Chaoda Modern Agriculture Holdings Ltd CAPEX dropped on 41.6% in 2015 and Revenue decreased on 9.8%
24/09/2015 • About Chaoda Modern Agriculture Holdings Ltd (
$682) • By InTwits
Chaoda Modern Agriculture Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chaoda Modern Agriculture Holdings Ltd is a company in decline: FY2015 revenue growth was -9.8%, 5 years revenue CAGR was -28.3%
- The company operates at negative EBITDA Margin: -458.9%
- Chaoda Modern Agriculture 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 -60.7%0
- Chaoda Modern Agriculture Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 30.0%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 164 in FY2015, 280 in FY2014, 249 in FY2013, 1,645 in FY2012, 4,464 in FY2011
- The company has unprofitable business model: ROIC is at -56.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chaoda Modern Agriculture Holdings Ltd ($682) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,065 | 3,160 | 2,282 | 1,459 | 1,317 | -9.8% |
| Gross Profit | 4,988 | -247 | -141 | -271 | -384 | 41.5% |
| SG&A | 1,306 | 1,052 | 648 | 412 | 354 | -14.1% |
| EBITDA | 3,772 | -4,125 | -2,321 | -1,159 | -6,043 | 421.5% |
| Net Income | 3,277 | -4,934 | -3,220 | -1,941 | -6,627 | 241.5% |
Balance Sheet
|
|---|
| Cash | 3,333 | 520 | 371 | 432 | 239 | -44.6% |
| Short Term Debt | 0 | 0 | 0 | 29 | 4 | -85.8% |
| Long Term Debt | 1,039 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 4,464 | 1,645 | 249 | 280 | 164 | -41.6% |
Ratios
|
|---|
| Revenue growth | 15.8% | -60.8% | -27.8% | -36.0% | -9.8% | |
| EBITDA growth | -10.7% | -209.4% | -43.7% | -50.1% | 421.5% | |
| Gross Margin | 61.8% | -7.8% | -6.2% | -18.6% | -29.1% | -10.6% |
| EBITDA Margin | 46.8% | -130.5% | -101.7% | -79.4% | -458.9% | -379.5% |
| Net Income Margin | 40.6% | -156.1% | -141.1% | -133.0% | -503.3% | -370.3% |
| SG&A, % of revenue | 16.2% | 33.3% | 28.4% | 28.2% | 26.9% | -1.3% |
| CAPEX, % of revenue | 55.4% | 52.1% | 10.9% | 19.2% | 12.4% | -6.8% |
| ROIC | 12.8% | -20.2% | -16.8% | -11.6% | -56.2% | -44.6% |
| ROE | 14.0% | -21.4% | -17.2% | -12.1% | -56.2% | -44.1% |
| Net Debt/EBITDA | -0.6x | | | | | 0.0x |
Revenue and profitability
Chaoda Modern Agriculture Holdings Ltd's Revenue decreased on 9.8% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 380 pp from -79.4% to -459% in FY2015.
Gross Margin dropped on 10.6 pp from -18.6% to -29.1% in FY2015. SG&A as a % of Revenue decreased slightly on 1.3 pp from 28.2% to 26.9% in FY2015.
Net Income marign dropped on 370 pp from -133% to -503% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Chaoda Modern Agriculture Holdings Ltd had CAPEX/Revenue of 12.4%. Chaoda Modern Agriculture Holdings Ltd's CAPEX/Revenue dropped on 39.6 pp from 52.1% in FY2012 to 12.4% in FY2015. It's average CAPEX/Revenue for the last three years was 14.2%.
Return on investment
The company operates at negative ROIC (-56.23%) and ROE (-56.15%). ROIC dropped on 44.6 pp from -11.6% to -56.2% in FY2015. ROE dropped on 44.1 pp from -12.1% to -56.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -14.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt dropped on 85.8% in FY2015 while cash dropped on 44.6% in FY2015.
