Agricultural Bank of China Ltd revenue decreased on 7.5%
28/03/2017 • About Agricultural Bank of China Ltd (
$1288) • By InTwits
Agricultural Bank of China Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Agricultural Bank of China Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's a lot of higher than industry average of 2.3%.
- The company has potentially unprofitable business model: ROIC is at 6.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Agricultural Bank of China Ltd ($1288) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 653,759 | 709,088 | 800,181 | 836,616 | 773,879 | -7.5% |
| Net Income | 145,094 | 166,315 | 179,461 | 180,582 | 183,941 | 1.9% |
Balance Sheet
|
|---|
| Cash | 2,613,111 | 2,603,802 | 2,743,065 | 2,587,057 | 2,811,653 | 8.7% |
| Short Term Debt | 941,421 | 945,327 | 1,106,486 | 1,585,732 | 1,475,569 | -6.9% |
| Long Term Debt | 150,951 | 156,404 | 272,115 | 259,075 | 493,159 | 90.4% |
Cash flow
|
|---|
| Capex | 27,870 | 28,170 | 25,997 | 21,687 | 22,637 | 4.4% |
Ratios
|
|---|
| Revenue growth | 19.5% | 8.5% | 12.8% | 4.6% | -7.5% | |
| Net Income Margin | 22.2% | 23.5% | 22.4% | 21.6% | 23.8% | 2.2% |
| CAPEX, % of revenue | 4.3% | 4.0% | 3.2% | 2.6% | 2.9% | 0.3% |
| ROIC | 9.9% | 10.0% | 9.3% | 7.4% | 6.2% | -1.1% |
| ROE | 20.7% | 20.9% | 19.6% | 16.8% | 15.5% | -1.3% |
Agricultural Bank of China Ltd ($1288) key quoterly financial indicators
| mln. CNY | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 207,382 | 187,954 | 191,993 | 124,127 | | | | |
| Net Income | 54,688 | 50,460 | 49,022 | 29,771 | | | | |
Balance Sheet
|
|---|
| Cash | 2,661,987 | 2,628,945 | 2,862,087 | 2,811,653 | | | | |
| Short Term Debt | 1,264,823 | 1,436,440 | 1,234,883 | 1,475,569 | | | | |
| Long Term Debt | 453,217 | 265,718 | 535,124 | 493,159 | | | | |
Ratios
|
|---|
| Net Income Margin | 26.4% | 26.8% | 25.5% | 24.0% | | | | |
Revenue and profitability
The company's Revenue decreased on 7.5%.
Net Income marign increased on 2.2 pp from 21.6% to 23.8% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Agricultural Bank of China Ltd had CAPEX/Revenue of 2.9%. CAPEX/Revenue decreased slightly on 1.0 pp from 4.0% in 2013 to 2.9% in 2016. It's average CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at good ROE (15.53%) while ROIC is low (6.25%). ROIC decreased slightly on 1.1 pp from 7.4% to 6.2% in 2016. ROE decreased slightly on 1.3 pp from 16.8% to 15.5% in 2016.
Leverage (Debt)
Debt increased on 6.7% while cash increased on 8.7%.
Appendix 1: Peers in Banks
Below you can find Agricultural Bank of China Ltd benchmarking vs. other companies in Banks 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 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | | 43.4% | 6.8% | 116.4% | |
| Huishang Bank Corp Ltd ($3698) | | 22.8% | 24.3% | 24.6% | 17.3% |
| 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% | |
| |
|---|
| Median (14 companies) | 36.7% | 12.1% | 23.6% | 4.8% | -3.3% |
|---|
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 (14 companies) | 2.6% | 2.9% | 1.8% | 2.5% | 1.8% |
|---|
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% |
| Huishang Bank Corp Ltd ($3698) | 8.4% | 6.8% | 5.8% | 4.3% | 4.0% |
| Shengjing Bank Co Ltd ($2066) | 6.0% | 6.6% | 5.3% | 3.5% | 2.3% |
| |
|---|
| Median (12 companies) | 6.0% | 6.2% | 5.4% | 4.3% | 3.1% |
|---|
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 | |
|---|
