Yingde Gases Group Co Ltd reports 44.2% CAPEX decline while 2.6% Revenue growth
22/03/2016 • About Yingde Gases Group Co Ltd (
$2168) • By InTwits
Yingde Gases Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yingde Gases Group Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 41.4%. At the same time it's a lot of higher than industry average of 21.3%.
- CAPEX is quite volatile: 1,123 in 2015, 2,013 in 2014, 2,691 in 2013, 3,782 in 2012, 2,178 in 2011
- The company has business model with average profitability: ROIC is at 10.9%
- It operates with high leverage: Net Debt/EBITDA is 3.6x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yingde Gases Group Co Ltd ($2168) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,240 | 4,956 | 6,866 | 7,716 | 7,919 | 2.6% |
| Gross Profit | 1,451 | 1,573 | 2,131 | 2,479 | 2,550 | 2.9% |
| SG&A | 370 | 473 | 621 | 534 | 564 | 5.6% |
| EBITDA | 1,371 | 1,459 | 2,044 | 2,491 | 2,642 | 6.0% |
| Net Income | 831 | 770 | 908 | 904 | 536 | -40.7% |
Balance Sheet
|
|---|
| Cash | 958 | 847 | 343 | 606 | 678 | 11.9% |
| Short Term Debt | 1,126 | 3,300 | 1,452 | 2,045 | 1,798 | -12.1% |
| Long Term Debt | 2,205 | 3,352 | 6,452 | 7,731 | 8,285 | 7.2% |
Cash flow
|
|---|
| Capex | 2,178 | 3,782 | 2,691 | 2,013 | 1,123 | -44.2% |
Ratios
|
|---|
| Revenue growth | 41.1% | 16.9% | 38.5% | 12.4% | 2.6% | |
| EBITDA growth | 45.0% | 6.5% | 40.0% | 21.9% | 6.0% | |
| Gross Margin | 34.2% | 31.7% | 31.0% | 32.1% | 32.2% | 0.1% |
| EBITDA Margin | 32.3% | 29.4% | 29.8% | 32.3% | 33.4% | 1.1% |
| Net Income Margin | 19.6% | 15.5% | 13.2% | 11.7% | 6.8% | -4.9% |
| SG&A, % of revenue | 8.7% | 9.5% | 9.0% | 6.9% | 7.1% | 0.2% |
| CAPEX, % of revenue | 51.4% | 76.3% | 39.2% | 26.1% | 14.2% | -11.9% |
| ROIC | 14.7% | 10.6% | 11.5% | 11.5% | 10.9% | -0.6% |
| ROE | 17.8% | 14.7% | 15.6% | 14.2% | 8.0% | -6.1% |
| Net Debt/EBITDA | 1.7x | 4.0x | 3.7x | 3.7x | 3.6x | -0.1x |
Revenue and profitability
Yingde Gases Group Co Ltd's Revenue increased on 2.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.2 pp from 10.8% to 8.6% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 4.9 pp from 11.7% to 6.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
Yingde Gases Group Co Ltd's CAPEX/Revenue was 14.2% in 2015. The company showed big decline in CAPEX/Revenue of 62.1 pp from 76.3% in 2012 to 14.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 26.5%.
Return on investment
The company operates at low ROIC (10.93%) and ROE (8.03%). ROIC decreased slightly on 0.60 pp from 11.5% to 10.9% in 2015. ROE decreased on 6.1 pp from 14.2% to 8.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.6x and Debt / EBITDA is 3.8x. Net Debt / EBITDA dropped on 0.1x from 3.7x to 3.6x in 2015. Debt increased on 3.1% in 2015 while cash surged on 11.9% in 2015.
Management team
The company's CEO Zhongguo Sun "Mark" has spent 11 years at the company.
