CP Lotus Corp EBITDA surged on 39.9% in 2015 while Revenue decreased on 2.3%
29/02/2016 • About CP Lotus Corp (
$121) • By InTwits
CP Lotus Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 3.4% in 2015, 2.4% in 2014, 1.9% in 2013, -0.2% in 2012, 3.6% in 2011
- CP Lotus Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 7.3%.
- CAPEX is quite volatile: 550 in 2015, 1,059 in 2014, 1,794 in 2013, 1,531 in 2012, 1,929 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.8%
- It operates with high leverage: Net Debt/EBITDA is 3.0x while industry average is -2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CP Lotus Corp ($121) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,019 | 10,677 | 10,882 | 10,912 | 10,660 | -2.3% |
| Gross Profit | 1,776 | 1,763 | 1,793 | 1,838 | 1,831 | -0.4% |
| SG&A | 1,986 | 2,427 | 2,269 | 2,264 | 2,249 | -0.6% |
| EBITDA | 361 | -19 | 205 | 259 | 362 | 39.9% |
| Net Income | 24 | -392 | -97 | -58 | -18 | -69.3% |
Balance Sheet
|
|---|
| Cash | 242 | 416 | 266 | 140 | 166 | 18.4% |
| Short Term Debt | 198 | 1,777 | 330 | 269 | 321 | 19.1% |
| Long Term Debt | 875 | 180 | 1,272 | 1,186 | 929 | -21.7% |
Cash flow
|
|---|
| Capex | 209 | 281 | 214 | 249 | 325 | 30.2% |
Ratios
|
|---|
| Revenue growth | 6.9% | 6.6% | 1.9% | 0.3% | -2.3% | |
| EBITDA growth | -10.4% | -105.2% | -1,199.6% | 26.2% | 39.9% | |
| Gross Margin | 17.7% | 16.5% | 16.5% | 16.8% | 17.2% | 0.3% |
| EBITDA Margin | 3.6% | -0.2% | 1.9% | 2.4% | 3.4% | 1.0% |
| Net Income Margin | 0.2% | -3.7% | -0.9% | -0.5% | -0.2% | 0.4% |
| SG&A, % of revenue | 19.8% | 22.7% | 20.9% | 20.7% | 21.1% | 0.4% |
| CAPEX, % of revenue | 2.1% | 2.6% | 2.0% | 2.3% | 3.0% | 0.8% |
| ROIC | 5.1% | -6.5% | 0.5% | 2.0% | 4.8% | 2.8% |
| ROE | 1.6% | -21.0% | -5.2% | -3.2% | -1.0% | 2.2% |
| Net Debt/EBITDA | 2.3x | | 6.5x | 5.1x | 3.0x | -2.1x |
Revenue and profitability
The company's Revenue decreased on 2.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.0 pp from 2.4% to 3.4% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
CP Lotus Corp's CAPEX/Revenue was 3.0% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 2.4%.The company invested a big chunk of EBITDA (89.8%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (4.79%) and negative ROE (-0.98%). ROIC increased on 2.8 pp from 2.0% to 4.8% in 2015. ROE increased on 2.2 pp from -3.2% to -0.98% in 2015.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and 3.5x Debt / EBITDA. Net Debt / EBITDA dropped on 2.1x from 5.1x to 3.0x in 2015. Debt dropped on 14.2% in 2015 while cash jumped on 18.4% in 2015.
Management team
The company's CEO is Weng Hai Xin. Weng Hai Xin has 2 years tenure at the company.
