Zhejiang Expressway Co reports 43.3% EBITDA growth and 4.5 pp EBITDA Margin growth from 53.5% to 58.0%
17 Mar 2016 • About Zhejiang Expressway Co (
$ZHEH) • By InTwits
Zhejiang Expressway Co reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zhejiang Expressway Co is a growth stock: 2015 revenue growth was 32.2%, 5 year revenue CAGR was 13.1% at 2015 ROIC 15.3%
- EBITDA Margin is expanding: 58.0% in 2015 vs. 53.5% in 2014 vs. 52.8% in 2011
- Zhejiang Expressway Co has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.2%. At the same time it's in pair with industry average of 32.8%.
- CAPEX is quite volatile: 327 in 2015, 1,270 in 2014, 252 in 2013, 365 in 2012, 449 in 2011
- The company has highly profitable business model: ROIC is at 15.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zhejiang Expressway Co ($ZHEH) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,781 | 6,927 | 7,851 | 9,460 | 12,507 | 32.2% |
| Gross Profit | 2,704 | 2,353 | 2,896 | 3,562 | 5,447 | 52.9% |
| SG&A | 84 | 86 | 85 | 106 | 109 | 2.8% |
| EBITDA | 3,583 | 3,435 | 4,009 | 5,064 | 7,258 | 43.3% |
| Net Income | 1,805 | 1,649 | 1,907 | 2,265 | 2,990 | 32.0% |
Balance Sheet
|
|---|
| Cash | 3,120 | 3,392 | 1,807 | 3,357 | 4,983 | 48.5% |
| Short Term Debt | 463 | 1,660 | 1,850 | 10,813 | 10,979 | 1.5% |
| Long Term Debt | 1,000 | 680 | 300 | 3,160 | 9,190 | 190.8% |
Cash flow
|
|---|
| Capex | 449 | 365 | 252 | 1,270 | 327 | -74.3% |
Ratios
|
|---|
| Revenue growth | 0.2% | 2.2% | 13.3% | 20.5% | 32.2% | |
| EBITDA growth | -10.4% | -4.1% | 16.7% | 26.3% | 43.3% | |
| Gross Margin | 39.9% | 34.0% | 36.9% | 37.7% | 43.6% | 5.9% |
| EBITDA Margin | 52.8% | 49.6% | 51.1% | 53.5% | 58.0% | 4.5% |
| Net Income Margin | 26.6% | 23.8% | 24.3% | 23.9% | 23.9% | -0.0% |
| SG&A, % of revenue | 1.2% | 1.2% | 1.1% | 1.1% | 0.9% | -0.2% |
| CAPEX, % of revenue | 6.6% | 5.3% | 3.2% | 13.4% | 2.6% | -10.8% |
| ROIC | 13.3% | 11.2% | 13.3% | 13.2% | 15.3% | 2.1% |
| ROE | 12.1% | 10.6% | 11.9% | 13.7% | 17.7% | 4.0% |
| Net Debt/EBITDA | -0.5x | -0.3x | 0.1x | 2.1x | 2.1x | -0.0x |
Revenue and profitability
Zhejiang Expressway Co's Revenue surged on 32.2% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.2 pp from 34.8% to 38.0% in 2015.
Gross Margin increased on 5.9 pp from 37.7% to 43.6% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.6%. The company showed decline in CAPEX/Revenue of 2.7 pp from 5.3% in 2012 to 2.6% in 2015. It's average level of CAPEX/Revenue for the last three years was 6.4%.
Return on investment
The company operates at good ROIC (15.31%) and ROE (17.72%). ROIC increased on 2.1 pp from 13.2% to 15.3% in 2015. ROE increased on 4.0 pp from 13.7% to 17.7% in 2015.
Leverage (Debt)
Debt level is 2.1x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA showed almost no change in 2015. Debt surged on 44.3% in 2015 while cash surged on 48.5% in 2015.
