CECEP COSTIN New Materials Group Ltd reports 32.0% Net Income decline and 6.1% Revenue decline
22/03/2016 • About CECEP COSTIN New Materials Group Ltd (
$2228) • By InTwits
CECEP COSTIN New Materials Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CECEP COSTIN New Materials Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's in pair with industry average of 17.9%.
- CAPEX is quite volatile: 19.9 in 2015, 8.9 in 2014, 32.3 in 2013, 40.4 in 2012, 176 in 2011
- The company has business model with average profitability: ROIC is at 11.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CECEP COSTIN New Materials Group Ltd ($2228) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,374 | 1,559 | 1,494 | 1,323 | 1,242 | -6.1% |
| Gross Profit | 416 | 485 | 486 | 429 | 351 | -18.3% |
| SG&A | 96 | 105 | 119 | 104 | 119 | 13.8% |
| EBITDA | 360 | 438 | 428 | 400 | 291 | -27.3% |
| Net Income | 251 | 246 | 243 | 266 | 181 | -32.0% |
Balance Sheet
|
|---|
| Cash | 845 | 978 | 1,105 | 1,339 | 1,587 | 18.6% |
| Short Term Debt | 280 | 526 | 271 | 299 | 378 | 26.6% |
| Long Term Debt | 266 | 60 | 124 | 79 | 3 | -96.2% |
Cash flow
|
|---|
| Capex | 176 | 40 | 32 | 9 | 20 | 124.3% |
Ratios
|
|---|
| Revenue growth | 39.6% | 13.5% | -4.2% | -11.5% | -6.1% | |
| EBITDA growth | 19.0% | 21.7% | -2.2% | -6.6% | -27.3% | |
| Gross Margin | 30.3% | 31.1% | 32.5% | 32.5% | 28.3% | -4.2% |
| EBITDA Margin | 26.2% | 28.1% | 28.7% | 30.2% | 23.4% | -6.8% |
| Net Income Margin | 18.3% | 15.8% | 16.2% | 20.1% | 14.6% | -5.5% |
| SG&A, % of revenue | 7.0% | 6.7% | 7.9% | 7.9% | 9.6% | 1.7% |
| CAPEX, % of revenue | 12.8% | 2.6% | 2.2% | 0.7% | 1.6% | 0.9% |
| ROIC | 24.2% | 22.3% | 20.1% | 17.6% | 11.0% | -6.5% |
| ROE | 26.1% | 22.0% | 18.6% | 17.7% | 10.9% | -6.8% |
| Net Debt/EBITDA | -0.8x | -0.9x | -1.7x | -2.4x | -4.2x | -1.7x |
Revenue and profitability
The company's Revenue decreased on 6.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.8 pp from 30.2% to 23.4% in 2015.
Gross Margin decreased on 4.2 pp from 32.5% to 28.3% in 2015. SG&A as a % of Revenue increased slightly on 1.7 pp from 7.9% to 9.6% in 2015.
Net Income marign decreased on 5.5 pp from 20.1% to 14.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.6%. CECEP COSTIN New Materials Group Ltd showed small CAPEX/Revenue decline of 0.99 pp from 2.6% in 2012 to 1.6% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at low ROIC (11.03%) and ROE (10.92%). ROIC decreased on 6.5 pp from 17.6% to 11.0% in 2015. ROE decreased on 6.8 pp from 17.7% to 10.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -4.2x and Debt / EBITDA is 1.3x. Net Debt / EBITDA dropped on 1.7x from -2.4x to -4.2x in 2015. Debt increased slightly on 0.90% in 2015 while cash jumped on 18.6% in 2015.
