Samson Paper Holdings Ltd revenue increased on 6.2% in 2015 and EBITDA Margin showed almost no change
25/06/2015 • About Samson Paper Holdings Ltd (
$731) • By InTwits
Samson Paper Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 3.7% in FY2015 vs. 3.8% in FY2014 vs. 2.6% in FY2011
- Samson Paper Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's in pair with industry average of 6.2%.
- CAPEX is quite volatile: 122 in FY2015, 110 in FY2014, 228 in FY2013, 350 in FY2012, 470 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 8.9x while industry average is 7.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Samson Paper Holdings Ltd ($731) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,677 | 5,025 | 4,670 | 4,969 | 5,278 | 6.2% |
| Gross Profit | 432 | 455 | 461 | 452 | 497 | 10.2% |
| SG&A | | 354 | 375 | 363 | 393 | 8.4% |
| EBITDA | 121 | 170 | 131 | 190 | 195 | 2.8% |
| Net Income | 73 | 57 | 64 | 57 | 114 | 99.7% |
Balance Sheet
|
|---|
| Cash | 683 | 765 | 392 | 287 | 411 | 43.1% |
| Short Term Debt | 1,336 | 1,589 | 1,455 | 1,590 | 1,334 | -16.1% |
| Long Term Debt | 721 | 584 | 642 | 456 | 814 | 78.3% |
Cash flow
|
|---|
| Capex | 470 | 350 | 228 | 110 | 122 | 10.6% |
Ratios
|
|---|
| Revenue growth | 21.1% | 7.4% | -7.1% | 6.4% | 6.2% | |
| EBITDA growth | -10.2% | 40.3% | -23.1% | 45.2% | 2.8% | |
| Gross Margin | 9.2% | 9.1% | 9.9% | 9.1% | 9.4% | 0.3% |
| EBITDA Margin | 2.6% | 3.4% | 2.8% | 3.8% | 3.7% | -0.1% |
| Net Income Margin | 1.6% | 1.1% | 1.4% | 1.2% | 2.2% | 1.0% |
| SG&A, % of revenue | | 7.0% | 8.0% | 7.3% | 7.4% | 0.2% |
| CAPEX, % of revenue | 10.0% | 7.0% | 4.9% | 2.2% | 2.3% | 0.1% |
| ROIC | 3.0% | 3.2% | 1.8% | 2.9% | 2.9% | -0.0% |
| ROE | 6.3% | 4.0% | 3.9% | 3.3% | 6.2% | 2.9% |
| Net Debt/EBITDA | 11.3x | 8.3x | 13.0x | 9.3x | 8.9x | -0.4x |
Revenue and profitability
The company's Revenue increased on 6.2% in FY2015. EBITDA Margin showed almost no change in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 1.0 pp from 1.2% to 2.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Samson Paper Holdings Ltd's CAPEX/Revenue was 2.3% in FY2015. The company's CAPEX/Revenue decreased on 4.7 pp from 7.0% in FY2012 to 2.3% in FY2015. For the last three years the average CAPEX/Revenue was 3.1%.The company invested a large share of EBITDA (62.4%) to CAPEX.
Return on investment
The company operates at low ROIC (2.89%) and ROE (6.22%). ROIC showed almost no change in FY2015. ROE increased on 2.9 pp from 3.3% to 6.2% in FY2015.
Leverage (Debt)
Debt level is 8.9x Net Debt / EBITDA and 11.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 9.3x to 8.9x in FY2015. Debt increased on 5.0% in FY2015 while cash surged on 43.1% in FY2015.
Appendix 1: Peers in Forest Products&Paper
Below we provide Samson Paper Holdings Ltd benchmarking against other companies in Forest Products&Paper 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Merdeka Mobile Group Ltd ($8163) | 32.4% | -11.0% | 415.4% | 71.4% | |
| KuangChi Science Ltd ($439) | | | | 39.7% | |
| PNG Resources Holdings Ltd ($221) | | 323.7% | 248.6% | 8.5% | 8.7% |
| Hop Fung Group Holdings Ltd ($2320) | 0.8% | -27.0% | -2.3% | 6.9% | |
| Youyuan International Holdings Ltd ($2268) | 16.7% | 0.4% | 6.7% | 0.8% | |
| |
|---|
| Median (11 companies) | 10.0% | 0.4% | 6.3% | 0.7% | 8.7% |
|---|
| Samson Paper Holdings Ltd ($731) | | 7.4% | -7.1% | 6.4% | 6.2% |
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% | |
| PNG Resources Holdings Ltd ($221) | 31.9% | 19.4% | 18.6% | 24.2% | 35.3% |
| 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% | |
| |
|---|
| Median (11 companies) | 16.9% | 16.1% | 16.9% | 17.3% | 35.3% |
|---|
| Samson Paper Holdings Ltd ($731) | 9.2% | 9.1% | 9.9% | 9.1% | 9.4% |
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% | |
| PNG Resources Holdings Ltd ($221) | -68.2% | -6.1% | 9.6% | 12.2% | 26.5% |
| |
|---|
| Median (11 companies) | 1.9% | 10.3% | 11.2% | 10.2% | 26.5% |
|---|
| Samson Paper Holdings Ltd ($731) | 2.6% | 3.4% | 2.8% | 3.8% | 3.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PNG Resources Holdings Ltd ($221) | 294.9% | 133.1% | 35.6% | 53.0% | 44.8% |
| 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% | |
| |
|---|
| Median (11 companies) | 34.3% | 14.8% | 9.9% | 8.4% | 44.8% |
|---|
| Samson Paper Holdings Ltd ($731) | 10.0% | 7.0% | 4.9% | 2.2% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Youyuan International Holdings Ltd ($2268) | 15.6% | 12.6% | 12.9% | 10.4% | |
| PNG Resources Holdings Ltd ($221) | -3.6% | -1.2% | 5.8% | 8.3% | 19.9% |
| 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% | |
| |
|---|
| Median (12 companies) | -0.0% | 0.2% | 2.8% | -0.5% | 19.9% |
|---|
| Samson Paper Holdings Ltd ($731) | 3.0% | 3.2% | 1.8% | 2.9% | 2.9% |
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 | |
| 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 | |
| Youyuan International Holdings Ltd ($2268) | 1.2x | 1.5x | 2.1x | 1.5x | |
| |
|---|
| Median (7 companies) | 4.2x | 4.2x | 3.8x | 5.1x | -0.6x |
|---|
| Samson Paper Holdings Ltd ($731) | 11.3x | 8.3x | 13.0x | 9.3x | 8.9x |
