Youyuan International Holdings Ltd CAPEX jumped on 85.7% in 2015 and Revenue surged on 10.3%
08/03/2016 • About Youyuan International Holdings Ltd (
$2268) • By InTwits
Youyuan International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Youyuan International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.3%. At the same time it's a lot of higher than industry average of 10.6%.
- CAPEX is quite volatile: 242 in 2015, 130 in 2014, 227 in 2013, 408 in 2012, 510 in 2011
- The company has business model with average profitability: ROIC is at 10.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Youyuan International Holdings Ltd ($2268) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,428 | 1,434 | 1,531 | 1,544 | 1,703 | 10.3% |
| Gross Profit | 423 | 427 | 504 | 483 | 497 | 3.0% |
| SG&A | | | 86 | 88 | 93 | 5.4% |
| EBITDA | 394 | 391 | 472 | 460 | 511 | 11.1% |
| Net Income | 276 | 250 | 290 | 273 | 224 | -18.0% |
Balance Sheet
|
|---|
| Cash | 98 | 337 | 142 | 735 | 735 | -0.0% |
| Short Term Debt | 471 | 405 | 724 | 575 | 873 | 51.9% |
| Long Term Debt | 80 | 523 | 397 | 860 | 590 | -31.4% |
Cash flow
|
|---|
| Capex | 510 | 408 | 227 | 130 | 242 | 85.7% |
Ratios
|
|---|
| Revenue growth | 16.7% | 0.4% | 6.7% | 0.8% | 10.3% | |
| EBITDA growth | 2.6% | -0.7% | 20.8% | -2.6% | 11.1% | |
| Gross Margin | 29.6% | 29.8% | 32.9% | 31.3% | 29.2% | -2.1% |
| EBITDA Margin | 27.6% | 27.2% | 30.8% | 29.8% | 30.0% | 0.2% |
| Net Income Margin | 19.3% | 17.4% | 19.0% | 17.7% | 13.1% | -4.5% |
| SG&A, % of revenue | | | 5.6% | 5.7% | 5.5% | -0.3% |
| CAPEX, % of revenue | 35.7% | 28.4% | 14.8% | 8.4% | 14.2% | 5.8% |
| ROIC | 15.6% | 12.6% | 12.9% | 10.4% | 10.6% | 0.1% |
| ROE | 16.9% | 13.5% | 14.2% | 12.3% | 9.5% | -2.8% |
| Net Debt/EBITDA | 1.2x | 1.5x | 2.1x | 1.5x | 1.4x | -0.1x |
Revenue and profitability
Youyuan International Holdings Ltd's Revenue surged on 10.3% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.1 pp from 5.2% to 2.1% in FY2015.
Gross Margin decreased on 2.1 pp from 31.3% to 29.2% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 4.5 pp from 17.7% to 13.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 14.2%. The company's CAPEX/Revenue dropped on 14.2 pp from 28.4% in 2012 to 14.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 12.5%.
Return on investment
The company operates at low ROIC (10.56%) and ROE (9.49%). ROIC showed almost no change in 2015. ROE decreased on 2.8 pp from 12.3% to 9.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 2.9x. Net Debt / EBITDA decreased on 0.1x from 1.5x to 1.4x in 2015. Debt increased slightly on 2.0% in 2015 while cash showed almost no change in 2015.
