China National Culture Group Ltd revenue returned to growth in FY2015: increased 592% vs. 55.8% decline a year earliner
29/06/2015 • About China National Culture Group Ltd (
$745) • By InTwits
China National Culture Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China National Culture 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 -43.2% for the sames years0
- China National Culture Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's a lot of higher than industry average of 13.9%.
- CAPEX is quite volatile: 0.19 in FY2015, 0.12 in FY2014, 0.039 in FY2013, 0.35 in FY2012, 2.8 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China National Culture Group Ltd ($745) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 47.232 | 28.754 | 6.677 | 2.951 | 20.429 | 592.3% |
| Gross Profit | -22.007 | 0.262 | 0.811 | 0.303 | 6.602 | 2,078.9% |
| SG&A | | | | | 20.243 | |
| EBITDA | -33.191 | -8.751 | -4.851 | -8.240 | 9.257 | -212.3% |
| Net Income | -21.534 | -41.150 | -89.881 | -203.701 | -159.994 | -21.5% |
Balance Sheet
|
|---|
| Cash | 16.190 | 11.614 | 2.501 | 2.183 | 46.424 | 2,026.6% |
| Short Term Debt | 7.500 | 3.456 | 0.400 | 0.000 | 43.877 | |
| Long Term Debt | 43.778 | 228.070 | 213.880 | 214.506 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 2.795 | 0.350 | 0.039 | 0.123 | 0.191 | 55.3% |
Ratios
|
|---|
| Revenue growth | -68.0% | -39.1% | -76.8% | -55.8% | 592.3% | |
| EBITDA growth | -62.0% | -73.6% | -44.6% | 69.9% | -212.3% | |
| Gross Margin | -46.6% | 0.9% | 12.1% | 10.3% | 32.3% | 22.0% |
| EBITDA Margin | -70.3% | -30.4% | -72.7% | -279.2% | 45.3% | 324.5% |
| Net Income Margin | -45.6% | -143.1% | -1,346.1% | -6,902.8% | -783.2% | 6,119.6% |
| SG&A, % of revenue | | | | | 99.1% | 99.1% |
| CAPEX, % of revenue | 5.9% | 1.2% | 0.6% | 4.2% | 0.9% | -3.2% |
| ROIC | -50.1% | -2.4% | -1.0% | -1.7% | 2.4% | 4.2% |
| Net Debt/EBITDA | | | | | -0.3x | -0.3x |
Revenue and profitability
The company's Revenue jumped on 592% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 82.5 pp from 52.0% to 135% in 2015.
Gross Margin jumped on 22.0 pp from 10.3% to 32.3% in FY2015.
Net Income marign surged on 6,120 pp from -6,903% to -783% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.93%. China National Culture Group Ltd showed almost no change in CAPEX/Revenue from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 1.9%.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 4.7x. Net Debt / EBITDA dropped0.3x from to -0.3x in FY2015. Debt dropped on 79.5% in FY2015 while cash surged on 2,027% in FY2015.
Appendix 1: Peers in Engineering&Construction
Below you can find China National Culture Group Ltd benchmarking vs. other companies in Engineering&Construction 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 |
|---|
| Richly Field China Development Ltd ($313) | | | -45.0% | 464.2% | -65.7% |
| Junefield Department Store Group Ltd ($758) | 22.9% | -20.3% | -24.9% | 126.6% | |
| CNQC International Holdings Ltd ($1240) | 401.9% | 21.6% | 91.0% | 103.7% | |
| Wison Engineering Services Co Ltd ($2236) | 1.2% | -2.9% | -24.9% | 90.3% | |
| China Resources and Transportation Group Ltd ($269) | | 939.8% | 3,196.3% | 87.9% | -41.6% |
| |
|---|
| Median (40 companies) | 15.4% | 11.5% | 21.8% | 14.0% | 14.3% |
|---|
| China National Culture Group Ltd ($745) | | -39.1% | -76.8% | -55.8% | 592.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | 2.2% | 43.6% | 65.6% | 64.0% | |
| HNA Infrastructure Company Ltd ($357) | 61.6% | 66.4% | 62.1% | 62.4% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 50.1% | 54.1% | 54.3% | 41.5% | |
| Grand Ming Group Holdings Ltd ($1271) | 20.4% | 11.0% | 18.1% | 35.7% | 19.7% |
| China Saite Group Co Ltd ($153) | 29.4% | 32.1% | 33.7% | 29.8% | |
| |
|---|
| Median (35 companies) | 11.0% | 12.4% | 11.7% | 12.9% | 9.5% |
|---|
| China National Culture Group Ltd ($745) | -46.6% | 0.9% | 12.1% | 10.3% | 32.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 46.2% | 73.8% | 77.1% | |
| HNA Infrastructure Company Ltd ($357) | 60.0% | 62.8% | 63.7% | 62.8% | |
| Beijing Capital International Airport Co Ltd ($694) | 55.1% | 53.4% | 52.9% | 50.3% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 39.8% | 31.2% | 20.6% | 36.2% | |
| Grand Ming Group Holdings Ltd ($1271) | 17.5% | 10.0% | 15.8% | 31.0% | 19.0% |
| |
|---|
| Median (41 companies) | 8.5% | 9.2% | 7.8% | 6.8% | 3.7% |
|---|
| China National Culture Group Ltd ($745) | -70.3% | -30.4% | -72.7% | -279.2% | 45.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HNA Infrastructure Company Ltd ($357) | 43.3% | 36.8% | 5.7% | 85.4% | |
| PYI Corp Ltd ($498) | 6.6% | 3.7% | 4.2% | 24.5% | 13.1% |
| Shun Cheong Holdings ($650) | 7.2% | 16.4% | 8.0% | 23.9% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 6.1% | 4.2% | 7.7% | 20.2% | |
| KFM Kingdom Holdings Ltd ($3816) | 6.5% | 4.6% | 11.5% | 14.9% | 9.6% |
| |
|---|
| Median (41 companies) | 4.4% | 2.5% | 3.5% | 1.8% | 2.4% |
|---|
| China National Culture Group Ltd ($745) | 5.9% | 1.2% | 0.6% | 4.2% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 98.3% | 54.9% | 43.7% |
| Ngai Shun Holdings Ltd ($1246) | | 68.8% | 77.2% | 45.2% | 31.0% |
| CNQC International Holdings Ltd ($1240) | 23.1% | 12.2% | 22.3% | 40.4% | |
| China Saite Group Co Ltd ($153) | 46.3% | 64.0% | 53.2% | 35.3% | |
| Excel Development Holdings Ltd ($1372) | | 33.1% | 27.2% | 16.4% | 8.6% |
| |
|---|
| Median (42 companies) | 7.0% | 5.8% | 5.3% | 4.1% | 2.7% |
|---|
| China National Culture Group Ltd ($745) | -50.1% | -2.4% | -1.0% | -1.7% | 2.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Resources and Transportation Group Ltd ($269) | | | | 66.7x | 29.7x |
| CNC Holdings Ltd ($8356) | -0.7x | | 22.0x | 21.9x | 24.3x |
| Deson Development International Holdings ($262) | 3.1x | 3.8x | 4.9x | 13.7x | 47.0x |
| Chun Wo Development Holdings Ltd ($711) | | 14.3x | 8.1x | 12.6x | 15.9x |
| Hsin Chong Construction Group Ltd ($404) | 4.3x | 1.8x | 8.0x | 10.2x | |
| |
|---|
| Median (35 companies) | 0.7x | 1.7x | 1.9x | 2.6x | 4.6x |
|---|
