Jinhui Holdings Co Ltd revenue dropped on 34.7% in 2015 while EBITDA Margin increased on 2.2 pp from 14.5% to 16.7%
11/03/2016 • About Jinhui Holdings Co Ltd (
$137) • By InTwits
Jinhui Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jinhui Holdings Co Ltd is a company in decline: 2015 revenue growth was -34.7%, 5 years revenue CAGR was -26.4%
- EBITDA Margin is quite volatile: 16.7% in 2015, 14.5% in 2014, 39.8% in 2013, 33.9% in 2012, 40.7% in 2011
- Jinhui Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.2%. At the same time it's in pair with industry average of 20.8%.
- CAPEX is quite volatile: 103 in 2015, 134 in 2014, 44.7 in 2013, 908 in 2012, 1,181 in 2011
- The company has unprofitable business model: ROIC is at -4.0%
- It operates with high leverage: Net Debt/EBITDA is 19.6x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jinhui Holdings Co Ltd ($137) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,784 | 2,104 | 1,952 | 1,032 | 673 | -34.7% |
| Gross Profit | 2,404 | 1,839 | 1,714 | | | |
| EBITDA | 1,134 | 713 | 778 | 149 | 112 | -24.7% |
| Net Income | 259 | 155 | 121 | -380 | -1,683 | 343.0% |
Balance Sheet
|
|---|
| Cash | 1,410 | 903 | 634 | 562 | 277 | -50.7% |
| Short Term Debt | 537 | 586 | 724 | 530 | 650 | 22.5% |
| Long Term Debt | 4,003 | 3,845 | 3,139 | 2,641 | 1,826 | -30.9% |
Cash flow
|
|---|
| Capex | 1,181 | 908 | 45 | 134 | 103 | -23.2% |
Ratios
|
|---|
| Revenue growth | -10.8% | -24.4% | -7.2% | -47.2% | -34.7% | |
| EBITDA growth | -29.6% | -37.2% | 9.1% | -80.8% | -24.7% | |
| Gross Margin | 86.4% | 87.4% | 87.8% | | | 0.0% |
| EBITDA Margin | 40.7% | 33.9% | 39.8% | 14.5% | 16.7% | 2.2% |
| Net Income Margin | 9.3% | 7.4% | 6.2% | -36.8% | -250.0% | -213.2% |
| CAPEX, % of revenue | 42.4% | 43.2% | 2.3% | 13.0% | 15.3% | 2.3% |
| ROIC | 6.7% | 2.4% | 2.8% | -2.9% | -4.0% | -1.1% |
| ROE | 7.2% | 4.1% | 3.1% | -9.9% | -60.0% | -50.1% |
| Net Debt/EBITDA | 2.8x | 5.0x | 4.2x | 17.5x | 19.6x | 2.1x |
Revenue and profitability
Jinhui Holdings Co Ltd's Revenue dropped on 34.7% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.2 pp from 14.5% to 16.7% in 2015.
Net Income marign dropped on 213 pp from -36.8% to -250% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 15.3%. Jinhui Holdings Co Ltd showed big decline in CAPEX/Revenue of 27.9 pp from 43.2% in 2012 to 15.3% in 2015. For the last three years the average CAPEX/Revenue was 10.2%.Jinhui Holdings Co Ltd invested a big chunk of EBITDA (91.6%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-4.04%) and ROE (-60.02%). ROIC decreased slightly on 1.1 pp from -2.9% to -4.0% in 2015. ROE dropped on 50.1 pp from -9.9% to -60.0% in 2015.
Leverage (Debt)
Debt level is 19.6x Net Debt / EBITDA and 22.0x Debt / EBITDA. Net Debt / EBITDA surged on 2.1x from 17.5x to 19.6x in 2015. Debt dropped on 21.9% in 2015 while cash dropped on 50.7% in 2015.
