China CITIC Bank Corp Ltd revenue increased on 7.6%
26/03/2018 • About China CITIC Bank Corp Ltd (
$998) • By InTwits
China CITIC Bank Corp Ltd reported 2017 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China CITIC Bank Corp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 2.3%.
- CAPEX is quite volatile: 10,244 in 2017, 10,681 in 2016, 7,490 in 2015, 18,649 in 2014, 14,700 in 2013
- The company has potentially unprofitable business model: ROIC is at 2.7%
- It operates with high leverage: Net Debt/EBITDA is 0.5x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China CITIC Bank Corp Ltd ($998) key annual financial indicators
| mln. CNY | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 183,991 | 237,278 | 254,551 | 258,002 | 277,560 | 7.6% |
| Net Income | 39,175 | 40,692 | 41,158 | 41,629 | 42,566 | 2.3% |
Balance Sheet
|
|---|
| Cash | 496,476 | 538,486 | 511,189 | 553,328 | 568,300 | 2.7% |
| Short Term Debt | 601,619 | 707,940 | 1,332,601 | 1,065,169 | 875,602 | -17.8% |
| Long Term Debt | 73,901 | 148,685 | 111,826 | 291,580 | 405,899 | 39.2% |
Cash flow
|
|---|
| Capex | 5,292 | 11,432 | 6,427 | 7,708 | 7,980 | 3.5% |
Ratios
|
|---|
| Revenue growth | 19.5% | 29.0% | 7.3% | 1.4% | 7.6% | |
| Net Income Margin | 21.3% | 17.1% | 16.2% | 16.1% | 15.3% | -0.8% |
| CAPEX, % of revenue | 2.9% | 4.8% | 2.5% | 3.0% | 2.9% | -0.1% |
| ROIC | 6.5% | 5.0% | 3.5% | 3.0% | 2.7% | -0.3% |
| ROE | 18.5% | 16.8% | 14.3% | 12.6% | 12.0% | -0.6% |
China CITIC Bank Corp Ltd ($998) key quoterly financial indicators
| mln. CNY | 17Q1 | 17Q2 | 17Q3 | 17Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 67,744 | 68,804 | 69,425 | 71,587 | 2.1% | 4.2% | 9.6% | -26.2% |
| Net Income | 11,389 | 12,622 | 10,727 | 7,828 | 1.7% | 1.8% | -2.0% | 10.5% |
Balance Sheet
|
|---|
| Cash | 519,072 | 519,590 | 492,285 | 568,300 | -10.8% | -15.3% | -7.1% | 2.7% |
| Short Term Debt | 1,134,111 | 945,092 | 932,078 | 875,602 | -9.1% | -20.8% | -16.8% | -17.8% |
| Long Term Debt | 638,431 | 352,538 | 670,886 | 405,899 | 51.2% | -27.8% | 22.0% | 39.2% |
Ratios
|
|---|
| Net Income Margin | 16.8% | 18.3% | 15.5% | 10.9% | -0.1% | -0.4% | -1.8% | 3.6% |
Revenue and profitability
China CITIC Bank Corp Ltd's Revenue increased on 7.6%. Revenue growth showed slow down in 17Q4 - it was -26.2% YoY.
Net Income marign decreased slightly on 0.80 pp from 16.1% to 15.3% in 2017.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.9% in 2017. China CITIC Bank Corp Ltd showed small CAPEX/Revenue decline of 1.9 pp from 4.8% in 2014 to 2.9% in 2017. Average CAPEX/Revenue for the last three years was 2.8%.
Return on investment
The company operates at good ROE (12.01%) while ROIC is low (2.75%). ROIC showed almost no change in 2017. ROE decreased slightly on 0.57 pp from 12.6% to 12.0% in 2017.
Leverage (Debt)
Debt decreased on 5.5% while cash increased on 2.7%.
Appendix 1: Peers in Banks
Below we provide China CITIC Bank 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 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Shengjing Bank Co Ltd ($2066) | 36.3% | 40.1% | 24.3% | 17.5% | |
| Huishang Bank Corp Ltd ($3698) | 22.8% | 24.3% | 24.6% | 17.3% | |
| Chong Hing Bank Ltd ($1111) | -1.2% | 121.1% | -17.4% | 0.7% | |
| Hang Seng Bank Ltd ($11) | 8.8% | 9.3% | 1.4% | -2.0% | |
| Chongqing Rural Commercial Bank Co Ltd ($3618) | 21.7% | 23.6% | 7.6% | -4.7% | |
| |
|---|
| Median (8 companies) | 12.1% | 23.6% | 4.8% | -3.3% | 7.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Shengjing Bank Co Ltd ($2066) | 2.2% | 5.0% | 3.0% | 2.3% | |
| Chong Hing Bank Ltd ($1111) | 1.6% | 0.7% | 1.9% | 2.1% | |
| Chongqing Rural Commercial Bank Co Ltd ($3618) | 4.3% | 4.8% | 4.4% | 2.0% | |
| HSBC Holdings ($5) | 2.3% | 1.8% | 1.7% | 1.8% | |
| Bank of East Asia Ltd/The ($23) | 2.9% | 1.1% | 1.6% | 1.8% | |
| |
|---|
| Median (8 companies) | 2.9% | 1.8% | 2.5% | 1.8% | 0.8% |
|---|
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Hang Seng Bank Ltd ($11) | 9.5% | 9.0% | 8.3% | 8.1% | |
| Chong Hing Bank Ltd ($1111) | 5.2% | 16.4% | 5.7% | 5.6% | |
| Chongqing Rural Commercial Bank Co Ltd ($3618) | 5.7% | 5.2% | 4.3% | 4.1% | |
| Huishang Bank Corp Ltd ($3698) | 6.8% | 5.8% | 4.3% | 4.0% | |
| Shengjing Bank Co Ltd ($2066) | 6.6% | 5.3% | 3.5% | 2.3% | |
| |
|---|
| Median (12 companies) | 6.2% | 5.4% | 4.3% | 3.1% | 1.5% |
|---|
