China Vanadium Titano - Magnetite Mining Co Ltd reports 20.4% revenue decline in 2015 and 117 pp EBITDA Margin decline from -46.1% to -163%
21/03/2016 • About China Vanadium Titano - Magnetite Mining Co Ltd (
$893) • By InTwits
China Vanadium Titano - Magnetite Mining Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Vanadium Titano - Magnetite Mining Co Ltd is a company in decline: 2015 revenue growth was -20.4%, 5 years revenue CAGR was -20.0%
- The company operates at negative EBITDA Margin: -162.9%
- China Vanadium Titano - Magnetite Mining Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.6%. At the same time it's a lot of higher than industry average of 13.1%.
- CAPEX is quite volatile: 18.6 in 2015, 25.2 in 2014, 10.3 in 2013, 14.1 in 2012, 62.9 in 2011
- The company has unprofitable business model: ROIC is at -24.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Vanadium Titano - Magnetite Mining Co Ltd ($893) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,713 | 1,534 | 1,430 | 649 | 516 | -20.4% |
| Gross Profit | 827 | 734 | 505 | -13 | -23 | 80.6% |
| SG&A | 149 | 164 | 203 | 229 | 251 | 10.0% |
| EBITDA | 879 | 735 | 494 | -299 | -841 | 181.1% |
| Net Income | 606 | 434 | 179 | -366 | -1,106 | 201.7% |
Balance Sheet
|
|---|
| Cash | 947 | 175 | 1,295 | 531 | 188 | -64.6% |
| Short Term Debt | 322 | 467 | 512 | 975 | 818 | -16.1% |
| Long Term Debt | 101 | 79 | 51 | 25 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 244 | 136 | 150 | 132 | 124 | -6.0% |
Ratios
|
|---|
| Revenue growth | 8.7% | -10.5% | -6.8% | -54.6% | -20.4% | |
| EBITDA growth | 7.0% | -16.4% | -32.7% | -160.5% | 181.1% | |
| Gross Margin | 48.3% | 47.9% | 35.3% | -2.0% | -4.5% | -2.5% |
| EBITDA Margin | 51.3% | 47.9% | 34.6% | -46.1% | -162.9% | -116.8% |
| Net Income Margin | 35.4% | 28.3% | 12.5% | -56.4% | -214.1% | -157.7% |
| SG&A, % of revenue | 8.7% | 10.7% | 14.2% | 35.2% | 48.7% | 13.5% |
| CAPEX, % of revenue | 14.2% | 8.9% | 10.5% | 20.4% | 24.1% | 3.7% |
| ROIC | 21.7% | 15.2% | 7.5% | -11.3% | -24.7% | -13.4% |
| ROE | 20.2% | 13.2% | 5.2% | -10.8% | -41.8% | -31.0% |
| Net Debt/EBITDA | -0.6x | 0.5x | -1.5x | | | 0.0x |
Revenue and profitability
China Vanadium Titano - Magnetite Mining Co Ltd's Revenue dropped on 20.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 117 pp from -46.1% to -163% in 2015.
Gross Margin decreased on 2.5 pp from -2.0% to -4.5% in 2015. SG&A as a % of Revenue jumped on 13.5 pp from 35.2% to 48.7% in 2015.
Net Income marign dropped on 158 pp from -56.4% to -214% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 24.1% in 2015. China Vanadium Titano - Magnetite Mining Co Ltd showed fast CAPEX/Revenue growth of 15.3 pp from 8.9% in 2012 to 24.1% in 2015. It's average CAPEX/Revenue for the last three years was 18.3%.
Return on investment
The company operates at negative ROIC (-24.70%) and ROE (-41.81%). ROIC dropped on 13.4 pp from -11.3% to -24.7% in 2015. ROE dropped on 31.0 pp from -10.8% to -41.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 18.2% in 2015 while cash dropped on 64.6% in 2015.
