Agritrade Resources Ltd reports 28.4% revenue growth in FY2015 and 2.3 pp EBITDA Margin decline from 33.4% to 31.1%
26/06/2015 • About Agritrade Resources Ltd (
$1131) • By InTwits
Agritrade Resources 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: 31.1% in FY2015, 33.4% in FY2014, 37.3% in FY2013, 41.6% in FY2012, 1.4% in FY2011
- Agritrade Resources Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 29.2%. At the same time it's in pair with industry average of 17.9%.
- CAPEX is quite volatile: 321 in FY2015, 272 in FY2014, 97.0 in FY2013, 231 in FY2012, 51.3 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Agritrade Resources Ltd ($1131) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 217 | 427 | 701 | 961 | 1,234 | 28.4% |
| Gross Profit | 17 | 98 | 206 | 306 | 370 | 21.1% |
| SG&A | 60 | | | | 136 | |
| EBITDA | 3 | 178 | 261 | 321 | 384 | 19.5% |
| Net Income | 44 | -18 | 53 | 115 | 147 | 27.5% |
Balance Sheet
|
|---|
| Cash | 57 | 22 | 16 | 171 | 265 | 55.1% |
| Short Term Debt | 31 | 67 | 157 | 149 | 253 | 69.3% |
| Long Term Debt | 279 | 291 | 230 | 205 | 165 | -19.5% |
Cash flow
|
|---|
| Capex | 51 | 231 | 97 | 272 | 321 | 17.7% |
Ratios
|
|---|
| Revenue growth | 36.2% | 97.2% | 64.1% | 37.2% | 28.4% | |
| EBITDA growth | -130.1% | 5,652.4% | 46.8% | 22.9% | 19.5% | |
| Gross Margin | 7.6% | 22.9% | 29.4% | 31.8% | 30.0% | -1.8% |
| EBITDA Margin | 1.4% | 41.6% | 37.3% | 33.4% | 31.1% | -2.3% |
| Net Income Margin | 20.4% | -4.1% | 7.6% | 12.0% | 11.9% | -0.1% |
| SG&A, % of revenue | 27.7% | | | | 11.1% | 11.1% |
| CAPEX, % of revenue | 23.7% | 54.1% | 13.8% | 28.3% | 26.0% | -2.4% |
| ROIC | -2.3% | 2.7% | 5.8% | 6.4% | 6.9% | 0.5% |
| ROE | 6.4% | -1.7% | 5.2% | 9.5% | 9.9% | 0.4% |
| Net Debt/EBITDA | 81.9x | 1.9x | 1.4x | 0.6x | 0.4x | -0.2x |
Revenue and profitability
The company's Revenue surged on 28.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 17.3 pp from -7.8% to 9.5% in 2015.
Gross Margin decreased slightly on 1.8 pp from 31.8% to 30.0% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 26.0% in FY2015. The company's CAPEX/Revenue dropped on 28.2 pp from 54.1% in FY2012 to 26.0% in FY2015. For the last three years the average CAPEX/Revenue was 22.7%.To maintain this fast growth Agritrade Resources Ltd invested a large share of EBITDA (83.6%) to CAPEX.
Return on investment
The company operates at low ROIC (6.93%) and ROE (9.88%). ROIC increased slightly on 0.50 pp from 6.4% to 6.9% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is 1.1x. Net Debt / EBITDA dropped on 0.2x from 0.6x to 0.4x in FY2015. Debt jumped on 18.0% in FY2015 while cash surged on 55.1% in FY2015.
