China Everbright Bank Co Ltd reports 11.7% revenue growth in 2017
28/03/2018 • About China Everbright Bank Co Ltd (
$6818) • By InTwits
China Everbright Bank Co Ltd reported 2017 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: 20,268 in 2017, 29,058 in 2016, 29,876 in 2015, 45,151 in 2014, 51,665 in 2013
- The company has potentially unprofitable business model: ROIC is at 2.7%
- It operates with high leverage: Net Debt/EBITDA is 0.2x 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 | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 135,583 | 155,784 | 168,887 | 172,769 | 192,983 | 11.7% |
| Net Income | 26,715 | 28,883 | 29,528 | 30,329 | 31,545 | 4.0% |
Balance Sheet
|
|---|
| Cash | 312,643 | 354,185 | 326,735 | 381,620 | 353,703 | -7.3% |
| Short Term Debt | 489,421 | 573,971 | 616,211 | 1,112,855 | 916,745 | -17.6% |
| Long Term Debt | 39,700 | 52,900 | 55,700 | 59,151 | 150,939 | 155.2% |
Cash flow
|
|---|
| Capex | 2,625 | 2,837 | 1,782 | 3,210 | 4,489 | 39.8% |
Ratios
|
|---|
| Revenue growth | 18.7% | 14.9% | 8.4% | 2.3% | 11.7% | |
| Net Income Margin | 19.7% | 18.5% | 17.5% | 17.6% | 16.3% | -1.2% |
| CAPEX, % of revenue | 1.9% | 1.8% | 1.1% | 1.9% | 2.3% | 0.5% |
| ROIC | 4.4% | 4.7% | 4.2% | 3.2% | 2.7% | -0.5% |
| ROE | 20.0% | 17.4% | 14.7% | 13.8% | 12.2% | -1.7% |
China Everbright Bank Co Ltd ($6818) key quoterly financial indicators
| mln. CNY | 17Q1 | 17Q2 | 17Q3 | 17Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 47,583 | 47,439 | 48,145 | 49,781 | 12.7% | 12.7% | 8.7% | 12.7% |
| Net Income | 8,579 | 8,360 | 8,494 | 6,112 | 1.6% | 4.6% | 6.2% | 3.7% |
Balance Sheet
|
|---|
| Cash | 360,597 | 345,530 | 354,702 | 353,703 | -2.4% | -11.2% | -0.6% | -7.3% |
| Short Term Debt | 899,789 | 858,632 | 904,230 | 916,745 | 41.2% | -1.9% | 2.3% | -17.6% |
| Long Term Debt | 606,074 | 116,835 | 485,457 | 150,939 | 98.6% | 109.8% | 14.1% | 155.2% |
Ratios
|
|---|
| Net Income Margin | 18.0% | 17.6% | 17.6% | 12.3% | -2.0% | -1.4% | -0.4% | -1.1% |
Revenue and profitability
The company's Revenue jumped on 11.7%. Revenue growth showed acceleration in 17Q4 - it increased 12.7% YoY.
Net Income marign decreased slightly on 1.2 pp from 17.6% to 16.3% in 2017.
Capital expenditures (CAPEX) and working capital investments
In 2017 the company had CAPEX/Revenue of 2.3%. CAPEX/Revenue increased slightly on 0.51 pp from 1.8% in 2014 to 2.3% in 2017. It's average level of CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at good ROE (12.15%) while ROIC is low (2.74%). ROIC showed almost no change in 2017. ROE decreased slightly on 1.7 pp from 13.8% to 12.2% in 2017.
Leverage (Debt)
Debt decreased on 8.9% while cash decreased on 7.3%.
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 | 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% |
|---|
