CPMC Holdings Ltd reports 18.2% Net Income decline and 3.6% Revenue decline
22/03/2016 • About CPMC Holdings Ltd (
$906) • By InTwits
CPMC Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CPMC Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.6%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 468 in 2015, 455 in 2014, 1,038 in 2013, 840 in 2012, 596 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.4x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CPMC Holdings Ltd ($906) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,342 | 5,046 | 5,257 | 5,295 | 5,104 | -3.6% |
| Gross Profit | 694 | 843 | 943 | 945 | 906 | -4.2% |
| SG&A | 387 | 446 | 494 | 524 | 531 | 1.3% |
| EBITDA | 471 | 599 | 721 | 701 | 677 | -3.4% |
| Net Income | 280 | 323 | 386 | 346 | 283 | -18.2% |
Balance Sheet
|
|---|
| Cash | 1,612 | 1,677 | 987 | 1,005 | 996 | -0.9% |
| Short Term Debt | 369 | 1,604 | 2,080 | 0 | 0 | |
| Long Term Debt | 1,823 | 817 | 12 | 2,448 | 2,597 | 6.1% |
Cash flow
|
|---|
| Capex | 596 | 840 | 1,038 | 455 | 468 | 2.7% |
Ratios
|
|---|
| Revenue growth | 27.1% | 16.2% | 4.2% | 0.7% | -3.6% | |
| EBITDA growth | 19.8% | 27.2% | 20.5% | -2.8% | -3.4% | |
| Gross Margin | 16.0% | 16.7% | 17.9% | 17.8% | 17.7% | -0.1% |
| EBITDA Margin | 10.8% | 11.9% | 13.7% | 13.2% | 13.3% | 0.0% |
| Net Income Margin | 6.5% | 6.4% | 7.3% | 6.5% | 5.5% | -1.0% |
| SG&A, % of revenue | 8.9% | 8.8% | 9.4% | 9.9% | 10.4% | 0.5% |
| CAPEX, % of revenue | 13.7% | 16.7% | 19.7% | 8.6% | 9.2% | 0.6% |
| ROIC | 8.9% | 8.3% | 8.7% | 7.3% | 6.0% | -1.3% |
| ROE | 11.5% | 10.6% | 10.4% | 8.6% | 6.8% | -1.9% |
| Net Debt/EBITDA | 1.2x | 1.2x | 1.5x | 2.1x | 2.4x | 0.3x |
Revenue and profitability
The company's Revenue decreased on 3.6% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.9 pp from 8.0% to 9.9% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 0.51 pp from 9.9% to 10.4% in 2015.
Net Income marign decreased slightly on 0.99 pp from 6.5% to 5.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 CPMC Holdings Ltd had CAPEX/Revenue of 9.2%. CPMC Holdings Ltd's CAPEX/Revenue decreased on 7.5 pp from 16.7% in 2012 to 9.2% in 2015. Average CAPEX/Revenue for the last three years was 12.5%.Battling declining revenue the company invested a large share of EBITDA (69.1%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (6.04%) and ROE (6.78%). ROIC decreased slightly on 1.3 pp from 7.3% to 6.0% in 2015. ROE decreased slightly on 1.9 pp from 8.6% to 6.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.4x and Debt / EBITDA is 3.8x. Net Debt / EBITDA jumped on 0.3x from 2.1x to 2.4x in 2015. Debt increased on 6.1% in 2015 while cash decreased slightly on 0.87% in 2015.