Appendix 1: Peers in Textiles
Below you can find CECEP COSTIN New Materials Group Ltd benchmarking vs. other companies in Textiles 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 |
|---|
| Victory City International Holdings Ltd ($539) | | -5.2% | 6.5% | 31.5% | -4.4% |
| Guangdong Tannery Ltd ($1058) | 12.7% | 6.1% | -4.5% | 29.0% | |
| Kingdom Holding Co Ltd ($528) | | 1.1% | 6.0% | 20.0% | 12.2% |
| Pacific Textiles Holdings Ltd ($1382) | | -10.6% | 3.6% | 11.6% | -7.0% |
| Easyknit Enterprises Holdings Ltd ($616) | | 9.6% | 10.2% | 7.3% | 22.3% |
| |
|---|
| Median (20 companies) | 17.9% | -2.6% | -4.3% | -6.2% | -4.4% |
|---|
| CECEP COSTIN New Materials Group Ltd ($2228) | | 13.5% | -4.2% | -11.5% | -6.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TAI Ping Carpet International Ltd ($146) | 40.4% | 41.0% | 45.4% | 46.7% | 46.6% |
| Ping Shan Tea Group Ltd ($364) | 15.3% | 11.2% | 20.8% | 42.9% | |
| Texwinca Holdings Ltd ($321) | 33.7% | 29.6% | 30.9% | 33.3% | 34.1% |
| Easyknit Enterprises Holdings Ltd ($616) | 14.6% | 22.3% | 26.3% | 29.6% | 25.9% |
| Kingdom Holding Co Ltd ($528) | 32.1% | 29.1% | 27.2% | 26.8% | 25.8% |
| |
|---|
| Median (20 companies) | 15.3% | 16.7% | 14.6% | 14.0% | 22.2% |
|---|
| CECEP COSTIN New Materials Group Ltd ($2228) | 30.3% | 31.1% | 32.5% | 32.5% | 28.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ping Shan Tea Group Ltd ($364) | 14.9% | 11.2% | | 39.3% | |
| Kingdom Holding Co Ltd ($528) | 29.3% | 26.3% | 25.3% | 24.8% | 23.0% |
| Easyknit Enterprises Holdings Ltd ($616) | 10.4% | 18.4% | 21.3% | 21.4% | 13.2% |
| Weiqiao Textile Co ($2698) | 10.2% | 17.5% | 20.2% | 21.4% | 30.8% |
| Pacific Textiles Holdings Ltd ($1382) | 19.5% | 19.1% | 19.0% | 19.5% | 18.4% |
| |
|---|
| Median (20 companies) | 12.5% | 10.3% | 9.6% | 11.7% | 11.7% |
|---|
| CECEP COSTIN New Materials Group Ltd ($2228) | 26.2% | 28.1% | 28.7% | 30.2% | 23.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hua Lien International Holding Co Ltd ($969) | 0.0% | 19.7% | 40.5% | 79.6% | |
| Ping Shan Tea Group Ltd ($364) | 18.1% | 32.0% | | 14.0% | |
| Kingdom Holding Co Ltd ($528) | 6.2% | 8.4% | 18.8% | 10.9% | 5.6% |
| Victory City International Holdings Ltd ($539) | 2.3% | 4.2% | 10.1% | 8.6% | 6.8% |
| Silverman Holdings Ltd ($1616) | 8.7% | 6.5% | 18.0% | 8.4% | |
| |
|---|
| Median (20 companies) | 2.5% | 3.4% | 1.7% | 4.7% | 4.7% |
|---|
| CECEP COSTIN New Materials Group Ltd ($2228) | 12.8% | 2.6% | 2.2% | 0.7% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 28.8% | 23.7% | 26.4% | 31.6% | 25.9% |
| Easyknit Enterprises Holdings Ltd ($616) | | 22.2% | 21.3% | 16.1% | 7.7% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 7.9% | 6.2% | 13.2% | 15.4% | |
| Kingdom Holding Co Ltd ($528) | 16.3% | 13.8% | 12.7% | 13.8% | 12.7% |
| TAI Ping Carpet International Ltd ($146) | | | 2.6% | 5.7% | 5.5% |
| |
|---|
| Median (20 companies) | 7.3% | 5.1% | 4.5% | 3.7% | 6.1% |
|---|
| CECEP COSTIN New Materials Group Ltd ($2228) | 24.2% | 22.3% | 20.1% | 17.6% | 11.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangdong Tannery Ltd ($1058) | 8.9x | 6.5x | 5.8x | 11.6x | |
| Sijia Group Co ($1863) | -0.1x | 1.6x | 5.3x | 6.4x | |
| China Weaving Materials Holdings Ltd ($3778) | 1.3x | 3.6x | 3.0x | 5.3x | |
| Co-Prosperity Holdings Ltd ($707) | 8.3x | 34.8x | | 4.5x | |
| Victory City International Holdings Ltd ($539) | 1.8x | 1.5x | 2.0x | 3.2x | 2.5x |
| |
|---|
| Median (18 companies) | 1.3x | 1.5x | 2.0x | 0.8x | 0.1x |
|---|
| CECEP COSTIN New Materials Group Ltd ($2228) | -0.8x | -0.9x | -1.7x | -2.4x | -4.2x |