Appendix 1: Peers in Iron/Steel
Below you can find China Vanadium Titano - Magnetite Mining Co Ltd benchmarking vs. other companies in Iron/Steel 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 |
|---|
| Pan Asia Mining Ltd ($8173) | | 3,079.7% | -17.1% | 48.9% | -97.4% |
| CAA Resources Ltd ($2112) | | 99.6% | 103.2% | 38.0% | 261.2% |
| Tiangong International Co Ltd ($826) | 32.5% | 0.2% | 8.9% | 33.5% | |
| Da Ming International Holdings Ltd ($1090) | 33.1% | -2.1% | 29.3% | 29.8% | |
| Xiwang Special Steel Co Ltd ($1266) | 58.5% | -19.3% | 2.0% | 22.9% | |
| |
|---|
| Median (19 companies) | 33.1% | -7.7% | 0.6% | -1.7% | -11.6% |
|---|
| China Vanadium Titano - Magnetite Mining Co Ltd ($893) | | -10.5% | -6.8% | -54.6% | -20.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanguo International Mining Group Ltd ($3939) | 51.1% | 47.4% | 50.7% | 39.6% | |
| China Hanking Holdings Ltd ($3788) | 66.1% | 53.6% | 54.4% | 35.1% | |
| Vale SA ($6210) | 58.4% | 45.4% | 48.3% | 33.1% | 19.6% |
| China Metal International Holdings Inc ($319) | 21.0% | 20.9% | 24.3% | 24.8% | |
| Fosun International Ltd ($656) | 18.6% | 18.0% | 20.3% | 23.7% | |
| |
|---|
| Median (19 companies) | 18.6% | 14.8% | 12.7% | 12.9% | 16.6% |
|---|
| China Vanadium Titano - Magnetite Mining Co Ltd ($893) | 48.3% | 47.9% | 35.3% | -2.0% | -4.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanguo International Mining Group Ltd ($3939) | 46.5% | 39.7% | 36.2% | 31.3% | |
| China Hanking Holdings Ltd ($3788) | 63.1% | 40.4% | 40.9% | 30.6% | |
| Vale SA ($6210) | 55.9% | 24.2% | 40.8% | 30.1% | -16.9% |
| China Metal International Holdings Inc ($319) | 17.8% | 19.7% | 21.3% | 21.0% | |
| Fosun International Ltd ($656) | 15.8% | 16.7% | 23.0% | 20.9% | |
| |
|---|
| Median (19 companies) | 7.6% | 12.6% | 11.7% | 8.1% | -16.9% |
|---|
| China Vanadium Titano - Magnetite Mining Co Ltd ($893) | 51.3% | 47.9% | 34.6% | -46.1% | -162.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newton Resources Ltd ($1231) | 690.4% | | 926.9% | 1,395.7% | |
| Wanguo International Mining Group Ltd ($3939) | 13.2% | 24.0% | 39.3% | 32.5% | |
| Vale SA ($6210) | 25.8% | 34.0% | 28.1% | 29.8% | 34.5% |
| Xiwang Special Steel Co Ltd ($1266) | 14.9% | 22.6% | 31.5% | 21.5% | |
| Chongqing Iron & Steel Co Ltd ($1053) | 10.8% | 12.5% | 12.0% | 20.9% | |
| |
|---|
| Median (19 companies) | 7.3% | 8.4% | 10.9% | 6.4% | 24.4% |
|---|
| China Vanadium Titano - Magnetite Mining Co Ltd ($893) | 14.2% | 8.9% | 10.5% | 20.4% | 24.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanguo International Mining Group Ltd ($3939) | 74.9% | 38.4% | 24.4% | 15.0% | |
| China Metal International Holdings Inc ($319) | 11.5% | 11.0% | 12.0% | 12.7% | |
| Xiwang Special Steel Co Ltd ($1266) | 33.5% | 7.8% | 8.7% | 11.5% | |
| Tiangong International Co Ltd ($826) | 14.8% | 14.5% | 13.4% | 10.7% | |
| Golik Holdings Ltd ($1118) | 9.0% | 7.0% | 7.4% | 10.0% | |
| |
|---|
| Median (19 companies) | 10.5% | 6.2% | 7.9% | 5.0% | -6.4% |
|---|
| China Vanadium Titano - Magnetite Mining Co Ltd ($893) | 21.7% | 15.2% | 7.5% | -11.3% | -24.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fosun International Ltd ($656) | 4.6x | 4.4x | 4.8x | 5.5x | |
| Maanshan Iron & Steel Co Ltd ($323) | 5.0x | 55.2x | 7.3x | 5.3x | |
| China Hanking Holdings Ltd ($3788) | 0.3x | 0.4x | 2.5x | 4.7x | |
| China Oriental Group Co Ltd ($581) | 2.4x | 4.6x | 5.3x | 4.5x | |
| Angang Steel Co Ltd ($347) | 6.6x | 21.4x | 4.0x | 4.3x | |
| |
|---|
| Median (14 companies) | 2.2x | 2.3x | 3.0x | 3.0x | 0.7x |
|---|
