Asia Coal Ltd revenue growth accelerated from 43.2% in FY2014 to 134% in FY2015
30/06/2015 • About Asia Coal Ltd (
$835) • By InTwits
Asia Coal Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asia Coal Ltd doesn't have a profitable business model yet: FY2015 ROIC is -152.8%
- The company operates at negative EBITDA Margin: -94.6%
- Asia Coal 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 -431.3%0
- Asia Coal Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 54.2%. At the same time it's a lot of higher than industry average of 39.0%.
- CAPEX is quite volatile: 0.098 in FY2015, 13.9 in FY2014, 2.3 in FY2013, 1.3 in FY2012, 9.5 in FY2011
- The company has unprofitable business model: ROIC is at -152.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asia Coal Ltd ($835) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7.800 | 10.305 | 8.728 | 12.499 | 29.200 | 133.6% |
| Gross Profit | 2.528 | 5.839 | 5.460 | 9.591 | 1.702 | -82.3% |
| SG&A | | | 37.822 | 57.987 | 32.040 | -44.7% |
| EBITDA | -167.329 | -34.403 | -28.512 | -37.710 | -27.636 | -26.7% |
| Net Income | -207.064 | -306.945 | -52.779 | -144.094 | -25.144 | -82.6% |
Balance Sheet
|
|---|
| Cash | 5.946 | 3.346 | 4.592 | 20.131 | 36.583 | 81.7% |
| Short Term Debt | 159.862 | 99.334 | 17.089 | 9.781 | 2.796 | -71.4% |
| Long Term Debt | 64.012 | 71.430 | 0.000 | 0.000 | 3.129 | |
Cash flow
|
|---|
| Capex | 9.467 | 1.291 | 2.250 | 13.876 | 0.098 | -99.3% |
Ratios
|
|---|
| Revenue growth | 13.6% | 32.1% | -15.3% | 43.2% | 133.6% | |
| EBITDA growth | 186.7% | -79.4% | -17.1% | 32.3% | -26.7% | |
| Gross Margin | 32.4% | 56.7% | 62.6% | 76.7% | 5.8% | -70.9% |
| EBITDA Margin | -2,145.2% | -333.8% | -326.7% | -301.7% | -94.6% | 207.1% |
| Net Income Margin | -2,654.7% | -2,978.6% | -604.7% | -1,152.8% | -86.1% | 1,066.7% |
| SG&A, % of revenue | | | 433.3% | 463.9% | 109.7% | -354.2% |
| CAPEX, % of revenue | 121.4% | 12.5% | 25.8% | 111.0% | 0.3% | -110.7% |
| ROIC | -42.0% | -15.7% | -28.8% | -70.3% | -152.8% | -82.5% |
| ROE | -92.9% | | | | | 0.0% |
Revenue and profitability
Asia Coal Ltd's Revenue surged on 134% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 11.8 pp from -13.3% to -25.0% in 2015.
Gross Margin dropped on 70.9 pp from 76.7% to 5.8% in FY2015. SG&A as a % of Revenue dropped on 354 pp from 464% to 110% in FY2015.
Net Income marign jumped on 1,067 pp from -1,153% to -86.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Asia Coal Ltd had CAPEX/Revenue of 0.34%. Asia Coal Ltd's CAPEX/Revenue dropped on 12.2 pp from 12.5% in FY2012 to 0.34% in FY2015. For the last three years the average CAPEX/Revenue was 45.7%.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt dropped on 39.4% in FY2015 while cash surged on 81.7% in FY2015.
Appendix 1: Peers in Coal
Below you can find Asia Coal 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% | |
| Agritrade Resources Ltd ($1131) | | 97.2% | 64.1% | 37.2% | 28.4% |
| |
|---|
| Median (22 companies) | 25.2% | -6.5% | -6.8% | -12.5% | 28.4% |
|---|
| Asia Coal Ltd ($835) | | 32.1% | -15.3% | 43.2% | 133.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 44.7% | 35.2% | 33.7% | 27.4% | |
| |
|---|
| Median (22 companies) | 30.0% | 19.9% | 17.3% | 9.4% | 3.0% |
|---|
| Asia Coal Ltd ($835) | 32.4% | 56.7% | 62.6% | 76.7% | 5.8% |
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% | -19.6% |
|---|
| Asia Coal Ltd ($835) | -2,145.2% | -333.8% | -326.7% | -301.7% | -94.6% |
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% | |
| Hidili Industry International Development Ltd ($1393) | 74.1% | 82.3% | 144.6% | 92.3% | |
| Feishang Anthracite Resources Ltd ($1738) | 310.5% | 244.9% | 159.7% | 80.9% | |
| |
|---|
| Median (23 companies) | 21.9% | 18.2% | 23.2% | 17.8% | 26.0% |
|---|
| Asia Coal Ltd ($835) | 121.4% | 12.5% | 25.8% | 111.0% | 0.3% |
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) | 4.8% | -1.3% | -0.4% | -1.8% | -0.9% |
|---|
| Asia Coal Ltd ($835) | -42.0% | -15.7% | -28.8% | -70.3% | -152.8% |
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 |
|---|
