China XLX Fertiliser Ltd reports 69.8% Net Income growth and 2.9 pp EBITDA Margin growth from 16.2% to 19.1%
11/03/2016 • About China XLX Fertiliser Ltd (
$1866) • By InTwits
China XLX Fertiliser Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China XLX Fertiliser Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 27.7%. At the same time it's in pair with industry average of 28.6%.
- CAPEX is quite volatile: 1,272 in 2015, 1,630 in 2014, 1,632 in 2013, 1,189 in 2012, 479 in 2011
- The company has business model with low profitability: ROIC is at 8.2%
- It operates with high leverage: Net Debt/EBITDA is 5.1x 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.
China XLX Fertiliser Ltd ($1866) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,688 | 3,946 | 3,969 | 5,082 | 5,788 | 13.9% |
| Gross Profit | 506 | 720 | 748 | 899 | 1,324 | 47.3% |
| SG&A | | 202 | 276 | 198 | 665 | 235.8% |
| EBITDA | 463 | 644 | 590 | 825 | 1,106 | 34.1% |
| Net Income | 181 | 311 | 264 | 241 | 409 | 69.8% |
Balance Sheet
|
|---|
| Cash | 514 | 478 | 798 | 633 | 581 | -8.2% |
| Short Term Debt | 541 | 498 | 695 | 1,336 | 1,889 | 41.4% |
| Long Term Debt | 1,067 | 1,679 | 3,088 | 4,045 | 4,369 | 8.0% |
Cash flow
|
|---|
| Capex | 479 | 1,189 | 1,632 | 1,630 | 1,272 | -22.0% |
Ratios
|
|---|
| Revenue growth | 29.3% | 7.0% | 0.6% | 28.0% | 13.9% | |
| EBITDA growth | 14.8% | 39.3% | -8.4% | 39.8% | 34.1% | |
| Gross Margin | 13.7% | 18.2% | 18.8% | 17.7% | 22.9% | 5.2% |
| EBITDA Margin | 12.5% | 16.3% | 14.9% | 16.2% | 19.1% | 2.9% |
| Net Income Margin | 4.9% | 7.9% | 6.7% | 4.7% | 7.1% | 2.3% |
| SG&A, % of revenue | | 5.1% | 7.0% | 3.9% | 11.5% | 7.6% |
| CAPEX, % of revenue | 13.0% | 30.1% | 41.1% | 32.1% | 22.0% | -10.1% |
| ROIC | 8.7% | 11.2% | 7.4% | 6.9% | 8.2% | 1.3% |
| ROE | 9.9% | 14.2% | 10.9% | 9.3% | 14.4% | 5.1% |
| Net Debt/EBITDA | 2.4x | 2.6x | 5.1x | 5.8x | 5.1x | -0.6x |
Revenue and profitability
The company's Revenue surged on 13.9% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.9 pp from 16.2% to 19.1% in 2015.
Gross Margin increased on 5.2 pp from 17.7% to 22.9% in 2015. SG&A as a % of Revenue increased on 7.6 pp from 3.9% to 11.5% in 2015.
Net Income marign increased on 2.3 pp from 4.7% to 7.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China XLX Fertiliser Ltd had CAPEX/Revenue of 22.0%. The company showed decline in CAPEX/Revenue of 8.2 pp from 30.1% in 2012 to 22.0% in 2015. It's average CAPEX/Revenue for the last three years was 31.7%.To secure this fast growth China XLX Fertiliser Ltd made large investments to CAPEX (115% of EBITDA).
Return on investment
The company operates at good ROE (14.40%) while ROIC is low (8.19%). ROIC increased slightly on 1.3 pp from 6.9% to 8.2% in 2015. ROE increased on 5.1 pp from 9.3% to 14.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.1x and Debt / EBITDA is 5.7x. Net Debt / EBITDA dropped on 0.6x from 5.8x to 5.1x in 2015. Debt surged on 16.3% in 2015 while cash decreased on 8.2% in 2015.
Appendix 1: Peers in Chemicals
Below you can find China XLX Fertiliser 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% | |
| 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% | |
| Huabao International Holdings Ltd ($336) | | 16.1% | 10.1% | 16.2% | 2.1% |
| |
|---|
| Median (31 companies) | 25.8% | 2.0% | 10.1% | 1.4% | 1.2% |
|---|
| China XLX Fertiliser Ltd ($1866) | | 7.0% | 0.6% | 28.0% | 13.9% |
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% | 19.5% | 16.2% | 16.0% | 30.7% |
|---|
| China XLX Fertiliser Ltd ($1866) | 13.7% | 18.2% | 18.8% | 17.7% | 22.9% |
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% | 13.2% | 12.7% | 11.1% | 7.6% |
|---|
| China XLX Fertiliser Ltd ($1866) | 12.5% | 16.3% | 14.9% | 16.2% | 19.1% |
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) | 8.3% | 7.2% | 8.3% | 5.1% | 4.1% |
|---|
| China XLX Fertiliser Ltd ($1866) | 13.0% | 30.1% | 41.1% | 32.1% | 22.0% |
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% | 20.6% |
| 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% | 8.1% | 5.2% | 7.9% |
|---|
| China XLX Fertiliser Ltd ($1866) | 8.7% | 11.2% | 7.4% | 6.9% | 8.2% |
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 | |
| 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 | |
| Billion Industrial Holdings Ltd ($2299) | -0.3x | 0.5x | 2.7x | 4.1x | |
| |
|---|
| Median (24 companies) | 1.3x | 1.2x | 2.1x | 1.4x | -0.5x |
|---|
| China XLX Fertiliser Ltd ($1866) | 2.4x | 2.6x | 5.1x | 5.8x | 5.1x |
