Datang Intl Power Generation Debt dropped on 14.1% in 2015 and Revenue dropped on 12.8%
29 Mar 2016 • About Datang Intl Power Generation (
$DAT) • By InTwits
Datang Intl Power Generation reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 38.0% in 2015 vs. 34.8% in 2014 vs. 25.0% in 2011
- Datang Intl Power Generation has high CAPEX intensity: 5 year average CAPEX/Revenue was 34.4%. At the same time it's in pair with industry average of 32.8%.
- CAPEX is quite volatile: 5,372 in 2015, 8,815 in 2014, 9,559 in 2013, 2,970 in 2012, 2,606 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 7.5x while industry average is 6.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Datang Intl Power Generation ($DAT) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 72,382 | 77,598 | 75,227 | 70,194 | 61,196 | -12.8% |
| Gross Profit | | | | | 18,789 | |
| SG&A | | | | | 3,827 | |
| EBITDA | 18,117 | 22,296 | 25,262 | 24,396 | 23,234 | -4.8% |
| Net Income | 1,971 | 4,019 | 3,403 | 1,767 | 2,809 | 58.9% |
Balance Sheet
|
|---|
| Cash | 4,467 | 4,613 | 7,881 | 5,288 | 5,524 | 4.4% |
| Short Term Debt | 38,470 | 40,165 | 41,186 | 45,841 | 33,550 | -26.8% |
| Long Term Debt | 132,410 | 151,038 | 161,470 | 162,496 | 145,471 | -10.5% |
Cash flow
|
|---|
| Capex | 26,010 | 26,616 | 32,515 | 20,242 | 18,187 | -10.2% |
Ratios
|
|---|
| Revenue growth | 19.3% | 7.2% | -3.1% | -6.7% | -12.8% | |
| EBITDA growth | 9.2% | 23.1% | 13.3% | -3.4% | -4.8% | |
| Gross Margin | | | | | 30.7% | 30.7% |
| EBITDA Margin | 25.0% | 28.7% | 33.6% | 34.8% | 38.0% | 3.2% |
| Net Income Margin | 2.7% | 5.2% | 4.5% | 2.5% | 4.6% | 2.1% |
| SG&A, % of revenue | | | | | 6.3% | 6.3% |
| CAPEX, % of revenue | 35.9% | 34.3% | 43.2% | 28.8% | 29.7% | 0.9% |
| ROIC | 4.6% | 5.7% | 5.9% | 4.8% | 4.6% | -0.2% |
| ROE | 5.6% | 10.0% | 8.0% | 4.0% | 6.3% | 2.3% |
| Net Debt/EBITDA | 9.2x | 8.4x | 7.7x | 8.3x | 7.5x | -0.9x |
Revenue and profitability
Datang Intl Power Generation's Revenue dropped on 12.8% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.2 pp from 34.8% to 38.0% in 2015.
Net Income marign increased on 2.1 pp from 2.5% to 4.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Datang Intl Power Generation's CAPEX/Revenue was 29.7% in 2015. The company showed decline in CAPEX/Revenue of 4.6 pp from 34.3% in 2012 to 29.7% in 2015. For the last three years the average CAPEX/Revenue was 33.9%.Battling declining revenue the company invested a large share of EBITDA (78.3%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (4.63%) and ROE (6.30%). ROIC showed almost no change in 2015. ROE increased on 2.3 pp from 4.0% to 6.3% in 2015.
Leverage (Debt)
Debt level is 7.5x Net Debt / EBITDA and 7.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 8.3x to 7.5x in 2015. Debt dropped on 14.1% in 2015 while cash increased on 4.4% in 2015.
