CITIC Resources Holdings Ltd EBITDA dropped on 175% in 2015 and EBITDA Margin dropped on 44.2 pp from 9.6% to -34.6%
21/02/2016 • About CITIC Resources Holdings Ltd (
$1205) • By InTwits
CITIC Resources Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CITIC Resources Holdings Ltd is a company in decline: 2015 revenue growth was -79.1%, 5 years revenue CAGR was -35.1%
- CITIC Resources Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.8%. At the same time it's in pair with industry average of 4.3%.
- CAPEX is quite volatile: 988 in 2015, 1,182 in 2014, 1,337 in 2013, 889 in 2012, 2,004 in 2011
- The company has unprofitable business model: ROIC is at -13.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CITIC Resources Holdings Ltd ($1205) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 38,496 | 42,747 | 39,319 | 17,805 | 3,713 | -79.1% |
| Gross Profit | 3,923 | 717 | 484 | 938 | -318 | -133.9% |
| SG&A | 2,514 | 435 | 396 | 517 | 389 | -24.7% |
| EBITDA | 2,779 | 710 | 713 | 1,711 | -1,286 | -175.2% |
| Net Income | 2,203 | -1,284 | -1,465 | 224 | -6,105 | -2,827.5% |
Balance Sheet
|
|---|
| Cash | 10,779 | 8,387 | 6,994 | 3,246 | 1,300 | -59.9% |
| Short Term Debt | 2,353 | 1,116 | 7,086 | 3,414 | 1,369 | -59.9% |
| Long Term Debt | 9,969 | 8,995 | 6,603 | 5,816 | 6,475 | 11.3% |
Cash flow
|
|---|
| Capex | 2,004 | 889 | 1,337 | 1,182 | 988 | -16.5% |
Ratios
|
|---|
| Revenue growth | 19.4% | 11.0% | -8.0% | -54.7% | -79.1% | |
| EBITDA growth | 20.6% | -74.5% | 0.4% | 140.0% | -175.2% | |
| Gross Margin | 10.2% | 1.7% | 1.2% | 5.3% | -8.6% | -13.8% |
| EBITDA Margin | 7.2% | 1.7% | 1.8% | 9.6% | -34.6% | -44.2% |
| Net Income Margin | 5.7% | -3.0% | -3.7% | 1.3% | -164.4% | -165.7% |
| SG&A, % of revenue | 6.5% | 1.0% | 1.0% | 2.9% | 10.5% | 7.6% |
| CAPEX, % of revenue | 5.2% | 2.1% | 3.4% | 6.6% | 26.6% | 20.0% |
| ROIC | 6.2% | 1.8% | 1.5% | 4.6% | -13.7% | -18.4% |
| ROE | 17.9% | -9.3% | -11.8% | 2.0% | -81.2% | -83.2% |
| Net Debt/EBITDA | 0.6x | 2.4x | 9.4x | 3.5x | | -3.5x |
Revenue and profitability
CITIC Resources Holdings Ltd's Revenue dropped on 79.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 2.0 pp from 2.9% to 4.9% in FY2015.
Gross Margin dropped on 13.8 pp from 5.3% to -8.6% in 2015. SG&A as a % of Revenue increased on 7.6 pp from 2.9% to 10.5% in 2015.
Net Income marign dropped on 166 pp from 1.3% to -164% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 CITIC Resources Holdings Ltd had CAPEX/Revenue of 26.6%. CAPEX/Revenue jumped on 24.5 pp from 2.1% in 2012 to 26.6% in 2015. Average CAPEX/Revenue for the last three years was 12.2%.
Return on investment
The company operates at negative ROIC (-13.73%) and ROE (-81.21%). ROIC dropped on 18.4 pp from 4.6% to -13.7% in 2015. ROE dropped on 83.2 pp from 2.0% to -81.2% in 2015.
Leverage (Debt)
Debt level is 4.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 3.5x from 3.5x to in 2015. Debt dropped on 15.0% in 2015 while cash dropped on 59.9% in 2015.
Management team
The company's CEO is Suo Zhengang. Suo Zhengang has 3 years tenure at the company.
Appendix 1: Peers in Holding Companies-Divers
Below you can find CITIC Resources Holdings Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | -79.6% |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | 20.3% | -57.4% | -12.4% | 106.4% | |
| |
|---|
| Median (42 companies) | 17.2% | 12.2% | 4.9% | 15.7% | 5.0% |
|---|
| CITIC Resources Holdings Ltd ($1205) | | 11.0% | -8.0% | -54.7% | -79.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | |
| |
|---|
| Median (39 companies) | 29.5% | 33.4% | 36.0% | 34.4% | 41.9% |
|---|
| CITIC Resources Holdings Ltd ($1205) | 10.2% | 1.7% | 1.2% | 5.3% | -8.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 5.2% | 2.8% | 2.8% | 5.6% | 5.7% |
|---|
| CITIC Resources Holdings Ltd ($1205) | 7.2% | 1.7% | 1.8% | 9.6% | -34.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.1% | 2.7% | 3.8% | 6.4% | 21.0% |
|---|
| CITIC Resources Holdings Ltd ($1205) | 5.2% | 2.1% | 3.4% | 6.6% | 26.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| |
|---|
| Median (44 companies) | 0.3% | -0.2% | -0.2% | 0.5% | 0.3% |
|---|
| CITIC Resources Holdings Ltd ($1205) | 6.2% | 1.8% | 1.5% | 4.6% | -13.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (26 companies) | 3.1x | 2.6x | 2.9x | 2.9x | 6.5x |
|---|
| CITIC Resources Holdings Ltd ($1205) | 0.6x | 2.4x | 9.4x | 3.5x | |
