Luoyang Glass Co Ltd Net Income surged on 583% in 2015 and Revenue increased slightly on 0.70%
17/03/2016 • About Luoyang Glass Co Ltd (
$1108) • By InTwits
Luoyang Glass Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Luoyang Glass Co Ltd doesn't have a profitable business model yet: 2015 ROIC is -21.4%
- The company operates at negative EBITDA Margin: -23.0%
- Luoyang Glass Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -7.1%0
- Luoyang Glass Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.5%. At the same time it's in pair with industry average of 7.3%.
- CAPEX is quite volatile: 26.0 in 2015, 33.8 in 2014, 45.8 in 2013, 28.0 in 2012, 8.6 in 2011
- The company has unprofitable business model: ROIC is at -21.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.9x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Luoyang Glass Co Ltd ($1108) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 917.3 | 547.4 | 370.8 | 653.5 | 658.1 | 0.7% |
| Gross Profit | 98.1 | 106.7 | 48.1 | 49.5 | 24.4 | -50.7% |
| SG&A | 194.9 | 149.0 | 129.8 | 145.4 | 151.3 | 4.1% |
| EBITDA | 14.0 | 21.7 | -56.8 | -51.5 | -151.3 | 193.5% |
| Net Income | 38.5 | 5.1 | -99.0 | 21.2 | 144.5 | 582.8% |
Balance Sheet
|
|---|
| Cash | 40.9 | 236.6 | 128.5 | 92.7 | 102.3 | 10.3% |
| Short Term Debt | 345.4 | 318.7 | 247.0 | 176.0 | 259.2 | 47.3% |
| Long Term Debt | 598.7 | 552.4 | 506.1 | 459.5 | 459.2 | -0.1% |
Cash flow
|
|---|
| Capex | 8.6 | 28.0 | 45.8 | 33.8 | 26.0 | -23.0% |
Ratios
|
|---|
| Revenue growth | -21.4% | -40.3% | -32.3% | 76.2% | 0.7% | |
| EBITDA growth | -92.3% | 54.5% | -362.0% | -9.2% | 193.5% | |
| Gross Margin | 10.7% | 19.5% | 13.0% | 7.6% | 3.7% | -3.9% |
| EBITDA Margin | 1.5% | 4.0% | -15.3% | -7.9% | -23.0% | -15.1% |
| Net Income Margin | 4.2% | 0.9% | -26.7% | 3.2% | 22.0% | 18.7% |
| SG&A, % of revenue | 21.2% | 27.2% | 35.0% | 22.2% | 23.0% | 0.7% |
| CAPEX, % of revenue | 0.9% | 5.1% | 12.3% | 5.2% | 4.0% | -1.2% |
| ROIC | -5.8% | -4.9% | -14.8% | -13.3% | -21.4% | -8.1% |
| ROE | 46.8% | 4.4% | -119.7% | 5.6% | 29.0% | 23.4% |
| Net Debt/EBITDA | 64.4x | 29.3x | | | | 0.0x |
Revenue and profitability
The company's Revenue increased slightly on 0.70% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.55 pp from 5.3% to 4.8% in 2015.
Gross Margin decreased on 3.9 pp from 7.6% to 3.7% in 2015. SG&A as a % of Revenue increased slightly on 0.75 pp from 22.2% to 23.0% in 2015.
Net Income marign surged on 18.7 pp from 3.2% to 22.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Luoyang Glass Co Ltd's CAPEX/Revenue was 4.0% in 2015. The company showed small CAPEX/Revenue decline of 1.2 pp from 5.1% in 2012 to 4.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 7.2%.
Return on investment
The company operates at negative ROIC (-21.41%) and low but positive ROE (29.03%). ROIC decreased on 8.1 pp from -13.3% to -21.4% in 2015. ROE jumped on 23.4 pp from 5.6% to 29.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 13.0% in 2015 while cash jumped on 10.3% in 2015.
Appendix 1: Peers in Building Materials
Below we provide Luoyang Glass Co Ltd benchmarking against other companies in Building Materials 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 |
|---|
| Summit Ascent Holdings Ltd ($102) | -18.8% | -86.4% | -19.6% | 177.1% | |
| Pacific Plywood Hldg Ltd ($767) | | -34.9% | -14.5% | 119.5% | |
| 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% | |
| Far East Global Group Ltd ($830) | | 52.9% | 9.5% | 18.6% | 30.5% |
| |
|---|
| Median (24 companies) | 33.3% | -1.3% | 10.7% | 5.1% | -18.0% |
|---|
| Luoyang Glass Co Ltd ($1108) | | -40.3% | -32.3% | 76.2% | 0.7% |
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) | 26.5% | 21.8% | 22.6% | 21.2% | 15.4% |
|---|
| Luoyang Glass Co Ltd ($1108) | 10.7% | 19.5% | 13.0% | 7.6% | 3.7% |
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% | 14.0% |
| Asia Cement China Holdings Corp ($743) | 30.3% | 20.6% | 24.9% | 27.0% | |
| China Tianrui Group Cement Co Ltd ($1252) | 32.4% | 28.5% | 23.7% | 26.7% | 32.8% |
| |
|---|
| Median (24 companies) | 22.0% | 16.3% | 18.2% | 18.6% | 14.0% |
|---|
| Luoyang Glass Co Ltd ($1108) | 1.5% | 4.0% | -15.3% | -7.9% | -23.0% |
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% | 6.5% | 6.4% |
|---|
| Luoyang Glass Co Ltd ($1108) | 0.9% | 5.1% | 12.3% | 5.2% | 4.0% |
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) | 13.3% | 6.6% | 7.0% | 5.7% | 1.3% |
|---|
| Luoyang Glass Co Ltd ($1108) | -5.8% | -4.9% | -14.8% | -13.3% | -21.4% |
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 Tianrui Group Cement Co Ltd ($1252) | 3.0x | 4.2x | 5.1x | 5.2x | 7.9x |
| China Shanshui Cement Group Ltd ($691) | 1.8x | 3.0x | 4.1x | 4.8x | |
| |
|---|
| Median (21 companies) | 0.9x | 2.4x | 1.9x | 2.0x | 4.0x |
|---|
