China Lesso Group Holdings Ltd CAPEX dropped on 29.2% in 2015 while Revenue increased on 3.0%
18/03/2016 • About China Lesso Group Holdings Ltd (
$2128) • By InTwits
China Lesso Group Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 17.6% in 2015 vs. 16.5% in 2014 vs. 17.4% in 2011
- China Lesso Group Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.9%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 14,736 in 2015, 12,755 in 2014, 7,187 in 2013, 7,065 in 2012, 5,717 in 2011
- The company has highly profitable business model: ROIC is at 17.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Lesso Group Holdings Ltd ($2128) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,143 | 10,891 | 13,071 | 14,823 | 15,264 | 3.0% |
| Gross Profit | 2,452 | 2,649 | 3,266 | 3,801 | 3,938 | 3.6% |
| SG&A | 768 | 925 | 1,227 | 1,351 | 1,276 | -5.5% |
| EBITDA | 1,762 | 1,828 | 2,164 | 2,450 | 2,682 | 9.5% |
| Net Income | 1,261 | 1,238 | 1,449 | 1,554 | 1,621 | 4.3% |
Balance Sheet
|
|---|
| Cash | 2,115 | 1,922 | 2,189 | 3,199 | 3,894 | 21.7% |
| Short Term Debt | 70 | 596 | 1,080 | 1,159 | 1,066 | -8.0% |
| Long Term Debt | 1,675 | 1,629 | 1,607 | 2,021 | 2,175 | 7.6% |
Cash flow
|
|---|
| Capex | 1,217 | 1,477 | 1,185 | 1,744 | 1,234 | -29.2% |
Ratios
|
|---|
| Revenue growth | 31.5% | 7.4% | 20.0% | 13.4% | 3.0% | |
| EBITDA growth | 14.4% | 3.8% | 18.3% | 13.2% | 9.5% | |
| Gross Margin | 24.2% | 24.3% | 25.0% | 25.6% | 25.8% | 0.2% |
| EBITDA Margin | 17.4% | 16.8% | 16.6% | 16.5% | 17.6% | 1.0% |
| Net Income Margin | 12.4% | 11.4% | 11.1% | 10.5% | 10.6% | 0.1% |
| SG&A, % of revenue | 7.6% | 8.5% | 9.4% | 9.1% | 8.4% | -0.8% |
| CAPEX, % of revenue | 12.0% | 13.6% | 9.1% | 11.8% | 8.1% | -3.7% |
| ROIC | 26.8% | 20.5% | 19.4% | 18.2% | 17.2% | -1.0% |
| ROE | 28.0% | 22.5% | 21.9% | 19.7% | 17.7% | -2.0% |
| Net Debt/EBITDA | -0.2x | 0.2x | 0.2x | -0.0x | -0.2x | -0.2x |
Revenue and profitability
The company's Revenue increased on 3.0% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.9 pp from 5.5% to 8.4% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue decreased slightly on 0.75 pp from 9.1% to 8.4% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.1% in 2015. China Lesso Group Holdings Ltd showed decline in CAPEX/Revenue of 5.5 pp from 13.6% in 2012 to 8.1% in 2015. It's average CAPEX/Revenue for the last three years was 9.6%.
Return on investment
The company operates at good ROIC (17.21%) and ROE (17.70%). ROIC decreased slightly on 0.99 pp from 18.2% to 17.2% in 2015. ROE decreased slightly on 2.0 pp from 19.7% to 17.7% in 2015.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from -0.0078x to -0.2x in 2015. Debt increased slightly on 1.9% in 2015 while cash jumped on 21.7% in 2015.
Appendix 1: Peers in Building Materials
Below you can find China Lesso Group Holdings 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) | | -86.4% | -19.6% | 177.1% | -14.1% |
| Pacific Plywood Hldg Ltd ($767) | | -34.9% | -14.5% | 119.5% | |
| Luoyang Glass Co Ltd ($1108) | | -40.3% | -32.3% | 76.2% | 0.7% |
| 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) | 35.0% | -3.5% | 9.6% | 5.1% | -16.1% |
|---|
| China Lesso Group Holdings Ltd ($2128) | | 7.4% | 20.0% | 13.4% | 3.0% |
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% | 20.0% | 22.0% | 20.8% | 14.1% |
|---|
| China Lesso Group Holdings Ltd ($2128) | 24.2% | 24.3% | 25.0% | 25.6% | 25.8% |
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% | 18.1% |
| China Tianrui Group Cement Co Ltd ($1252) | 32.4% | 28.5% | 23.7% | 26.7% | 32.8% |
| |
|---|
| Median (24 companies) | 22.0% | 15.1% | 18.2% | 18.6% | 8.1% |
|---|
| China Lesso Group Holdings Ltd ($2128) | 17.4% | 16.8% | 16.6% | 16.5% | 17.6% |
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% | |
| Anhui Conch Cement Co Ltd ($914) | 16.1% | 14.7% | 12.3% | 11.1% | |
| |
|---|
| Median (24 companies) | 6.3% | 9.7% | 8.3% | 5.4% | 5.6% |
|---|
| China Lesso Group Holdings Ltd ($2128) | 12.0% | 13.6% | 9.1% | 11.8% | 8.1% |
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 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% | |
| China Resources Cement Holdings Ltd ($1313) | 14.0% | 8.0% | 9.6% | 13.0% | 5.5% |
| |
|---|
| Median (24 companies) | 12.1% | 5.0% | 6.9% | 4.8% | 0.9% |
|---|
| China Lesso Group Holdings Ltd ($2128) | 26.8% | 20.5% | 19.4% | 18.2% | 17.2% |
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 (20 companies) | 1.4x | 3.0x | 2.7x | 2.0x | 4.0x |
|---|
| China Lesso Group Holdings Ltd ($2128) | -0.2x | 0.2x | 0.2x | -0.0x | -0.2x |
