Anhui Conch Cement Co Ltd reports 31.3% Net Income decline and 16.1% Revenue decline
23/03/2016 • About Anhui Conch Cement Co Ltd (
$914) • By InTwits
Anhui Conch Cement Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Anhui Conch Cement Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.8%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 6,541 in 2015, 9,475 in 2014, 5,123 in 2013, 2,227 in 2012, 4,522 in 2011
- The company has business model with average profitability: ROIC is at 11.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Anhui Conch Cement Co Ltd ($914) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 48,654 | 45,766 | 55,262 | 60,759 | 50,976 | -16.1% |
| Gross Profit | 19,177 | 12,502 | 17,987 | 20,198 | 13,709 | -32.1% |
| SG&A | 3,658 | 4,458 | 5,247 | 5,624 | 6,290 | 11.8% |
| EBITDA | 18,869 | 12,417 | 17,210 | 19,492 | 15,136 | -22.3% |
| Net Income | 11,586 | 6,331 | 9,389 | 10,981 | 7,539 | -31.3% |
Balance Sheet
|
|---|
| Cash | 7,747 | 8,111 | 6,519 | 12,512 | 4,285 | -65.8% |
| Short Term Debt | 3,256 | 2,716 | 2,935 | 2,329 | 8,445 | 262.6% |
| Long Term Debt | 19,298 | 21,080 | 19,207 | 17,587 | 10,740 | -38.9% |
Cash flow
|
|---|
| Capex | 7,854 | 6,719 | 6,778 | 6,718 | 5,051 | -24.8% |
Ratios
|
|---|
| Revenue growth | 41.0% | -5.9% | 20.7% | 9.9% | -16.1% | |
| EBITDA growth | 78.2% | -34.2% | 38.6% | 13.3% | -22.3% | |
| Gross Margin | 39.4% | 27.3% | 32.5% | 33.2% | 26.9% | -6.4% |
| EBITDA Margin | 38.8% | 27.1% | 31.1% | 32.1% | 29.7% | -2.4% |
| Net Income Margin | 23.8% | 13.8% | 17.0% | 18.1% | 14.8% | -3.3% |
| SG&A, % of revenue | 7.5% | 9.7% | 9.5% | 9.3% | 12.3% | 3.1% |
| CAPEX, % of revenue | 16.1% | 14.7% | 12.3% | 11.1% | 9.9% | -1.1% |
| ROIC | 27.2% | 12.7% | 17.5% | 18.4% | 11.7% | -6.7% |
| ROE | 29.3% | 13.6% | 18.0% | 18.1% | 11.1% | -7.0% |
| Net Debt/EBITDA | 0.8x | 1.3x | 0.9x | 0.4x | 1.0x | 0.6x |
Revenue and profitability
Anhui Conch Cement Co Ltd's Revenue dropped on 16.1% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.4 pp from 32.1% to 29.7% in 2015.
Gross Margin decreased on 6.4 pp from 33.2% to 26.9% in 2015. SG&A as a % of Revenue increased on 3.1 pp from 9.3% to 12.3% in 2015.
Net Income marign decreased on 3.3 pp from 18.1% to 14.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 9.9% in 2015. CAPEX/Revenue decreased on 4.8 pp from 14.7% in 2012 to 9.9% in 2015. It's average CAPEX/Revenue for the last three years was 11.1%.
Return on investment
The company operates at low ROIC (11.70%) and ROE (11.09%). ROIC decreased on 6.7 pp from 18.4% to 11.7% in 2015. ROE decreased on 7.0 pp from 18.1% to 11.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is 1.3x. Net Debt / EBITDA jumped on 0.6x from 0.4x to 1.0x in 2015. Debt decreased on 3.7% in 2015 while cash dropped on 65.8% in 2015.
