Jiangsu Expressway Co Ltd Net Income surged on 33.5% in 2016 and EBITDA Margin increased on 2.1 pp from 61.5% to 63.6%
24/03/2017 • About Jiangsu Expressway Co Ltd (
$177) • By InTwits
Jiangsu Expressway Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jiangsu Expressway Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%. At the same time it's a lot of higher than industry average of 8.6%.
- CAPEX is quite volatile: 584 in 2016, 786 in 2015, 411 in 2014, 241 in 2013, 165 in 2012
- The company has highly profitable business model: ROIC is at 13.0%
- It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is -1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jiangsu Expressway Co Ltd ($177) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,587 | 7,412 | 8,557 | 8,457 | 9,008 | 6.5% |
| Gross Profit | 3,532 | 3,718 | 3,883 | 4,042 | 4,644 | 14.9% |
| SG&A | 114 | 116 | 154 | 128 | 130 | 1.1% |
| EBITDA | 4,323 | 4,498 | 5,072 | 5,204 | 5,730 | 10.1% |
| Net Income | 2,333 | 2,708 | 2,228 | 2,507 | 3,346 | 33.5% |
Balance Sheet
|
|---|
| Cash | 686 | 409 | 709 | 221 | 194 | -12.1% |
| Short Term Debt | 4,752 | 4,222 | 7,584 | 8,648 | 4,868 | -43.7% |
| Long Term Debt | 950 | 1,262 | 6,667 | 4,839 | 5,930 | 22.5% |
Cash flow
|
|---|
| Capex | 165 | 241 | 411 | 786 | 584 | -25.7% |
Ratios
|
|---|
| Revenue growth | 5.2% | -2.3% | 15.5% | -1.2% | 6.5% | |
| EBITDA growth | -1.4% | 4.1% | 12.8% | 2.6% | 10.1% | |
| Gross Margin | 46.6% | 50.2% | 45.4% | 47.8% | 51.6% | 3.8% |
| EBITDA Margin | 57.0% | 60.7% | 59.3% | 61.5% | 63.6% | 2.1% |
| Net Income Margin | 30.8% | 36.5% | 26.0% | 29.6% | 37.1% | 7.5% |
| SG&A, % of revenue | 1.5% | 1.6% | 1.8% | 1.5% | 1.4% | -0.1% |
| CAPEX, % of revenue | 2.2% | 3.2% | 4.8% | 9.3% | 6.5% | -2.8% |
| ROIC | 13.5% | 13.9% | 11.9% | 10.9% | 13.0% | 2.1% |
| ROE | 12.7% | 14.1% | 11.0% | 12.1% | 15.7% | 3.6% |
| Net Debt/EBITDA | 1.2x | 1.1x | 2.7x | 2.5x | 1.9x | -0.7x |
Revenue and profitability
Jiangsu Expressway Co Ltd's Revenue increased on 6.5%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.1 pp from 61.5% to 63.6% in 2016.
Gross Margin increased on 3.8 pp from 47.8% to 51.6% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign increased on 7.5 pp from 29.6% to 37.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.5% in 2016. Jiangsu Expressway Co Ltd's CAPEX/Revenue increased on 3.2 pp from 3.2% in 2013 to 6.5% in 2016. It's average CAPEX/Revenue for the last three years was 6.9%.
Return on investment
The company operates at good ROIC (13.02%) and ROE (15.68%). ROIC increased on 2.1 pp from 10.9% to 13.0% in 2016. ROE increased on 3.6 pp from 12.1% to 15.7% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 1.9x. Net Debt / EBITDA dropped on 0.7x from 2.5x to 1.9x in 2016. Debt dropped on 19.9% while cash dropped on 12.1%.
