Imperial Pacific International Holdings Ltd reports 869% CAPEX growth and 70.3% Revenue growth
14/03/2016 • About Imperial Pacific International Holdings Ltd (
$1076) • By InTwits
Imperial Pacific International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Imperial Pacific International Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -3.0%
- Imperial Pacific International Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -38.5% for the sames years0
- Imperial Pacific International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.8%. At the same time it's a lot of higher than industry average of 13.8%.
- CAPEX is quite volatile: 669 in 2015, 69.0 in 2014, 0.0016 in 2013, 0.063 in 2012, 0.25 in 2011
- The company has unprofitable business model: ROIC is at -3.0%
- It operates with high leverage: Net Debt/EBITDA is 2.7x while industry average is -2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Imperial Pacific International Holdings Ltd ($1076) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 731.7 | 530.0 | 431.8 | 443.6 | 755.4 | 70.3% |
| Gross Profit | 20.5 | 20.7 | 7.7 | 15.5 | 179.1 | 1,058.7% |
| SG&A | 12.8 | 16.0 | 22.9 | 194.3 | 399.2 | 105.4% |
| EBITDA | 15.7 | 15.5 | -12.1 | -1,197.0 | 64.7 | -105.4% |
| Net Income | 2.3 | 311.4 | -11.9 | -1,238.2 | -68.4 | -94.5% |
Balance Sheet
|
|---|
| Cash | 29.4 | 53.9 | 59.1 | 311.5 | 512.0 | 64.4% |
| Short Term Debt | 174.9 | 0.0 | 0.0 | 28.0 | 242.8 | 766.4% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 446.7 | |
Cash flow
|
|---|
| Capex | 0.2 | 0.1 | 0.0 | 69.0 | 668.6 | 868.7% |
Ratios
|
|---|
| Revenue growth | 408.1% | -27.6% | -18.5% | 2.7% | 70.3% | |
| EBITDA growth | 137.9% | -1.7% | -178.3% | 9,787.0% | -105.4% | |
| Gross Margin | 2.8% | 3.9% | 1.8% | 3.5% | 23.7% | 20.2% |
| EBITDA Margin | 2.1% | 2.9% | -2.8% | -269.8% | 8.6% | 278.4% |
| Net Income Margin | 0.3% | 58.8% | -2.7% | -279.1% | -9.1% | 270.1% |
| SG&A, % of revenue | 1.7% | 3.0% | 5.3% | 43.8% | 52.8% | 9.0% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 15.6% | 88.5% | 72.9% |
| ROIC | | | -10.0% | -295.1% | -3.0% | 292.1% |
| ROE | | | -9.8% | -306.5% | -6.3% | 300.2% |
| Net Debt/EBITDA | 9.3x | -3.5x | | | 2.7x | 2.7x |
Revenue and profitability
Imperial Pacific International Holdings Ltd's Revenue jumped on 70.3% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 278 pp from -270% to 8.6% in 2015.
Gross Margin surged on 20.2 pp from 3.5% to 23.7% in 2015. SG&A as a % of Revenue increased on 9.0 pp from 43.8% to 52.8% in 2015.
Net Income marign jumped on 270 pp from -279% to -9.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
Imperial Pacific International Holdings Ltd's CAPEX/Revenue was 88.5% in 2015. CAPEX/Revenue surged on 88.5 pp from 0.012% in 2012 to 88.5% in 2015. It's average CAPEX/Revenue for the last three years was 34.7%.To fuel this fast growth the company made large investments to CAPEX (1,033% of EBITDA).
Return on investment
The company operates at negative ROIC (-3.03%) and ROE (-6.28%). ROIC jumped on 292 pp from -295% to -3.0% in 2015. ROE jumped on 300 pp from -307% to -6.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.7x and Debt / EBITDA is 10.7x. Net Debt / EBITDA jumped2.7x from to 2.7x in 2015. Debt surged on 2,361% in 2015 while cash surged on 64.4% in 2015.