Appendix 1: Peers in Agriculture
Below we provide Chaoda Modern Agriculture Holdings Ltd benchmarking against other companies in Agriculture 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CP Pokphand Co Ltd ($43) | 85.7% | 36.9% | 9.2% | 1.7% | |
| China Putian Food Holdings Ltd ($1699) | 16.9% | 11.7% | 7.9% | -0.3% | |
| China Agri-Industries Holdings Ltd ($606) | 53.9% | 10.9% | 3.5% | -1.4% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | 4.7% | 1,594.6% | 0.2% | -61.3% | |
| |
|---|
| Median (4 companies) | 35.4% | 24.3% | 5.7% | -0.9% | |
|---|
| Chaoda Modern Agriculture Holdings Ltd ($682) | | -60.8% | -27.8% | -36.0% | -9.8% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Putian Food Holdings Ltd ($1699) | 23.5% | 25.8% | 25.9% | 23.0% | |
| CP Pokphand Co Ltd ($43) | 15.3% | 13.6% | 12.7% | 15.5% | |
| China Agri-Industries Holdings Ltd ($606) | 8.2% | 6.4% | 6.0% | 4.6% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | 2.6% | 32.8% | 30.6% | -19.2% | |
| |
|---|
| Median (4 companies) | 11.8% | 19.7% | 19.3% | 10.1% | |
|---|
| Chaoda Modern Agriculture Holdings Ltd ($682) | 61.8% | -7.8% | -6.2% | -18.6% | -29.1% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Putian Food Holdings Ltd ($1699) | 20.0% | 20.1% | 20.7% | 16.1% | |
| CP Pokphand Co Ltd ($43) | 8.3% | 7.6% | 6.1% | 8.0% | |
| China Agri-Industries Holdings Ltd ($606) | 5.3% | 3.7% | 2.7% | 1.7% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | -76.7% | 1.9% | -5.7% | -68.5% | |
| |
|---|
| Median (4 companies) | 6.8% | 5.6% | 4.4% | 4.9% | |
|---|
| Chaoda Modern Agriculture Holdings Ltd ($682) | 46.8% | -130.5% | -101.7% | -79.4% | -458.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cypress Jade Agricultural Holdings Ltd ($875) | 0.0% | 17.7% | 16.2% | 14.6% | |
| China Putian Food Holdings Ltd ($1699) | 5.7% | 18.8% | 26.8% | 9.0% | |
| CP Pokphand Co Ltd ($43) | 2.3% | 3.6% | 5.2% | 5.9% | |
| China Agri-Industries Holdings Ltd ($606) | 7.4% | 5.4% | 3.5% | 2.0% | |
| |
|---|
| Median (4 companies) | 4.0% | 11.5% | 10.7% | 7.5% | |
|---|
| Chaoda Modern Agriculture Holdings Ltd ($682) | 55.4% | 52.1% | 10.9% | 19.2% | 12.4% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CP Pokphand Co Ltd ($43) | 22.3% | 19.7% | 13.5% | 15.2% | |
| China Putian Food Holdings Ltd ($1699) | 39.3% | 27.8% | 20.4% | 11.4% | |
| China Agri-Industries Holdings Ltd ($606) | 6.5% | 3.5% | 1.8% | -0.1% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | | -15.4% | -17.7% | -52.2% | |
| |
|---|
| Median (4 companies) | 22.3% | 11.6% | 7.7% | 5.7% | |
|---|
| Chaoda Modern Agriculture Holdings Ltd ($682) | 12.8% | -20.2% | -16.8% | -11.6% | -56.2% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Agri-Industries Holdings Ltd ($606) | 5.4x | 6.7x | 7.6x | 13.8x | |
| China Putian Food Holdings Ltd ($1699) | 0.6x | 0.1x | 1.1x | 2.0x | |
| CP Pokphand Co Ltd ($43) | 1.2x | 1.0x | 1.8x | 1.9x | |
| |
|---|
| Median (3 companies) | 1.2x | 1.1x | 1.8x | 2.0x | |
|---|