Appendix 1: Peers in Commercial Services
Below you can find Jiangsu Expressway Co Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 99.1% | 14.9% | -88.3% | 271.8% | |
| China Seven Star Holdings Ltd ($245) | | -81.8% | -39.3% | 195.3% | 14.5% |
| China Smartpay Group Holdings Ltd ($8325) | | 274.7% | 75.6% | 124.5% | 79.5% |
| Celebrate International Holdings Ltd ($8212) | | 1,437.6% | -6.3% | 117.0% | -78.1% |
| Haier Healthwise Holdings Ltd ($348) | | -50.1% | -7.5% | 101.1% | -9.4% |
| |
|---|
| Median (68 companies) | -6.2% | 8.6% | 9.9% | 4.4% | 8.2% |
|---|
| Jiangsu Expressway Co Ltd ($177) | | -2.3% | 15.5% | -1.2% | 6.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HC International Inc ($2280) | 87.5% | 91.9% | 92.5% | 89.6% | |
| Winto Group Holdings Ltd ($8238) | 90.2% | 93.4% | 92.0% | 88.4% | |
| Dingyi Group Investment Ltd ($508) | 75.8% | | 64.5% | 86.0% | 89.6% |
| Fu Shou Yuan International Group Ltd ($1448) | 80.5% | 80.4% | 80.0% | 77.6% | 79.1% |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| |
|---|
| Median (61 companies) | 31.5% | 30.5% | 31.0% | 30.9% | 31.9% |
|---|
| Jiangsu Expressway Co Ltd ($177) | 46.6% | 50.2% | 45.4% | 47.8% | 51.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | 61.6% | 84.9% | 75.9% | 80.9% | |
| Shenzhen International Holdings Ltd ($152) | 60.2% | 65.8% | 97.1% | 73.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 78.3% | 74.5% | 74.0% | 71.6% | 84.1% |
| CAR Inc ($699) | 43.6% | 30.1% | 43.1% | 67.4% | 62.5% |
| Dragon Crown Group Holdings Ltd ($935) | 67.3% | 62.9% | 60.2% | 61.1% | |
| |
|---|
| Median (68 companies) | 17.5% | 15.5% | 11.1% | 9.3% | 3.0% |
|---|
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | 63.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 21.3% | 9.0% | 13.9% | 47.4% | |
| COSCO Pacific Ltd ($1199) | 96.6% | 66.6% | 43.3% | 45.8% | |
| Shenzhen International Holdings Ltd ($152) | 23.0% | 22.1% | 20.9% | 35.0% | |
| Celebrate International Holdings Ltd ($8212) | 211.7% | 12.0% | 6.2% | 34.2% | 18.6% |
| China Maple Leaf Educational Systems Ltd ($1317) | 25.7% | 50.9% | 21.1% | 32.8% | 18.0% |
| |
|---|
| Median (68 companies) | 2.9% | 3.6% | 2.5% | 3.4% | 2.3% |
|---|
| Jiangsu Expressway Co Ltd ($177) | 2.2% | 3.2% | 4.8% | 9.3% | 6.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bamboos Health Care Holdings Ltd ($8216) | | 71.1% | 50.1% | 58.3% | 40.0% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 51.5% | 26.6% | 30.0% | 29.5% | 19.8% |
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | 18.8% |
| China Packaging Holdings Development Ltd ($1439) | 52.0% | 46.6% | 34.1% | 19.8% | |
| iOne Holdings Ltd ($982) | 12.5% | 11.1% | 9.4% | 19.2% | |
| |
|---|
| Median (68 companies) | 6.3% | 6.7% | 5.8% | 3.3% | 2.6% |
|---|
| Jiangsu Expressway Co Ltd ($177) | 13.5% | 13.9% | 11.9% | 10.9% | 13.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | 22.2x | |
| Kai Yuan Holdings Ltd ($1215) | -143.8x | -0.7x | | 18.8x | |
| Eagle Legend Asia Ltd ($936) | 4.0x | 4.0x | 3.3x | 6.2x | |
| Sichuan Expressway Co Ltd ($107) | 2.7x | 3.8x | 4.3x | 5.5x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 4.5x | 3.1x | 2.7x | 5.3x | 3.5x |
| |
|---|
| Median (44 companies) | -0.0x | -0.7x | -0.9x | -0.8x | -2.0x |
|---|
| Jiangsu Expressway Co Ltd ($177) | 1.2x | 1.1x | 2.7x | 2.5x | 1.9x |
