PNG Resources Holdings Ltd reports 136% EBITDA growth and 14.3 pp EBITDA Margin growth from 12.2% to 26.5%
25/06/2015 • About PNG Resources Holdings Ltd (
$221) • By InTwits
PNG Resources Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- PNG Resources Holdings Ltd is a fast growth stock: FY2015 revenue growth was 8.7%, 5 year revenue CAGR was 80.3% at FY2015 ROIC 19.9%
- EBITDA Margin is expanding: 26.5% in FY2015 vs. 12.2% in FY2014 vs. -68.2% in FY2011
- PNG Resources Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 112.3%. At the same time it's a lot of higher than industry average of 11.2%.
- CAPEX is quite volatile: 504 in FY2015, 548 in FY2014, 339 in FY2013, 364 in FY2012, 190 in FY2011
- The company has highly profitable business model: ROIC is at 19.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
PNG Resources Holdings Ltd ($221) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 65 | 274 | 953 | 1,034 | 1,124 | 8.7% |
| Gross Profit | 21 | 53 | 178 | 250 | 397 | 59.0% |
| SG&A | | | 89 | 127 | 104 | -18.0% |
| EBITDA | -44 | -17 | 92 | 126 | 298 | 136.4% |
| Net Income | 42 | 4 | 42 | 77 | 145 | 88.9% |
Balance Sheet
|
|---|
| Cash | 157 | 215 | 270 | 565 | 524 | -7.2% |
| Short Term Debt | 150 | 185 | 392 | 198 | 146 | -26.1% |
| Long Term Debt | 340 | 455 | 195 | 310 | 202 | -34.7% |
Cash flow
|
|---|
| Capex | 190 | 364 | 339 | 548 | 504 | -8.1% |
Ratios
|
|---|
| Revenue growth | 9.5% | 323.7% | 248.6% | 8.5% | 8.7% | |
| EBITDA growth | 107.1% | -62.3% | -652.5% | 37.2% | 136.4% | |
| Gross Margin | 31.9% | 19.4% | 18.6% | 24.2% | 35.3% | 11.2% |
| EBITDA Margin | -68.2% | -6.1% | 9.6% | 12.2% | 26.5% | 14.3% |
| Net Income Margin | 64.8% | 1.4% | 4.4% | 7.4% | 12.9% | 5.5% |
| SG&A, % of revenue | | | 9.3% | 12.3% | 9.3% | -3.0% |
| CAPEX, % of revenue | 294.9% | 133.1% | 35.6% | 53.0% | 44.8% | -8.2% |
| ROIC | -3.6% | -1.2% | 5.8% | 8.3% | 19.9% | 11.6% |
| ROE | 7.3% | 0.6% | 6.7% | 9.9% | 14.9% | 5.0% |
| Net Debt/EBITDA | | | 3.5x | -0.5x | -0.6x | -0.1x |
Revenue and profitability
PNG Resources Holdings Ltd's Revenue increased on 8.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.1 pp from 5.6% to 3.4% in 2015.
Gross Margin jumped on 11.2 pp from 24.2% to 35.3% in FY2015. SG&A as a % of Revenue decreased on 3.0 pp from 12.3% to 9.3% in FY2015.
Net Income marign increased on 5.5 pp from 7.4% to 12.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
PNG Resources Holdings Ltd's CAPEX/Revenue was 44.8% in FY2015. PNG Resources Holdings Ltd showed big decline in CAPEX/Revenue of 88.3 pp from 133% in FY2012 to 44.8% in FY2015. It's average CAPEX/Revenue for the last three years was 44.5%.PNG Resources Holdings Ltd investments to CAPEX were large: 169% of EBITDA.
Return on investment
The company operates at good ROIC (19.92%) and ROE (14.89%). ROIC jumped on 11.6 pp from 8.3% to 19.9% in FY2015. ROE increased on 5.0 pp from 9.9% to 14.9% in FY2015.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from -0.5x to -0.6x in FY2015. Debt dropped on 31.4% in FY2015 while cash decreased on 7.2% in FY2015.
