Yongsheng Advanced Materials Co Ltd CAPEX jumped on 91.5% in 2015 and Revenue increased slightly on 0.99%
23/03/2016 • About Yongsheng Advanced Materials Co Ltd (
$3608) • By InTwits
Yongsheng Advanced Materials Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 18.9% in 2015 vs. 17.5% in 2014 vs. 3.2% in 2011
- EBITDA Margin is quite volatile: 18.9% in 2015, 17.5% in 2014, 5.1% in 2013, 2.5% in 2012, 3.2% in 2011
- Yongsheng Advanced Materials Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 7.0%.
- CAPEX is quite volatile: 29.9 in 2015, 15.6 in 2014, 6.4 in 2013, 6.2 in 2012, 11.6 in 2011
- The company has highly profitable business model: ROIC is at 19.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yongsheng Advanced Materials Co Ltd ($3608) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,037 | 2,211 | 1,767 | 486 | 491 | 1.0% |
| Gross Profit | 114 | 109 | 129 | 121 | 141 | 16.8% |
| SG&A | 60 | 47 | 58 | 52 | 66 | 26.9% |
| EBITDA | 65 | 56 | 90 | 85 | 93 | 9.2% |
| Net Income | 54 | 23 | 40 | 48 | 56 | 17.4% |
Balance Sheet
|
|---|
| Cash | 46 | 76 | 167 | 129 | 139 | 8.4% |
| Short Term Debt | 564 | 382 | 197 | 3 | 0 | -100.0% |
| Long Term Debt | 0 | 47 | 25 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 12 | 6 | 6 | 16 | 30 | 91.5% |
Ratios
|
|---|
| Revenue growth | 30.1% | 8.5% | -20.1% | -72.5% | 1.0% | |
| EBITDA growth | -27.5% | -13.9% | 60.6% | -5.7% | 9.2% | |
| Gross Margin | 5.6% | 4.9% | 7.3% | 24.9% | 28.8% | 3.9% |
| EBITDA Margin | 3.2% | 2.5% | 5.1% | 17.5% | 18.9% | 1.4% |
| Net Income Margin | 2.7% | 1.0% | 2.3% | 9.8% | 11.4% | 1.6% |
| SG&A, % of revenue | 2.9% | 2.1% | 3.3% | 10.7% | 13.4% | 2.7% |
| CAPEX, % of revenue | 0.6% | 0.3% | 0.4% | 3.2% | 6.1% | 2.9% |
| ROIC | 7.9% | 6.2% | 13.2% | 15.4% | 19.6% | 4.1% |
| ROE | 41.4% | 13.7% | 17.1% | 15.1% | 15.6% | 0.4% |
| Net Debt/EBITDA | 7.9x | 6.3x | 0.6x | -1.5x | -1.5x | -0.0x |
Revenue and profitability
Yongsheng Advanced Materials Co Ltd's Revenue increased slightly on 0.99% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 14.4 pp from 10.1% to 24.5% in 2015.
Gross Margin increased on 3.9 pp from 24.9% to 28.8% in 2015. SG&A as a % of Revenue increased on 2.7 pp from 10.7% to 13.4% in 2015.
Net Income marign increased slightly on 1.6 pp from 9.8% to 11.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 6.1%. The company showed CAPEX/Revenue growth of 5.8 pp from 0.28% in 2012 to 6.1% in 2015. For the last three years the average CAPEX/Revenue was 3.2%.
Return on investment
The company operates at good ROIC (19.55%) and ROE (15.59%). ROIC increased on 4.1 pp from 15.4% to 19.6% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash increased on 8.4% in 2015.
