China Motor Bus Co Ltd Net Income dropped on 92.0% while EBITDA Margin increased slightly on 1.0 pp from 58.3% to 59.3%
29/09/2020 • About China Motor Bus Co Ltd (
$26) • By InTwits
China Motor Bus Co Ltd reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- China Motor Bus Co Ltd is a company in decline: FY2020 revenue growth was -6.2%, 5 years revenue CAGR was -3.0%
- China Motor Bus Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- In the last 5 years the company invested considerably less than D&A: 1 HKDm vs. 3 HKDm. In FY2020 this situation was still the same: CAPEX was 0 while D&A was 2
- The company has potentially unprofitable business model: ROIC is 0.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 6.2%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.0 pp from 58.3% to 59.3% in FY2020. During FY2016-FY2020 EBITDA Margin bottomed in FY2019 at 58.3%.
Net Income margin dropped on 1,439 pp from 1,574% to 134% in FY2020. During FY2016-FY2020 Net Income margin topped in FY2019 at 1,574%. The efficient tax rate was 8.0% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 0.28%. China Motor Bus Co Ltd's CAPEX/Revenue showed almost no change from FY2017 to FY2020. It's average level of CAPEX/Revenue for the last three years was 0.21%.
Return on investment
The company operates at low ROIC (0.5%) and ROE (1.2%). ROIC showed almost no change in FY2020. ROE dropped on 13.4 pp from 14.6% to 1.2% in FY2020. ROIC stuck to a declining trend at -0.12 pp per annum in FY2016-FY2020. During FY2016-FY2020 ROE topped in FY2019 at 14.6%.
Leverage (Debt)
The company has no debt. Cash jumped on 61.8%.
Valuation and dividends
China Motor Bus Co Ltd's trades at EV/EBITDA 37.0x and P/E 41.4x.
The company paid 1,597.4% of Net Income as dividends in FY2020.
Management team
At the end of financial year the company had 42.1% shares owned by insiders. Insider ownership didn't change in 2020.
Financial and operational results
FY ended 30/06/2020
China Motor Bus Co Ltd ($26) key annual financial indicators| mln. HKD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 91.644 | 81.701 | 85.392 | 88.417 | 82.972 | -6.2% |
| SG&A | 7.185 | | | | | |
| EBITDA | 81.472 | 52.615 | 53.020 | 51.536 | 49.206 | -4.5% |
| EBIT | | 52.315 | 52.702 | 51.207 | 47.452 | -7.3% |
| Tax | | 7.906 | 11.718 | 11.386 | 9.719 | -14.6% |
| Net Income | 349.383 | 627.852 | 942.459 | 1,391.330 | 111.495 | -92.0% |
Balance Sheet
|
|---|
| Cash | 1,895.592 | 1,949.253 | 1,602.938 | 1,728.823 | 2,796.697 | 61.8% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.293 | 0.157 | 0.181 | 0.134 | 0.232 | 73.1% |
| Dividends | | 131.000 | 136.000 | 145.000 | 1,781.000 | 1,128.3% |
Ratios
|
|---|
| Revenue growth | -5.2% | -10.8% | 4.5% | 3.5% | -6.2% | |
| EBITDA growth | 27.8% | -35.4% | 0.8% | -2.8% | -4.5% | |
|
|---|
| EBITDA Margin | 88.9% | 64.4% | 62.1% | 58.3% | 59.3% | 1.0% |
| EBIT Margin | | 64.0% | 61.7% | 57.9% | 57.2% | -0.7% |
| SG&A, % of revenue | 7.8% | | | | | |
