China Tianrui Group Cement Co Ltd CAPEX dropped on 49.2% in 2015 and Revenue dropped on 30.8%
15/03/2016 • About China Tianrui Group Cement Co Ltd (
$1252) • By InTwits
China Tianrui Group Cement Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Tianrui Group Cement Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.7%. At the same time it's in pair with industry average of 7.3%.
- CAPEX is quite volatile: 395 in 2015, 778 in 2014, 823 in 2013, 374 in 2012, 313 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.5%
- It operates with high leverage: Net Debt/EBITDA is 7.9x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Tianrui Group Cement Co Ltd ($1252) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,263 | 7,591 | 8,661 | 8,950 | 6,195 | -30.8% |
| Gross Profit | 2,433 | 1,899 | 1,895 | 2,058 | 1,247 | -39.4% |
| SG&A | | | 753 | 772 | 709 | -8.2% |
| EBITDA | 2,680 | 2,166 | 2,052 | 2,387 | 2,033 | -14.8% |
| Net Income | 1,275 | 783 | 559 | 565 | 313 | -44.6% |
Balance Sheet
|
|---|
| Cash | 232 | 554 | 1,016 | 973 | 722 | -25.8% |
| Short Term Debt | 6,470 | 7,724 | 7,127 | 9,180 | 11,216 | 22.2% |
| Long Term Debt | 1,740 | 1,866 | 4,353 | 4,134 | 5,634 | 36.3% |
Cash flow
|
|---|
| Capex | 313 | 374 | 823 | 778 | 395 | -49.2% |
Ratios
|
|---|
| Revenue growth | 34.8% | -8.1% | 14.1% | 3.3% | -30.8% | |
| EBITDA growth | 118.3% | -19.2% | -5.3% | 16.3% | -14.8% | |
| Gross Margin | 29.4% | 25.0% | 21.9% | 23.0% | 20.1% | -2.9% |
| EBITDA Margin | 32.4% | 28.5% | 23.7% | 26.7% | 32.8% | 6.1% |
| Net Income Margin | 15.4% | 10.3% | 6.5% | 6.3% | 5.1% | -1.3% |
| SG&A, % of revenue | | | 8.7% | 8.6% | 11.4% | 2.8% |
| CAPEX, % of revenue | 3.8% | 4.9% | 9.5% | 8.7% | 6.4% | -2.3% |
| ROIC | 18.1% | 10.4% | 7.7% | 8.3% | 5.5% | -2.8% |
| ROE | 28.2% | 13.2% | 8.5% | 7.9% | 4.2% | -3.7% |
| Net Debt/EBITDA | 3.0x | 4.2x | 5.1x | 5.2x | 7.9x | 2.8x |
Revenue and profitability
The company's Revenue dropped on 30.8% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 6.1 pp from 26.7% to 32.8% in 2015.
Gross Margin decreased on 2.9 pp from 23.0% to 20.1% in 2015. SG&A as a % of Revenue increased on 2.8 pp from 8.6% to 11.4% in 2015.
Net Income marign decreased slightly on 1.3 pp from 6.3% to 5.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.4% in 2015. The company's CAPEX/Revenue increased slightly on 1.5 pp from 4.9% in 2012 to 6.4% in 2015. For the last three years the average CAPEX/Revenue was 8.2%.
Return on investment
The company operates at low ROIC (5.49%) and ROE (4.20%). ROIC decreased on 2.8 pp from 8.3% to 5.5% in 2015. ROE decreased on 3.7 pp from 7.9% to 4.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.9x and Debt / EBITDA is 8.3x. Net Debt / EBITDA jumped on 2.8x from 5.2x to 7.9x in 2015. Debt surged on 26.6% in 2015 while cash dropped on 25.8% in 2015.
