BBMG Corp reports 16.7% Net Income decline and 0.56 pp EBITDA Margin decline from 14.2% to 13.6%
23/03/2016 • About BBMG Corp (
$2009) • By InTwits
BBMG Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- BBMG Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.5%. At the same time it's in pair with industry average of 7.0%.
- CAPEX is quite volatile: 1,161 in FY2015, 1,939 in FY2014, 1,111 in FY2013, 839 in FY2012, 533 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.5%
- It operates with high leverage: Net Debt/EBITDA is 6.6x while industry average is 2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
BBMG Corp ($2009) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 27,576 | 32,379 | 43,204 | 39,452 | 38,747 | -1.8% |
| Gross Profit | 6,785 | 6,654 | 8,404 | 8,179 | 8,221 | 0.5% |
| SG&A | 3,235 | 3,473 | 4,301 | 4,340 | 4,441 | 2.3% |
| EBITDA | 5,118 | 5,113 | 5,493 | 5,585 | 5,270 | -5.7% |
| Net Income | 3,429 | 2,969 | 3,215 | 2,423 | 2,017 | -16.7% |
Balance Sheet
|
|---|
| Cash | 5,126 | 3,558 | 5,866 | 6,480 | 11,214 | 73.1% |
| Short Term Debt | 15,253 | 15,394 | 20,222 | 24,589 | 27,150 | 10.4% |
| Long Term Debt | 12,460 | 11,450 | 13,208 | 15,872 | 18,908 | 19.1% |
Cash flow
|
|---|
| Capex | 2,600 | 3,528 | 3,438 | 1,746 | 1,816 | 4.0% |
Ratios
|
|---|
| Revenue growth | 25.0% | 17.4% | 33.4% | -8.7% | -1.8% | |
| EBITDA growth | -6.2% | -0.1% | 7.4% | 1.7% | -5.7% | |
| Gross Margin | 24.6% | 20.6% | 19.5% | 20.7% | 21.2% | 0.5% |
| EBITDA Margin | 18.6% | 15.8% | 12.7% | 14.2% | 13.6% | -0.6% |
| Net Income Margin | 12.4% | 9.2% | 7.4% | 6.1% | 5.2% | -0.9% |
| SG&A, % of revenue | 11.7% | 10.7% | 10.0% | 11.0% | 11.5% | 0.5% |
| CAPEX, % of revenue | 9.4% | 10.9% | 8.0% | 4.4% | 4.7% | 0.3% |
| ROIC | 8.5% | 7.5% | 7.2% | 5.8% | 4.5% | -1.3% |
| ROE | 18.4% | 13.8% | 13.1% | 8.4% | 5.8% | -2.6% |
| Net Debt/EBITDA | 4.4x | 4.6x | 5.0x | 6.1x | 6.6x | 0.5x |
Revenue and profitability
The company's Revenue decreased slightly on 1.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.56 pp from 14.2% to 13.6% 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 slightly on 0.93 pp from 6.1% to 5.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
BBMG Corp's CAPEX/Revenue was 4.7% in 2015. CAPEX/Revenue decreased on 6.2 pp from 10.9% in 2012 to 4.7% in 2015. It's average level of CAPEX/Revenue for the last three years was 5.7%.
Return on investment
The company operates at low ROIC (4.52%) and ROE (5.83%). ROIC decreased slightly on 1.3 pp from 5.8% to 4.5% in 2015. ROE decreased on 2.6 pp from 8.4% to 5.8% in 2015.
Leverage (Debt)
Debt level is 6.6x Net Debt / EBITDA and 8.7x Debt / EBITDA. Net Debt / EBITDA surged on 0.5x from 6.1x to 6.6x in 2015. Debt surged on 13.8% in 2015 while cash jumped on 73.1% in 2015.
Appendix 1: Peers in Building Materials
Below you can find BBMG Corp 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% | -3.5% | 9.6% | 6.3% | -15.1% |
|---|
| BBMG Corp ($2009) | | 17.4% | 33.4% | -8.7% | -1.8% |
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% | |
| Anhui Conch Cement Co Ltd ($914) | 39.4% | 27.3% | 32.5% | 33.2% | 26.9% |
| China Resources Cement Holdings Ltd ($1313) | 31.1% | 24.1% | 28.5% | 31.3% | 24.0% |
| |
|---|
| Median (24 companies) | 26.5% | 21.3% | 22.6% | 21.2% | 15.2% |
|---|
| BBMG Corp ($2009) | 24.6% | 20.6% | 19.5% | 20.7% | 21.2% |
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% | |
| Anhui Conch Cement Co Ltd ($914) | 38.8% | 27.1% | 31.1% | 32.1% | 29.7% |
| 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% |
| |
|---|
| Median (24 companies) | 21.7% | 15.6% | 18.2% | 18.6% | 15.7% |
|---|
| BBMG Corp ($2009) | 18.6% | 15.8% | 12.7% | 14.2% | 13.6% |
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% | 8.9% | 6.5% | 6.5% |
|---|
| BBMG Corp ($2009) | 9.4% | 10.9% | 8.0% | 4.4% | 4.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 49.7% | 37.1% | 35.8% | 27.2% | |
| Anhui Conch Cement Co Ltd ($914) | 27.2% | 12.7% | 17.5% | 18.4% | 11.7% |
| 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% | |
| |
|---|
| Median (24 companies) | 13.3% | 5.0% | 6.9% | 4.8% | 1.3% |
|---|
| BBMG Corp ($2009) | 8.5% | 7.5% | 7.2% | 5.8% | 4.5% |
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 | |
| 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 | |
| China Glass Holdings Ltd ($3300) | 3.0x | 9.9x | 2.9x | 4.7x | |
| |
|---|
| Median (20 companies) | 0.9x | 2.4x | 1.1x | 1.9x | 3.9x |
|---|
| BBMG Corp ($2009) | 4.4x | 4.6x | 5.0x | 6.1x | 6.6x |
