Earnings Review and Free Research Report: eHi Car's Revenue Surged 27.6%; EPS Rocketed
Research Desk Line-up: General Finance Post Earnings Coverage
LONDON, UK / ACCESSWIRE / September 19, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on eHi Car Services Ltd (NYSE: EHIC), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=EHIC, following the Company's release of its second quarter fiscal 2017 financial results on August 29, 2017. The leading car rental and car services provider in China exceeded earnings expectations and provided revenue guidance for the upcoming quarter and fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
http://protraderdaily.com/register/
Get more of our free earnings reports coverage from other constituents of the Rental & Leasing Services industry. Pro-TD has currently selected General Finance Corporation (NASDAQ: GFN) for due-diligence and potential coverage as the Company announced on September 06, 2017, its consolidated financial results for Q4 FY17 and FY17 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on General Finance when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on EHIC; also brushing on GFN. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=EHIC
http://protraderdaily.com/optin/?symbol=GFN
Earnings Reviewed
For the second quarter ended June 30, 2017, eHi Car's net revenues surged 27.6% y-o-y to RMB639.7 million (US$94.4 million) from RMB501.3 million in Q2 2016, driven by increased net revenues from both car rentals and car services.
eHi Car's gross profit was RMB186.0 million (US$27.4 million) for Q2 2017, up 31.4% on a y-o-y basis. The Company's gross profit margin for the reported quarter was 29.1% compared to 28.2% for the prior year's same quarter. Gross profit margin improvement was primarily due to a percentage decrease of vehicle-related depreciation in terms of net revenues.
For Q2 2017, eHi Car's selling and marketing (S&M) expenses totaled RMB35.8 million (US$5.3 million), up 33.6% on a y-o-y basis, as the Company expanded advertising and branding activities in the second quarter of 2017, including the marketing activities associated with NBA China and NBA All-Star Stephen Curry.
eHi Car's general and administrative (G&A) expenses were RMB59.9 million (US$8.8 million) for Q2 2017, up 1.2% on a y-o-y basis, primarily due to increased employee-related costs including salaries and welfare expenses as a result of increased headcount in the reported quarter. The Company's interest expense slightly increased by 0.5% to RMB56.7 million (US$8.4 million) on a y-o-y basis for Q2 2017.
For Q2 2017, eHi Car's net income was RMB30.4 million (US$4.5 million) compared to a net income of RMB0.8 million for Q2 2016. The Company's basic and diluted earnings per ADS for the reported quarter were RMB0.44 (US$0.06) each compared to basic and diluted earnings per ADS of RMB0.01 each for Q2 2016. eHi Car's earnings beat analysts' estimates of $0.05 per share.
During Q2 2017, eHi Car's non-GAAP adjusted EBIT increased by 59.0% y-o-y to RMB95.9 million (US$14.1 million) compared to RMB60.3 million for Q2 2016. The Company's non-GAAP adjusted EBIT margin increased to 15.0% for the reported quarter from 12.0% for the year-ago same period. eHi Car's non-GAAP adjusted EBITDA surged 31.4% to RMB286.2 million (US$42.2 million) for Q2 2017 from RMB217.9 million in Q2 2016. The Company's non-GAAP adjusted EBITDA margin had increased to 44.7% for the reported quarter from 43.5% for the year-ago corresponding period.
Operation Details
eHi Car's fleet utilization rate for car rentals was 72.7% for Q2 2017 compared with 71.1% for Q2 2016.
During Q2 2017, eHi Car's cost of revenues (vehicle operating expenses) was RMB453.8 million (US$66.9 million), up 26.1% on a y-o-y basis, primarily driven by increased depreciation and labor costs.
In Q2 2017, eHi Car reported that 2,591 used vehicles were disposed of and 1,613 used vehicles were under sales contracts pending title transfer. The Company recognized a disposal gain of RMB2.5 million (US$0.4 million) in aggregate for these 4,204 vehicles. In addition, a disposal gain of RMB4.1 million (US$0.6 million) was recognized in the reported quarter as a result of the completion of title transfer during such period. These disposal gains were both recognized as adjustments to the vehicle-related depreciation expense as part of the cost of revenues.
Cash Matters
As of June 30, 2017, eHi Car's cash, cash equivalents, and restricted cash balance was RMB571.3 million (US$84.3 million).
Outlook
For Q3 2017, eHi Car is forecasting net revenues in the range of RMB780 million to RMB800 million, and for the full year of 2017 net revenues will be RMB2.9 billion.
Stock Performance
On Monday, September 18, 2017, the stock closed the trading session at $9.97, marginally up 0.10% from its previous closing price of $9.96. A total volume of 69.10 thousand shares have exchanged hands. eHi Car Services' stock price advanced 9.20% in the last one month. Furthermore, since the start of the year, shares of the Company have rallied 10.04%. The stock is trading at a PE ratio of 46.81 and currently has a market cap of $690.32 million.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
