Jiangxi Copper Co Ltd Debt dropped on 17.0% in 2015 and EBITDA dropped on 17.5%
22/03/2016 • About Jiangxi Copper Co Ltd (
$358) • By InTwits
Jiangxi Copper Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 1.8% in 2015, 2.0% in 2014, 3.4% in 2013, 4.7% in 2012, 7.5% in 2011
- Jiangxi Copper Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 1.0%.
- CAPEX is quite volatile: 3,357 in 2015, 2,760 in 2014, 2,902 in 2013, 5,334 in 2012, 9,510 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.1x while industry average is 2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jiangxi Copper Co Ltd ($358) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 117,119 | 158,006 | 175,292 | 198,264 | 185,228 | -6.6% |
| Gross Profit | 9,771 | 7,435 | 6,533 | 6,039 | 3,775 | -37.5% |
| SG&A | 2,306 | 1,802 | 2,306 | 2,293 | 2,556 | 11.5% |
| EBITDA | 8,765 | 7,431 | 5,918 | 4,054 | 3,344 | -17.5% |
| Net Income | 6,587 | 5,170 | 3,556 | 2,851 | 690 | -75.8% |
Balance Sheet
|
|---|
| Cash | 11,082 | 16,678 | 19,666 | 19,394 | 16,705 | -13.9% |
| Short Term Debt | 9,809 | 12,417 | 15,746 | 21,532 | 23,260 | 8.0% |
| Long Term Debt | 5,596 | 6,299 | 6,045 | 6,927 | 348 | -95.0% |
Cash flow
|
|---|
| Capex | 2,601 | 2,336 | 1,950 | 1,738 | 1,427 | -17.9% |
Ratios
|
|---|
| Revenue growth | 53.8% | 34.9% | 10.9% | 13.1% | -6.6% | |
| EBITDA growth | 18.7% | -15.2% | -20.4% | -31.5% | -17.5% | |
| Gross Margin | 8.3% | 4.7% | 3.7% | 3.0% | 2.0% | -1.0% |
| EBITDA Margin | 7.5% | 4.7% | 3.4% | 2.0% | 1.8% | -0.2% |
| Net Income Margin | 5.6% | 3.3% | 2.0% | 1.4% | 0.4% | -1.1% |
| SG&A, % of revenue | 2.0% | 1.1% | 1.3% | 1.2% | 1.4% | 0.2% |
| CAPEX, % of revenue | 2.2% | 1.5% | 1.1% | 0.9% | 0.8% | -0.1% |
| ROIC | 15.0% | 10.3% | 6.8% | 3.5% | 2.3% | -1.2% |
| ROE | 17.9% | 12.6% | 8.1% | 6.3% | 1.5% | -4.8% |
| Net Debt/EBITDA | 0.5x | 0.3x | 0.4x | 2.2x | 2.1x | -0.2x |
Revenue and profitability
Jiangxi Copper Co Ltd's Revenue decreased on 6.6% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin decreased slightly on 1.0 pp from 3.0% to 2.0% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 1.1 pp from 1.4% to 0.37% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.77% in 2015. CAPEX/Revenue decreased slightly on 0.71 pp from 1.5% in 2012 to 0.77% in 2015. Average CAPEX/Revenue for the last three years was 0.92%.
Return on investment
The company operates at low ROIC (2.29%) and ROE (1.50%). ROIC decreased slightly on 1.2 pp from 3.5% to 2.3% in 2015. ROE decreased on 4.8 pp from 6.3% to 1.5% in 2015.
Leverage (Debt)
Debt level is 2.1x Net Debt / EBITDA and 7.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 2.2x to 2.1x in 2015. Debt dropped on 17.0% in 2015 while cash dropped on 13.9% in 2015.
