Beijing Jingkelong Co Ltd Net Debt / EBITDA surged on 3.9x from 5.3x to 9.3x in 2015 and Revenue increased on 5.9%
21/03/2016 • About Beijing Jingkelong Co Ltd (
$814) • By InTwits
Beijing Jingkelong Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 3.3% in 2015 vs. 4.5% in 2014 vs. 6.3% in 2011
- Beijing Jingkelong Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 8.4%.
- CAPEX is quite volatile: 2,164 in 2015, 1,739 in 2014, 707 in 2013, 1,176 in 2012, 1,053 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.2%
- It operates with high leverage: Net Debt/EBITDA is 9.3x 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.
Beijing Jingkelong Co Ltd ($814) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,633 | 9,184 | 10,337 | 10,819 | 11,455 | 5.9% |
| Gross Profit | 1,297 | 1,361 | 2,027 | 2,137 | 2,224 | 4.1% |
| SG&A | | 1,594 | 1,751 | 1,857 | 1,981 | 6.6% |
| EBITDA | 541 | 459 | 480 | 492 | 377 | -23.3% |
| Net Income | 210 | 105 | 57 | 41 | 25 | -39.8% |
Balance Sheet
|
|---|
| Cash | 581 | 461 | 602 | 537 | 718 | 33.8% |
| Short Term Debt | 2,211 | 2,537 | 1,928 | 2,322 | 3,466 | 49.3% |
| Long Term Debt | 200 | 200 | 978 | 840 | 746 | -11.2% |
Cash flow
|
|---|
| Capex | 194 | 278 | 259 | 155 | 190 | 22.1% |
Ratios
|
|---|
| Revenue growth | 9.3% | 6.4% | 12.6% | 4.7% | 5.9% | |
| EBITDA growth | | -15.1% | 4.5% | 2.6% | -23.3% | |
| Gross Margin | 15.0% | 14.8% | 19.6% | 19.8% | 19.4% | -0.3% |
| EBITDA Margin | 6.3% | 5.0% | 4.6% | 4.5% | 3.3% | -1.3% |
| Net Income Margin | 2.4% | 1.1% | 0.6% | 0.4% | 0.2% | -0.2% |
| SG&A, % of revenue | | 17.4% | 16.9% | 17.2% | 17.3% | 0.1% |
| CAPEX, % of revenue | 2.2% | 3.0% | 2.5% | 1.4% | 1.7% | 0.2% |
| ROIC | 9.2% | 5.8% | 5.7% | 5.5% | 4.2% | -1.3% |
| ROE | 13.5% | 6.4% | 3.5% | 2.5% | 1.5% | -1.0% |
| Net Debt/EBITDA | 3.4x | 5.0x | 4.8x | 5.3x | 9.3x | 3.9x |
Revenue and profitability
Beijing Jingkelong Co Ltd's Revenue increased on 5.9% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.0 pp from 24.7% to 26.7% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Beijing Jingkelong Co Ltd had CAPEX/Revenue of 1.7%. The company's CAPEX/Revenue decreased slightly on 1.4 pp from 3.0% in 2012 to 1.7% in 2015. Average CAPEX/Revenue for the last three years was 1.9%.The company maintained rich investment policy and has spent a big chunk of EBITDA (50.2%) to CAPEX.
Return on investment
The company operates at low ROIC (4.18%) and ROE (1.51%). ROIC decreased slightly on 1.3 pp from 5.5% to 4.2% in 2015. ROE decreased slightly on 0.99 pp from 2.5% to 1.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 9.3x and Debt / EBITDA is 11.2x. Net Debt / EBITDA jumped on 3.9x from 5.3x to 9.3x in 2015. Debt jumped on 33.2% in 2015 while cash jumped on 33.8% in 2015.
