Zhidao International Holdings Ltd reports 30.6% revenue decline in FY2015 and 1.8 pp EBITDA Margin decline from -3.6% to -5.4%
25/06/2015 • About Zhidao International Holdings Ltd (
$1220) • By InTwits
Zhidao International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zhidao International Holdings Ltd is a company in decline: FY2015 revenue growth was -30.6%, 5 years revenue CAGR was -16.8%
- The company operates at negative EBITDA Margin: -5.4%
- EBITDA Margin is quite volatile: -5.4% in FY2015, -3.6% in FY2014, 7.3% in FY2013, 5.1% in FY2012, 3.2% in FY2011
- Zhidao International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.0%.
- The company has unprofitable business model: ROIC is at -3.6%
- It operates with high leverage: Net Debt/EBITDA is 7.2x while industry average is 3.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zhidao International Holdings Ltd ($1220) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 414.9 | 343.2 | 202.8 | 139.1 | 96.5 | -30.6% |
| Gross Profit | 16.6 | 25.8 | 25.9 | 10.7 | 10.7 | -0.3% |
| SG&A | | | 11.4 | 9.9 | 9.8 | -0.7% |
| EBITDA | 13.4 | 17.5 | 14.8 | -5.0 | -5.2 | 3.8% |
| Net Income | 11.3 | 1,921.7 | 13.7 | -6.5 | -6.8 | 4.0% |
Balance Sheet
|
|---|
| Cash | 5.6 | 75.5 | 38.0 | 37.9 | 43.4 | 14.5% |
| Short Term Debt | 1,453.3 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.0 | 0.0 | 0.1 | 0.0 | 0.0 | -100.0% |
Ratios
|
|---|
| Revenue growth | 71.2% | -17.3% | -40.9% | -31.4% | -30.6% | |
| EBITDA growth | 761.5% | 30.4% | -15.5% | -133.9% | 3.8% | |
| Gross Margin | 4.0% | 7.5% | 12.8% | 7.7% | 11.1% | 3.4% |
| EBITDA Margin | 3.2% | 5.1% | 7.3% | -3.6% | -5.4% | -1.8% |
| Net Income Margin | 2.7% | 560.0% | 6.8% | -4.7% | -7.0% | -2.3% |
| SG&A, % of revenue | | | 5.6% | 7.1% | 10.2% | 3.1% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | -0.0% |
| ROIC | | | 9.4% | -3.2% | -3.6% | -0.3% |
| ROE | | | 9.4% | -4.5% | -4.9% | -0.4% |
| Net Debt/EBITDA | 108.1x | -4.3x | -2.6x | | | 0.0x |
Revenue and profitability
Zhidao International Holdings Ltd's Revenue dropped on 30.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 38.0 pp from 17.5% to 55.5% in FY2015.
Gross Margin increased on 3.4 pp from 7.7% to 11.1% in FY2015. SG&A as a % of Revenue increased on 3.1 pp from 7.1% to 10.2% in FY2015.
Net Income marign decreased on 2.3 pp from -4.7% to -7.0% in FY2015.
Return on investment
The company operates at negative ROIC (-3.57%) and ROE (-4.88%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 14.5% in FY2015.
Appendix 1: Peers in Mining
Below we provide Zhidao International Holdings Ltd benchmarking against other companies in Mining 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 |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 24.0% | 4.8% | -44.7% | 303.0% | |
| Huili Resources Group Ltd ($1303) | -47.8% | -33.6% | -91.6% | 219.4% | |
| North Mining Shares Co Ltd ($433) | 1.7% | -5.5% | -57.1% | 187.0% | |
| China Kingstone Mining Holdings Ltd ($1380) | 4,275.3% | -94.5% | -55.6% | 155.2% | |
| Ding He Mining Holdings Ltd ($705) | 31.6% | 29.9% | 43.8% | 89.8% | |
| |
|---|
| Median (45 companies) | 31.0% | 6.4% | 2.6% | -5.3% | 11.7% |
|---|
| Zhidao International Holdings Ltd ($1220) | | -17.3% | -40.9% | -31.4% | -30.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sun International Resources Ltd ($8029) | 77.6% | 83.2% | 73.1% | 64.8% | 69.4% |
| China Polymetallic Mining Ltd ($2133) | 76.9% | 81.8% | 74.2% | 51.8% | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 64.7% | 63.9% | 54.9% | 51.2% | |
| Hengshi Mining Investments Ltd ($1370) | 54.6% | 32.4% | 55.3% | 50.1% | |
| China Kingstone Mining Holdings Ltd ($1380) | 60.1% | 67.1% | 50.7% | 49.8% | |
| |
|---|
| Median (45 companies) | 19.2% | 14.4% | 14.7% | 15.6% | 39.9% |
|---|
| Zhidao International Holdings Ltd ($1220) | 4.0% | 7.5% | 12.8% | 7.7% | 11.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | |
| China Polymetallic Mining Ltd ($2133) | -322.0% | 62.8% | 58.5% | 54.1% | |
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | |
| China Gold International Resources Corp Ltd ($2099) | | 41.7% | 38.3% | 47.3% | 33.7% |
| Hengshi Mining Investments Ltd ($1370) | 45.7% | 22.8% | 52.0% | 45.4% | |
| |
|---|
| Median (45 companies) | 6.4% | 4.7% | 8.7% | 5.5% | -43.1% |
|---|
| Zhidao International Holdings Ltd ($1220) | 3.2% | 5.1% | 7.3% | -3.6% | -5.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% |
| Huili Resources Group Ltd ($1303) | 3.9% | 181.0% | 1,508.6% | 279.5% | |
| Kaz Minerals ($847) | 19.8% | 36.6% | 136.5% | 168.8% | |
| China Gold International Resources Corp Ltd ($2099) | | 64.7% | 156.1% | 95.6% | 81.4% |
| IRC Ltd ($1029) | 129.7% | 102.1% | 70.6% | 82.5% | |
| |
|---|
| Median (45 companies) | 17.1% | 17.4% | 16.0% | 15.8% | 23.3% |
|---|
| Zhidao International Holdings Ltd ($1220) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Silver Group Ltd ($815) | 48.0% | 57.6% | 31.6% | 35.8% | |
| Hengshi Mining Investments Ltd ($1370) | 153.0% | 50.1% | 60.1% | 20.7% | |
| China Hongqiao Group Ltd ($1378) | 44.6% | 24.8% | 17.0% | 14.1% | |
| China Nonferrous Mining Corp Ltd ($1258) | 10.9% | 14.7% | 10.8% | 11.8% | |
| Xingfa Aluminium Holdings Ltd ($98) | 3.8% | 7.6% | 8.8% | 11.7% | |
| |
|---|
| Median (46 companies) | 3.8% | 2.0% | 3.1% | 2.1% | -1.1% |
|---|
| Zhidao International Holdings Ltd ($1220) | | | 9.4% | -3.2% | -3.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 0.9x | 8.4x | 39.4x | 10.3x | |
| MMG Ltd ($1208) | -0.0x | 2.1x | 2.0x | 10.2x | |
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 5.8x | 9.2x | 9.7x | 9.2x | |
| Midas Holdings Ltd ($1021) | 1.4x | 4.3x | 6.5x | 8.7x | |
| Lingbao Gold Co Ltd ($3330) | 3.5x | 5.3x | | 8.3x | |
| |
|---|
| Median (27 companies) | 0.9x | 1.8x | 2.0x | 4.4x | -0.0x |
|---|
