3% | 4.8% | 2.3% |
|---|
| Huishang Bank Corp Ltd ($3698) | 8.4% | 6.8% | 5.8% | 4.3% | 4.0% |
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 | |
|---|
