Zhejiang Expressway Co revenue dropped on 22.2% in 2016 while EBITDA Margin surged on 11.6 pp from 58.0% to 69.6%
27 Mar 2017 • About Zhejiang Expressway Co (
$ZHEH) • By InTwits
Zhejiang Expressway Co reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 69.6% in FY2016 vs. 58.0% in FY2015 vs. 49.6% in FY2012
- The company has business model with average profitability: ROIC is at 11.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zhejiang Expressway Co ($ZHEH) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,927 | 7,851 | 9,460 | 12,507 | 9,735 | -22.2% |
| Gross Profit | 2,353 | 2,896 | 3,562 | 5,447 | 5,139 | -5.7% |
| SG&A | 86 | 85 | 106 | 109 | 82 | -24.8% |
| EBITDA | 3,435 | 4,009 | 5,064 | 7,258 | 6,777 | -6.6% |
| Net Income | 1,649 | 1,907 | 2,265 | 2,990 | 3,037 | 1.6% |
Balance Sheet
|
|---|
| Cash | 3,392 | 1,807 | 3,357 | 4,983 | 7,199 | 44.5% |
| Short Term Debt | 1,660 | 1,850 | 10,813 | 10,979 | 18,131 | 65.1% |
| Long Term Debt | 680 | 300 | 3,160 | 9,190 | 6,700 | -27.1% |
Cash flow
|
|---|
| Capex | 365 | 252 | 1,270 | 327 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 2.2% | 13.3% | 20.5% | 32.2% | -22.2% | |
| EBITDA growth | -4.1% | 16.7% | 26.3% | 43.3% | -6.6% | |
| Gross Margin | 34.0% | 36.9% | 37.7% | 43.6% | 52.8% | 9.2% |
| EBITDA Margin | 49.6% | 51.1% | 53.5% | 58.0% | 69.6% | 11.6% |
| Net Income Margin | 23.8% | 24.3% | 23.9% | 23.9% | 31.2% | 7.3% |
| SG&A, % of revenue | 1.2% | 1.1% | 1.1% | 0.9% | 0.8% | -0.0% |
| CAPEX, % of revenue | 5.3% | 3.2% | 13.4% | 2.6% | | -2.6% |
| ROIC | 11.2% | 13.3% | 13.2% | 15.3% | 11.9% | -3.4% |
| ROE | 10.6% | 11.9% | 13.7% | 17.7% | | -17.7% |
| Net Debt/EBITDA | -0.3x | 0.1x | 2.1x | 2.1x | 2.6x | 0.5x |
Revenue and profitability
Zhejiang Expressway Co's Revenue dropped on 22.2% in FY2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 11.6 pp from 58.0% to 69.6% in FY2016.
Gross Margin increased on 9.2 pp from 43.6% to 52.8% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased on 7.3 pp from 23.9% to 31.2% in FY2016.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 3.7x Debt / EBITDA. Net Debt / EBITDA surged on 0.5x from 2.1x to 2.6x in FY2016. Debt jumped on 23.1% in FY2016 while cash surged on 44.5% in FY2016.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Frontline Ltd ($FRO) | | -9.4% | -55.6% | 104.5% | 86.0% |
| Wisdom Marine Lines Co Limited ($WML) | 11.2% | -0.8% | 8.8% | 21.6% | |
| Dp World Ltd ($0P5M) | | -1.5% | 12.7% | 16.7% | 4.7% |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 17.8% | 7.7% | -6.6% | 16.2% | |
| Globaltrans Investment ($GLTR) | 28.9% | 12.9% | -7.4% | -0.7% | |
| |
|---|
| Median (14 companies) | 5.9% | -2.3% | 3.4% | -6.2% | 0.9% |
