Sino Resources Group Ltd revenue growth accelerated to 354% in FY2015 vs. 14.7% a year earliner
26/06/2015 • About Sino Resources Group Ltd (
$223) • By InTwits
Sino Resources Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sino Resources Group Ltd doesn't have a profitable business model yet: FY2015 ROIC is -28.6%
- The company operates at negative EBITDA Margin: -19.6%
- Sino Resources Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -34.4% for the sames years0
- Sino Resources Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.6%. At the same time it's in pair with industry average of 17.7%.
- CAPEX is quite volatile: 2.0 in FY2015, 1.8 in FY2014, 15.9 in FY2013, 2.5 in FY2012, 0.94 in FY2011
- The company has unprofitable business model: ROIC is at -28.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino Resources Group Ltd ($223) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 82.4 | 67.2 | 37.1 | 42.5 | 193.3 | 354.5% |
| Gross Profit | 13.8 | 1.2 | 0.5 | 1.3 | 5.8 | 360.8% |
| EBITDA | -20.2 | -32.5 | -31.2 | -23.7 | -38.0 | 60.2% |
| Net Income | -34.5 | -34.1 | -83.3 | -46.0 | -120.1 | 160.8% |
Balance Sheet
|
|---|
| Cash | 90.4 | 15.8 | 21.9 | 26.1 | 12.3 | -52.8% |
| Short Term Debt | 48.4 | 192.6 | 217.6 | 189.0 | 196.1 | 3.7% |
| Long Term Debt | 142.1 | 0.5 | 8.8 | 11.6 | 70.6 | 507.7% |
Cash flow
|
|---|
| Capex | 0.9 | 2.5 | 15.9 | 1.8 | 2.0 | 13.5% |
Ratios
|
|---|
| Revenue growth | -5.7% | -18.5% | -44.8% | 14.7% | 354.5% | |
| EBITDA growth | 4.6% | 61.4% | -4.2% | -24.0% | 60.2% | |
| Gross Margin | 16.7% | 1.7% | 1.4% | 2.9% | 3.0% | 0.0% |
| EBITDA Margin | -24.5% | -48.4% | -84.1% | -55.7% | -19.6% | 36.1% |
| Net Income Margin | -41.8% | -50.8% | -224.5% | -108.2% | -62.1% | 46.1% |
| CAPEX, % of revenue | 1.1% | 3.7% | 42.8% | 4.2% | 1.0% | -3.1% |
| ROIC | | | | -81.3% | -28.6% | 52.8% |
Revenue and profitability
Sino Resources Group Ltd's Revenue surged on 354% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.7 pp from 13.2% to 6.5% in 2015.
Gross Margin showed almost no change in FY2015.
Net Income marign jumped on 46.1 pp from -108% to -62.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Sino Resources Group Ltd's CAPEX/Revenue was 1.0% in FY2015. CAPEX/Revenue decreased on 2.6 pp from 3.7% in FY2012 to 1.0% in FY2015. It's average CAPEX/Revenue for the last three years was 16.0%.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt jumped on 32.9% in FY2015 while cash dropped on 52.8% in FY2015.
Appendix 1: Peers in Coal
Below you can find Sino Resources Group Ltd benchmarking vs. other companies in Coal 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 |
|---|
| 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% | 1.4% | -6.8% | -12.5% | 14.8% |
|---|
| Sino Resources Group Ltd ($223) | | -18.5% | -44.8% | 14.7% | 354.5% |
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% | |
| Agritrade Resources Ltd ($1131) | 7.6% | 22.9% | 29.4% | 31.8% | 30.0% |
| 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% | |
| |
|---|
| Median (22 companies) | 31.5% | 20.3% | 17.6% | 10.5% | 8.3% |
|---|
| Sino Resources Group Ltd ($223) | 16.7% | 1.7% | 1.4% | 2.9% | 3.0% |
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% | |
| Agritrade Resources Ltd ($1131) | 1.4% | 41.6% | 37.3% | 33.4% | 31.1% |
| 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% | |
| |
|---|
| Median (23 companies) | 17.4% | 7.2% | 0.2% | -6.5% | -7.9% |
|---|
| Sino Resources Group Ltd ($223) | -24.5% | -48.4% | -84.1% | -55.7% | -19.6% |
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) | 22.1% | 18.2% | 23.0% | 20.5% | 39.3% |
|---|
| Sino Resources Group Ltd ($223) | 1.1% | 3.7% | 42.8% | 4.2% | 1.0% |
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% | |
| Agritrade Resources Ltd ($1131) | -2.3% | 2.7% | 5.8% | 6.4% | 6.9% |
| |
|---|
| Median (23 companies) | 2.7% | -2.0% | -0.4% | -1.8% | 3.0% |
|---|
| Sino Resources Group Ltd ($223) | | | | -81.3% | -28.6% |
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 (9 companies) | 1.1x | 2.4x | 4.4x | 4.5x | -0.7x |
|---|
