Changmao Biochemical Engineering Co Ltd reports 52.9% CAPEX decline and 8.3% Revenue decline
16/03/2016 • About Changmao Biochemical Engineering Co Ltd (
$954) • By InTwits
Changmao Biochemical Engineering Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Changmao Biochemical Engineering Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.1%. At the same time it's a lot of higher than industry average of 13.1%.
- CAPEX is quite volatile: 18.6 in 2015, 25.2 in 2014, 10.3 in 2013, 14.1 in 2012, 62.9 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Changmao Biochemical Engineering Co Ltd ($954) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 620.2 | 653.2 | 703.0 | 561.7 | 514.8 | -8.3% |
| Gross Profit | 114.2 | 127.5 | 169.0 | 111.3 | 114.8 | 3.1% |
| SG&A | | 77.6 | 84.5 | 73.2 | 74.7 | 2.1% |
| EBITDA | 94.4 | 103.0 | 121.3 | 78.9 | 79.0 | 0.2% |
| Net Income | 41.1 | 49.5 | 70.0 | 37.2 | 45.3 | 21.6% |
Balance Sheet
|
|---|
| Cash | 59.6 | 108.2 | 64.8 | 61.7 | 95.8 | 55.2% |
| Short Term Debt | 181.9 | 144.5 | 105.0 | 113.2 | 119.4 | 5.5% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 51.7 | 42.1 | 58.4 | 64.9 | 30.6 | -52.9% |
Ratios
|
|---|
| Revenue growth | 20.3% | 5.3% | 7.6% | -20.1% | -8.3% | |
| EBITDA growth | -17.6% | 9.2% | 17.8% | -35.0% | 0.2% | |
| Gross Margin | 18.4% | 19.5% | 24.0% | 19.8% | 22.3% | 2.5% |
| EBITDA Margin | 15.2% | 15.8% | 17.3% | 14.0% | 15.4% | 1.3% |
| Net Income Margin | 6.6% | 7.6% | 10.0% | 6.6% | 8.8% | 2.2% |
| SG&A, % of revenue | | 11.9% | 12.0% | 13.0% | 14.5% | 1.5% |
| CAPEX, % of revenue | 8.3% | 6.4% | 8.3% | 11.6% | 5.9% | -5.6% |
| ROIC | 10.9% | 10.8% | 13.9% | 7.1% | 6.3% | -0.8% |
| ROE | 9.9% | 11.1% | 14.3% | 7.1% | 8.2% | 1.1% |
| Net Debt/EBITDA | 1.3x | 0.4x | 0.3x | 0.7x | 0.3x | -0.4x |
Revenue and profitability
The company's Revenue decreased on 8.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.3 pp from 14.0% to 15.4% in 2015.
Gross Margin increased on 2.5 pp from 19.8% to 22.3% in 2015. SG&A as a % of Revenue increased slightly on 1.5 pp from 13.0% to 14.5% in 2015.
Net Income marign increased on 2.2 pp from 6.6% to 8.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Changmao Biochemical Engineering Co Ltd had CAPEX/Revenue of 5.9%. CAPEX/Revenue decreased slightly on 0.51 pp from 6.4% in 2012 to 5.9% in 2015. It's average level of CAPEX/Revenue for the last three years was 8.6%.
Return on investment
The company operates at low ROIC (6.32%) and ROE (8.23%). ROIC decreased slightly on 0.75 pp from 7.1% to 6.3% in 2015. ROE increased slightly on 1.1 pp from 7.1% to 8.2% in 2015.
Leverage (Debt)
Debt level is 0.3x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 0.7x to 0.3x in 2015. Debt increased on 5.5% in 2015 while cash surged on 55.2% in 2015.
Appendix 1: Peers in Chemicals
Below you can find Changmao Biochemical Engineering Co 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) | 34.7% | 2.0% | 10.1% | 2.2% | -0.6% |
|---|
| Changmao Biochemical Engineering Co Ltd ($954) | | 5.3% | 7.6% | -20.1% | -8.3% |
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% | |
| 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% | 18.2% | 16.2% | 16.0% | 28.2% |
|---|
| Changmao Biochemical Engineering Co Ltd ($954) | 18.4% | 19.5% | 24.0% | 19.8% | 22.3% |
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% | 13.2% | 12.7% | 11.1% | 14.2% |
|---|
| Changmao Biochemical Engineering Co Ltd ($954) | 15.2% | 15.8% | 17.3% | 14.0% | 15.4% |
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) | 8.7% | 9.6% | 8.7% | 5.1% | 8.1% |
|---|
| Changmao Biochemical Engineering Co Ltd ($954) | 8.3% | 6.4% | 8.3% | 11.6% | 5.9% |
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% | 10.3% |
| Yingde Gases Group Co Ltd ($2168) | 14.7% | 10.6% | 11.5% | 11.5% | |
| |
|---|
| Median (31 companies) | 7.8% | 6.9% | 7.4% | 5.2% | 8.2% |
|---|
| Changmao Biochemical Engineering Co Ltd ($954) | 10.9% | 10.8% | 13.9% | 7.1% | 6.3% |
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) | 1.5x | 1.9x | 2.5x | 1.5x | 0.2x |
|---|
| Changmao Biochemical Engineering Co Ltd ($954) | 1.3x | 0.4x | 0.3x | 0.7x | 0.3x |