|---|
| Zhejiang Expressway Co ($ZHEH) | | 13.3% | 20.5% | 32.2% | -22.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 57.9% | 54.3% | 61.0% | 72.9% | |
| Global Ports Investments ($GLPR) | 40.3% | 58.8% | 58.8% | 68.0% | |
| Dp World Ltd ($0P5M) | 35.8% | 39.8% | 41.9% | 48.4% | 50.9% |
| Wisdom Marine Lines Co Limited ($WML) | 30.3% | 20.3% | 20.7% | 24.1% | |
| Globaltrans Investment ($GLTR) | 31.4% | 25.8% | 23.2% | 20.2% | |
| |
|---|
| Median (9 companies) | 30.3% | 20.3% | 20.7% | 20.2% | 36.9% |
|---|
| Zhejiang Expressway Co ($ZHEH) | 34.0% | 36.9% | 37.7% | 43.6% | 52.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital Lease Aviation ($CLA) | 101.2% | 88.5% | 89.2% | 80.5% | |
| Frontline Ltd ($FRO) | 17.2% | -4.6% | 64.5% | 74.6% | 42.5% |
| Global Ports Investments ($GLPR) | 57.1% | 60.3% | 69.6% | 71.2% | |
| Wisdom Marine Lines Co Limited ($WML) | 56.9% | 52.0% | 52.8% | 55.2% | |
| Dp World Ltd ($0P5M) | 38.2% | 39.3% | 42.4% | 45.7% | 48.8% |
| |
|---|
| Median (14 companies) | 22.6% | 17.1% | 17.0% | 16.8% | 29.1% |
|---|
| Zhejiang Expressway Co ($ZHEH) | 49.6% | 51.1% | 53.5% | 58.0% | 69.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Frontline Ltd ($FRO) | 2.5% | 0.5% | 83.6% | 171.4% | 82.5% |
| Dp World Ltd ($0P5M) | 20.6% | 33.4% | 20.7% | 28.9% | 25.4% |
| Yangming Marine Transport Corp ($YMTD) | 13.1% | 8.2% | 7.0% | 7.7% | |
| Novorossiysk Commercial Sea Port ($NCSP) | 5.4% | 10.4% | 9.9% | 7.3% | |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 15.6% | 16.9% | 11.5% | 5.7% | |
| |
|---|
| Median (14 companies) | 11.2% | 9.3% | 4.2% | 3.4% | 15.1% |
|---|
| Zhejiang Expressway Co ($ZHEH) | 5.3% | 3.2% | 13.4% | 2.6% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 11.0% | 4.5% | 17.1% | 16.1% | |
| Global Ports Investments ($GLPR) | 17.0% | 7.1% | 12.1% | 14.6% | |
| Dx ($DX.) | 9.3% | 9.6% | 14.5% | 12.8% | -52.4% |
| Frontline Ltd ($FRO) | -1.0% | -8.9% | 7.6% | 12.1% | 6.3% |
| Globaltrans Investment ($GLTR) | 25.5% | 16.3% | 6.4% | 10.3% | |
| |
|---|
| Median (14 companies) | 7.3% | 5.4% | 6.7% | 6.7% | 5.5% |
|---|
| Zhejiang Expressway Co ($ZHEH) | 11.2% | 13.3% | 13.2% | 15.3% | 11.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Evergreen Marine Corp(Taiwan) ($EGMD) | 7.9x | 33.6x | 6.7x | 18.3x | |
| Wisdom Marine Lines Co Limited ($WML) | 8.5x | 9.0x | 9.1x | 8.4x | |
| Novorossiysk Commercial Sea Port ($NCSP) | 4.1x | 7.1x | 2.6x | 4.1x | |
| Interbulk Group ($INB) | 3.3x | 4.1x | 3.5x | 3.6x | |
| Global Ports Investments ($GLPR) | 0.8x | 6.6x | 2.8x | 3.6x | |
| |
|---|
| Median (12 companies) | 3.7x | 5.4x | 2.8x | 3.3x | 4.1x |
|---|
| Zhejiang Expressway Co ($ZHEH) | -0.3x | 0.1x | 2.1x | 2.1x | 2.6x |
