Asia Cassava Resources Holdings Ltd reports 28.4% revenue decline in FY2015 and 2.0 pp EBITDA Margin growth from 2.9% to 4.9%
23/06/2015 • About Asia Cassava Resources Holdings Ltd (
$841) • By InTwits
Asia Cassava Resources Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 4.9% in FY2015, 2.9% in FY2014, 1.6% in FY2013, 1.9% in FY2012, 4.2% in FY2011
- Asia Cassava Resources Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has business model with average profitability: ROIC is at 11.6%
- It operates with high leverage: Net Debt/EBITDA is 4.7x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asia Cassava Resources Holdings Ltd ($841) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,022 | 1,961 | 3,913 | 5,190 | 3,714 | -28.4% |
| Gross Profit | 283 | 240 | 422 | 624 | 528 | -15.3% |
| SG&A | | 41 | 43 | 68 | 62 | -8.9% |
| EBITDA | 85 | 36 | 61 | 152 | 182 | 19.7% |
| Net Income | 83 | 25 | 31 | 119 | 173 | 45.9% |
Balance Sheet
|
|---|
| Cash | 88 | 143 | 139 | 416 | 196 | -53.0% |
| Short Term Debt | 141 | 287 | 477 | 333 | 1,046 | 214.6% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 13 | 5 | 13 | 44 | 31 | -28.9% |
Ratios
|
|---|
| Revenue growth | 1.2% | -3.0% | 99.6% | 32.6% | -28.4% | |
| EBITDA growth | -23.7% | -56.9% | 67.1% | 149.1% | 19.7% | |
| Gross Margin | 14.0% | 12.3% | 10.8% | 12.0% | 14.2% | 2.2% |
| EBITDA Margin | 4.2% | 1.9% | 1.6% | 2.9% | 4.9% | 2.0% |
| Net Income Margin | 4.1% | 1.3% | 0.8% | 2.3% | 4.7% | 2.4% |
| SG&A, % of revenue | | 2.1% | 1.1% | 1.3% | 1.7% | 0.4% |
| CAPEX, % of revenue | 0.7% | 0.2% | 0.3% | 0.9% | 0.8% | -0.0% |
| ROIC | 13.8% | 4.2% | 5.9% | 13.6% | 11.6% | -1.9% |
| ROE | 18.7% | 4.9% | 5.6% | 18.8% | 23.0% | 4.2% |
| Net Debt/EBITDA | 0.6x | 4.0x | 5.6x | -0.6x | 4.7x | 5.2x |
Revenue and profitability
Asia Cassava Resources Holdings Ltd's Revenue dropped on 28.4% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 2.0 pp from 2.9% to 4.9% in FY2015.
Gross Margin increased on 2.2 pp from 12.0% to 14.2% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased on 2.4 pp from 2.3% to 4.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Asia Cassava Resources Holdings Ltd had CAPEX/Revenue of 0.85%. Asia Cassava Resources Holdings Ltd showed small growth in CAPEX/Revenue of 0.60 pp from 0.24% in FY2012 to 0.85% in FY2015. For the last three years the average CAPEX/Revenue was 0.68%.
Return on investment
The company operates at good ROE (22.98%) while ROIC is low (11.63%). ROIC decreased slightly on 1.9 pp from 13.6% to 11.6% in FY2015. ROE increased on 4.2 pp from 18.8% to 23.0% in FY2015.
Leverage (Debt)
Debt level is 4.7x Net Debt / EBITDA and 5.8x Debt / EBITDA. Net Debt / EBITDA jumped on 5.2x from -0.6x to 4.7x in FY2015. Debt surged on 215% in FY2015 while cash dropped on 53.0% in FY2015.
