Anhui Expressway Co Ltd reports 58.8 pp EBITDA Margin decline from 58.8% to in 2016 in 2016
26/03/2017 • About Anhui Expressway Co Ltd (
$995) • By InTwits
Anhui Expressway Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has business model with average profitability: ROIC is at 12.0%
- It operates with high leverage: Net Debt/EBITDA is -1.3x 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.
Anhui Expressway Co Ltd ($995) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,122 | 3,404 | 3,037 | 3,158 | 3,064 | -3.0% |
| Gross Profit | 1,304 | 1,338 | 1,314 | 1,358 | 1,377 | 1.4% |
| SG&A | 67 | 68 | 77 | 90 | 108 | 20.3% |
| EBITDA | 1,775 | 1,841 | 1,833 | 1,858 | | -100.0% |
| Net Income | 752 | 839 | 852 | 929 | 925 | -0.5% |
Balance Sheet
|
|---|
| Cash | 763 | 546 | 463 | 709 | 1,901 | 168.0% |
| Short Term Debt | 99 | 2,163 | 443 | 363 | 129 | -64.5% |
| Long Term Debt | 2,464 | 577 | 851 | 1,053 | 1,650 | 56.7% |
Cash flow
|
|---|
| Capex | 45 | 49 | 51 | 66 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 2.3% | 9.0% | -10.8% | 4.0% | -3.0% | |
| EBITDA growth | -7.2% | 3.7% | -0.4% | 1.3% | | |
| Gross Margin | 41.8% | 39.3% | 43.3% | 43.0% | 45.0% | 2.0% |
| EBITDA Margin | 56.9% | 54.1% | 60.4% | 58.8% | 0.0% | -58.8% |
| Net Income Margin | 24.1% | 24.7% | 28.1% | 29.4% | 30.2% | 0.8% |
| SG&A, % of revenue | 2.1% | 2.0% | 2.5% | 2.8% | 3.5% | 0.7% |
| CAPEX, % of revenue | 1.4% | 1.4% | 1.7% | 2.1% | | -2.1% |
| ROIC | 12.4% | 11.8% | 11.4% | 11.8% | 12.0% | 0.2% |
| ROE | 11.5% | 12.2% | 11.5% | 11.7% | 10.9% | -0.8% |
| Net Debt/EBITDA | 1.0x | 1.2x | 0.5x | 0.4x | | -0.4x |
Revenue and profitability
Anhui Expressway Co Ltd's Revenue decreased on 3.0%.
Gross Margin increased slightly on 2.0 pp from 43.0% to 45.0% in FY2016. SG&A as a % of Revenue increased slightly on 0.68 pp from 2.8% to 3.5% in FY2016.
Net Income marign increased slightly on 0.77 pp from 29.4% to 30.2% in FY2016.
Return on investment
The company operates at low ROIC (11.96%) and ROE (10.93%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.78 pp from 11.7% to 10.9% in FY2016.
Leverage (Debt)
Debt jumped on 25.6% while cash surged on 168%.
Management team
Xu Zhen is a Anhui Expressway Co Ltd's CEO. Xu Zhen has spent 3 years at the company.
Appendix 1: Peers in Commercial Services
Below you can find Anhui 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% | 8.3% | 10.0% | 4.3% | 7.3% |
|---|
| Anhui Expressway Co Ltd ($995) | | 9.0% | -10.8% | 4.0% | -3.0% |
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% | 32.3% |
|---|
| Anhui Expressway Co Ltd ($995) | 41.8% | 39.3% | 43.3% | 43.0% | 45.0% |
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% |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | 63.6% |
| |
|---|
| Median (68 companies) | 17.5% | 15.5% | 11.1% | 9.3% | 4.0% |
|---|
| Anhui Expressway Co Ltd ($995) | 56.9% | 54.1% | 60.4% | 58.8% | |
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% | 2.8% | 4.0% | 3.1% |
|---|
| Anhui Expressway Co Ltd ($995) | 1.4% | 1.4% | 1.7% | 2.1% | |
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% | 3.2% |
|---|
| Anhui Expressway Co Ltd ($995) | 12.4% | 11.8% | 11.4% | 11.8% | 12.0% |
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 | -1.7x |
|---|
| Anhui Expressway Co Ltd ($995) | 1.0x | 1.2x | 0.5x | 0.4x | |
