Shengli Oil & Gas Pipe Holdings Ltd revenue decreased on 2.7% in 2015 and EBITDA Margin decreased on 4.6 pp from -3.2% to -7.7%
21/03/2016 • About Shengli Oil & Gas Pipe Holdings Ltd (
$1080) • By InTwits
Shengli Oil & Gas Pipe Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shengli Oil & Gas Pipe Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -8.5%
- The company operates at negative EBITDA Margin: -7.7%
- EBITDA Margin is quite volatile: -7.7% in 2015, -3.2% in 2014, 6.0% in 2013, 7.3% in 2012, 7.1% in 2011
- Shengli Oil & Gas Pipe 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 7.1%.
- CAPEX is quite volatile: 48.2 in 2015, 95.9 in 2014, 226 in 2013, 444 in 2012, 277 in 2011
- The company has unprofitable business model: ROIC is at -8.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shengli Oil & Gas Pipe Holdings Ltd ($1080) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,822 | 1,921 | 2,557 | 2,009 | 1,954 | -2.7% |
| Gross Profit | 143 | 71 | 86 | 27 | 38 | 40.8% |
| SG&A | 96 | 107 | 128 | 139 | 231 | 65.9% |
| EBITDA | 128 | 140 | 154 | -63 | -151 | 138.9% |
| Net Income | 94 | 63 | 18 | -219 | -302 | 37.8% |
Balance Sheet
|
|---|
| Cash | 382 | 166 | 203 | 216 | 394 | 82.3% |
| Short Term Debt | 632 | 988 | 1,476 | 982 | 1,045 | 6.3% |
| Long Term Debt | 0 | 0 | 84 | 83 | 55 | -33.3% |
Cash flow
|
|---|
| Capex | 277 | 444 | 226 | 96 | 48 | -49.7% |
Ratios
|
|---|
| Revenue growth | 61.7% | 5.4% | 33.1% | -21.4% | -2.7% | |
| EBITDA growth | -6.3% | 9.0% | 10.0% | -141.1% | 138.9% | |
| Gross Margin | 7.9% | 3.7% | 3.4% | 1.3% | 2.0% | 0.6% |
| EBITDA Margin | 7.1% | 7.3% | 6.0% | -3.2% | -7.7% | -4.6% |
| Net Income Margin | 5.1% | 3.3% | 0.7% | -10.9% | -15.5% | -4.6% |
| SG&A, % of revenue | 5.3% | 5.6% | 5.0% | 6.9% | 11.8% | 4.9% |
| CAPEX, % of revenue | 15.2% | 23.1% | 8.8% | 4.8% | 2.5% | -2.3% |
| ROIC | 3.9% | 2.5% | 2.0% | -4.3% | -8.5% | -4.2% |
| ROE | 4.7% | 3.1% | 0.9% | -10.9% | -16.7% | -5.8% |
| Net Debt/EBITDA | 1.9x | 5.9x | 8.8x | | | 0.0x |
Revenue and profitability
Shengli Oil & Gas Pipe Holdings Ltd's Revenue decreased on 2.7% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 4.6 pp from -3.2% to -7.7% in 2015.
Gross Margin increased slightly on 0.60 pp from 1.3% to 2.0% in 2015. SG&A as a % of Revenue increased on 4.9 pp from 6.9% to 11.8% in 2015.
Net Income marign decreased on 4.6 pp from -10.9% to -15.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.5%. Shengli Oil & Gas Pipe Holdings Ltd showed big decline in CAPEX/Revenue of 20.6 pp from 23.1% in 2012 to 2.5% in 2015. Average CAPEX/Revenue for the last three years was 5.4%.
Return on investment
The company operates at negative ROIC (-8.45%) and ROE (-16.72%). ROIC decreased on 4.2 pp from -4.3% to -8.5% in 2015. ROE decreased on 5.8 pp from -10.9% to -16.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt increased on 3.3% in 2015 while cash surged on 82.3% in 2015.