Appendix 1: Peers in Forest Products&Paper
Below you can find PNG Resources Holdings Ltd benchmarking vs. other companies in Forest Products&Paper 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 |
|---|
| Merdeka Mobile Group Ltd ($8163) | 32.4% | -11.0% | 415.4% | 71.4% | |
| KuangChi Science Ltd ($439) | | | | 39.7% | |
| Hop Fung Group Holdings Ltd ($2320) | 0.8% | -27.0% | -2.3% | 6.9% | |
| Samson Paper Holdings Ltd ($731) | | 7.4% | -7.1% | 6.4% | 6.2% |
| Youyuan International Holdings Ltd ($2268) | 16.7% | 0.4% | 6.7% | 0.8% | |
| |
|---|
| Median (11 companies) | 10.0% | 0.4% | 4.5% | 0.7% | 6.2% |
|---|
| PNG Resources Holdings Ltd ($221) | | 323.7% | 248.6% | 8.5% | 8.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Youyuan International Holdings Ltd ($2268) | 29.6% | 29.8% | 32.9% | 31.3% | |
| Greenheart Group Ltd ($94) | 47.3% | 37.6% | 33.7% | 21.6% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 15.5% | 15.2% | 18.0% | 19.4% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 16.8% | 16.6% | 16.5% | 19.0% | |
| KuangChi Science Ltd ($439) | | | 20.3% | 17.3% | |
| |
|---|
| Median (11 companies) | 16.2% | 15.6% | 16.5% | 16.7% | 9.4% |
|---|
| PNG Resources Holdings Ltd ($221) | 31.9% | 19.4% | 18.6% | 24.2% | 35.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Youyuan International Holdings Ltd ($2268) | 27.6% | 27.2% | 30.8% | 29.8% | |
| Nine Dragons Paper Holdings Ltd ($2689) | 17.1% | 16.4% | 17.2% | 18.6% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 11.6% | 11.4% | 13.2% | 14.5% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 13.8% | 14.3% | 12.7% | 14.5% | |
| Hop Fung Group Holdings Ltd ($2320) | 9.7% | 10.3% | 10.3% | 10.2% | |
| |
|---|
| Median (11 companies) | 2.6% | 10.3% | 11.2% | 3.8% | 3.7% |
|---|
| PNG Resources Holdings Ltd ($221) | -68.2% | -6.1% | 9.6% | 12.2% | 26.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Agroforestry Low-Carbon Holdings Ltd ($1069) | 0.1% | 0.2% | 11.5% | 26.7% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 28.7% | 14.4% | 18.8% | 16.3% | |
| Nine Dragons Paper Holdings Ltd ($2689) | 34.3% | 16.8% | 15.5% | 8.9% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 10.4% | 14.8% | 9.9% | 8.7% | |
| Youyuan International Holdings Ltd ($2268) | 35.7% | 28.4% | 14.8% | 8.4% | |
| |
|---|
| Median (11 companies) | 32.6% | 14.4% | 9.9% | 8.4% | 2.3% |
|---|
| PNG Resources Holdings Ltd ($221) | 294.9% | 133.1% | 35.6% | 53.0% | 44.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Youyuan International Holdings Ltd ($2268) | 15.6% | 12.6% | 12.9% | 10.4% | |
| Nine Dragons Paper Holdings Ltd ($2689) | 7.5% | 6.5% | 6.1% | 5.9% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 7.5% | 6.8% | 5.1% | 5.5% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 2.4% | 1.9% | 3.3% | 3.0% | |
| Samson Paper Holdings Ltd ($731) | 3.0% | 3.2% | 1.8% | 2.9% | 2.9% |
| |
|---|
| Median (12 companies) | 2.4% | 1.8% | 2.0% | -0.5% | 2.9% |
|---|
| PNG Resources Holdings Ltd ($221) | -3.6% | -1.2% | 5.8% | 8.3% | 19.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Greenheart Group Ltd ($94) | | | 7.1x | 26.8x | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 9.0x | 10.4x | 9.0x | 10.9x | |
| Samson Paper Holdings Ltd ($731) | 11.3x | 8.3x | 13.0x | 9.3x | 8.9x |
| China Sunshine Paper Holdings Co Ltd ($2002) | 6.1x | 5.9x | 6.9x | 6.0x | |
| Nine Dragons Paper Holdings Ltd ($2689) | 5.2x | 4.9x | 5.7x | 5.1x | |
| |
|---|
| Median (7 companies) | 5.2x | 4.9x | 5.7x | 6.0x | 8.9x |
|---|
| PNG Resources Holdings Ltd ($221) | | | 3.5x | -0.5x | -0.6x |