Appendix 1: Peers in Food
Below you can find Beijing Jingkelong Co Ltd benchmarking vs. other companies in Food 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 |
|---|
| Wealth Glory Holdings Ltd ($8269) | | -16.5% | -53.8% | 555.7% | -12.4% |
| Natural Dairy NZ Holdings Ltd ($462) | | -47.2% | 19.1% | 76.6% | -54.8% |
| China Modern Dairy Holdings Ltd ($1117) | | 50.7% | 96.1% | 52.8% | -4.0% |
| China Huishan Dairy Holdings Co Ltd ($6863) | | 256.3% | 91.5% | 38.3% | 11.1% |
| Asia Cassava Resources Holdings Ltd ($841) | | -3.0% | 99.6% | 32.6% | -28.4% |
| |
|---|
| Median (37 companies) | 22.5% | 9.8% | 5.6% | 0.4% | -4.0% |
|---|
| Beijing Jingkelong Co Ltd ($814) | | 6.4% | 12.6% | 4.7% | 5.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 42.2% | 57.2% | 59.0% | 57.8% | |
| Shenguan Holdings Group Ltd ($829) | 61.9% | 58.2% | 58.5% | 54.9% | 44.2% |
| Yashili International Holdings Ltd ($1230) | 52.0% | 53.7% | 53.5% | 51.2% | |
| Natural Dairy NZ Holdings Ltd ($462) | 16.3% | -13.7% | 27.5% | 48.8% | 49.6% |
| Christine International Holdings Ltd ($1210) | 51.3% | 50.2% | 49.7% | 47.2% | |
| |
|---|
| Median (37 companies) | 18.1% | 16.8% | 18.6% | 20.0% | 22.7% |
|---|
| Beijing Jingkelong Co Ltd ($814) | 15.0% | 14.8% | 19.6% | 19.8% | 19.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenguan Holdings Group Ltd ($829) | 57.2% | 58.7% | 59.2% | 54.5% | 43.6% |
| YuanShengTai Dairy Farm Ltd ($1431) | 147.8% | 40.3% | 48.4% | 47.1% | |
| China Huishan Dairy Holdings Co Ltd ($6863) | 109.2% | 45.1% | 47.9% | 47.1% | 37.2% |
| Honworld Group Ltd ($2226) | 28.4% | 44.4% | 42.1% | 42.0% | |
| China Modern Dairy Holdings Ltd ($1117) | 33.9% | 33.5% | 27.0% | 25.3% | 21.1% |
| |
|---|
| Median (37 companies) | 8.8% | 7.9% | 6.7% | 7.6% | 8.0% |
|---|
| Beijing Jingkelong Co Ltd ($814) | 6.3% | 5.0% | 4.6% | 4.5% | 3.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Huishan Dairy Holdings Co Ltd ($6863) | 453.6% | 98.2% | 29.8% | 132.0% | 109.8% |
| Honworld Group Ltd ($2226) | 25.3% | 6.0% | 10.8% | 50.8% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 182.5% | 26.1% | 18.3% | 43.4% | |
| Yashili International Holdings Ltd ($1230) | 3.6% | 8.2% | 7.1% | 20.1% | |
| Vedan International Holdings Ltd ($2317) | 2.8% | 2.5% | 2.4% | 18.8% | |
| |
|---|
| Median (37 companies) | 3.9% | 6.0% | 6.2% | 5.1% | 3.9% |
|---|
| Beijing Jingkelong Co Ltd ($814) | 2.2% | 3.0% | 2.5% | 1.4% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 22.1% | 50.4% | 44.5% | 23.6% | |
| Want Want China Holdings Ltd ($151) | 24.9% | 27.9% | 29.4% | 22.8% | 21.8% |
| Shenguan Holdings Group Ltd ($829) | 40.6% | 40.0% | 33.2% | 21.4% | 10.0% |
| Huisheng International Holdings Ltd ($1340) | 63.0% | 31.9% | 23.7% | 16.3% | |
| Asia Cassava Resources Holdings Ltd ($841) | 13.8% | 4.2% | 5.9% | 13.6% | 11.6% |
| |
|---|
| Median (38 companies) | 11.6% | 7.6% | 6.5% | 5.6% | 5.6% |
|---|
| Beijing Jingkelong Co Ltd ($814) | 9.2% | 5.8% | 5.7% | 5.5% | 4.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yurun Food Group Ltd ($1068) | 0.4x | 40.7x | 6.9x | 9.4x | |
| CP Lotus Corp ($121) | 2.3x | | 6.5x | 5.1x | 3.0x |
| DaChan Food Asia Ltd ($3999) | -0.3x | 0.1x | 1.3x | 4.8x | |
| First Pacific Co Ltd/Hong Kong ($142) | 1.3x | 1.8x | 3.8x | 4.5x | |
| China Modern Dairy Holdings Ltd ($1117) | 1.3x | 3.7x | 5.2x | 4.1x | 5.3x |
| |
|---|
| Median (29 companies) | -0.1x | -0.5x | 0.6x | 0.7x | 0.9x |
|---|
| Beijing Jingkelong Co Ltd ($814) | 3.4x | 5.0x | 4.8x | 5.3x | 9.3x |