Appendix 1: Peers in Food
Below you can find Asia Cassava Resources Holdings Ltd benchmarking vs. other companies in Food 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 |
|---|
| Wealth Glory Holdings Ltd ($8269) | 22.3% | -16.5% | -53.8% | 555.7% | |
| Natural Dairy NZ Holdings Ltd ($462) | 12.0% | -47.2% | 19.1% | 76.6% | |
| China Modern Dairy Holdings Ltd ($1117) | 88.8% | 50.7% | 96.1% | 52.8% | |
| China Huishan Dairy Holdings Co Ltd ($6863) | | 256.3% | 91.5% | 38.3% | 11.1% |
| YuanShengTai Dairy Farm Ltd ($1431) | 44,049.9% | 363.2% | 27.8% | 32.0% | |
| |
|---|
| Median (37 companies) | 22.3% | 9.8% | 5.6% | 0.4% | 6.1% |
|---|
| Asia Cassava Resources Holdings Ltd ($841) | | -3.0% | 99.6% | 32.6% | -28.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 42.2% | 57.2% | 59.0% | 57.8% | |
| Shenguan Holdings Group Ltd ($829) | 61.9% | 58.2% | 58.5% | 54.9% | |
| Yashili International Holdings Ltd ($1230) | 52.0% | 53.7% | 53.5% | 51.2% | |
| Natural Dairy NZ Holdings Ltd ($462) | 16.3% | -13.7% | 27.5% | 48.8% | |
| Christine International Holdings Ltd ($1210) | 51.3% | 50.2% | 49.7% | 47.2% | |
| |
|---|
| Median (37 companies) | 18.1% | 16.8% | 19.7% | 20.0% | 26.8% |
|---|
| Asia Cassava Resources Holdings Ltd ($841) | 14.0% | 12.3% | 10.8% | 12.0% | 14.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenguan Holdings Group Ltd ($829) | 57.2% | 58.7% | 59.2% | 54.5% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 147.8% | 40.3% | 48.4% | 47.1% | |
| China Huishan Dairy Holdings Co Ltd ($6863) | 109.2% | 45.1% | 47.9% | 47.1% | 37.2% |
| Honworld Group Ltd ($2226) | 28.4% | 44.4% | 42.1% | 42.0% | |
| China Modern Dairy Holdings Ltd ($1117) | 33.9% | 33.5% | 27.0% | 25.3% | |
| |
|---|
| Median (37 companies) | 8.8% | 7.9% | 6.7% | 7.6% | 23.3% |
|---|
| Asia Cassava Resources Holdings Ltd ($841) | 4.2% | 1.9% | 1.6% | 2.9% | 4.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Huishan Dairy Holdings Co Ltd ($6863) | 453.6% | 98.2% | 29.8% | 132.0% | 109.8% |
| Honworld Group Ltd ($2226) | 25.3% | 6.0% | 10.8% | 50.8% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 182.5% | 26.1% | 18.3% | 43.4% | |
| Yashili International Holdings Ltd ($1230) | 3.6% | 8.2% | 7.1% | 20.1% | |
| Vedan International Holdings Ltd ($2317) | 2.8% | 2.5% | 2.4% | 18.8% | |
| |
|---|
| Median (37 companies) | 3.9% | 6.0% | 6.2% | 5.1% | 56.2% |
|---|
| Asia Cassava Resources Holdings Ltd ($841) | 0.7% | 0.2% | 0.3% | 0.9% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 22.1% | 50.4% | 44.5% | 23.6% | |
| Want Want China Holdings Ltd ($151) | 24.9% | 27.9% | 29.4% | 22.8% | |
| Shenguan Holdings Group Ltd ($829) | 40.6% | 40.0% | 33.2% | 21.4% | |
| Huisheng International Holdings Ltd ($1340) | 63.0% | 31.9% | 23.7% | 16.3% | |
| Tenwow International Holdings Ltd ($1219) | 20.3% | 19.7% | 15.7% | 12.8% | |
| |
|---|
| Median (37 companies) | 11.4% | 7.6% | 6.5% | 5.5% | 5.9% |
|---|
| Asia Cassava Resources Holdings Ltd ($841) | 13.8% | 4.2% | 5.9% | 13.6% | 11.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yurun Food Group Ltd ($1068) | 0.4x | 40.7x | 6.9x | 9.4x | |
| Beijing Jingkelong Co Ltd ($814) | 3.4x | 5.0x | 4.8x | 5.3x | |
| CP Lotus Corp ($121) | 2.3x | | 6.5x | 5.1x | |
| DaChan Food Asia Ltd ($3999) | -0.3x | 0.1x | 1.3x | 4.8x | |
| First Pacific Co Ltd/Hong Kong ($142) | 1.3x | 1.8x | 3.8x | 4.5x | |
| |
|---|
| Median (29 companies) | -0.1x | -0.5x | 0.6x | 0.8x | 1.0x |
|---|
| Asia Cassava Resources Holdings Ltd ($841) | 0.6x | 4.0x | 5.6x | -0.6x | 4.7x |
