CITIC Dameng Holdings Ltd EBITDA dropped on 149% in 2015 and EBITDA Margin dropped on 28.8 pp from 17.8% to -11.0%
04/02/2016 • About CITIC Dameng Holdings Ltd (
$1091) • By InTwits
CITIC Dameng Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CITIC Dameng Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -8.3%
- The company operates at negative EBITDA Margin: -11.0%
- EBITDA Margin is quite volatile: -11.0% in 2015, 17.8% in 2014, 6.8% in 2013, -1.2% in 2012, 20.0% in 2011
- CITIC Dameng Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.8%. At the same time it's a lot of higher than industry average of 5.6%.
- CAPEX is quite volatile: 277 in 2015, 505 in 2014, 530 in 2013, 651 in 2012, 815 in 2011
- The company has unprofitable business model: ROIC is at -8.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CITIC Dameng Holdings Ltd ($1091) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,655 | 2,986 | 2,916 | 3,195 | 2,517 | -21.2% |
| Gross Profit | 669 | 250 | 328 | 553 | -88 | -115.9% |
| SG&A | 397 | 559 | 529 | 546 | 582 | 6.6% |
| EBITDA | 729 | -36 | 197 | 569 | -276 | -148.5% |
| Net Income | 409 | -397 | -243 | 15 | -956 | -6,272.6% |
Balance Sheet
|
|---|
| Cash | 1,801 | 1,778 | 1,108 | 870 | 410 | -52.9% |
| Short Term Debt | 1,791 | 2,058 | 1,579 | 2,559 | 3,227 | 26.1% |
| Long Term Debt | 1,499 | 1,770 | 2,290 | 1,882 | 1,505 | -20.0% |
Cash flow
|
|---|
| Capex | 815 | 651 | 530 | 505 | 277 | -45.2% |
Ratios
|
|---|
| Revenue growth | 41.7% | -18.3% | -2.4% | 9.6% | -21.2% | |
| EBITDA growth | 39.4% | -104.9% | -647.4% | 188.7% | -148.5% | |
| Gross Margin | 18.3% | 8.4% | 11.3% | 17.3% | -3.5% | -20.8% |
| EBITDA Margin | 20.0% | -1.2% | 6.8% | 17.8% | -11.0% | -28.8% |
| Net Income Margin | 11.2% | -13.3% | -8.3% | 0.5% | -38.0% | -38.5% |
| SG&A, % of revenue | 10.9% | 18.7% | 18.1% | 17.1% | 23.1% | 6.0% |
| CAPEX, % of revenue | 22.3% | 21.8% | 18.2% | 15.8% | 11.0% | -4.8% |
| ROIC | 6.9% | -4.6% | -2.1% | 2.3% | -8.3% | -10.6% |
| ROE | 11.2% | -10.4% | -6.9% | 0.4% | -30.1% | -30.5% |
| Net Debt/EBITDA | 2.0x | | 14.0x | 6.3x | | -6.3x |
Revenue and profitability
CITIC Dameng Holdings Ltd's Revenue dropped on 21.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.4 pp from 7.1% to 8.4% in 2015.
Gross Margin dropped on 20.8 pp from 17.3% to -3.5% in 2015. SG&A as a % of Revenue increased on 6.0 pp from 17.1% to 23.1% in 2015.
Net Income marign dropped on 38.5 pp from 0.48% to -38.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 11.0% in 2015. CAPEX/Revenue dropped on 10.8 pp from 21.8% in 2012 to 11.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 15.0%.
Return on investment
The company operates at negative ROIC (-8.31%) and ROE (-30.09%). ROIC dropped on 10.6 pp from 2.3% to -8.3% in 2015. ROE dropped on 30.5 pp from 0.45% to -30.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.5x and Debt / EBITDA is . Net Debt / EBITDA dropped on 6.3x from 6.3x to in 2015. Debt increased on 6.5% in 2015 while cash dropped on 52.9% in 2015.
Appendix 1: Peers in Mining
Below we provide CITIC Dameng Holdings Ltd benchmarking against other companies in Mining 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 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 (47 companies) | 29.4% | 5.4% | 2.4% | -6.5% | 0.8% |
|---|
| CITIC Dameng Holdings Ltd ($1091) | | -18.3% | -2.4% | 9.6% | -21.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Billion Resources Ltd ($274) | 20.3% | 71.4% | 47.2% | 73.4% | |
| 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% | 38.9% |
| 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% | |
| |
|---|
| Median (47 companies) | 19.2% | 14.4% | 14.7% | 15.3% | 38.9% |
|---|
| CITIC Dameng Holdings Ltd ($1091) | 18.3% | 8.4% | 11.3% | 17.3% | -3.5% |
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% | 2.8% |
| 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 (47 companies) | 5.9% | 4.9% | 8.3% | 4.4% | 2.8% |
|---|
| CITIC Dameng Holdings Ltd ($1091) | 20.0% | -1.2% | 6.8% | 17.8% | -11.0% |
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 (47 companies) | 14.3% | 17.0% | 15.3% | 11.1% | 8.1% |
|---|
| CITIC Dameng Holdings Ltd ($1091) | 22.3% | 21.8% | 18.2% | 15.8% | 11.0% |
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 (48 companies) | 2.9% | 2.2% | 3.1% | 0.7% | -1.1% |
|---|
| CITIC Dameng Holdings Ltd ($1091) | 6.9% | -4.6% | -2.1% | 2.3% | -8.3% |
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 (26 companies) | 0.9x | 1.8x | 1.9x | 3.8x | -0.7x |
|---|
| CITIC Dameng Holdings Ltd ($1091) | 2.0x | | 14.0x | 6.3x | |