Appendix 1: Peers in Chemicals
Below you can find Yingde Gases Group Co Ltd benchmarking vs. other companies in Chemicals 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 |
|---|
| Bestway International Holdings Ltd ($718) | | -25.4% | -62.1% | 330.3% | 238.4% |
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 39.7% | -33.6% | 5.5% | 29.1% | |
| China XLX Fertiliser Ltd ($1866) | | 7.0% | 0.6% | 28.0% | 13.9% |
| Century Sunshine Group Holdings Ltd ($509) | 49.2% | 68.7% | 32.0% | 26.4% | |
| Landing International Development Ltd ($582) | | 2.1% | 15.9% | 23.3% | 10.4% |
| |
|---|
| Median (31 companies) | 31.3% | 2.0% | 9.4% | 1.4% | -4.0% |
|---|
| Yingde Gases Group Co Ltd ($2168) | | 16.9% | 38.5% | 12.4% | 2.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 74.3% | 70.5% | 69.1% | 70.8% | 69.9% |
| China Flavors & Fragrances Co Ltd ($3318) | 41.3% | 46.8% | 48.6% | 47.8% | 48.9% |
| Smartac Group China Holdings Ltd ($395) | 17.3% | -1.8% | 11.2% | 40.4% | |
| Bracell Ltd ($1768) | 40.1% | 30.5% | 37.3% | 37.3% | 38.4% |
| Century Sunshine Group Holdings Ltd ($509) | 17.9% | 26.7% | 31.0% | 31.8% | |
| |
|---|
| Median (31 companies) | 19.8% | 18.2% | 16.2% | 16.0% | 20.5% |
|---|
| Yingde Gases Group Co Ltd ($2168) | 34.2% | 31.7% | 31.0% | 32.1% | 32.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 66.4% | 63.8% | 59.1% | 60.0% | 58.3% |
| Bracell Ltd ($1768) | 30.1% | 22.3% | 30.8% | 38.2% | 35.9% |
| China First Chemical Holdings Ltd ($2121) | 29.7% | 26.6% | 30.0% | 29.6% | |
| Century Sunshine Group Holdings Ltd ($509) | 15.5% | 24.2% | 28.1% | 27.6% | |
| Tiande Chemical Holdings Ltd ($609) | 21.7% | 25.5% | 27.3% | 25.1% | 27.8% |
| |
|---|
| Median (31 companies) | 15.2% | 13.2% | 12.7% | 11.1% | 13.4% |
|---|
| Yingde Gases Group Co Ltd ($2168) | 32.3% | 29.4% | 29.8% | 32.3% | 33.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Landing International Development Ltd ($582) | 27.9% | 7.2% | 29.6% | 419.5% | 247.4% |
| China Zenith Chemical Group Ltd ($362) | 36.8% | 147.3% | 55.7% | 67.4% | 152.2% |
| Smartac Group China Holdings Ltd ($395) | 22.5% | 14.0% | 4.7% | 49.3% | |
| China Flavors & Fragrances Co Ltd ($3318) | 16.4% | 15.8% | 20.1% | 42.4% | 35.8% |
| Bracell Ltd ($1768) | 24.4% | 22.3% | 64.3% | 35.4% | 11.7% |
| |
|---|
| Median (31 companies) | 8.3% | 7.2% | 8.3% | 5.1% | 7.0% |
|---|
| Yingde Gases Group Co Ltd ($2168) | 51.4% | 76.3% | 39.2% | 26.1% | 14.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 34.6% | 28.7% | 25.2% | 26.2% | 23.3% |
| Tiande Chemical Holdings Ltd ($609) | 24.4% | 26.2% | 29.4% | 20.7% | 20.6% |
| Century Sunshine Group Holdings Ltd ($509) | 3.5% | 11.3% | 15.9% | 16.4% | |
| Fufeng Group Ltd ($546) | 13.9% | 9.6% | 10.8% | 11.6% | 10.3% |
| China BlueChemical Ltd ($3983) | 21.0% | 19.1% | 16.4% | 11.4% | |
| |
|---|
| Median (31 companies) | 7.8% | 6.9% | 7.4% | 5.2% | 5.9% |
|---|
| Yingde Gases Group Co Ltd ($2168) | 14.7% | 10.6% | 11.5% | 11.5% | 10.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 2.4x | 2.2x | 4.6x | 18.1x | |
| China XLX Fertiliser Ltd ($1866) | 2.4x | 2.6x | 5.1x | 5.8x | 5.1x |
| Ngai Hing Hong Co Ltd ($1047) | 4.8x | 11.7x | 5.3x | 5.4x | 5.3x |
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 4.3x | 14.1x | 6.5x | 5.3x | |
| Sinofert Holdings Ltd ($297) | 4.3x | 2.9x | 32.4x | 5.0x | |
| |
|---|
| Median (24 companies) | 1.3x | 1.2x | 2.1x | 1.4x | 0.9x |
|---|
| Yingde Gases Group Co Ltd ($2168) | 1.7x | 4.0x | 3.7x | 3.7x | 3.6x |