Appendix 1: Peers in Transportation
Below you can find Jinhui Holdings Co Ltd benchmarking vs. other companies in Transportation 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 |
|---|
| Frontier Services Group Ltd ($500) | -90.5% | -10.8% | -49.9% | 1,021.1% | |
| China Best Group Holding Ltd ($370) | 333.1% | 202.4% | -53.6% | 459.4% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 11.7% | -4.2% | -5.9% | 60.4% | |
| Tianjin Port Development Holdings Ltd ($3382) | 9.8% | 8.7% | 24.9% | 51.9% | |
| CIG Yangtze Ports PLC ($8233) | | 17.9% | 30.6% | 23.5% | 0.1% |
| |
|---|
| Median (28 companies) | 9.4% | 7.2% | 4.6% | 5.6% | -5.7% |
|---|
| Jinhui Holdings Co Ltd ($137) | | -24.4% | -7.2% | -47.2% | -34.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.0% | 51.3% | 44.8% | 46.6% | 48.7% |
| Frontier Services Group Ltd ($500) | 80.7% | 83.8% | 65.9% | 44.8% | |
| Qinhuangdao Port Co Ltd ($3369) | 43.2% | 43.1% | 42.4% | 43.3% | |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 21.5% | 23.1% | 25.1% | 24.1% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% |
| |
|---|
| Median (26 companies) | 17.0% | 12.5% | 9.8% | 10.2% | 7.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Qinhuangdao Port Co Ltd ($3369) | 45.3% | 46.0% | 44.6% | 46.5% | |
| MTR Corp Ltd ($66) | 49.1% | 42.7% | 37.6% | 45.2% | 41.6% |
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | 39.5% |
| Great Harvest Maeta Group Holdings Ltd ($3683) | 61.3% | 56.3% | 18.7% | 32.6% | -8.5% |
| China Shipping Development Co Ltd ($1138) | 24.7% | 12.5% | 3.0% | 24.7% | |
| |
|---|
| Median (29 companies) | 15.8% | 9.9% | 7.4% | 7.8% | 9.5% |
|---|
| Jinhui Holdings Co Ltd ($137) | 40.7% | 33.9% | 39.8% | 14.5% | 16.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | 0.0% | | 296.6% | 1.4% |
| Frontier Services Group Ltd ($500) | 5.4% | 6.3% | 3.6% | 63.3% | |
| China Shipping Development Co Ltd ($1138) | 68.9% | 55.8% | 34.0% | 54.9% | |
| Courage Marine Group Ltd ($1145) | 78.9% | 235.0% | 37.7% | 50.4% | 9.2% |
| Qinhuangdao Port Co Ltd ($3369) | 47.2% | 57.9% | 35.8% | 46.3% | |
| |
|---|
| Median (29 companies) | 11.1% | 7.9% | 10.4% | 7.4% | 11.6% |
|---|
| Jinhui Holdings Co Ltd ($137) | 42.4% | 43.2% | 2.3% | 13.0% | 15.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 34.2% | 21.1% | 20.9% | 19.1% | |
| ASR Logistics Holdings Ltd ($1803) | 79.6% | 54.7% | 38.9% | 13.4% | |
| CIG Yangtze Ports PLC ($8233) | 4.3% | 4.9% | 5.7% | 11.0% | 11.1% |
| Kerry Logistics Network Ltd ($636) | 11.3% | 12.0% | 13.4% | 10.5% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 8.9% | 5.6% | 7.2% | 9.6% | |
| |
|---|
| Median (29 companies) | 5.0% | 3.3% | 2.8% | 3.7% | 3.3% |
|---|
| Jinhui Holdings Co Ltd ($137) | 6.7% | 2.4% | 2.8% | -2.9% | -4.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Shipping Development Co Ltd ($1138) | 7.2x | 20.2x | 92.8x | 12.8x | |
| Tianjin Binhai Teda Logistics Group Corp Ltd ($8348) | -0.5x | 9.7x | 9.3x | 9.5x | |
| China COSCO Holdings Co Ltd ($1919) | | | 18.8x | 9.0x | |
| AMS Public Transport Holdings Ltd ($77) | 0.7x | 1.2x | 11.6x | 7.7x | 4.5x |
| Great Harvest Maeta Group Holdings Ltd ($3683) | 2.8x | 2.9x | 9.3x | 5.9x | |
| |
|---|
| Median (22 companies) | -0.0x | 1.2x | 1.5x | 0.8x | 3.6x |
|---|
| Jinhui Holdings Co Ltd ($137) | 2.8x | 5.0x | 4.2x | 17.5x | 19.6x |
