China Primary Energy Holdings Ltd revenue growth decelerated to 12.5% in FY2016 vs. 83.7% a year earliner
24/03/2017 • About China Primary Energy Holdings Ltd (
$8117) • By InTwits
China Primary Energy Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Primary Energy Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -11.6%
- The company operates at negative EBITDA Margin: -23.6%
- China Primary Energy Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -33.6%0
- The company has unprofitable business model: ROIC is at -11.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Primary Energy Holdings Ltd ($8117) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 39.2 | 29.9 | 88.4 | 162.4 | 182.8 | 12.5% |
| Gross Profit | -4.9 | -11.5 | 0.2 | 27.5 | 30.7 | 11.9% |
| EBITDA | -43.5 | -30.9 | -26.7 | -24.5 | -43.1 | |
| Net Income | -76.6 | -44.6 | -46.6 | -91.3 | -59.6 | |
Balance Sheet
|
|---|
| Cash | 7.1 | 20.9 | 8.7 | 62.3 | 17.5 | -71.9% |
| Short Term Debt | 246.3 | 246.3 | 37.8 | 6.8 | 11.8 | 75.3% |
| Long Term Debt | 0.0 | 0.0 | 0.7 | 49.4 | 41.5 | -15.9% |
Cash flow
|
|---|
| Capex | 9.5 | 1.6 | 18.0 | 42.5 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -56.3% | -23.6% | 195.4% | 83.7% | 12.5% | |
| EBITDA growth | 142.8% | -29.0% | -13.5% | -8.5% | 76.1% | |
| Gross Margin | -12.6% | -38.4% | 0.2% | 16.9% | 16.8% | -0.1% |
| EBITDA Margin | -111.0% | -103.2% | -30.2% | -15.1% | -23.6% | -8.5% |
| Net Income Margin | -195.3% | -148.9% | -52.7% | -56.2% | -32.6% | 23.6% |
| CAPEX, % of revenue | 24.3% | 5.4% | 20.3% | 26.2% | | -26.2% |
| ROIC | -9.9% | -8.4% | -10.1% | -11.7% | -11.6% | 0.1% |
| ROE | -26.8% | -19.2% | -20.6% | -30.2% | -18.1% | 12.2% |
Revenue and profitability
China Primary Energy Holdings Ltd's Revenue jumped on 12.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from -1.7% to -3.4% in FY2016.
Gross Margin showed almost no change in FY2016.
Net Income marign jumped on 23.6 pp from -56.2% to -32.6% in FY2016.
Return on investment
The company operates at negative ROIC (-11.56%) and ROE (-18.08%). ROIC showed almost no change in FY2016. ROE jumped on 12.2 pp from -30.2% to -18.1% in FY2016.
Leverage (Debt)
Debt level is -0.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt decreased on 4.9% while cash dropped on 71.9%.
Appendix 1: Peers in Holding Companies-Divers
Below we provide China Primary Energy Holdings Ltd benchmarking against other companies in Holding Companies-Divers 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 |
|---|
| Beijing Development HK Ltd ($154) | 12.5% | | | 1,048.9% | |
| Kong Sun Holdings Ltd ($295) | | 5.1% | 7,067.0% | 231.2% | -67.7% |
| CIAM Group Ltd ($378) | -62.2% | 47.9% | -40.0% | 211.5% | |
| Melco International Development Ltd ($200) | 16.5% | 21.7% | 3.0% | 134.9% | |
| New Century Group Hong Kong Ltd ($234) | | 326.7% | -70.3% | 118.2% | -78.2% |
| |
|---|
| Median (45 companies) | 10.2% | 5.1% | 12.6% | 6.1% | -3.9% |
|---|
| China Primary Energy Holdings Ltd ($8117) | | -23.6% | 195.4% | 83.7% | 12.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | 27.3% | 85.2% | 82.8% | 91.5% | 43.4% |
| Melco International Development Ltd ($200) | 63.1% | 52.9% | 54.5% | 79.4% | |
| CIAM Group Ltd ($378) | | | | 75.8% | |
| Emperor International Holdings Ltd ($163) | 71.3% | 64.9% | 79.2% | 75.3% | 55.3% |
| Heng Fai Enterprises Ltd ($185) | 89.0% | 89.5% | 58.3% | 74.7% | |
| |
|---|
| Median (39 companies) | 33.4% | 36.0% | 34.4% | 37.5% | 38.0% |
|---|
| China Primary Energy Holdings Ltd ($8117) | -12.6% | -38.4% | 0.2% | 16.9% | 16.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | -5.5% | 78.8% | 58.3% | 85.0% | 33.8% |
| Emperor International Holdings Ltd ($163) | 180.7% | 131.8% | 100.6% | 73.9% | -20.1% |
| Pioneer Global Group Ltd ($224) | -0.5% | -9.9% | -11.6% | 64.3% | 66.8% |
| C C Land Holdings Ltd ($1224) | 27.0% | 23.6% | 24.6% | 55.7% | |
| China Merchants Holdings International Co Ltd ($144) | 56.4% | 50.8% | 45.2% | 55.7% | |
| |
|---|
| Median (45 companies) | 3.3% | 3.8% | 9.3% | 6.8% | 9.2% |
|---|
| China Primary Energy Holdings Ltd ($8117) | -111.0% | -103.2% | -30.2% | -15.1% | -23.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heng Fai Enterprises Ltd ($185) | 4.8% | 77.1% | 310.0% | 458.1% | |
| Chinney Investments Ltd ($216) | 17.5% | 103.4% | 111.3% | 230.9% | 26.6% |
| China Investments Holdings Ltd ($132) | 4.8% | 81.9% | 382.2% | 222.5% | |
| Goldin Properties Holdings Ltd ($283) | 2,178.4% | 1,190.0% | 50.1% | 202.4% | 128.8% |
| Carnival Group International Holdings Ltd ($996) | | 137.9% | 61.0% | 133.3% | |
| |
|---|
| Median (45 companies) | 2.5% | 3.6% | 5.4% | 6.0% | 9.0% |
|---|
| China Primary Energy Holdings Ltd ($8117) | 24.3% | 5.4% | 20.3% | 26.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fulum Group Holdings Ltd ($1443) | | 116.3% | 55.5% | 29.8% | 12.9% |
| C C Land Holdings Ltd ($1224) | 7.4% | 5.3% | 7.9% | 15.0% | |
| Chinney Alliance Group Ltd ($385) | 6.4% | 8.1% | 13.6% | 15.0% | |
| Niraku GC Holdings Inc ($1245) | | 19.0% | 18.8% | 13.1% | 2.7% |
| Top Spring International Holdings Ltd ($3688) | 15.6% | 6.9% | 7.3% | 8.0% | |
| |
|---|
| Median (45 companies) | 0.1% | 0.6% | 1.2% | 0.3% | 2.2% |
|---|
| China Primary Energy Holdings Ltd ($8117) | -9.9% | -8.4% | -10.1% | -11.7% | -11.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinney Investments Ltd ($216) | 10.3x | 63.7x | 48.6x | 93.7x | 13.5x |
| Carnival Group International Holdings Ltd ($996) | | | 23.7x | 92.3x | |
| Multifield International Holdings Ltd ($898) | 3.2x | 7.3x | 3.0x | 55.9x | |
| Kong Sun Holdings Ltd ($295) | | | -23.0x | 34.0x | |
| CIAM Group Ltd ($378) | | | | 32.6x | |
| |
|---|
| Median (27 companies) | 2.4x | 2.7x | 2.8x | 2.8x | 2.8x |
|---|