Appendix 1: Peers in Packaging&Containers
Below you can find CPMC Holdings Ltd benchmarking vs. other companies in Packaging&Containers 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 |
|---|
| China For You Group Co Ltd ($572) | | -46.9% | -99.7% | 36,225.6% | -52.5% |
| China Aluminum Cans Holdings Ltd ($6898) | 19.6% | 15.5% | -5.0% | 189.1% | |
| Zhengye International Holdings Co Ltd ($3363) | 10.5% | 6.8% | 16.4% | 18.6% | |
| Come Sure Group Holdings Ltd ($794) | | 10.7% | -0.7% | 16.8% | 2.9% |
| Huajun Holdings Ltd ($377) | | 11.2% | 3.3% | 3.4% | 10.4% |
| |
|---|
| Median (17 companies) | 15.3% | 4.2% | 5.0% | 0.9% | 9.3% |
|---|
| CPMC Holdings Ltd ($906) | | 16.2% | 4.2% | 0.7% | -3.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | 13.1% | 19.0% | 28.2% | 40.9% | 37.5% |
| Sheen Tai Holdings Grp Co Ltd ($1335) | 36.5% | 36.4% | 37.8% | 39.6% | |
| Jin Cai Holdings Co Ltd ($1250) | 39.6% | 36.6% | 39.1% | 37.7% | |
| China For You Group Co Ltd ($572) | 18.7% | 12.4% | | 34.6% | 31.9% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 30.2% | 34.3% | 36.5% | 32.8% | 31.4% |
| |
|---|
| Median (17 companies) | 18.6% | 19.9% | 20.3% | 22.3% | 22.3% |
|---|
| CPMC Holdings Ltd ($906) | 16.0% | 16.7% | 17.9% | 17.8% | 17.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheen Tai Holdings Grp Co Ltd ($1335) | 35.5% | 31.9% | 32.2% | 32.1% | |
| Jin Cai Holdings Co Ltd ($1250) | 35.7% | 33.2% | 26.1% | 27.6% | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 25.5% | 27.9% | 30.7% | 27.4% | 26.3% |
| Huaxi Holdings Co Ltd ($1689) | 7.8% | 14.5% | 21.2% | 27.1% | 29.1% |
| Greatview Aseptic Packaging Co Ltd ($468) | 24.1% | 25.9% | 23.1% | 21.6% | |
| |
|---|
| Median (18 companies) | 11.2% | 12.4% | 13.9% | 11.4% | 7.5% |
|---|
| CPMC Holdings Ltd ($906) | 10.8% | 11.9% | 13.7% | 13.2% | 13.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 1.3% | 6.9% | 9.5% | 20.7% | |
| Lee & Man Paper Manufacturing Ltd ($2314) | 13.5% | 19.7% | 13.7% | 13.1% | 17.1% |
| Hao Tian Development Group Ltd ($474) | 88.2% | 81.6% | | 13.0% | 25.4% |
| Jin Bao Bao Holdings Ltd ($1239) | 3.8% | 5.2% | 3.3% | 8.3% | |
| Greatview Aseptic Packaging Co Ltd ($468) | 30.8% | 15.8% | 9.6% | 7.2% | |
| |
|---|
| Median (18 companies) | 5.2% | 6.1% | 4.8% | 4.1% | 4.3% |
|---|
| CPMC Holdings Ltd ($906) | 13.7% | 16.7% | 19.7% | 8.6% | 9.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | | 21.4% | 28.5% | 26.2% | 23.6% |
| Sheen Tai Holdings Grp Co Ltd ($1335) | 32.5% | 26.8% | 26.2% | 24.7% | |
| China Aluminum Cans Holdings Ltd ($6898) | 14.8% | 19.7% | 14.6% | 20.2% | |
| Greatview Aseptic Packaging Co Ltd ($468) | 19.6% | 20.2% | 18.9% | 15.7% | |
| Jin Cai Holdings Co Ltd ($1250) | 38.7% | 35.3% | 18.4% | 15.4% | |
| |
|---|
| Median (18 companies) | 11.3% | 7.4% | 6.3% | 5.1% | 3.0% |
|---|
| CPMC Holdings Ltd ($906) | 8.9% | 8.3% | 8.7% | 7.3% | 6.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zhengye International Holdings Co Ltd ($3363) | 4.0x | 6.2x | 6.4x | 7.8x | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 0.7x | 9.4x | 6.7x | 7.4x | 4.4x |
| Sino Haijing Holdings Ltd ($1106) | 4.7x | 6.4x | 6.1x | 6.2x | |
| Come Sure Group Holdings Ltd ($794) | -1.1x | 3.6x | 4.1x | 3.8x | 3.4x |
| Lee & Man Paper Manufacturing Ltd ($2314) | 2.5x | 4.1x | 3.5x | 3.4x | 3.0x |
| |
|---|
| Median (17 companies) | 0.4x | 0.9x | 0.5x | 0.3x | 3.2x |
|---|
| CPMC Holdings Ltd ($906) | 1.2x | 1.2x | 1.5x | 2.1x | 2.4x |