Appendix 1: Peers in Metal Fabricate/Hardware
Below you can find Shengli Oil & Gas Pipe Holdings Ltd benchmarking vs. other companies in Metal Fabricate/Hardware 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 |
|---|
| Burwill Holdings Ltd ($24) | 25.4% | -35.5% | -9.2% | 39.2% | |
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 100.8% | 16.3% | -48.4% | 32.2% | |
| EVA Precision Industrial Holdings Ltd ($838) | 16.1% | 19.7% | 12.2% | 30.1% | |
| China Zhongwang Holdings Ltd ($1333) | -2.1% | 31.0% | 6.0% | 11.6% | |
| Lung Kee Bermuda Holdings ($255) | | -5.2% | -7.5% | 8.2% | -5.2% |
| |
|---|
| Median (8 companies) | 25.4% | 8.2% | 8.0% | 9.9% | -5.2% |
|---|
| Shengli Oil & Gas Pipe Holdings Ltd ($1080) | | 5.4% | 33.1% | -21.4% | -2.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 21.6% | 24.2% | 26.8% | 28.0% | |
| EVA Precision Industrial Holdings Ltd ($838) | 24.7% | 21.6% | 24.1% | 26.2% | |
| New Times Energy Corp Ltd ($166) | 1.0% | -2.7% | 0.8% | 22.6% | |
| Ka Shui International Holdings Ltd ($822) | 19.4% | 22.5% | 22.1% | 19.6% | |
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 15.1% | 17.0% | 15.4% | 11.6% | |
| |
|---|
| Median (7 companies) | 15.1% | 17.0% | 15.4% | 19.6% | |
|---|
| Shengli Oil & Gas Pipe Holdings Ltd ($1080) | 7.9% | 3.7% | 3.4% | 1.3% | 2.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 22.0% | 22.3% | 24.3% | 24.2% | |
| EVA Precision Industrial Holdings Ltd ($838) | 16.8% | 10.4% | 9.9% | 16.7% | |
| Ka Shui International Holdings Ltd ($822) | 12.6% | 14.3% | 9.5% | 12.0% | |
| Lung Kee Bermuda Holdings ($255) | 19.3% | 15.3% | 14.8% | 11.7% | 15.2% |
| Shougang Concord Century Holdings Ltd ($103) | 8.8% | -0.2% | 11.2% | 5.2% | |
| |
|---|
| Median (8 companies) | 11.8% | 11.7% | 9.7% | 8.4% | 15.2% |
|---|
| Shengli Oil & Gas Pipe Holdings Ltd ($1080) | 7.1% | 7.3% | 6.0% | -3.2% | -7.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 25.1% | 56.3% | 41.6% | 54.8% | |
| New Times Energy Corp Ltd ($166) | 9.0% | 11.4% | 1.7% | 52.1% | |
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 20.3% | 25.9% | 71.7% | 31.4% | |
| Ka Shui International Holdings Ltd ($822) | 5.0% | 9.3% | 7.4% | 11.1% | |
| Lung Kee Bermuda Holdings ($255) | 21.9% | 11.6% | 9.6% | 11.0% | 4.5% |
| |
|---|
| Median (8 companies) | 12.2% | 10.3% | 6.8% | 11.0% | 4.5% |
|---|
| Shengli Oil & Gas Pipe Holdings Ltd ($1080) | 15.2% | 23.1% | 8.8% | 4.8% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EVA Precision Industrial Holdings Ltd ($838) | 10.5% | 3.3% | 1.9% | 9.1% | |
| Ka Shui International Holdings Ltd ($822) | 10.5% | 14.6% | 7.1% | 7.6% | |
| China Zhongwang Holdings Ltd ($1333) | 7.8% | 9.5% | 8.8% | 7.4% | |
| Lung Kee Bermuda Holdings ($255) | 12.3% | 6.7% | 4.9% | 3.2% | 4.8% |
| Burwill Holdings Ltd ($24) | 0.8% | -1.8% | -1.5% | -1.6% | |
| |
|---|
| Median (8 companies) | 8.0% | 5.0% | 1.8% | 0.8% | 4.8% |
|---|
| Shengli Oil & Gas Pipe Holdings Ltd ($1080) | 3.9% | 2.5% | 2.0% | -4.3% | -8.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shougang Concord Century Holdings Ltd ($103) | 7.6x | | 6.2x | 13.2x | |
| China Zhongwang Holdings Ltd ($1333) | -0.8x | 1.3x | 2.6x | 4.1x | |
| Ka Shui International Holdings Ltd ($822) | 0.7x | 0.9x | 1.3x | 1.7x | |
| EVA Precision Industrial Holdings Ltd ($838) | -0.4x | 1.1x | 1.8x | 1.2x | |
| Lung Kee Bermuda Holdings ($255) | -0.7x | -1.5x | -1.6x | -0.9x | -1.4x |
| |
|---|
| Median (5 companies) | 0.7x | 1.1x | 2.2x | 1.7x | -1.4x |
|---|