Appendix 1: Peers in Building Materials
Below you can find China Tianrui Group Cement Co Ltd benchmarking vs. other companies in Building Materials 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 |
|---|
| Summit Ascent Holdings Ltd ($102) | -18.8% | -86.4% | -19.6% | 177.1% | |
| Pacific Plywood Hldg Ltd ($767) | | -34.9% | -14.5% | 119.5% | |
| Luoyang Glass Co Ltd ($1108) | -21.4% | -40.3% | -32.3% | 76.2% | |
| Prosperity International Holdings HK Ltd ($803) | | -23.9% | -43.3% | 55.2% | -34.4% |
| China Singyes Solar Technologies Holdings Ltd ($750) | 35.0% | 28.7% | 34.0% | 20.7% | |
| |
|---|
| Median (24 companies) | 31.5% | -1.3% | 9.6% | 6.3% | -13.9% |
|---|
| China Tianrui Group Cement Co Ltd ($1252) | | -8.1% | 14.1% | 3.3% | -30.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 95.0% | 91.4% | 82.0% | 97.2% | |
| Dongpeng Holdings Co Ltd ($3386) | 28.7% | 35.6% | 37.1% | 38.5% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 37.6% | 37.2% | 36.9% | 37.0% | |
| Anhui Conch Cement Co Ltd ($914) | 39.4% | 27.3% | 32.5% | 33.2% | |
| China Resources Cement Holdings Ltd ($1313) | 31.1% | 24.1% | 28.5% | 31.3% | 24.0% |
| |
|---|
| Median (24 companies) | 26.0% | 20.0% | 22.6% | 20.8% | 18.6% |
|---|
| China Tianrui Group Cement Co Ltd ($1252) | 29.4% | 25.0% | 21.9% | 23.0% | 20.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 53.6% | 12.6% | -19.8% | 50.5% | |
| Anhui Conch Cement Co Ltd ($914) | 38.8% | 27.1% | 31.1% | 32.1% | |
| TCC International Holdings Ltd ($1136) | 26.5% | 19.2% | 26.1% | 29.0% | |
| Asia Cement China Holdings Corp ($743) | 30.3% | 20.6% | 24.9% | 27.0% | |
| West China Cement Ltd ($2233) | 36.4% | 30.0% | 28.5% | 25.5% | 23.5% |
| |
|---|
| Median (24 companies) | 18.3% | 15.1% | 16.9% | 17.4% | 8.4% |
|---|
| China Tianrui Group Cement Co Ltd ($1252) | 32.4% | 28.5% | 23.7% | 26.7% | 32.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 40.4% | 11.9% | 32.1% | 23.6% | |
| West China Cement Ltd ($2233) | 54.8% | 17.2% | 13.9% | 15.9% | 10.1% |
| China Glass Holdings Ltd ($3300) | 37.2% | 19.6% | 12.5% | 12.4% | |
| China Shanshui Cement Group Ltd ($691) | 13.5% | 18.9% | 21.1% | 12.1% | |
| China Lesso Group Holdings Ltd ($2128) | 12.0% | 13.6% | 9.1% | 11.8% | |
| |
|---|
| Median (24 companies) | 8.2% | 10.1% | 8.3% | 5.4% | 10.6% |
|---|
| China Tianrui Group Cement Co Ltd ($1252) | 3.8% | 4.9% | 9.5% | 8.7% | 6.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 49.7% | 37.1% | 35.8% | 27.2% | |
| Anhui Conch Cement Co Ltd ($914) | 27.2% | 12.7% | 17.5% | 18.4% | |
| China Lesso Group Holdings Ltd ($2128) | 26.8% | 20.5% | 19.4% | 18.2% | |
| China Wood Optimization Holding Ltd ($8099) | | 33.5% | 27.3% | 17.7% | 17.7% |
| China Singyes Solar Technologies Holdings Ltd ($750) | 21.1% | 18.6% | 19.9% | 16.0% | |
| |
|---|
| Median (24 companies) | 12.1% | 5.0% | 6.9% | 4.8% | -0.7% |
|---|
| China Tianrui Group Cement Co Ltd ($1252) | 18.1% | 10.4% | 7.7% | 8.3% | 5.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sustainable Forest Holdings Ltd ($723) | 0.9x | | | 9.6x | |
| China National Building Material Co Ltd ($3323) | 3.9x | 6.7x | 6.8x | 6.3x | |
| BBMG Corp ($2009) | 4.4x | 4.6x | 5.0x | 6.1x | |
| China Shanshui Cement Group Ltd ($691) | 1.8x | 3.0x | 4.1x | 4.8x | |
| China Glass Holdings Ltd ($3300) | 3.0x | 9.9x | 2.9x | 4.7x | |
| |
|---|
| Median (20 companies) | 0.9x | 2.4x | 1.1x | 1.9x | 3.6x |
|---|
| China Tianrui Group Cement Co Ltd ($1252) | 3.0x | 4.2x | 5.1x | 5.2x | 7.9x |
