Shougang Concord International Enterprises Co Ltd revenue dropped on 43.0% in 2015 and EBITDA Margin dropped on 14.2 pp from -1.4% to -15.6%
23/03/2016 • About Shougang Concord International Enterprises Co Ltd (
$697) • By InTwits
Shougang Concord International Enterprises Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shougang Concord International Enterprises Co Ltd is a company in decline: 2015 revenue growth was -43.0%, 5 years revenue CAGR was -14.4%
- The company operates at negative EBITDA Margin: -15.6%
- Shougang Concord International Enterprises Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -3.1%0
- Shougang Concord International Enterprises Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: 111 in 2015, 324 in 2014, 387 in 2013, 425 in 2012, 254 in 2011
- The company has unprofitable business model: ROIC is at -18.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shougang Concord International Enterprises Co Ltd ($697) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 21,249 | 16,216 | 15,266 | 12,756 | 7,273 | -43.0% |
| Gross Profit | 161 | -1,319 | -850 | -505 | -1,135 | 124.8% |
| SG&A | 663 | 606 | 554 | 596 | 655 | 9.9% |
| EBITDA | 896 | -1,297 | -559 | -174 | -1,135 | 551.6% |
| Net Income | 152 | -1,947 | -1,396 | -1,641 | -3,349 | 104.1% |
Balance Sheet
|
|---|
| Cash | 1,847 | 1,563 | 1,266 | 872 | 519 | -40.4% |
| Short Term Debt | 10,996 | 11,156 | 9,633 | 8,086 | 7,000 | -13.4% |
| Long Term Debt | 2,364 | 455 | 856 | 925 | 819 | -11.5% |
Cash flow
|
|---|
| Capex | 254 | 425 | 387 | 324 | 111 | -65.6% |
Ratios
|
|---|
| Revenue growth | 34.1% | -23.7% | -5.9% | -16.4% | -43.0% | |
| EBITDA growth | -16.1% | -244.7% | -56.9% | -68.8% | 551.6% | |
| Gross Margin | 0.8% | -8.1% | -5.6% | -4.0% | -15.6% | -11.6% |
| EBITDA Margin | 4.2% | -8.0% | -3.7% | -1.4% | -15.6% | -14.2% |
| Net Income Margin | 0.7% | -12.0% | -9.1% | -12.9% | -46.1% | -33.2% |
| SG&A, % of revenue | 3.1% | 3.7% | 3.6% | 4.7% | 9.0% | 4.3% |
| CAPEX, % of revenue | 1.2% | 2.6% | 2.5% | 2.5% | 1.5% | -1.0% |
| ROIC | 0.2% | -9.4% | -7.8% | -7.1% | -18.8% | -11.8% |
| ROE | 1.5% | -21.3% | -18.7% | -28.2% | -108.7% | -80.5% |
| Net Debt/EBITDA | 12.8x | | | | | 0.0x |
Revenue and profitability
Shougang Concord International Enterprises Co Ltd's Revenue dropped on 43.0% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 14.2 pp from -1.4% to -15.6% in 2015.
Gross Margin dropped on 11.6 pp from -4.0% to -15.6% in 2015. SG&A as a % of Revenue increased on 4.3 pp from 4.7% to 9.0% in 2015.
Net Income marign dropped on 33.2 pp from -12.9% to -46.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.5% in 2015. Shougang Concord International Enterprises Co Ltd showed small CAPEX/Revenue decline of 1.1 pp from 2.6% in 2012 to 1.5% in 2015. It's average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at negative ROIC (-18.85%) and ROE (-108.71%). ROIC dropped on 11.8 pp from -7.1% to -18.8% in 2015. ROE dropped on 80.5 pp from -28.2% to -109% in 2015.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt dropped on 13.2% in 2015 while cash dropped on 40.4% in 2015.