Appendix 1: Peers in Textiles
Below we provide Yongsheng Advanced Materials Co Ltd benchmarking against other companies in Textiles 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 |
|---|
| Victory City International Holdings Ltd ($539) | | -5.2% | 6.5% | 31.5% | -4.4% |
| Guangdong Tannery Ltd ($1058) | 12.7% | 6.1% | -4.5% | 29.0% | |
| Kingdom Holding Co Ltd ($528) | | 1.1% | 6.0% | 20.0% | 12.2% |
| Pacific Textiles Holdings Ltd ($1382) | | -10.6% | 3.6% | 11.6% | -7.0% |
| Easyknit Enterprises Holdings Ltd ($616) | | 9.6% | 10.2% | 7.3% | 22.3% |
| |
|---|
| Median (20 companies) | 17.3% | -2.6% | -4.2% | -6.2% | -4.9% |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | | 8.5% | -20.1% | -72.5% | 1.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TAI Ping Carpet International Ltd ($146) | 40.4% | 41.0% | 45.4% | 46.7% | 46.6% |
| Ping Shan Tea Group Ltd ($364) | 15.3% | 11.2% | 20.8% | 42.9% | |
| Texwinca Holdings Ltd ($321) | 33.7% | 29.6% | 30.9% | 33.3% | 34.1% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 30.3% | 31.1% | 32.5% | 32.5% | 28.3% |
| Easyknit Enterprises Holdings Ltd ($616) | 14.6% | 22.3% | 26.3% | 29.6% | 25.9% |
| |
|---|
| Median (20 companies) | 16.7% | 17.2% | 17.2% | 14.0% | 25.8% |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | 5.6% | 4.9% | 7.3% | 24.9% | 28.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ping Shan Tea Group Ltd ($364) | 14.9% | 11.2% | | 39.3% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 26.2% | 28.1% | 28.7% | 30.2% | 23.4% |
| Kingdom Holding Co Ltd ($528) | 29.3% | 26.3% | 25.3% | 24.8% | 23.0% |
| Easyknit Enterprises Holdings Ltd ($616) | 10.4% | 18.4% | 21.3% | 21.4% | 13.2% |
| Weiqiao Textile Co ($2698) | 10.2% | 17.5% | 20.2% | 21.4% | 30.8% |
| |
|---|
| Median (20 companies) | 13.9% | 13.1% | 10.4% | 11.7% | 13.2% |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | 3.2% | 2.5% | 5.1% | 17.5% | 18.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hua Lien International Holding Co Ltd ($969) | 0.0% | 19.7% | 40.5% | 79.6% | |
| Ping Shan Tea Group Ltd ($364) | 18.1% | 32.0% | | 14.0% | |
| Kingdom Holding Co Ltd ($528) | 6.2% | 8.4% | 18.8% | 10.9% | 5.6% |
| Victory City International Holdings Ltd ($539) | 2.3% | 4.2% | 10.1% | 8.6% | 6.8% |
| Silverman Holdings Ltd ($1616) | 8.7% | 6.5% | 18.0% | 8.4% | |
| |
|---|
| Median (20 companies) | 2.7% | 3.4% | 1.9% | 4.7% | 3.8% |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | 0.6% | 0.3% | 0.4% | 3.2% | 6.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 28.8% | 23.7% | 26.4% | 31.6% | 25.9% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 24.2% | 22.3% | 20.1% | 17.6% | 11.0% |
| Easyknit Enterprises Holdings Ltd ($616) | | 22.2% | 21.3% | 16.1% | 7.7% |
| Kingdom Holding Co Ltd ($528) | 16.3% | 13.8% | 12.7% | 13.8% | 12.7% |
| TAI Ping Carpet International Ltd ($146) | | | 2.6% | 5.7% | 5.5% |
| |
|---|
| Median (20 companies) | 7.3% | 5.1% | 4.5% | 3.7% | 6.8% |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | 7.9% | 6.2% | 13.2% | 15.4% | 19.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangdong Tannery Ltd ($1058) | 8.9x | 6.5x | 5.8x | 11.6x | |
| Sijia Group Co ($1863) | -0.1x | 1.6x | 5.3x | 6.4x | |
| China Weaving Materials Holdings Ltd ($3778) | 1.3x | 3.6x | 3.0x | 5.3x | |
| Co-Prosperity Holdings Ltd ($707) | 8.3x | 34.8x | | 4.5x | |
| Victory City International Holdings Ltd ($539) | 1.8x | 1.5x | 2.0x | 3.2x | 2.5x |
| |
|---|
| Median (18 companies) | 1.2x | 1.5x | 2.0x | 0.8x | -0.2x |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | 7.9x | 6.3x | 0.6x | -1.5x | -1.5x |