Appendix 1: Peers in Electricity
Below you can find Datang Intl Power Generation benchmarking vs. other companies in Electricity industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ksk Power Ventur ($KSK) | | 69.0% | 2.5% | -14.5% | 13.8% |
| Good Energy Group ($GOOD) | | 30.7% | 43.3% | 42.6% | 11.6% |
| Societatea Comerciala De Dis Si Fur ($ELSA) | | -2.2% | 2.5% | -6.3% | 9.1% |
| Mosenergo AO ($AOMD) | | -2.5% | -0.8% | 3.5% | 6.0% |
| RusHydro OJSC ($HYDR) | | -17.6% | 5.0% | 5.1% | 5.4% |
| |
|---|
| Median (8 companies) | | 11.3% | 3.0% | 0.9% | 5.7% |
|---|
| Datang Intl Power Generation ($DAT) | | 7.2% | -3.1% | -6.7% | -12.8% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Infinis Energy ($INFI) | 45.3% | 44.7% | 45.0% | 45.8% | 45.1% |
| Renewable Energy Generation Ltd ($WIND) | 38.7% | 42.5% | 42.7% | 35.9% | 36.5% |
| Good Energy Group ($GOOD) | 40.3% | 33.9% | 33.6% | 32.7% | 33.1% |
| Ksk Power Ventur ($KSK) | 33.7% | 33.9% | 40.0% | 27.1% | 27.0% |
| |
|---|
| Median (4 companies) | 39.5% | 38.2% | 41.4% | 34.3% | 34.8% |
|---|
| Datang Intl Power Generation ($DAT) | | | | | 30.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Renewable Energy Generation Ltd ($WIND) | -0.2% | 24.4% | 23.0% | 10.5% | 125.2% |
| Infinis Energy ($INFI) | 52.5% | 55.1% | 54.6% | 45.2% | 69.8% |
| Ksk Power Ventur ($KSK) | 33.0% | 43.1% | 40.6% | 30.3% | 26.0% |
| Societatea Comerciala De Dis Si Fur ($ELSA) | 5.0% | 12.2% | 11.9% | 16.7% | 17.8% |
| Public Power Corp S.A. ($PPCD) | 17.1% | 15.3% | 19.1% | 20.0% | 17.7% |
| |
|---|
| Median (8 companies) | 16.0% | 14.1% | 17.2% | 16.7% | 17.7% |
|---|
| Datang Intl Power Generation ($DAT) | 25.0% | 28.7% | 33.6% | 34.8% | 38.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Renewable Energy Generation Ltd ($WIND) | 163.4% | 142.1% | 77.4% | 167.6% | 100.1% |
| Ksk Power Ventur ($KSK) | 119.9% | 194.9% | 100.4% | 59.5% | 58.3% |
| Good Energy Group ($GOOD) | 9.7% | 1.0% | 23.2% | 31.8% | 27.6% |
| RusHydro OJSC ($HYDR) | 22.6% | 27.8% | 19.7% | 23.8% | 22.8% |
| Infinis Energy ($INFI) | 24.1% | 23.6% | 32.3% | 16.2% | 22.8% |
| |
|---|
| Median (8 companies) | 21.5% | 18.5% | 21.4% | 20.0% | 22.8% |
|---|
| Datang Intl Power Generation ($DAT) | 35.9% | 34.3% | 43.2% | 28.8% | 29.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Societatea Comerciala De Dis Si Fur ($ELSA) | | 3.2% | 4.0% | 6.5% | 7.9% |
| Good Energy Group ($GOOD) | 11.7% | 10.8% | 12.2% | 7.0% | 5.8% |
| Infinis Energy ($INFI) | | 4.6% | 5.0% | 3.0% | 5.2% |
| RusHydro OJSC ($HYDR) | 7.5% | -0.7% | 3.0% | 4.3% | 4.2% |
| Public Power Corp S.A. ($PPCD) | 1.7% | 1.5% | 3.6% | 3.7% | 1.4% |
| |
|---|
| Median (8 companies) | 3.5% | 2.9% | 3.6% | 3.4% | 2.8% |
|---|
| Datang Intl Power Generation ($DAT) | 4.6% | 5.7% | 5.9% | 4.8% | 4.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ksk Power Ventur ($KSK) | 16.9x | 12.8x | 16.0x | 26.5x | 30.7x |
| Good Energy Group ($GOOD) | 2.6x | -0.1x | 1.5x | 5.7x | 7.8x |
| Public Power Corp S.A. ($PPCD) | 5.2x | 5.3x | 4.1x | 4.3x | 4.8x |
| Infinis Energy ($INFI) | 2.7x | 3.3x | 4.2x | 5.1x | 4.3x |
| RusHydro OJSC ($HYDR) | 1.1x | 7.8x | 2.9x | 2.6x | 2.6x |
| |
|---|
| Median (8 companies) | 2.6x | 4.3x | 2.2x | 4.7x | 3.4x |
|---|
| Datang Intl Power Generation ($DAT) | 9.2x | 8.4x | 7.7x | 8.3x | 7.5x |
