China Minsheng Banking Corp Ltd Net Income increased on 3.8%
30/03/2017 • About China Minsheng Banking Corp Ltd (
$1988) • By InTwits
China Minsheng Banking Corp Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Minsheng Banking Corp Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's a lot of higher than industry average of 2.3%.
- CAPEX is quite volatile: 10,681 in 2016, 7,490 in 2015, 18,649 in 2014, 14,700 in 2013, 9,298 in 2012
- The company has potentially unprofitable business model: ROIC is at 2.7%
- It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Minsheng Banking Corp Ltd ($1988) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 178,266 | 217,636 | 244,746 | 265,262 | 267,353 | 0.8% |
| Net Income | 37,563 | 42,278 | 44,546 | 46,111 | 47,843 | 3.8% |
Balance Sheet
|
|---|
| Cash | 656,579 | 522,687 | 547,094 | 534,259 | 524,239 | -1.9% |
| Short Term Debt | 777,262 | 573,677 | 891,719 | 990,775 | 1,845,931 | 86.3% |
| Long Term Debt | 147,104 | 173,803 | 278,871 | 352,248 | 398,376 | 13.1% |
Cash flow
|
|---|
| Capex | 9,298 | 14,700 | 18,649 | 7,490 | 10,681 | 42.6% |
Ratios
|
|---|
| Revenue growth | 31.9% | 22.1% | 12.5% | 8.4% | 0.8% | |
| Net Income Margin | 21.1% | 19.4% | 18.2% | 17.4% | 17.9% | 0.5% |
| CAPEX, % of revenue | 5.2% | 6.8% | 7.6% | 2.8% | 4.0% | 1.2% |
| ROIC | 5.6% | 5.0% | 4.7% | 3.7% | 2.7% | -1.0% |
| ROE | 25.7% | 23.4% | 20.3% | 17.0% | 14.9% | -2.2% |
China Minsheng Banking Corp Ltd ($1988) key quoterly financial indicators
| mln. CNY | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 66,440 | 63,245 | 67,395 | 70,722 | | | | |
| Net Income | 13,706 | 13,517 | 11,940 | 8,680 | | | | |
Balance Sheet
|
|---|
| Cash | 428,039 | 498,931 | 455,086 | 524,239 | | | | |
| Short Term Debt | 1,233,136 | 1,634,963 | 1,508,175 | 2,023,388 | | | | |
| Long Term Debt | 297,719 | 178,509 | 542,940 | 220,919 | | | | |
Ratios
|
|---|
| Net Income Margin | 20.6% | 21.4% | 17.7% | 12.3% | | | | |
Revenue and profitability
The company's Revenue increased slightly on 0.79%.
Net Income marign increased slightly on 0.51 pp from 17.4% to 17.9% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 4.0%. China Minsheng Banking Corp Ltd's CAPEX/Revenue decreased on 2.8 pp from 6.8% in 2013 to 4.0% in 2016. It's average CAPEX/Revenue for the last three years was 4.8%.
Return on investment
The company operates at good ROE (14.86%) while ROIC is low (2.68%). ROIC decreased slightly on 1.0 pp from 3.7% to 2.7% in 2016. ROE decreased on 2.2 pp from 17.0% to 14.9% in 2016.
Leverage (Debt)
Debt jumped on 67.1% while cash decreased slightly on 1.9%.
Appendix 1: Peers in Banks
Below we provide China Minsheng Banking Corp 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 | |
|---|
