Sino Prosper Group Holdings Ltd EBITDA Margin jumped on 421 pp from -378% to 42.9% in 2015 and Revenue increased on 4.0%
29/06/2015 • About Sino Prosper Group Holdings Ltd (
$766) • By InTwits
Sino Prosper Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sino Prosper Group Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 0.8%
- Sino Prosper Group Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -146.9%0
- Sino Prosper Group Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 50.5%. At the same time it's in pair with industry average of 8.1%.
- CAPEX is quite volatile: 0.32 in FY2015, 3.9 in FY2014, 31.0 in FY2013, 30.2 in FY2012, 61.0 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino Prosper Group Holdings Ltd ($766) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 47.692 | 50.287 | 54.483 | 53.830 | 55.957 | 4.0% |
| Gross Profit | -3.107 | 1.267 | 2.765 | 21.337 | 52.054 | 144.0% |
| SG&A | | | 91.750 | 77.335 | 39.037 | -49.5% |
| EBITDA | -60.679 | -69.713 | -75.281 | -203.684 | 24.021 | -111.8% |
| Net Income | -44.040 | -46.799 | -70.687 | -66.314 | -514.793 | 676.3% |
Balance Sheet
|
|---|
| Cash | 311.810 | 477.218 | 186.499 | 93.193 | 74.722 | -19.8% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 100.318 | 107.338 | 7.0% |
Cash flow
|
|---|
| Capex | 60.983 | 30.160 | 30.974 | 3.887 | 0.321 | -91.7% |
Ratios
|
|---|
| Revenue growth | 14.0% | 5.4% | 8.3% | -1.2% | 4.0% | |
| EBITDA growth | 175.2% | 14.9% | 8.0% | 170.6% | -111.8% | |
| Gross Margin | -6.5% | 2.5% | 5.1% | 39.6% | 93.0% | 53.4% |
| EBITDA Margin | -127.2% | -138.6% | -138.2% | -378.4% | 42.9% | 421.3% |
| Net Income Margin | -92.3% | -93.1% | -129.7% | -123.2% | -920.0% | -796.8% |
| SG&A, % of revenue | | | 168.4% | 143.7% | 69.8% | -73.9% |
| CAPEX, % of revenue | 127.9% | 60.0% | 56.9% | 7.2% | 0.6% | -6.6% |
| ROIC | -4.3% | -4.1% | -4.3% | -10.3% | 0.8% | 11.1% |
| ROE | -3.9% | -2.7% | -3.7% | -3.5% | -31.2% | -27.7% |
| Net Debt/EBITDA | | | | | 1.4x | 1.4x |
Revenue and profitability
Sino Prosper Group Holdings Ltd's Revenue increased on 4.0% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 33.1 pp from -39.0% to -5.9% in FY2015.
Gross Margin jumped on 53.4 pp from 39.6% to 93.0% in FY2015. SG&A as a % of Revenue dropped on 73.9 pp from 144% to 69.8% in FY2015.
Net Income marign dropped on 797 pp from -123% to -920% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.57%. CAPEX/Revenue dropped on 59.4 pp from 60.0% in FY2012 to 0.57% in FY2015. Average CAPEX/Revenue for the last three years was 21.5%.
Return on investment
The company operates at low but positive ROIC (0.78%) and negative ROE (-31.20%). ROIC surged on 11.1 pp from -10.3% to 0.78% in FY2015. ROE dropped on 27.7 pp from -3.5% to -31.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 4.5x. Net Debt / EBITDA surged1.4x from to 1.4x in FY2015. Debt increased on 7.0% in FY2015 while cash dropped on 19.8% in FY2015.
Appendix 1: Peers in Mining
Below you can find Sino Prosper Group Holdings Ltd benchmarking vs. other companies in Mining 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 |
|---|
| 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% | 2.4% | -6.5% | 0.8% |
|---|
| Sino Prosper Group Holdings Ltd ($766) | | 5.4% | 8.3% | -1.2% | 4.0% |
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% | 15.3% | 29.4% |
|---|
| Sino Prosper Group Holdings Ltd ($766) | -6.5% | 2.5% | 5.1% | 39.6% | 93.0% |
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% | 4.9% | 8.7% | 5.5% | -5.4% |
|---|
| Sino Prosper Group Holdings Ltd ($766) | -127.2% | -138.6% | -138.2% | -378.4% | 42.9% |
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) | 15.6% | 17.0% | 15.3% | 15.8% | 8.1% |
|---|
| Sino Prosper Group Holdings Ltd ($766) | 127.9% | 60.0% | 56.9% | 7.2% | 0.6% |
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% | 2.5% | 3.3% | 2.1% | -1.1% |
|---|
| Sino Prosper Group Holdings Ltd ($766) | -4.3% | -4.1% | -4.3% | -10.3% | 0.8% |
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 | 1.5x | 1.9x | 4.4x | -0.7x |
|---|