Appendix 1: Peers in Mining
Below we provide Jiangxi Copper Co Ltd benchmarking against other companies in Mining industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hengxing Gold Holding Co Ltd ($2303) | | | | 3,467.3% | 78.0% |
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 24.0% | 4.8% | -44.7% | 303.0% | |
| Huili Resources Group Ltd ($1303) | -47.8% | -33.6% | -91.6% | 219.4% | |
| North Mining Shares Co Ltd ($433) | | -5.5% | -57.1% | 187.0% | -45.9% |
| China Kingstone Mining Holdings Ltd ($1380) | 4,275.3% | -94.5% | -55.6% | 155.2% | |
| |
|---|
| Median (48 companies) | 36.5% | 5.0% | 0.6% | -5.9% | -10.4% |
|---|
| Jiangxi Copper Co Ltd ($358) | | 34.9% | 10.9% | 13.1% | -6.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Billion Resources Ltd ($274) | 20.3% | 71.4% | 47.2% | 73.4% | |
| Sun International Resources Ltd ($8029) | 77.6% | 83.2% | 73.1% | 64.8% | 69.4% |
| China Polymetallic Mining Ltd ($2133) | 76.9% | 81.8% | 74.2% | 51.8% | 38.9% |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 64.7% | 63.9% | 54.9% | 51.2% | |
| Hengshi Mining Investments Ltd ($1370) | 54.6% | 32.4% | 55.3% | 50.1% | |
| |
|---|
| Median (48 companies) | 19.2% | 14.4% | 14.4% | 15.5% | 23.6% |
|---|
| Jiangxi Copper Co Ltd ($358) | 8.3% | 4.7% | 3.7% | 3.0% | 2.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | |
| China Polymetallic Mining Ltd ($2133) | -322.0% | 62.8% | 58.5% | 54.1% | 2.8% |
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | |
| China Gold International Resources Corp Ltd ($2099) | | 41.7% | 38.3% | 47.3% | 33.7% |
| Hengshi Mining Investments Ltd ($1370) | 45.7% | 22.8% | 52.0% | 45.4% | |
| |
|---|
| Median (48 companies) | 5.9% | 4.9% | 7.9% | 5.2% | 6.9% |
|---|
| Jiangxi Copper Co Ltd ($358) | 7.5% | 4.7% | 3.4% | 2.0% | 1.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% |
| Huili Resources Group Ltd ($1303) | 3.9% | 181.0% | 1,508.6% | 279.5% | |
| Kaz Minerals ($847) | 19.8% | 36.6% | 136.5% | 168.8% | 168.7% |
| China Gold International Resources Corp Ltd ($2099) | | 64.7% | 156.1% | 95.6% | 81.4% |
| IRC Ltd ($1029) | 129.7% | 102.1% | 70.6% | 82.5% | |
| |
|---|
| Median (48 companies) | 16.3% | 17.4% | 16.8% | 15.8% | 17.1% |
|---|
| Jiangxi Copper Co Ltd ($358) | 2.2% | 1.5% | 1.1% | 0.9% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Silver Group Ltd ($815) | 48.0% | 57.6% | 31.6% | 35.8% | |
| Hengshi Mining Investments Ltd ($1370) | 153.0% | 50.1% | 60.1% | 20.7% | |
| China Hongqiao Group Ltd ($1378) | 44.6% | 24.8% | 17.0% | 14.1% | 10.6% |
| China Nonferrous Mining Corp Ltd ($1258) | 10.9% | 14.7% | 10.8% | 11.8% | |
| Xingfa Aluminium Holdings Ltd ($98) | 3.8% | 7.6% | 8.8% | 11.7% | |
| |
|---|
| Median (49 companies) | 2.9% | 0.9% | 2.7% | 0.0% | -1.0% |
|---|
| Jiangxi Copper Co Ltd ($358) | 15.0% | 10.3% | 6.8% | 3.5% | 2.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hengxing Gold Holding Co Ltd ($2303) | | | | 10.5x | 2.2x |
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 0.9x | 8.4x | 39.4x | 10.3x | |
| MMG Ltd ($1208) | -0.0x | 2.1x | 2.0x | 10.2x | 20.2x |
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 5.8x | 9.2x | 9.7x | 9.2x | |
| Midas Holdings Ltd ($1021) | 1.4x | 4.3x | 6.5x | 8.7x | 8.0x |
| |
|---|
| Median (27 companies) | 1.4x | 2.1x | 2.0x | 4.6x | 3.9x |
|---|
| Jiangxi Copper Co Ltd ($358) | 0.5x | 0.3x | 0.4x | 2.2x | 2.1x |
