Fufeng Group Ltd CAPEX dropped on 63.8% in 2015 and Revenue decreased slightly on 0.64%
15/03/2016 • About Fufeng Group Ltd (
$546) • By InTwits
Fufeng Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Fufeng Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.1%. At the same time it's in pair with industry average of 8.9%.
- CAPEX is quite volatile: 913 in 2015, 2,522 in 2014, 1,367 in 2013, 1,816 in 2012, 2,231 in 2011
- The company has business model with average profitability: ROIC is at 10.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.7x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fufeng Group Ltd ($546) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,399 | 11,112 | 11,367 | 11,298 | 11,226 | -0.6% |
| Gross Profit | 1,520 | 1,637 | 2,099 | 2,167 | 1,802 | -16.8% |
| SG&A | 618 | 844 | 1,023 | 1,024 | 1,086 | 6.1% |
| EBITDA | 1,186 | 1,268 | 1,645 | 1,825 | 1,771 | -2.9% |
| Net Income | 604 | 427 | 506 | 626 | 516 | -17.6% |
Balance Sheet
|
|---|
| Cash | 614 | 481 | 806 | 797 | 741 | -6.9% |
| Short Term Debt | 704 | 2,408 | 1,168 | 813 | 1,846 | 127.0% |
| Long Term Debt | 2,844 | 2,045 | 3,309 | 3,702 | 1,992 | -46.2% |
Cash flow
|
|---|
| Capex | 2,231 | 1,816 | 1,367 | 2,522 | 913 | -63.8% |
Ratios
|
|---|
| Revenue growth | 30.9% | 32.3% | 2.3% | -0.6% | -0.6% | |
| EBITDA growth | -13.5% | 6.9% | 29.7% | 10.9% | -2.9% | |
| Gross Margin | 18.1% | 14.7% | 18.5% | 19.2% | 16.1% | -3.1% |
| EBITDA Margin | 14.1% | 11.4% | 14.5% | 16.2% | 15.8% | -0.4% |
| Net Income Margin | 7.2% | 3.8% | 4.5% | 5.5% | 4.6% | -0.9% |
| SG&A, % of revenue | 7.4% | 7.6% | 9.0% | 9.1% | 9.7% | 0.6% |
| CAPEX, % of revenue | 26.6% | 16.3% | 12.0% | 22.3% | 8.1% | -14.2% |
| ROIC | 13.9% | 9.6% | 10.8% | 11.6% | 10.3% | -1.2% |
| ROE | 18.4% | 11.8% | 11.8% | 12.3% | 9.2% | -3.1% |
| Net Debt/EBITDA | 2.5x | 3.1x | 2.2x | 2.0x | 1.7x | -0.3x |
Revenue and profitability
Fufeng Group Ltd's Revenue decreased slightly on 0.64% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.0 pp from 24.7% to 26.7% in 2015.
Gross Margin decreased on 3.1 pp from 19.2% to 16.1% in 2015. SG&A as a % of Revenue increased slightly on 0.61 pp from 9.1% to 9.7% in 2015.
Net Income marign decreased slightly on 0.95 pp from 5.5% to 4.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Fufeng Group Ltd had CAPEX/Revenue of 8.1%. The company's CAPEX/Revenue decreased on 8.2 pp from 16.3% in 2012 to 8.1% in 2015. It's average level of CAPEX/Revenue for the last three years was 14.2%.Battling declining revenue Fufeng Group Ltd invested a large share of EBITDA (51.5%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (10.35%) and ROE (9.24%). ROIC decreased slightly on 1.2 pp from 11.6% to 10.3% in 2015. ROE decreased on 3.1 pp from 12.3% to 9.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.7x and Debt / EBITDA is 2.2x. Net Debt / EBITDA dropped on 0.3x from 2.0x to 1.7x in 2015. Debt dropped on 15.0% in 2015 while cash decreased on 6.9% in 2015.
Appendix 1: Peers in Chemicals
Below you can find Fufeng Group 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) | 28.6% | 2.0% | 10.1% | 2.2% | 0.2% |
|---|
| Fufeng Group Ltd ($546) | | 32.3% | 2.3% | -0.6% | -0.6% |
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% | |
| Bracell Ltd ($1768) | 40.1% | 30.5% | 37.3% | 37.3% | 38.4% |
| Yingde Gases Group Co Ltd ($2168) | 34.2% | 31.7% | 31.0% | 32.1% | |
| |
|---|
| Median (31 companies) | 19.8% | 19.5% | 16.2% | 16.0% | 33.2% |
|---|
| Fufeng Group Ltd ($546) | 18.1% | 14.7% | 18.5% | 19.2% | 16.1% |
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% |
| Bracell Ltd ($1768) | 30.1% | 22.3% | 30.8% | 38.2% | 35.9% |
| 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% | |
| |
|---|
| Median (31 companies) | 15.5% | 15.8% | 12.7% | 11.1% | 14.2% |
|---|
| Fufeng Group Ltd ($546) | 14.1% | 11.4% | 14.5% | 16.2% | 15.8% |
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% |
| Bracell Ltd ($1768) | 24.4% | 22.3% | 64.3% | 35.4% | 11.7% |
| |
|---|
| Median (31 companies) | 8.3% | 7.2% | 8.3% | 5.1% | 8.8% |
|---|
| Fufeng Group Ltd ($546) | 26.6% | 16.3% | 12.0% | 22.3% | 8.1% |
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% | |
| Yingde Gases Group Co Ltd ($2168) | 14.7% | 10.6% | 11.5% | 11.5% | |
| China BlueChemical Ltd ($3983) | 21.0% | 19.1% | 16.4% | 11.4% | |
| |
|---|
| Median (31 companies) | 7.8% | 6.9% | 7.4% | 5.2% | 6.6% |
|---|
| Fufeng Group Ltd ($546) | 13.9% | 9.6% | 10.8% | 11.6% | 10.3% |
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) | 1.3x | 1.2x | 2.4x | 1.4x | -0.3x |
|---|
| Fufeng Group Ltd ($546) | 2.5x | 3.1x | 2.2x | 2.0x | 1.7x |