Appendix 1: Peers in Industrial Transportation
Below we provide Zhejiang Expressway Co benchmarking against other companies in Industrial Transportation 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hellenic Carriers Ltd ($HCL) | | -60.3% | -17.0% | 88.5% | -36.7% |
| Global Ports Investments ($GLPR) | | 0.1% | -33.8% | 69.3% | -27.9% |
| Yangming Marine Transport Corp ($YMTD) | -9.2% | 10.9% | -9.5% | 13.4% | |
| Dp World Ltd ($0P5M) | | 4.8% | -1.5% | 12.7% | 16.7% |
| Wisdom Marine Lines Co Limited ($WML) | | 11.2% | -0.8% | 8.8% | 21.6% |
| |
|---|
| Median (14 companies) | 28.3% | 2.9% | -2.3% | 3.4% | -7.1% |
|---|
| Zhejiang Expressway Co ($ZHEH) | | 2.2% | 13.3% | 20.5% | 32.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 52.8% | 57.9% | 54.3% | 61.0% | |
| Global Ports Investments ($GLPR) | 52.6% | 40.3% | 58.8% | 58.8% | 68.0% |
| Dp World Ltd ($0P5M) | 32.7% | 35.8% | 39.8% | 41.9% | 48.4% |
| Globaltrans Investment ($GLTR) | 30.1% | 31.4% | 25.8% | 23.2% | |
| Wisdom Marine Lines Co Limited ($WML) | 37.4% | 30.3% | 20.3% | 20.7% | 24.1% |
| |
|---|
| Median (9 companies) | 32.7% | 30.3% | 20.3% | 20.7% | 21.3% |
|---|
| Zhejiang Expressway Co ($ZHEH) | 39.9% | 34.0% | 36.9% | 37.7% | 43.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital Lease Aviation ($CLA) | 105.0% | 101.2% | 88.5% | 89.2% | 80.5% |
| Global Ports Investments ($GLPR) | 55.1% | 57.1% | 60.3% | 69.6% | 71.2% |
| Frontline Ltd ($FRO) | 13.7% | 17.2% | -4.6% | 64.5% | 74.6% |
| Novorossiysk Commercial Sea Port ($NCSP) | 52.7% | 48.4% | 26.8% | 58.3% | |
| Wisdom Marine Lines Co Limited ($WML) | 60.1% | 56.9% | 52.0% | 52.8% | 55.2% |
| |
|---|
| Median (14 companies) | 33.8% | 22.6% | 17.1% | 17.0% | 28.5% |
|---|
| Zhejiang Expressway Co ($ZHEH) | 52.8% | 49.6% | 51.1% | 53.5% | 58.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Frontline Ltd ($FRO) | 10.2% | 2.5% | 0.5% | 83.6% | 171.4% |
| Hellenic Carriers Ltd ($HCL) | 1.3% | 11.7% | 246.3% | 75.1% | 0.7% |
| Dp World Ltd ($0P5M) | 15.1% | 20.6% | 33.4% | 20.7% | 28.9% |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 13.7% | 15.6% | 16.9% | 11.5% | |
| Novorossiysk Commercial Sea Port ($NCSP) | 9.1% | 5.4% | 10.4% | 9.9% | |
| |
|---|
| Median (14 companies) | 10.1% | 11.2% | 9.3% | 4.2% | 2.4% |
|---|
| Zhejiang Expressway Co ($ZHEH) | 6.6% | 5.3% | 3.2% | 13.4% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 18.7% | 11.0% | 4.5% | 17.1% | |
| Dx ($DX.) | 8.2% | 9.3% | 9.6% | 14.5% | 12.8% |
| Global Ports Investments ($GLPR) | 18.5% | 17.0% | 7.1% | 12.1% | 14.6% |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 18.2% | 20.2% | 17.6% | 8.8% | |
| Bba Aviation ($BBA) | | 9.6% | 9.6% | 8.1% | 5.1% |
| |
|---|
| Median (14 companies) | 7.6% | 7.3% | 5.4% | 6.7% | 5.9% |
|---|
| Zhejiang Expressway Co ($ZHEH) | 13.3% | 11.2% | 13.3% | 13.2% | 15.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hellenic Carriers Ltd ($HCL) | 2.5x | 533.2x | 291.0x | 39.1x | |
| Yangming Marine Transport Corp ($YMTD) | | 19.7x | | 9.8x | |
| Wisdom Marine Lines Co Limited ($WML) | 7.9x | 8.5x | 9.0x | 9.1x | 8.4x |
| Evergreen Marine Corp(Taiwan) ($EGMD) | | 7.9x | 33.6x | 6.7x | 18.3x |
| Interbulk Group ($INB) | 3.5x | 3.3x | 4.1x | 3.5x | 3.6x |
| |
|---|
| Median (14 companies) | 3.5x | 3.7x | 5.4x | 2.8x | 3.4x |
|---|
| Zhejiang Expressway Co ($ZHEH) | -0.5x | -0.3x | 0.1x | 2.1x | 2.1x |
