Singamas Container Holdings Ltd reports 55.2% EBITDA decline and 27.2% Revenue decline
17/03/2016 • About Singamas Container Holdings Ltd (
$716) • By InTwits
Singamas Container Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Singamas Container Holdings Ltd is a company in decline: 2015 revenue growth was -27.2%, 5 years revenue CAGR was -3.9%
- EBITDA Margin is declining: 3.4% in 2015 vs. 5.6% in 2014 vs. 13.6% in 2011
- EBITDA Margin is quite volatile: 3.4% in 2015, 5.6% in 2014, 7.1% in 2013, 8.9% in 2012, 13.6% in 2011
- Singamas Container Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 11.4%.
- CAPEX is quite volatile: 29.2 in 2015, 37.3 in 2014, 52.7 in 2013, 86.0 in 2012, 57.5 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Singamas Container Holdings Ltd ($716) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,818 | 1,537 | 1,283 | 1,546 | 1,126 | -27.2% |
| EBITDA | 247 | 136 | 91 | 86 | 38 | -55.2% |
| Net Income | 139 | 60 | 34 | 28 | -3 | -109.7% |
Balance Sheet
|
|---|
| Cash | 332 | 418 | 307 | 250 | 243 | -2.8% |
| Short Term Debt | 100 | 51 | 248 | 63 | 70 | 11.9% |
| Long Term Debt | 352 | 316 | 164 | 315 | 245 | -22.2% |
Cash flow
|
|---|
| Capex | 57 | 86 | 53 | 37 | 29 | -21.8% |
Ratios
|
|---|
| Revenue growth | 32.4% | -15.5% | -16.5% | 20.5% | -27.2% | |
| EBITDA growth | 70.7% | -44.8% | -33.3% | -5.5% | -55.2% | |
| EBITDA Margin | 13.6% | 8.9% | 7.1% | 5.6% | 3.4% | -2.1% |
| Net Income Margin | 7.6% | 3.9% | 2.7% | 1.8% | -0.2% | -2.1% |
| CAPEX, % of revenue | 3.2% | 5.6% | 4.1% | 2.4% | 2.6% | 0.2% |
| ROIC | 24.0% | 11.0% | 6.6% | 5.5% | 0.8% | -4.7% |
| ROE | 27.6% | 10.7% | 5.8% | 4.6% | -0.4% | -5.1% |
| Net Debt/EBITDA | 0.5x | -0.4x | 1.2x | 1.5x | 1.9x | 0.4x |
Revenue and profitability
The company's Revenue dropped on 27.2% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.1 pp from 5.6% to 3.4% in 2015.
Net Income marign decreased on 2.1 pp from 1.8% to -0.24% in 2015.
Capital expenditures (CAPEX) and working capital investments
Singamas Container Holdings Ltd's CAPEX/Revenue was 2.6% in 2015. Singamas Container Holdings Ltd showed decline in CAPEX/Revenue of 3.0 pp from 5.6% in 2012 to 2.6% in 2015. It's average CAPEX/Revenue for the last three years was 3.0%.Battling declining revenue the company invested a large share of EBITDA (75.8%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (0.80%) and negative ROE (-0.45%). ROIC decreased on 4.7 pp from 5.5% to 0.80% in 2015. ROE decreased on 5.1 pp from 4.6% to -0.45% in 2015.
Leverage (Debt)
Debt level is 1.9x Net Debt / EBITDA and 8.2x Debt / EBITDA. Net Debt / EBITDA surged on 0.4x from 1.5x to 1.9x in 2015. Debt dropped on 16.6% in 2015 while cash decreased on 2.8% in 2015.
Appendix 1: Peers in Miscellaneous Manufactur
Below you can find Singamas Container Holdings Ltd benchmarking vs. other companies in Miscellaneous Manufactur 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 |
|---|
| CSR Corp Ltd ($1766) | 24.0% | 12.0% | 9.7% | 123.7% | |
| Sunny Optical Technology Group Co Ltd ($2382) | | 59.5% | 45.9% | 45.0% | 26.9% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 1.5% | 22.2% | 43.2% | |
| Time Watch Investments Ltd ($2033) | | 28.2% | 25.4% | 25.6% | 10.4% |
| China International Marine Containers Group Co Ltd ($2039) | 23.4% | -15.6% | 6.6% | 21.4% | |
| |
|---|
| Median (25 companies) | 22.4% | -1.8% | 0.1% | 6.7% | -5.6% |
|---|
| Singamas Container Holdings Ltd ($716) | | -15.5% | -16.5% | 20.5% | -27.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | 68.1% |
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | 39.6% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | |
| Launch Tech Co Ltd ($2488) | 39.2% | 27.4% | 33.6% | 33.6% | |
| |
|---|
| Median (25 companies) | 20.9% | 19.8% | 20.6% | 24.9% | 20.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 42.8% | 30.4% | 31.3% | 38.4% | 37.6% |
| Man Sang International Ltd ($938) | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% |
| IPE Group Ltd ($929) | 24.9% | 25.6% | 22.5% | 29.5% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | |
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | 20.5% |
| |
|---|
| Median (25 companies) | 10.2% | 8.0% | 9.8% | 9.8% | 5.9% |
|---|
| Singamas Container Holdings Ltd ($716) | 13.6% | 8.9% | 7.1% | 5.6% | 3.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | 22.8% |
| KEE Holdings Co Ltd ($2011) | 20.9% | 21.8% | 43.7% | 24.9% | |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | |
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | 47.6% |
| TK Group Holdings Ltd ($2283) | 8.9% | 13.3% | 8.1% | 13.7% | 7.6% |
| |
|---|
| Median (25 companies) | 5.2% | 4.7% | 4.3% | 4.4% | 4.3% |
|---|
| Singamas Container Holdings Ltd ($716) | 3.2% | 5.6% | 4.1% | 2.4% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | 27.6% |
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | 27.9% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | 19.4% |
| CSR Corp Ltd ($1766) | 13.4% | 11.1% | 11.2% | 15.3% | |
| |
|---|
| Median (25 companies) | 6.4% | 4.2% | 3.6% | 3.9% | 1.5% |
|---|
| Singamas Container Holdings Ltd ($716) | 24.0% | 11.0% | 6.6% | 5.5% | 0.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | 27.3x |
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | 4,203.6x |
| China International Marine Containers Group Co Ltd ($2039) | 2.8x | 4.0x | 4.7x | 5.8x | |
| VS International Group Ltd ($1002) | 8.6x | 5.1x | 6.5x | 4.4x | 3.3x |
| Launch Tech Co Ltd ($2488) | -0.4x | 7.6x | 2.4x | 3.9x | |
| |
|---|
| Median (21 companies) | -0.3x | -0.2x | -0.3x | -0.2x | 0.9x |
|---|
| Singamas Container Holdings Ltd ($716) | 0.5x | -0.4x | 1.2x | 1.5x | 1.9x |
