CLP Holdings Ltd revenue jumped on 15.9% while EBITDA Margin decreased on 2.4 pp from 30.5% to 28.1%
26/02/2018 • About CLP Holdings Ltd (
$2) • By InTwits
CLP Holdings Ltd reported 2017 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CLP Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.8%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 1,818 in 2017, 1,432 in 2016, 1,594 in 2015, 1,879 in 2014, 3,298 in 2013
- The company has business model with average profitability: ROIC is at 10.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CLP Holdings Ltd ($2) key annual financial indicators
| mln. HKD | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 104,530 | 92,259 | 80,700 | 79,434 | 92,073 | 15.9% |
| EBITDA | 16,425 | 21,812 | 28,840 | 24,240 | 25,914 | 6.9% |
| Net Income | 6,060 | 11,373 | 15,903 | 12,958 | 14,498 | 11.9% |
Balance Sheet
|
|---|
| Cash | 5,233 | 4,393 | 3,799 | 4,467 | 6,529 | 46.2% |
| Short Term Debt | 9,881 | 9,637 | 13,189 | 10,651 | 8,472 | -20.5% |
| Long Term Debt | 74,146 | 57,825 | 42,294 | 40,995 | 48,869 | 19.2% |
Cash flow
|
|---|
| Capex | 8,462 | 9,192 | 10,871 | 9,756 | 9,538 | -2.2% |
Ratios
|
|---|
| Revenue growth | -0.3% | -11.7% | -12.5% | -1.6% | 15.9% | |
| EBITDA growth | -18.6% | 32.8% | 32.2% | -16.0% | 6.9% | |
| EBITDA Margin | 15.7% | 23.6% | 35.7% | 30.5% | 28.1% | -2.4% |
| Net Income Margin | 5.8% | 12.3% | 19.7% | 16.3% | 15.7% | -0.6% |
| CAPEX, % of revenue | 8.1% | 10.0% | 13.5% | 12.3% | 10.4% | -1.9% |
| ROIC | 4.8% | 8.5% | 12.8% | 10.1% | 10.1% | -0.0% |
| ROE | 6.8% | 12.8% | 17.3% | 13.3% | 13.8% | 0.5% |
| Net Debt/EBITDA | 4.8x | 2.9x | 1.8x | 1.9x | 2.0x | 0.0x |
Revenue and profitability
CLP Holdings Ltd's Revenue surged on 15.9%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.62 pp from 20.4% to 21.0% in 2017.
Net Income marign decreased slightly on 0.57 pp from 16.3% to 15.7% in 2017.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 10.4% in 2017. The company showed almost no change in CAPEX/Revenue from 2014 to 2017. It's average CAPEX/Revenue for the last three years was 12.0%.
Return on investment
The company operates at good ROE (13.79%) while ROIC is low (10.11%). ROIC showed almost no change in 2017. ROE showed almost no change in 2017.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.0x and Debt / EBITDA is 2.2x. Net Debt / EBITDA increased slightly on 0.014x from 1.9x to 2.0x in 2017. Debt jumped on 11.0% while cash surged on 46.2%.
Valuation
CLP Holdings Ltd's trades at EV/EBITDA 9.6x and P/E 13.6x.
Appendix 1: Peers in Electric
Below we provide CLP Holdings Ltd benchmarking against other companies in Electric 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 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| CNNC International Ltd ($2302) | 179.8% | -55.5% | -88.9% | 228.0% | |
| China Power New Energy Development Co Ltd ($735) | 20.3% | 7.2% | 2.6% | 96.6% | |
| CGN Power Co Ltd ($1816) | -1.2% | 19.3% | 12.3% | 41.4% | |
| Huadian Fuxin Energy Corp Ltd ($816) | 16.7% | 4.9% | 10.4% | 3.7% | |
| China Datang Corp Renewable Power Co Ltd ($1798) | 28.9% | -7.9% | 7.8% | 3.5% | |
| |
|---|
| Median (11 companies) | 11.8% | 7.2% | -1.2% | 1.9% | |
|---|
| CLP Holdings Ltd ($2) | | -11.7% | -12.5% | -1.6% | 15.9% |
Top companies by Gross margin, %
| Top | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Power Assets Holdings Ltd ($6) | 63.5% | 85.6% | 99.4% | 99.5% | |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 58.6% | 54.0% | 53.7% | 53.0% | |
| CGN Power Co Ltd ($1816) | 46.9% | 48.6% | 47.9% | 43.7% | |
| CNNC International Ltd ($2302) | 12.3% | 7.6% | 2.7% | -8.0% | |
| |
|---|
| Median (4 companies) | 52.8% | 48.6% | 50.8% | 48.3% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 77.6% | 73.3% | 71.7% | 70.4% | |
| CGN Power Co Ltd ($1816) | 62.6% | 60.5% | 59.4% | 52.9% | |
| China Power International Development Ltd ($2380) | 39.0% | 42.3% | 53.6% | 45.3% | |
| China Resources Power Holdings Co Ltd ($836) | 33.9% | 33.2% | 41.9% | 38.8% | |
| CGN Meiya Power Holdings Co Ltd ($1811) | 18.1% | 17.9% | 23.5% | 29.9% | |
| |
|---|
| Median (7 companies) | 39.0% | 42.3% | 52.1% | 38.8% | |
|---|
| CLP Holdings Ltd ($2) | 15.7% | 23.6% | 35.7% | 30.5% | 28.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| China Resources Power Holdings Co Ltd ($836) | 33.4% | 34.6% | 23.5% | 24.6% | |
| |
|---|
| Median (1 company) | 30.9% | 18.9% | 21.3% | 24.6% | |
|---|
| CLP Holdings Ltd ($2) | 8.1% | 10.0% | 13.5% | 12.3% | 10.4% |
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| China Resources Power Holdings Co Ltd ($836) | 9.7% | 8.0% | 11.0% | 9.2% | |
| China Power International Development Ltd ($2380) | 7.5% | 8.0% | 10.1% | 6.4% | |
| CGN Power Co Ltd ($1816) | 7.7% | 6.1% | 5.1% | 5.5% | |
| CGN Meiya Power Holdings Co Ltd ($1811) | 4.6% | 6.0% | 5.5% | 5.2% | |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 17.7% | 7.3% | 4.9% | 5.0% | |
| |
|---|
| Median (11 companies) | 6.1% | 6.0% | 5.1% | 5.2% | |
|---|
| CLP Holdings Ltd ($2) | 4.8% | 8.5% | 12.8% | 10.1% | 10.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| CGN Power Co Ltd ($1816) | 6.7x | 7.8x | 8.4x | 9.3x | |
| CGN Meiya Power Holdings Co Ltd ($1811) | 8.1x | 4.3x | 8.6x | 6.5x | |
| China Power International Development Ltd ($2380) | 6.0x | 5.1x | 3.8x | 5.4x | |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 1.3x | 5.8x | 5.1x | 4.9x | |
| China Resources Power Holdings Co Ltd ($836) | 3.7x | 3.9x | 2.7x | 3.4x | |
| |
|---|
| Median (5 companies) | 5.8x | 5.5x | 5.2x | 5.4x | |
|---|
| CLP Holdings Ltd ($2) | 4.8x | 2.9x | 1.8x | 1.9x | 2.0x |