Appendix 1: Peers in Forest Products&Paper
Below we provide Youyuan International Holdings Ltd benchmarking against other companies in Forest Products&Paper 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 |
|---|
| Merdeka Mobile Group Ltd ($8163) | 32.4% | -11.0% | 415.4% | 71.4% | |
| KuangChi Science Ltd ($439) | | | | 39.7% | |
| PNG Resources Holdings Ltd ($221) | | 323.7% | 248.6% | 8.5% | 8.7% |
| Hop Fung Group Holdings Ltd ($2320) | 0.8% | -27.0% | -2.3% | 6.9% | |
| Samson Paper Holdings Ltd ($731) | | 7.4% | -7.1% | 6.4% | 6.2% |
| |
|---|
| Median (11 companies) | 2.1% | 9.4% | 4.0% | 0.7% | 6.2% |
|---|
| Youyuan International Holdings Ltd ($2268) | | 0.4% | 6.7% | 0.8% | 10.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PNG Resources Holdings Ltd ($221) | 31.9% | 19.4% | 18.6% | 24.2% | 35.3% |
| Greenheart Group Ltd ($94) | 47.3% | 37.6% | 33.7% | 21.6% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 15.5% | 15.2% | 18.0% | 19.4% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 16.8% | 16.6% | 16.5% | 19.0% | |
| KuangChi Science Ltd ($439) | | | 20.3% | 17.3% | |
| |
|---|
| Median (11 companies) | 16.8% | 16.0% | 16.7% | 16.7% | 21.7% |
|---|
| Youyuan International Holdings Ltd ($2268) | 29.6% | 29.8% | 32.9% | 31.3% | 29.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nine Dragons Paper Holdings Ltd ($2689) | 17.1% | 16.4% | 17.2% | 18.6% | 16.9% |
| Shandong Chenming Paper Holdings Ltd ($1812) | 11.6% | 11.4% | 13.2% | 14.5% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 13.8% | 14.3% | 12.7% | 14.5% | |
| PNG Resources Holdings Ltd ($221) | -68.2% | -6.1% | 9.6% | 12.2% | 26.5% |
| Hop Fung Group Holdings Ltd ($2320) | 9.7% | 10.3% | 10.3% | 10.2% | |
| |
|---|
| Median (11 companies) | -8.0% | 6.8% | 10.3% | 3.8% | 10.3% |
|---|
| Youyuan International Holdings Ltd ($2268) | 27.6% | 27.2% | 30.8% | 29.8% | 30.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PNG Resources Holdings Ltd ($221) | 294.9% | 133.1% | 35.6% | 53.0% | 44.8% |
| China Agroforestry Low-Carbon Holdings Ltd ($1069) | 0.1% | 0.2% | 11.5% | 26.7% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 28.7% | 14.4% | 18.8% | 16.3% | |
| Nine Dragons Paper Holdings Ltd ($2689) | 34.3% | 16.8% | 15.5% | 8.9% | 5.9% |
| China Sunshine Paper Holdings Co Ltd ($2002) | 10.4% | 14.8% | 9.9% | 8.7% | |
| |
|---|
| Median (11 companies) | 33.5% | 14.6% | 9.9% | 8.4% | 4.1% |
|---|
| Youyuan International Holdings Ltd ($2268) | 35.7% | 28.4% | 14.8% | 8.4% | 14.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PNG Resources Holdings Ltd ($221) | -3.6% | -1.2% | 5.8% | 8.3% | 19.9% |
| Nine Dragons Paper Holdings Ltd ($2689) | 7.5% | 6.5% | 6.1% | 5.9% | 5.3% |
| China Sunshine Paper Holdings Co Ltd ($2002) | 7.5% | 6.8% | 5.1% | 5.5% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 2.4% | 1.9% | 3.3% | 3.0% | |
| Samson Paper Holdings Ltd ($731) | 3.0% | 3.2% | 1.8% | 2.9% | 2.9% |
| |
|---|
| Median (13 companies) | -2.5% | -1.2% | 1.8% | -2.7% | 4.1% |
|---|
| Youyuan International Holdings Ltd ($2268) | 15.6% | 12.6% | 12.9% | 10.4% | 10.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Greenheart Group Ltd ($94) | | | 7.1x | 26.8x | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 9.0x | 10.4x | 9.0x | 10.9x | |
| Samson Paper Holdings Ltd ($731) | 11.3x | 8.3x | 13.0x | 9.3x | 8.9x |
| China Sunshine Paper Holdings Co Ltd ($2002) | 6.1x | 5.9x | 6.9x | 6.0x | |
| Nine Dragons Paper Holdings Ltd ($2689) | 5.2x | 4.9x | 5.7x | 5.1x | 4.7x |
| |
|---|
| Median (7 companies) | 5.6x | 4.9x | 5.7x | 6.0x | 4.7x |
|---|
| Youyuan International Holdings Ltd ($2268) | 1.2x | 1.5x | 2.1x | 1.5x | 1.4x |