Appendix 1: Peers in Food
Below we provide Imperial Pacific International Holdings Ltd benchmarking against other companies in Food 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 |
|---|
| Wealth Glory Holdings Ltd ($8269) | | -16.5% | -53.8% | 555.7% | -12.4% |
| Natural Dairy NZ Holdings Ltd ($462) | 12.0% | -47.2% | 19.1% | 76.6% | |
| China Modern Dairy Holdings Ltd ($1117) | 88.8% | 50.7% | 96.1% | 52.8% | |
| China Huishan Dairy Holdings Co Ltd ($6863) | | 256.3% | 91.5% | 38.3% | 11.1% |
| Asia Cassava Resources Holdings Ltd ($841) | | -3.0% | 99.6% | 32.6% | -28.4% |
| |
|---|
| Median (37 companies) | 22.5% | 9.8% | 6.4% | 0.4% | -3.2% |
|---|
| Imperial Pacific International Holdings Ltd ($1076) | | -27.6% | -18.5% | 2.7% | 70.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 42.2% | 57.2% | 59.0% | 57.8% | |
| Shenguan Holdings Group Ltd ($829) | 61.9% | 58.2% | 58.5% | 54.9% | |
| Yashili International Holdings Ltd ($1230) | 52.0% | 53.7% | 53.5% | 51.2% | |
| Natural Dairy NZ Holdings Ltd ($462) | 16.3% | -13.7% | 27.5% | 48.8% | |
| Christine International Holdings Ltd ($1210) | 51.3% | 50.2% | 49.7% | 47.2% | |
| |
|---|
| Median (37 companies) | 18.1% | 16.8% | 19.7% | 20.0% | 15.7% |
|---|
| Imperial Pacific International Holdings Ltd ($1076) | 2.8% | 3.9% | 1.8% | 3.5% | 23.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenguan Holdings Group Ltd ($829) | 57.2% | 58.7% | 59.2% | 54.5% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 147.8% | 40.3% | 48.4% | 47.1% | |
| China Huishan Dairy Holdings Co Ltd ($6863) | 109.2% | 45.1% | 47.9% | 47.1% | 37.2% |
| Honworld Group Ltd ($2226) | 28.4% | 44.4% | 42.1% | 42.0% | |
| China Modern Dairy Holdings Ltd ($1117) | 33.9% | 33.5% | 27.0% | 25.3% | |
| |
|---|
| Median (37 companies) | 8.8% | 7.9% | 6.7% | 7.6% | 4.9% |
|---|
| Imperial Pacific International Holdings Ltd ($1076) | 2.1% | 2.9% | -2.8% | -269.8% | 8.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Huishan Dairy Holdings Co Ltd ($6863) | 453.6% | 98.2% | 29.8% | 132.0% | 109.8% |
| Honworld Group Ltd ($2226) | 25.3% | 6.0% | 10.8% | 50.8% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 182.5% | 26.1% | 18.3% | 43.4% | |
| Yashili International Holdings Ltd ($1230) | 3.6% | 8.2% | 7.1% | 20.1% | |
| Vedan International Holdings Ltd ($2317) | 2.8% | 2.5% | 2.4% | 18.8% | |
| |
|---|
| Median (37 companies) | 3.9% | 6.0% | 6.2% | 5.1% | 2.8% |
|---|
| Imperial Pacific International Holdings Ltd ($1076) | 0.0% | 0.0% | 0.0% | 15.6% | 88.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 22.1% | 50.4% | 44.5% | 23.6% | |
| Want Want China Holdings Ltd ($151) | 24.9% | 27.9% | 29.4% | 22.8% | |
| Shenguan Holdings Group Ltd ($829) | 40.6% | 40.0% | 33.2% | 21.4% | |
| Huisheng International Holdings Ltd ($1340) | 63.0% | 31.9% | 23.7% | 16.3% | |
| Asia Cassava Resources Holdings Ltd ($841) | 13.8% | 4.2% | 5.9% | 13.6% | 11.6% |
| |
|---|
| Median (38 companies) | 11.4% | 7.1% | 6.5% | 5.6% | 5.3% |
|---|
| Imperial Pacific International Holdings Ltd ($1076) | | | -10.0% | -295.1% | -3.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yurun Food Group Ltd ($1068) | 0.4x | 40.7x | 6.9x | 9.4x | |
| Beijing Jingkelong Co Ltd ($814) | 3.4x | 5.0x | 4.8x | 5.3x | |
| CP Lotus Corp ($121) | 2.3x | | 6.5x | 5.1x | 3.0x |
| DaChan Food Asia Ltd ($3999) | -0.3x | 0.1x | 1.3x | 4.8x | |
| First Pacific Co Ltd/Hong Kong ($142) | 1.3x | 1.8x | 3.8x | 4.5x | |
| |
|---|
| Median (30 companies) | -0.1x | -0.3x | 0.8x | 0.7x | 1.8x |
|---|
