China For You Group Co Ltd reports 1,597% EBITDA decline and 68.9 pp EBITDA Margin decline from 2.1% to -66.8%
22/03/2016 • About China For You Group Co Ltd (
$572) • By InTwits
China For You Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China For You Group Co Ltd is a company in decline: 2015 revenue growth was -52.5%, 5 years revenue CAGR was -22.1%
- The company operates at negative EBITDA Margin: -66.8%
- China For You Group Co Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -12.1% for the sames years0
- China For You Group Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 164.2%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 0.93 in 2015, 0 in 2014, 1.9 in 2013, 8.1 in 2012, 3.6 in 2011
- The company has unprofitable business model: ROIC is at -7.7%
- It operates with high leverage: Net Debt/EBITDA is 22.2x 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.
China For You Group Co Ltd ($572) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 171.4 | 91.1 | 0.2 | 86.6 | 41.2 | -52.5% |
| Gross Profit | 32.1 | 11.3 | | 30.0 | 13.1 | -56.1% |
| SG&A | | 24.6 | 20.0 | 22.2 | 19.1 | -14.3% |
| EBITDA | 28.4 | -32.8 | -17.3 | 1.8 | -27.5 | -1,597.2% |
| Net Income | 189.7 | -105.3 | -68.2 | 3.4 | -47.6 | -1,493.5% |
Balance Sheet
|
|---|
| Cash | 27.0 | 13.9 | 0.1 | 56.3 | 98.1 | 74.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 187.2 | |
| Long Term Debt | 9.1 | 10.6 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 3.6 | 8.1 | 1.9 | 0.0 | 0.9 | |
Ratios
|
|---|
| Revenue growth | 19.6% | -46.9% | -99.7% | 36,225.6% | -52.5% | |
| EBITDA growth | 19.1% | -215.6% | -47.1% | -110.6% | -1,597.2% | |
| Gross Margin | 18.7% | 12.4% | | 34.6% | 31.9% | -2.7% |
| EBITDA Margin | 16.5% | -36.0% | -7,269.8% | 2.1% | -66.8% | -68.9% |
| Net Income Margin | 110.7% | -115.7% | -28,616.9% | 3.9% | -115.6% | -119.6% |
| SG&A, % of revenue | | 27.0% | 8,404.8% | 25.7% | 46.3% | 20.6% |
| CAPEX, % of revenue | 2.1% | 8.9% | 807.9% | 0.0% | 2.3% | 2.3% |
| ROIC | 15.0% | -30.8% | -35.4% | 4.1% | -7.7% | -11.8% |
| ROE | | -96.9% | | | -18.7% | -18.7% |
| Net Debt/EBITDA | -0.6x | | | -30.7x | | 30.7x |
Revenue and profitability
The company's Revenue dropped on 52.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.60 pp from -19.8% to -19.2% in 2015.
Gross Margin decreased on 2.7 pp from 34.6% to 31.9% in 2015. SG&A as a % of Revenue jumped on 20.6 pp from 25.7% to 46.3% in 2015.
Net Income marign dropped on 120 pp from 3.9% to -116% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.3% in 2015. The company's CAPEX/Revenue decreased on 6.6 pp from 8.9% in 2012 to 2.3% in 2015.
Return on investment
The company operates at negative ROIC (-7.75%) and ROE (-18.71%). ROIC dropped on 11.8 pp from 4.1% to -7.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 22.2x and Debt / EBITDA is . Net Debt / EBITDA surged on 30.7x from -30.7x to in 2015. Debt jumped while cash jumped on 74.2% in 2015.
Appendix 1: Peers in Packaging&Containers
Below you can find China For You Group Co 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 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% |
| Greatview Aseptic Packaging Co Ltd ($468) | 35.7% | 10.8% | 23.8% | 3.3% | |
| |
|---|
| Median (17 companies) | 15.3% | 5.8% | 5.0% | 0.8% | 9.3% |
|---|
| China For You Group Co Ltd ($572) | | -46.9% | -99.7% | 36,225.6% | -52.5% |
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% | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 30.2% | 34.3% | 36.5% | 32.8% | 31.4% |
| Kith Holdings Ltd ($1201) | 12.7% | 30.8% | 31.9% | 31.4% | |
| |
|---|
| Median (17 companies) | 18.4% | 19.9% | 19.8% | 21.1% | 21.3% |
|---|
| China For You Group Co Ltd ($572) | 18.7% | 12.4% | | 34.6% | 31.9% |
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) | 10.6% | 13.2% | 13.9% | 13.5% | 8.3% |
|---|
| China For You Group Co Ltd ($572) | 16.5% | -36.0% | -7,269.8% | 2.1% | -66.8% |
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% |
| CPMC Holdings Ltd ($906) | 13.7% | 16.7% | 19.7% | 8.6% | 9.2% |
| Jin Bao Bao Holdings Ltd ($1239) | 3.8% | 5.2% | 3.3% | 8.3% | |
| |
|---|
| Median (18 companies) | 5.6% | 6.1% | 4.8% | 4.7% | 5.5% |
|---|
| China For You Group Co Ltd ($572) | 2.1% | 8.9% | 807.9% | 0.0% | 2.3% |
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) | 10.0% | 7.9% | 6.7% | 6.3% | 4.4% |
|---|
| China For You Group Co Ltd ($572) | 15.0% | -30.8% | -35.4% | 4.1% | -7.7% |
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) | 0.7x | 1.0x | 0.6x | 0.7x | 3.0x |
|---|
| China For You Group Co Ltd ($572) | -0.6x | | | -30.7x | |