Appendix 1: Peers in Food
Below we provide CP Lotus Corp benchmarking against other companies in Food 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 |
|---|
| Wealth Glory Holdings Ltd ($8269) | | -16.5% | -53.8% | 555.7% | -12.4% |
| Natural Dairy NZ Holdings Ltd ($462) | 12.0% | -47.2% | 19.1% | 76.6% | |
| China Modern Dairy Holdings Ltd ($1117) | 88.8% | 50.7% | 96.1% | 52.8% | |
| China Huishan Dairy Holdings Co Ltd ($6863) | | 256.3% | 91.5% | 38.3% | 11.1% |
| Asia Cassava Resources Holdings Ltd ($841) | | -3.0% | 99.6% | 32.6% | -28.4% |
| |
|---|
| Median (37 companies) | 23.0% | 9.8% | 6.4% | 2.7% | -4.1% |
|---|
| CP Lotus Corp ($121) | | 6.6% | 1.9% | 0.3% | -2.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 42.2% | 57.2% | 59.0% | 57.8% | |
| Shenguan Holdings Group Ltd ($829) | 61.9% | 58.2% | 58.5% | 54.9% | |
| Yashili International Holdings Ltd ($1230) | 52.0% | 53.7% | 53.5% | 51.2% | |
| Natural Dairy NZ Holdings Ltd ($462) | 16.3% | -13.7% | 27.5% | 48.8% | |
| Christine International Holdings Ltd ($1210) | 51.3% | 50.2% | 49.7% | 47.2% | |
| |
|---|
| Median (37 companies) | 18.1% | 16.8% | 19.7% | 20.0% | 14.2% |
|---|
| CP Lotus Corp ($121) | 17.7% | 16.5% | 16.5% | 16.8% | 17.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenguan Holdings Group Ltd ($829) | 57.2% | 58.7% | 59.2% | 54.5% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 147.8% | 40.3% | 48.4% | 47.1% | |
| China Huishan Dairy Holdings Co Ltd ($6863) | 109.2% | 45.1% | 47.9% | 47.1% | 37.2% |
| Honworld Group Ltd ($2226) | 28.4% | 44.4% | 42.1% | 42.0% | |
| China Modern Dairy Holdings Ltd ($1117) | 33.9% | 33.5% | 27.0% | 25.3% | |
| |
|---|
| Median (37 companies) | 8.8% | 7.9% | 6.7% | 7.6% | 4.9% |
|---|
| CP Lotus Corp ($121) | 3.6% | -0.2% | 1.9% | 2.4% | 3.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Huishan Dairy Holdings Co Ltd ($6863) | 453.6% | 98.2% | 29.8% | 132.0% | 109.8% |
| Honworld Group Ltd ($2226) | 25.3% | 6.0% | 10.8% | 50.8% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 182.5% | 26.1% | 18.3% | 43.4% | |
| Yashili International Holdings Ltd ($1230) | 3.6% | 8.2% | 7.1% | 20.1% | |
| Vedan International Holdings Ltd ($2317) | 2.8% | 2.5% | 2.4% | 18.8% | |
| |
|---|
| Median (37 companies) | 3.9% | 6.0% | 6.2% | 5.1% | 2.6% |
|---|
| CP Lotus Corp ($121) | 2.1% | 2.6% | 2.0% | 2.3% | 3.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 22.1% | 50.4% | 44.5% | 23.6% | |
| Want Want China Holdings Ltd ($151) | 24.9% | 27.9% | 29.4% | 22.8% | |
| Shenguan Holdings Group Ltd ($829) | 40.6% | 40.0% | 33.2% | 21.4% | |
| Huisheng International Holdings Ltd ($1340) | 63.0% | 31.9% | 23.7% | 16.3% | |
| Asia Cassava Resources Holdings Ltd ($841) | 13.8% | 4.2% | 5.9% | 13.6% | 11.6% |
| |
|---|
| Median (38 companies) | 11.6% | 7.6% | 6.5% | 5.6% | 5.8% |
|---|
| CP Lotus Corp ($121) | 5.1% | -6.5% | 0.5% | 2.0% | 4.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yurun Food Group Ltd ($1068) | 0.4x | 40.7x | 6.9x | 9.4x | |
| Beijing Jingkelong Co Ltd ($814) | 3.4x | 5.0x | 4.8x | 5.3x | |
| DaChan Food Asia Ltd ($3999) | -0.3x | 0.1x | 1.3x | 4.8x | |
| First Pacific Co Ltd/Hong Kong ($142) | 1.3x | 1.8x | 3.8x | 4.5x | |
| China Modern Dairy Holdings Ltd ($1117) | 1.3x | 3.7x | 5.2x | 4.1x | |
| |
|---|
| Median (29 companies) | -0.1x | -0.4x | 0.6x | 0.7x | 0.6x |
|---|
| CP Lotus Corp ($121) | 2.3x | | 6.5x | 5.1x | 3.0x |
