Infinity Chemical Holdings Co Ltd reports 51.3% EBITDA growth and 8.9% Revenue growth
23/12/2015 • About Infinity Chemical Holdings Co Ltd (
$640) • By InTwits
Infinity Chemical Holdings Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Infinity Chemical Holdings Co Ltd is a growth stock: FY2015 revenue growth was 8.9%, 5 year revenue CAGR was 12.9% at FY2015 ROIC 12.7%
- Infinity Chemical Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 25.1 in FY2015, 11.4 in FY2014, 7.6 in FY2013, 11.1 in FY2012, 12.1 in FY2011
- The company has highly profitable business model: ROIC is at 12.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Infinity Chemical Holdings Co Ltd ($640) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 373.6 | 402.9 | 452.4 | 499.1 | 543.6 | 8.9% |
| Gross Profit | 82.3 | 102.3 | 126.7 | 149.0 | 180.7 | 21.3% |
| SG&A | | 73.7 | 96.4 | 116.6 | 131.8 | 13.1% |
| EBITDA | 26.3 | 36.0 | 42.1 | 45.0 | 68.1 | 51.3% |
| Net Income | 23.9 | 24.5 | 34.1 | 39.5 | 49.2 | 24.4% |
Balance Sheet
|
|---|
| Cash | 22.7 | 15.4 | 17.7 | 29.4 | 94.4 | 220.9% |
| Short Term Debt | 73.3 | 60.1 | 49.3 | 56.6 | 24.5 | -56.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 12.1 | 11.1 | 7.6 | 11.4 | 25.1 | 120.3% |
Ratios
|
|---|
| Revenue growth | 26.2% | 7.9% | 12.3% | 10.3% | 8.9% | |
| EBITDA growth | -35.8% | 37.2% | 17.0% | 6.7% | 51.3% | |
| Gross Margin | 22.0% | 25.4% | 28.0% | 29.8% | 33.2% | 3.4% |
| EBITDA Margin | 7.0% | 8.9% | 9.3% | 9.0% | 12.5% | 3.5% |
| Net Income Margin | 6.4% | 6.1% | 7.5% | 7.9% | 9.0% | 1.1% |
| SG&A, % of revenue | | 18.3% | 21.3% | 23.4% | 24.3% | 0.9% |
| CAPEX, % of revenue | 3.2% | 2.7% | 1.7% | 2.3% | 4.6% | 2.3% |
| ROIC | 9.2% | 11.1% | 10.2% | 8.8% | 12.7% | 3.9% |
| ROE | 13.5% | 12.4% | 14.2% | 13.3% | 13.1% | -0.2% |
| Net Debt/EBITDA | 1.9x | 1.2x | 0.8x | 0.6x | -1.0x | -1.6x |
Revenue and profitability
The company's Revenue increased on 8.9% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.5 pp from 9.0% to 12.5% in FY2015.
Gross Margin increased on 3.4 pp from 29.8% to 33.2% in FY2015. SG&A as a % of Revenue increased slightly on 0.89 pp from 23.4% to 24.3% in FY2015.
Net Income marign increased slightly on 1.1 pp from 7.9% to 9.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 4.6%. CAPEX/Revenue increased slightly on 1.9 pp from 2.7% in FY2012 to 4.6% in FY2015. For the last three years the average CAPEX/Revenue was 2.9%.
Return on investment
The company operates at good ROIC (12.72%) and ROE (13.09%). ROIC increased on 3.9 pp from 8.8% to 12.7% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is -1.0x Net Debt / EBITDA and 0.4x Debt / EBITDA. Net Debt / EBITDA dropped on 1.6x from 0.6x to -1.0x in FY2015. Debt dropped on 56.7% in FY2015 while cash surged on 221% in FY2015.