Appendix 1: Peers in Iron/Steel
Below you can find Shougang Concord International Enterprises Co Ltd benchmarking vs. other companies in Iron/Steel 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 |
|---|
| Pan Asia Mining Ltd ($8173) | | 3,079.7% | -17.1% | 48.9% | -97.4% |
| CAA Resources Ltd ($2112) | | 99.6% | 103.2% | 38.0% | 261.2% |
| Tiangong International Co Ltd ($826) | 32.5% | 0.2% | 8.9% | 33.5% | |
| Da Ming International Holdings Ltd ($1090) | 33.1% | -2.1% | 29.3% | 29.8% | |
| Xiwang Special Steel Co Ltd ($1266) | 58.5% | -19.3% | 2.0% | 22.9% | |
| |
|---|
| Median (19 companies) | 33.1% | -7.7% | 0.6% | -1.7% | -15.3% |
|---|
| Shougang Concord International Enterprises Co Ltd ($697) | | -23.7% | -5.9% | -16.4% | -43.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanguo International Mining Group Ltd ($3939) | 51.1% | 47.4% | 50.7% | 39.6% | |
| China Hanking Holdings Ltd ($3788) | 66.1% | 53.6% | 54.4% | 35.1% | |
| Vale SA ($6210) | 58.4% | 45.4% | 48.3% | 33.1% | 19.6% |
| China Metal International Holdings Inc ($319) | 21.0% | 20.9% | 24.3% | 24.8% | |
| Fosun International Ltd ($656) | 18.6% | 18.0% | 20.3% | 23.7% | |
| |
|---|
| Median (19 companies) | 21.0% | 17.8% | 20.3% | 12.9% | 16.6% |
|---|
| Shougang Concord International Enterprises Co Ltd ($697) | 0.8% | -8.1% | -5.6% | -4.0% | -15.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanguo International Mining Group Ltd ($3939) | 46.5% | 39.7% | 36.2% | 31.3% | |
| China Hanking Holdings Ltd ($3788) | 63.1% | 40.4% | 40.9% | 30.6% | |
| Vale SA ($6210) | 55.9% | 24.2% | 40.8% | 30.1% | -16.9% |
| China Metal International Holdings Inc ($319) | 17.8% | 19.7% | 21.3% | 21.0% | |
| Fosun International Ltd ($656) | 15.8% | 16.7% | 23.0% | 20.9% | |
| |
|---|
| Median (19 companies) | 15.7% | 16.4% | 21.3% | 8.1% | -16.9% |
|---|
| Shougang Concord International Enterprises Co Ltd ($697) | 4.2% | -8.0% | -3.7% | -1.4% | -15.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newton Resources Ltd ($1231) | 690.4% | | 926.9% | 1,395.7% | 197.0% |
| Wanguo International Mining Group Ltd ($3939) | 13.2% | 24.0% | 39.3% | 32.5% | |
| Vale SA ($6210) | 25.8% | 34.0% | 28.1% | 29.8% | 34.5% |
| Xiwang Special Steel Co Ltd ($1266) | 14.9% | 22.6% | 31.5% | 21.5% | |
| Chongqing Iron & Steel Co Ltd ($1053) | 10.8% | 12.5% | 12.0% | 20.9% | |
| |
|---|
| Median (19 companies) | 10.8% | 9.0% | 10.9% | 8.1% | 24.1% |
|---|
| Shougang Concord International Enterprises Co Ltd ($697) | 1.2% | 2.6% | 2.5% | 2.5% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanguo International Mining Group Ltd ($3939) | 74.9% | 38.4% | 24.4% | 15.0% | |
| China Metal International Holdings Inc ($319) | 11.5% | 11.0% | 12.0% | 12.7% | |
| Xiwang Special Steel Co Ltd ($1266) | 33.5% | 7.8% | 8.7% | 11.5% | |
| Tiangong International Co Ltd ($826) | 14.8% | 14.5% | 13.4% | 10.7% | |
| Golik Holdings Ltd ($1118) | 9.0% | 7.0% | 7.4% | 10.0% | 10.8% |
| |
|---|
| Median (19 companies) | 11.5% | 6.7% | 7.9% | 5.0% | -3.0% |
|---|
| Shougang Concord International Enterprises Co Ltd ($697) | 0.2% | -9.4% | -7.8% | -7.1% | -18.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fosun International Ltd ($656) | 4.6x | 4.4x | 4.8x | 5.5x | |
| Maanshan Iron & Steel Co Ltd ($323) | 5.0x | 55.2x | 7.3x | 5.3x | |
| China Hanking Holdings Ltd ($3788) | 0.3x | 0.4x | 2.5x | 4.7x | |
| China Oriental Group Co Ltd ($581) | 2.4x | 4.6x | 5.3x | 4.5x | |
| Angang Steel Co Ltd ($347) | 6.6x | 21.4x | 4.0x | 4.3x | |
| |
|---|
| Median (14 companies) | 1.3x | 2.2x | 2.8x | 3.0x | -0.1x |
|---|
