Bracell Ltd CAPEX dropped on 69.4% in 2015 and Revenue decreased on 7.3%
14/03/2016 • About Bracell Ltd (
$1768) • By InTwits
Bracell Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bracell Ltd is a company in decline: 2015 revenue growth was -7.3%, 5 years revenue CAGR was -13.6%
- Bracell Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 31.6%. At the same time it's in pair with industry average of 27.6%.
- CAPEX is quite volatile: 51.7 in 2015, 169 in 2014, 293 in 2013, 161 in 2012, 196 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bracell Ltd ($1768) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 806.6 | 720.3 | 455.5 | 478.7 | 443.8 | -7.3% |
| Gross Profit | 323.1 | 219.7 | 170.1 | 178.8 | 170.3 | -4.7% |
| SG&A | 137.9 | 125.8 | 96.2 | 85.9 | 79.9 | -7.0% |
| EBITDA | 242.7 | 160.3 | 140.1 | 182.8 | 159.5 | -12.7% |
| Net Income | 154.7 | 55.6 | 33.3 | 37.4 | 58.1 | 55.5% |
Balance Sheet
|
|---|
| Cash | 323.7 | 195.4 | 166.0 | 101.0 | 96.0 | -4.9% |
| Short Term Debt | 207.7 | 196.5 | 72.2 | 115.6 | 117.9 | 2.0% |
| Long Term Debt | 380.6 | 302.0 | 593.7 | 260.1 | 115.2 | -55.7% |
Cash flow
|
|---|
| Capex | 196.4 | 160.6 | 292.8 | 169.4 | 51.7 | -69.4% |
Ratios
|
|---|
| Revenue growth | -12.6% | -10.7% | -36.8% | 5.1% | -7.3% | |
| EBITDA growth | -44.7% | -33.9% | -12.6% | 30.5% | -12.7% | |
| Gross Margin | 40.1% | 30.5% | 37.3% | 37.3% | 38.4% | 1.0% |
| EBITDA Margin | 30.1% | 22.3% | 30.8% | 38.2% | 35.9% | -2.2% |
| Net Income Margin | 19.2% | 7.7% | 7.3% | 7.8% | 13.1% | 5.3% |
| SG&A, % of revenue | 17.1% | 17.5% | 21.1% | 18.0% | 18.0% | 0.1% |
| CAPEX, % of revenue | 24.4% | 22.3% | 64.3% | 35.4% | 11.7% | -23.7% |
| ROIC | 7.8% | 3.7% | 2.4% | 4.2% | 6.6% | 2.4% |
| ROE | 10.0% | 3.3% | 2.0% | 2.7% | 5.4% | 2.7% |
| Net Debt/EBITDA | 1.1x | 1.9x | 3.6x | 1.5x | 0.9x | -0.6x |
Revenue and profitability
The company's Revenue decreased on 7.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 14.9 pp from -20.7% to -5.8% in 2015.
Gross Margin increased slightly on 1.0 pp from 37.3% to 38.4% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 5.3 pp from 7.8% to 13.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Bracell Ltd had CAPEX/Revenue of 11.7%. The company's CAPEX/Revenue dropped on 10.6 pp from 22.3% in 2012 to 11.7% in 2015. It's average level of CAPEX/Revenue for the last three years was 37.1%.
Return on investment
The company operates at low ROIC (6.58%) and ROE (5.38%). ROIC increased on 2.4 pp from 4.2% to 6.6% in 2015. ROE increased on 2.7 pp from 2.7% to 5.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is 1.5x. Net Debt / EBITDA dropped on 0.6x from 1.5x to 0.9x in 2015. Debt dropped on 37.9% in 2015 while cash decreased on 4.9% in 2015.
Appendix 1: Peers in Chemicals
Below you can find Bracell 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% | |
| China XLX Fertiliser Ltd ($1866) | | 7.0% | 0.6% | 28.0% | 13.9% |
| 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% | |
| |
|---|
| Median (31 companies) | 30.9% | 2.1% | 10.1% | 1.4% | 1.2% |
|---|
| Bracell Ltd ($1768) | | -10.7% | -36.8% | 5.1% | -7.3% |
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% | 48.9% |
| Smartac Group China Holdings Ltd ($395) | 17.3% | -1.8% | 11.2% | 40.4% | |
| Yingde Gases Group Co Ltd ($2168) | 34.2% | 31.7% | 31.0% | 32.1% | |
| Century Sunshine Group Holdings Ltd ($509) | 17.9% | 26.7% | 31.0% | 31.8% | |
| |
|---|
| Median (31 companies) | 19.8% | 18.2% | 16.2% | 16.0% | 30.7% |
|---|
| Bracell Ltd ($1768) | 40.1% | 30.5% | 37.3% | 37.3% | 38.4% |
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% |
| 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% | |
| Tiande Chemical Holdings Ltd ($609) | 21.7% | 25.5% | 27.3% | 25.1% | 27.8% |
| |
|---|
| Median (31 companies) | 15.2% | 13.2% | 12.7% | 11.1% | 13.4% |
|---|
| Bracell Ltd ($1768) | 30.1% | 22.3% | 30.8% | 38.2% | 35.9% |
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% | 35.8% |
| China XLX Fertiliser Ltd ($1866) | 13.0% | 30.1% | 41.1% | 32.1% | 22.0% |
| |
|---|
| Median (31 companies) | 8.3% | 7.2% | 8.3% | 5.1% | 6.7% |
|---|
| Bracell Ltd ($1768) | 24.4% | 22.3% | 64.3% | 35.4% | 11.7% |
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) | 8.2% | 6.9% | 8.1% | 5.9% | 6.8% |
|---|
| Bracell Ltd ($1768) | 7.8% | 3.7% | 2.4% | 4.2% | 6.6% |
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 | |
| China XLX Fertiliser Ltd ($1866) | 2.4x | 2.6x | 5.1x | 5.8x | 5.1x |
| 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 | |
| |
|---|
| Median (24 companies) | 1.5x | 1.2x | 2.1x | 1.4x | -0.4x |
|---|
| Bracell Ltd ($1768) | 1.1x | 1.9x | 3.6x | 1.5x | 0.9x |