Appendix 1: Peers in Chemicals
Below you can find Infinity Chemical Holdings Co Ltd benchmarking vs. other companies in Chemicals 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 |
|---|
| Bestway International Holdings Ltd ($718) | | -25.4% | -62.1% | 330.3% | 238.4% |
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 39.7% | -33.6% | 5.5% | 29.1% | |
| China XLX Fertiliser Ltd ($1866) | 29.3% | 7.0% | 0.6% | 28.0% | |
| Century Sunshine Group Holdings Ltd ($509) | 49.2% | 68.7% | 32.0% | 26.4% | |
| Landing International Development Ltd ($582) | -50.7% | 2.1% | 15.9% | 23.3% | |
| |
|---|
| Median (31 companies) | 25.8% | 2.0% | 9.4% | 1.4% | -2.9% |
|---|
| Infinity Chemical Holdings Co Ltd ($640) | | 7.9% | 12.3% | 10.3% | 8.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 74.3% | 70.5% | 69.1% | 70.8% | 69.9% |
| China Flavors & Fragrances Co Ltd ($3318) | 41.3% | 46.8% | 48.6% | 47.8% | |
| Smartac Group China Holdings Ltd ($395) | 17.3% | -1.8% | 11.2% | 40.4% | |
| Bracell Ltd ($1768) | 40.1% | 30.5% | 37.3% | 37.3% | |
| Yingde Gases Group Co Ltd ($2168) | 34.2% | 31.7% | 31.0% | 32.1% | |
| |
|---|
| Median (31 companies) | 19.8% | 18.2% | 16.2% | 16.0% | 26.4% |
|---|
| Infinity Chemical Holdings Co Ltd ($640) | 22.0% | 25.4% | 28.0% | 29.8% | 33.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 66.4% | 63.8% | 59.1% | 60.0% | 58.3% |
| Bracell Ltd ($1768) | 30.1% | 22.3% | 30.8% | 38.2% | |
| Yingde Gases Group Co Ltd ($2168) | 32.3% | 29.4% | 29.8% | 32.3% | |
| China First Chemical Holdings Ltd ($2121) | 29.7% | 26.6% | 30.0% | 29.6% | |
| Century Sunshine Group Holdings Ltd ($509) | 15.5% | 24.2% | 28.1% | 27.6% | |
| |
|---|
| Median (31 companies) | 15.5% | 15.8% | 14.5% | 13.8% | -56.4% |
|---|
| Infinity Chemical Holdings Co Ltd ($640) | 7.0% | 8.9% | 9.3% | 9.0% | 12.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Landing International Development Ltd ($582) | 27.9% | 7.2% | 29.6% | 419.5% | |
| China Zenith Chemical Group Ltd ($362) | 36.8% | 147.3% | 55.7% | 67.4% | 152.2% |
| Smartac Group China Holdings Ltd ($395) | 22.5% | 14.0% | 4.7% | 49.3% | |
| China Flavors & Fragrances Co Ltd ($3318) | 16.4% | 15.8% | 20.1% | 42.4% | |
| Bracell Ltd ($1768) | 24.4% | 22.3% | 64.3% | 35.4% | |
| |
|---|
| Median (31 companies) | 8.7% | 9.6% | 8.7% | 5.9% | 2.6% |
|---|
| Infinity Chemical Holdings Co Ltd ($640) | 3.2% | 2.7% | 1.7% | 2.3% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 34.6% | 28.7% | 25.2% | 26.2% | 23.3% |
| Tiande Chemical Holdings Ltd ($609) | 24.4% | 26.2% | 29.4% | 20.7% | |
| Century Sunshine Group Holdings Ltd ($509) | 3.5% | 11.3% | 15.9% | 16.4% | |
| Fufeng Group Ltd ($546) | 13.9% | 9.6% | 10.8% | 11.6% | |
| Yingde Gases Group Co Ltd ($2168) | 14.7% | 10.6% | 11.5% | 11.5% | |
| |
|---|
| Median (31 companies) | 7.8% | 6.9% | 7.4% | 5.2% | 1.0% |
|---|
| Infinity Chemical Holdings Co Ltd ($640) | 9.2% | 11.1% | 10.2% | 8.8% | 12.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 2.4x | 2.2x | 4.6x | 18.1x | |
| China XLX Fertiliser Ltd ($1866) | 2.4x | 2.6x | 5.1x | 5.8x | |
| Ngai Hing Hong Co Ltd ($1047) | 4.8x | 11.7x | 5.3x | 5.4x | 5.3x |
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 4.3x | 14.1x | 6.5x | 5.3x | |
| Sinofert Holdings Ltd ($297) | 4.3x | 2.9x | 32.4x | 5.0x | |
| |
|---|
| Median (24 companies) | 1.3x | 1.9x | 2.5x | 1.5x | 2.2x |
|---|
| Infinity Chemical Holdings Co Ltd ($640) | 1.9x | 1.2x | 0.8x | 0.6x | -1.0x |
