Century Sunshine Group Holdings Ltd CAPEX dropped on 62.8% in 2015 while Revenue surged on 21.4%
23/03/2016 • About Century Sunshine Group Holdings Ltd (
$509) • By InTwits
Century Sunshine Group Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Century Sunshine Group Holdings Ltd is a fast growth stock: 2015 revenue growth was 21.4%, 5 year revenue CAGR was 38.5% at 2015 ROIC 13.3%
- Century Sunshine Group Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.0%. At the same time it's in pair with industry average of 20.5%.
- CAPEX is quite volatile: 217 in 2015, 585 in 2014, 357 in 2013, 375 in 2012, 83.4 in 2011
- The company has highly profitable business model: ROIC is at 13.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Century Sunshine Group Holdings Ltd ($509) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 737 | 1,243 | 1,640 | 2,073 | 2,516 | 21.4% |
| Gross Profit | 132 | 332 | 508 | 660 | 786 | 19.1% |
| SG&A | 74 | 97 | 125 | 166 | 253 | 52.0% |
| EBITDA | 114 | 300 | 460 | 573 | 657 | 14.8% |
| Net Income | 97 | 130 | 230 | 288 | 303 | 5.4% |
Balance Sheet
|
|---|
| Cash | 241 | 391 | 382 | 829 | 1,453 | 75.3% |
| Short Term Debt | 142 | 317 | 316 | 421 | 351 | -16.6% |
| Long Term Debt | 142 | 0 | 0 | 469 | 1,153 | 145.6% |
Cash flow
|
|---|
| Capex | 83 | 375 | 357 | 585 | 217 | -62.8% |
Ratios
|
|---|
| Revenue growth | 49.2% | 68.7% | 32.0% | 26.4% | 21.4% | |
| EBITDA growth | 76.5% | 163.5% | 53.3% | 24.4% | 14.8% | |
| Gross Margin | 17.9% | 26.7% | 31.0% | 31.8% | 31.2% | -0.6% |
| EBITDA Margin | 15.5% | 24.2% | 28.1% | 27.6% | 26.1% | -1.5% |
| Net Income Margin | 13.1% | 10.5% | 14.0% | 13.9% | 12.1% | -1.8% |
| SG&A, % of revenue | 10.1% | 7.8% | 7.6% | 8.0% | 10.1% | 2.0% |
| CAPEX, % of revenue | 11.3% | 30.2% | 21.8% | 28.2% | 8.6% | -19.6% |
| ROIC | 3.5% | 11.3% | 15.9% | 16.4% | 13.3% | -3.1% |
| ROE | 7.3% | 8.6% | 12.7% | 13.7% | 11.8% | -1.9% |
| Net Debt/EBITDA | 0.4x | -0.2x | -0.1x | 0.1x | 0.1x | -0.0x |
Revenue and profitability
The company's Revenue jumped on 21.4% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.5 pp from 27.6% to 26.1% in 2015.
Gross Margin decreased slightly on 0.60 pp from 31.8% to 31.2% in 2015. SG&A as a % of Revenue increased on 2.0 pp from 8.0% to 10.1% in 2015.
Net Income marign decreased slightly on 1.8 pp from 13.9% to 12.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.6% in 2015. The company showed big decline in CAPEX/Revenue of 21.6 pp from 30.2% in 2012 to 8.6% in 2015. It's average CAPEX/Revenue for the last three years was 19.5%.
Return on investment
The company operates at good ROIC (13.34%) while ROE is low (11.77%). ROIC decreased on 3.1 pp from 16.4% to 13.3% in 2015. ROE decreased slightly on 1.9 pp from 13.7% to 11.8% in 2015.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 2.3x Debt / EBITDA. Net Debt / EBITDA decreased on 0.029x from 0.1x to 0.1x in 2015. Debt jumped on 69.0% in 2015 while cash surged on 75.3% in 2015.
Appendix 1: Peers in Chemicals
Below we provide Century Sunshine Group Holdings Ltd benchmarking against other companies in Chemicals 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 |
|---|
| 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% |
| Landing International Development Ltd ($582) | | 2.1% | 15.9% | 23.3% | 10.4% |
| Huabao International Holdings Ltd ($336) | | 16.1% | 10.1% | 16.2% | 2.1% |
| |
|---|
| Median (32 companies) | 28.6% | 2.0% | 8.5% | 1.8% | -2.2% |
|---|
| Century Sunshine Group Holdings Ltd ($509) | | 68.7% | 32.0% | 26.4% | 21.4% |
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% |
| Yingde Gases Group Co Ltd ($2168) | 34.2% | 31.7% | 31.0% | 32.1% | 32.2% |
| |
|---|
| Median (32 companies) | 20.3% | 18.9% | 17.3% | 16.8% | 22.4% |
|---|
| Century Sunshine Group Holdings Ltd ($509) | 17.9% | 26.7% | 31.0% | 31.8% | 31.2% |
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% |
| Yingde Gases Group Co Ltd ($2168) | 32.3% | 29.4% | 29.8% | 32.3% | 33.4% |
| China First Chemical Holdings Ltd ($2121) | 29.7% | 26.6% | 30.0% | 29.6% | |
| Tiande Chemical Holdings Ltd ($609) | 21.7% | 25.5% | 27.3% | 25.1% | 27.8% |
| |
|---|
| Median (32 companies) | 15.2% | 12.3% | 11.8% | 10.7% | 11.8% |
|---|
| Century Sunshine Group Holdings Ltd ($509) | 15.5% | 24.2% | 28.1% | 27.6% | 26.1% |
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 (32 companies) | 8.3% | 6.8% | 8.5% | 5.4% | 7.0% |
|---|
| Century Sunshine Group Holdings Ltd ($509) | 11.3% | 30.2% | 21.8% | 28.2% | 8.6% |
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% |
| Fufeng Group Ltd ($546) | 13.9% | 9.6% | 10.8% | 11.6% | 10.3% |
| Yingde Gases Group Co Ltd ($2168) | 14.7% | 10.6% | 11.5% | 11.5% | 10.9% |
| China BlueChemical Ltd ($3983) | 21.0% | 19.1% | 16.4% | 11.4% | |
| |
|---|
| Median (32 companies) | 8.2% | 6.9% | 7.7% | 5.6% | 5.9% |
|---|
| Century Sunshine Group Holdings Ltd ($509) | 3.5% | 11.3% | 15.9% | 16.4% | 13.3% |
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 (25 companies) | 1.3x | 1.6x | 2.2x | 1.4x | 1.7x |
|---|
| Century Sunshine Group Holdings Ltd ($509) | 0.4x | -0.2x | -0.1x | 0.1x | 0.1x |