Appendix 1: Peers in Building Materials
Below you can find Anhui Conch Cement Co Ltd benchmarking vs. other companies in Building Materials 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 |
|---|
| Summit Ascent Holdings Ltd ($102) | | -86.4% | -19.6% | 177.1% | -14.1% |
| Pacific Plywood Hldg Ltd ($767) | | -34.9% | -14.5% | 119.5% | |
| Luoyang Glass Co Ltd ($1108) | | -40.3% | -32.3% | 76.2% | 0.7% |
| Prosperity International Holdings HK Ltd ($803) | | -23.9% | -43.3% | 55.2% | -34.4% |
| China Singyes Solar Technologies Holdings Ltd ($750) | 35.0% | 28.7% | 34.0% | 20.7% | |
| |
|---|
| Median (24 companies) | 35.0% | -1.3% | 9.6% | 5.1% | -12.0% |
|---|
| Anhui Conch Cement Co Ltd ($914) | | -5.9% | 20.7% | 9.9% | -16.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 95.0% | 91.4% | 82.0% | 97.2% | |
| Dongpeng Holdings Co Ltd ($3386) | 28.7% | 35.6% | 37.1% | 38.5% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 37.6% | 37.2% | 36.9% | 37.0% | |
| China Resources Cement Holdings Ltd ($1313) | 31.1% | 24.1% | 28.5% | 31.3% | 24.0% |
| TCC International Holdings Ltd ($1136) | 25.6% | 18.6% | 27.5% | 30.8% | 15.4% |
| |
|---|
| Median (24 companies) | 26.0% | 20.0% | 22.0% | 20.8% | 15.2% |
|---|
| Anhui Conch Cement Co Ltd ($914) | 39.4% | 27.3% | 32.5% | 33.2% | 26.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 53.6% | 12.6% | -19.8% | 50.5% | |
| TCC International Holdings Ltd ($1136) | 26.5% | 19.2% | 26.1% | 29.0% | 14.0% |
| Asia Cement China Holdings Corp ($743) | 30.3% | 20.6% | 24.9% | 27.0% | 18.1% |
| China Tianrui Group Cement Co Ltd ($1252) | 32.4% | 28.5% | 23.7% | 26.7% | 32.8% |
| West China Cement Ltd ($2233) | 36.4% | 30.0% | 28.5% | 25.5% | 23.5% |
| |
|---|
| Median (24 companies) | 18.3% | 15.1% | 16.9% | 17.4% | 13.8% |
|---|
| Anhui Conch Cement Co Ltd ($914) | 38.8% | 27.1% | 31.1% | 32.1% | 29.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 40.4% | 11.9% | 32.1% | 23.6% | |
| West China Cement Ltd ($2233) | 54.8% | 17.2% | 13.9% | 15.9% | 10.1% |
| China Glass Holdings Ltd ($3300) | 37.2% | 19.6% | 12.5% | 12.4% | |
| China Shanshui Cement Group Ltd ($691) | 13.5% | 18.9% | 21.1% | 12.1% | |
| China Lesso Group Holdings Ltd ($2128) | 12.0% | 13.6% | 9.1% | 11.8% | 8.1% |
| |
|---|
| Median (24 companies) | 6.3% | 9.7% | 8.3% | 5.4% | 5.6% |
|---|
| Anhui Conch Cement Co Ltd ($914) | 16.1% | 14.7% | 12.3% | 11.1% | 9.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 49.7% | 37.1% | 35.8% | 27.2% | |
| China Lesso Group Holdings Ltd ($2128) | 26.8% | 20.5% | 19.4% | 18.2% | 17.2% |
| China Wood Optimization Holding Ltd ($8099) | | 33.5% | 27.3% | 17.7% | 17.7% |
| China Singyes Solar Technologies Holdings Ltd ($750) | 21.1% | 18.6% | 19.9% | 16.0% | |
| China Resources Cement Holdings Ltd ($1313) | 14.0% | 8.0% | 9.6% | 13.0% | 5.5% |
| |
|---|
| Median (24 companies) | 12.1% | 5.0% | 6.9% | 4.8% | 1.3% |
|---|
| Anhui Conch Cement Co Ltd ($914) | 27.2% | 12.7% | 17.5% | 18.4% | 11.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sustainable Forest Holdings Ltd ($723) | 0.9x | | | 9.6x | |
| China National Building Material Co Ltd ($3323) | 3.9x | 6.7x | 6.8x | 6.3x | |
| BBMG Corp ($2009) | 4.4x | 4.6x | 5.0x | 6.1x | 6.6x |
| China Tianrui Group Cement Co Ltd ($1252) | 3.0x | 4.2x | 5.1x | 5.2x | 7.9x |
| China Shanshui Cement Group Ltd ($691) | 1.8x | 3.0x | 4.1x | 4.8x | |
| |
|---|
| Median (20 companies) | 1.4x | 3.0x | 2.7x | 2.0x | 4.0x |
|---|
| Anhui Conch Cement Co Ltd ($914) | 0.8x | 1.3x | 0.9x | 0.4x | 1.0x |