| Net Income Margin | 381.2% | 768.5% | 1,103.7% | 1,573.6% | 134.4% | -1,439.2% |
| CAPEX, % of revenue | 0.3% | 0.2% | 0.2% | 0.2% | 0.3% | 0.1% |
|
|---|
| ROIC | 1.1% | 0.7% | 0.6% | 0.5% | 0.5% | -0.0% |
| ROE | 4.6% | 8.0% | 11.1% | 14.6% | 1.2% | -13.4% |
| Net Debt/EBITDA | -23.3x | -37.0x | -30.2x | -33.5x | -56.8x | -23.3x |
People
|
|---|
| Insider ownership | | 42.1% | 42.1% | 42.1% | 42.1% | 0.0% |
Peers in Real Estate
Below we provide China Motor Bus Co Ltd benchmarking against other companies in Real Estate 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| New World Development Co Ltd ($17) | 7.8% | -4.9% | 7.2% | 26.5% | - |
| Sun Hung Kai Properties Ltd ($16) | - | -14.2% | 9.5% | -0.4% | -3.1% |
| Dynamic Holdings Ltd ($29) | - | -2.0% | 11.1% | -6.0% | -13.3% |
| |
|---|
| Median (3 companies) | 10.3% | 6.6% | 9.5% | -0.4% | -8.2% |
|---|
| China Motor Bus Co Ltd ($26) | - | -10.8% | 4.5% | 3.5% | -6.2% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dynamic Holdings Ltd ($29) | 80.8% | 78.3% | 78.5% | 76.1% | 71.2% |
| Sun Hung Kai Properties Ltd ($16) | 38.1% | 45.7% | 48.9% | 52.6% | 51.0% |
| New World Development Co Ltd ($17) | 31.1% | 32.2% | 33.9% | 32.6% | - |
| |
|---|
| Median (3 companies) | 42.2% | 38.2% | 48.9% | 52.6% | 61.1% |
|---|
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Sun Hung Kai Properties Ltd ($16) | 43.2% | 57.6% | 61.9% | 62.2% | 42.8% |
| New World Development Co Ltd ($17) | 32.8% | 24.0% | 55.0% | 36.0% | - |
| Dynamic Holdings Ltd ($29) | 57.3% | 144.1% | 130.0% | 23.2% | -68.9% |
| |
|---|
| Median (3 companies) | 29.0% | 37.7% | 61.9% | 36.0% | -13.0% |
|---|
| China Motor Bus Co Ltd ($26) | 88.9% | 64.4% | 62.1% | 58.3% | 59.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Sun Hung Kai Properties Ltd ($16) | 7.3% | 11.8% | 27.1% | 14.7% | 59.6% |
| New World Development Co Ltd ($17) | 15.0% | 28.5% | 16.4% | 13.2% | - |
| Dynamic Holdings Ltd ($29) | 0.1% | 0.8% | 0.1% | 1.1% | 0.2% |
| |
|---|
| Median (3 companies) | 4.0% | 3.8% | 16.4% | 13.2% | 29.9% |
|---|
| China Motor Bus Co Ltd ($26) | 0.3% | 0.2% | 0.2% | 0.2% | 0.3% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Sun Hung Kai Properties Ltd ($16) | 6.5% | 7.3% | 8.0% | 7.3% | 4.3% |
| New World Development Co Ltd ($17) | 5.0% | 3.2% | 7.7% | 5.8% | - |
| Dynamic Holdings Ltd ($29) | 2.4% | 5.8% | 5.5% | 0.9% | -2.6% |
| |
|---|
| Median (3 companies) | 3.5% | 7.9% | 7.7% | 5.8% | 0.8% |
|---|
| China Motor Bus Co Ltd ($26) | 1.1% | 0.7% | 0.6% | 0.5% | 0.5% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| New World Development Co Ltd ($17) | 4.1x | 5.9x | 2.3x | 3.3x | - |
| Sun Hung Kai Properties Ltd ($16) | 1.3x | 0.8x | 1.2x | 1.4x | 2.3x |
| Dynamic Holdings Ltd ($29) | -1.6x | -0.8x | -0.8x | -6.2x | - |
| |
|---|
| Median (3 companies) | 2.9x | 1.4x | 1.2x | 1.4x | 2.3x |
|---|
| China Motor Bus Co Ltd ($26) | -23.3x | -37.0x | -30.2x | -33.5x | -56.8x |
