Landing International Development Ltd CAPEX dropped on 34.9% in 2015 while Revenue surged on 10.4%
18/03/2016 • About Landing International Development Ltd (
$582) • By InTwits
Landing International Development Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Landing International Development Ltd doesn't have a profitable business model yet: 2015 ROIC is -14.0%
- The company operates at negative EBITDA Margin: -394.2%
- Landing International Development Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -149.2% for the sames years0
- Landing International Development Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 146.3%. At the same time it's a lot of higher than industry average of 21.8%.
- CAPEX is quite volatile: 610 in 2015, 937 in 2014, 53.6 in 2013, 11.3 in 2012, 42.7 in 2011
- The company has unprofitable business model: ROIC is at -14.0%
- It operates with high leverage: Net Debt/EBITDA is 15.7x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Landing International Development Ltd ($582) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 153.1 | 156.3 | 181.1 | 223.3 | 246.5 | 10.4% |
| Gross Profit | 56.3 | 2.7 | 37.7 | 12.0 | 46.3 | 284.9% |
| SG&A | 46.5 | 56.5 | 74.5 | 311.9 | 423.9 | 35.9% |
| EBITDA | 54.4 | -207.5 | -21.1 | -286.7 | -971.8 | 238.9% |
| Net Income | 27.4 | -303.9 | -137.1 | -293.7 | -988.0 | 236.4% |
Balance Sheet
|
|---|
| Cash | 148.8 | 49.3 | 266.0 | 1,655.7 | 5,192.0 | 213.6% |
| Short Term Debt | 209.6 | 81.7 | 97.2 | 155.8 | 83.6 | -46.3% |
| Long Term Debt | 60.2 | 0.0 | 0.0 | 231.6 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 42.7 | 11.3 | 53.6 | 936.9 | 609.9 | -34.9% |
Ratios
|
|---|
| Revenue growth | -50.7% | 2.1% | 15.9% | 23.3% | 10.4% | |
| EBITDA growth | 88.3% | -481.2% | -89.8% | 1,256.3% | 238.9% | |
| Gross Margin | 36.8% | 1.8% | 20.8% | 5.4% | 18.8% | 13.4% |
| EBITDA Margin | 35.6% | -132.8% | -11.7% | -128.4% | -394.2% | -265.8% |
| Net Income Margin | 17.9% | -194.5% | -75.7% | -131.5% | -400.8% | -269.3% |
| SG&A, % of revenue | 30.4% | 36.1% | 41.1% | 139.6% | 172.0% | 32.3% |
| CAPEX, % of revenue | 27.9% | 7.2% | 29.6% | 419.5% | 247.4% | -172.1% |
| ROIC | 3.2% | -29.6% | -5.9% | -11.2% | -14.0% | -2.8% |
| ROE | 6.0% | -82.5% | -26.8% | -12.6% | -15.0% | -2.5% |
| Net Debt/EBITDA | 2.2x | | | | | 0.0x |
Revenue and profitability
The company's Revenue surged on 10.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 26.1 pp from -16.8% to -42.9% in 2015.
Gross Margin surged on 13.4 pp from 5.4% to 18.8% in 2015. SG&A as a % of Revenue surged on 32.3 pp from 140% to 172% in 2015.
Net Income marign dropped on 269 pp from -132% to -401% in 2015.
Capital expenditures (CAPEX) and working capital investments
Landing International Development Ltd's CAPEX/Revenue was 247% in 2015. The company showed fast CAPEX/Revenue growth of 240 pp from 7.2% in 2012 to 247% in 2015. It's average CAPEX/Revenue for the last three years was 232%.
Return on investment
The company operates at negative ROIC (-13.96%) and ROE (-15.03%). ROIC decreased on 2.8 pp from -11.2% to -14.0% in 2015. ROE decreased on 2.5 pp from -12.6% to -15.0% in 2015.
Leverage (Debt)
Debt level is 15.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt dropped on 78.4% in 2015 while cash surged on 214% in 2015.
Appendix 1: Peers in Chemicals
Below you can find Landing International Development 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% | |
| Huabao International Holdings Ltd ($336) | | 16.1% | 10.1% | 16.2% | 2.1% |
| |
|---|
| Median (31 companies) | 31.3% | 2.0% | 9.4% | 1.4% | -4.0% |
|---|
| Landing International Development Ltd ($582) | | 2.1% | 15.9% | 23.3% | 10.4% |
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% | 17.7% | 22.6% |
|---|
| Landing International Development Ltd ($582) | 36.8% | 1.8% | 20.8% | 5.4% | 18.8% |
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) | 15.2% | 15.8% | 14.5% | 13.8% | 13.4% |
|---|
| Landing International Development Ltd ($582) | 35.6% | -132.8% | -11.7% | -128.4% | -394.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| China XLX Fertiliser Ltd ($1866) | 13.0% | 30.1% | 41.1% | 32.1% | 22.0% |
| |
|---|
| Median (31 companies) | 8.3% | 9.6% | 8.3% | 5.1% | 7.0% |
|---|
| Landing International Development Ltd ($582) | 27.9% | 7.2% | 29.6% | 419.5% | 247.4% |
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) | 8.2% | 6.9% | 8.1% | 5.9% | 6.5% |
|---|
| Landing International Development Ltd ($582) | 3.2% | -29.6% | -5.9% | -11.2% | -14.0% |
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 (25 companies) | 1.3x | 1.6x | 2.2x | 1.4x | 0.6x |
|---|
