China Everbright Bank Co Ltd Net Income increased on 2.7% and Revenue increased on 2.3%
30/03/2017 • About China Everbright Bank Co Ltd (
$6818) • By InTwits
China Everbright Bank Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Everbright Bank Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 2.3%.
- CAPEX is quite volatile: 2,147 in 2016, 2,063 in 2015, 1,831 in 2014, 2,439 in 2013, 151 in 2012
- The company has potentially unprofitable business model: ROIC is at 3.2%
- It operates with high leverage: Net Debt/EBITDA is 0.9x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Everbright Bank Co Ltd ($6818) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 114,263 | 135,583 | 155,784 | 168,887 | 172,769 | 2.3% |
| Net Income | 23,591 | 26,715 | 28,883 | 29,528 | 30,329 | 2.7% |
Balance Sheet
|
|---|
| Cash | 285,478 | 312,643 | 354,185 | 326,735 | 381,620 | 16.8% |
| Short Term Debt | 550,766 | 489,421 | 573,971 | 616,211 | 1,112,855 | 80.6% |
| Long Term Debt | 52,700 | 39,700 | 52,900 | 55,700 | 59,151 | 6.2% |
Cash flow
|
|---|
| Capex | 2,748 | 2,625 | 2,837 | 1,782 | 3,210 | 80.1% |
Ratios
|
|---|
| Revenue growth | 34.6% | 18.7% | 14.9% | 8.4% | 2.3% | |
| Net Income Margin | 20.6% | 19.7% | 18.5% | 17.5% | 17.6% | 0.1% |
| CAPEX, % of revenue | 2.4% | 1.9% | 1.8% | 1.1% | 1.9% | 0.8% |
| ROIC | 4.9% | 4.4% | 4.7% | 4.2% | 3.2% | -1.0% |
| ROE | 22.4% | 20.0% | 17.4% | 14.7% | 13.8% | -0.9% |
China Everbright Bank Co Ltd ($6818) key quoterly financial indicators
| mln. CNY | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 42,224 | 42,078 | 44,293 | 44,174 | | | | |
| Net Income | 8,446 | 7,993 | 7,998 | 5,892 | | | | |
Balance Sheet
|
|---|
| Cash | 369,353 | 389,003 | 357,017 | 381,620 | | | | |
| Short Term Debt | 637,442 | 875,256 | 883,936 | 1,112,855 | | | | |
| Long Term Debt | 305,156 | 55,700 | 425,563 | 59,151 | | | | |
Ratios
|
|---|
| Net Income Margin | 20.0% | 19.0% | 18.1% | 13.3% | | | | |
Revenue and profitability
China Everbright Bank Co Ltd's Revenue increased on 2.3%.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.9% in 2016. The company showed almost no change in CAPEX/Revenue from 2013 to 2016. It's average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at good ROE (13.80%) while ROIC is low (3.23%). ROIC decreased slightly on 0.98 pp from 4.2% to 3.2% in 2016. ROE decreased slightly on 0.87 pp from 14.7% to 13.8% in 2016.
Leverage (Debt)
Debt surged on 74.4% while cash surged on 16.8%.
Appendix 1: Peers in Banks
Below we provide China Everbright Bank Co 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% | |
| 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 | |
|---|
