SITC International Holdings Co Ltd CAPEX surged on 159% in 2015 while Revenue decreased on 6.7%
11/03/2016 • About SITC International Holdings Co Ltd (
$1308) • By InTwits
SITC International Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 13.9% in 2015 vs. 10.1% in 2014 vs. 6.9% in 2011
- SITC International Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.3%. At the same time it's a lot of higher than industry average of 31.4%.
- CAPEX is quite volatile: 265 in 2015, 102 in 2014, 105 in 2013, 258 in 2012, 94.7 in 2011
- The company has business model with average profitability: ROIC is at 11.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SITC International Holdings Co Ltd ($1308) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,060 | 1,212 | 1,267 | 1,377 | 1,285 | -6.7% |
| Gross Profit | 115 | 142 | 143 | 166 | 182 | 9.6% |
| SG&A | 52 | 61 | 65 | 69 | 74 | 6.8% |
| EBITDA | 73 | 83 | 117 | 139 | 178 | 28.3% |
| Net Income | 94 | 84 | 112 | 121 | 143 | 18.7% |
Balance Sheet
|
|---|
| Cash | 437 | 380 | 431 | 428 | 279 | -34.7% |
| Short Term Debt | 31 | 24 | 56 | 131 | 46 | -65.0% |
| Long Term Debt | 6 | 166 | 265 | 271 | 309 | 14.0% |
Cash flow
|
|---|
| Capex | 95 | 258 | 105 | 102 | 265 | 159.4% |
Ratios
|
|---|
| Revenue growth | 18.9% | 14.4% | 4.5% | 8.6% | -6.7% | |
| EBITDA growth | -45.4% | 13.8% | 41.9% | 18.2% | 28.3% | |
| Gross Margin | 10.8% | 11.7% | 11.3% | 12.1% | 14.2% | 2.1% |
| EBITDA Margin | 6.9% | 6.8% | 9.3% | 10.1% | 13.9% | 3.8% |
| Net Income Margin | 8.8% | 6.9% | 8.9% | 8.8% | 11.2% | 2.4% |
| SG&A, % of revenue | 4.9% | 5.0% | 5.1% | 5.0% | 5.8% | 0.7% |
| CAPEX, % of revenue | 8.9% | 21.3% | 8.3% | 7.4% | 20.6% | 13.2% |
| ROIC | 9.0% | 8.2% | 9.1% | 9.1% | 11.2% | 2.2% |
| ROE | 15.0% | 12.5% | 15.6% | 15.7% | 17.5% | 1.7% |
| Net Debt/EBITDA | -5.5x | -2.3x | -0.9x | -0.2x | 0.4x | 0.6x |
Revenue and profitability
The company's Revenue decreased on 6.7% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.8 pp from 10.1% to 13.9% in 2015.
Gross Margin increased on 2.1 pp from 12.1% to 14.2% in 2015. SG&A as a % of Revenue increased slightly on 0.73 pp from 5.0% to 5.8% in 2015.
Net Income marign increased on 2.4 pp from 8.8% to 11.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 SITC International Holdings Co Ltd had CAPEX/Revenue of 20.6%. The company's CAPEX/Revenue decreased slightly on 0.71 pp from 21.3% in 2012 to 20.6% in 2015. It's average CAPEX/Revenue for the last three years was 12.1%.The company has spent a lot to CAPEX (149% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at good ROE (17.48%) while ROIC is low (11.24%). ROIC increased on 2.2 pp from 9.1% to 11.2% in 2015. ROE increased slightly on 1.7 pp from 15.7% to 17.5% in 2015.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA jumped on 0.6x from -0.2x to 0.4x in 2015. Debt dropped on 11.8% in 2015 while cash dropped on 34.7% in 2015.
Appendix 1: Peers in Transportation
Below we provide SITC International Holdings Co Ltd benchmarking against other companies in Transportation 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 |
|---|
| 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% | 5.1% | 4.1% | 5.1% | -5.7% |
|---|
| SITC International Holdings Co Ltd ($1308) | | 14.4% | 4.5% | 8.6% | -6.7% |
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 (25 companies) | 18.7% | 13.0% | 9.8% | 10.0% | 3.1% |
|---|
| SITC International Holdings Co Ltd ($1308) | 10.8% | 11.7% | 11.3% | 12.1% | 14.2% |
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) | 16.5% | 10.0% | 7.4% | 7.8% | 9.5% |
|---|
| SITC International Holdings Co Ltd ($1308) | 6.9% | 6.8% | 9.3% | 10.1% | 13.9% |
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) | 11.8% | 7.9% | 10.4% | 7.4% | 11.6% |
|---|
| SITC International Holdings Co Ltd ($1308) | 8.9% | 21.3% | 8.3% | 7.4% | 20.6% |
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% | 3.2% | 2.8% | 3.2% | 1.0% |
|---|
| SITC International Holdings Co Ltd ($1308) | 9.0% | 8.2% | 9.1% | 9.1% | 11.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jinhui Holdings Co Ltd ($137) | 2.8x | 5.0x | 4.2x | 17.5x | 19.6x |
| 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 |
| |
|---|
| Median (22 companies) | 0.5x | 1.9x | 1.9x | 1.6x | 3.9x |
|---|
| SITC International Holdings Co Ltd ($1308) | -5.5x | -2.3x | -0.9x | -0.2x | 0.4x |