Appendix 1: Peers in Coal
Below we provide Agritrade Resources Ltd benchmarking against other companies in Coal 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 |
|---|
| Kinetic Mines and Energy Ltd ($1277) | | | 299.9% | 563.4% | |
| Feishang Anthracite Resources Ltd ($1738) | 172.1% | 34.9% | 25.8% | 103.6% | |
| Loudong General Nice Resources China Holdings Ltd ($988) | 8.5% | -12.7% | 39.1% | 87.6% | |
| Rosan Resources Holdings Ltd ($578) | -19.9% | -74.1% | 71.1% | 49.1% | |
| Asia Coal Ltd ($835) | 13.6% | 32.1% | -15.3% | 43.2% | |
| |
|---|
| Median (22 companies) | 21.3% | -6.5% | -8.6% | -12.5% | 30.8% |
|---|
| Agritrade Resources Ltd ($1131) | | 97.2% | 64.1% | 37.2% | 28.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Coal Ltd ($835) | 32.4% | 56.7% | 62.6% | 76.7% | |
| Shougang Fushan Resources Group Ltd ($639) | 70.4% | 63.5% | 50.9% | 40.1% | |
| Kinetic Mines and Energy Ltd ($1277) | | 20.6% | 28.8% | 30.3% | |
| China Shenhua Energy Co Ltd ($1088) | 39.9% | 31.4% | 28.7% | 29.6% | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 44.7% | 35.2% | 33.7% | 27.4% | |
| |
|---|
| Median (22 companies) | 31.5% | 19.9% | 17.3% | 9.4% | -5.2% |
|---|
| Agritrade Resources Ltd ($1131) | 7.6% | 22.9% | 29.4% | 31.8% | 30.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Shenhua Energy Co Ltd ($1088) | 41.2% | 35.6% | 31.6% | 34.2% | |
| Kinetic Mines and Energy Ltd ($1277) | | -277.0% | -51.9% | 29.3% | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 40.9% | 33.1% | 30.7% | 22.8% | |
| Feishang Anthracite Resources Ltd ($1738) | -9.2% | -13.1% | -32.9% | 19.0% | |
| Yanzhou Coal Mining Co Ltd ($1171) | 32.3% | 14.9% | 11.5% | 12.2% | |
| |
|---|
| Median (23 companies) | 17.4% | -1.1% | -4.3% | -8.6% | -33.2% |
|---|
| Agritrade Resources Ltd ($1131) | 1.4% | 41.6% | 37.3% | 33.4% | 31.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Up Energy Development Group Ltd ($307) | | | | 279.5% | 75.2% |
| Siberian Mining Group Co Ltd ($1142) | 129.1% | 4.6% | 78.8% | 217.3% | |
| King Stone Energy Group Ltd ($663) | 82.7% | 58.5% | 135.3% | 205.7% | |
| Asia Coal Ltd ($835) | 121.4% | 12.5% | 25.8% | 111.0% | |
| Hidili Industry International Development Ltd ($1393) | 74.1% | 82.3% | 144.6% | 92.3% | |
| |
|---|
| Median (23 companies) | 21.9% | 13.7% | 26.0% | 17.8% | 26.9% |
|---|
| Agritrade Resources Ltd ($1131) | 23.7% | 54.1% | 13.8% | 28.3% | 26.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Shenhua Energy Co Ltd ($1088) | 21.0% | 19.5% | 17.4% | 14.6% | |
| Loudong General Nice Resources China Holdings Ltd ($988) | 11.5% | 4.1% | 8.2% | 9.6% | |
| Kinetic Mines and Energy Ltd ($1277) | -2.6% | -6.6% | -5.7% | 8.5% | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 37.6% | 28.5% | 15.2% | 8.5% | |
| Yanzhou Coal Mining Co Ltd ($1171) | 16.8% | 5.3% | 2.0% | 3.7% | |
| |
|---|
| Median (23 companies) | 4.8% | -2.6% | -2.1% | -5.2% | -14.8% |
|---|
| Agritrade Resources Ltd ($1131) | -2.3% | 2.7% | 5.8% | 6.4% | 6.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Feishang Anthracite Resources Ltd ($1738) | | | | 24.3x | |
| China Coal Energy Co Ltd ($1898) | 0.5x | 1.9x | 4.9x | 9.7x | |
| Loudong General Nice Resources China Holdings Ltd ($988) | 2.0x | 5.8x | 4.4x | 6.0x | |
| Yanzhou Coal Mining Co Ltd ($1171) | 1.1x | 2.9x | 6.2x | 4.9x | |
| Kinetic Mines and Energy Ltd ($1277) | | | | 4.5x | |
| |
|---|
| Median (8 companies) | 1.0x | 2.9x | 4.7x | 4.7x | -1.8x |
|---|
| Agritrade Resources Ltd ($1131) | 81.9x | 1.9x | 1.4x | 0.6x | 0.4x |
