China Sanjiang Fine Chemicals Co Ltd reports 203,079% CAPEX growth and 36.6% Revenue growth
24/03/2016 • About China Sanjiang Fine Chemicals Co Ltd (
$2198) • By InTwits
China Sanjiang Fine Chemicals Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Sanjiang Fine Chemicals Co Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.2%
- EBITDA Margin is quite volatile: 8.6% in 2015, 8.8% in 2014, 15.4% in 2013, 25.1% in 2012, 23.1% in 2011
- China Sanjiang Fine Chemicals Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.8%. At the same time it's in pair with industry average of 21.2%.
- CAPEX is quite volatile: 1,006 in 2015, 0.50 in 2014, 1,174 in 2013, 495 in 2012, 173 in 2011
- The company has unprofitable business model: ROIC is at -0.2%
- It operates with high leverage: Net Debt/EBITDA is 13.5x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Sanjiang Fine Chemicals Co Ltd ($2198) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,078 | 2,410 | 3,940 | 3,637 | 4,966 | 36.6% |
| Gross Profit | 433 | 575 | 638 | 242 | 164 | -32.1% |
| SG&A | 79 | 97 | 154 | 134 | 209 | 55.5% |
| EBITDA | 480 | 605 | 605 | 319 | 430 | 34.6% |
| Net Income | 405 | 467 | 605 | 133 | -146 | -209.6% |
Balance Sheet
|
|---|
| Cash | 291 | 346 | 254 | 399 | 92 | -77.0% |
| Short Term Debt | 1,436 | 1,579 | 2,529 | 4,277 | 4,519 | 5.6% |
| Long Term Debt | 0 | 68 | 512 | 1,897 | 1,352 | -28.7% |
Cash flow
|
|---|
| Capex | 173 | 495 | 1,174 | 0 | 1,006 | 203,079.0% |
Ratios
|
|---|
| Revenue growth | 31.3% | 16.0% | 63.5% | -7.7% | 36.6% | |
| EBITDA growth | 26.2% | 26.0% | 0.1% | -47.3% | 34.6% | |
| Gross Margin | 20.9% | 23.8% | 16.2% | 6.7% | 3.3% | -3.3% |
| EBITDA Margin | 23.1% | 25.1% | 15.4% | 8.8% | 8.6% | -0.1% |
| Net Income Margin | 19.5% | 19.4% | 15.4% | 3.7% | -2.9% | -6.6% |
| SG&A, % of revenue | 3.8% | 4.0% | 3.9% | 3.7% | 4.2% | 0.5% |
| CAPEX, % of revenue | 8.3% | 20.5% | 29.8% | 0.0% | 20.3% | 20.2% |
| ROIC | 14.4% | 14.3% | 9.4% | 2.0% | -0.2% | -2.2% |
| ROE | 27.1% | 26.1% | 28.4% | 5.7% | -6.6% | -12.3% |
| Net Debt/EBITDA | 2.4x | 2.2x | 4.6x | 18.1x | 13.5x | -4.6x |
Revenue and profitability
China Sanjiang Fine Chemicals Co Ltd's Revenue surged on 36.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.6 pp from 2.7% to 12.3% in FY2015.
Gross Margin decreased on 3.3 pp from 6.7% to 3.3% in 2015. SG&A as a % of Revenue increased slightly on 0.51 pp from 3.7% to 4.2% in 2015.
Net Income marign decreased on 6.6 pp from 3.7% to -2.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Sanjiang Fine Chemicals Co Ltd's CAPEX/Revenue was 20.3% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 16.7%.The company has spent a lot to CAPEX (234% of EBITDA) to fuel its growth.
Return on investment
The company operates at negative ROIC (-0.16%) and ROE (-6.60%). ROIC decreased on 2.2 pp from 2.0% to -0.16% in 2015. ROE dropped on 12.3 pp from 5.7% to -6.6% in 2015.
Leverage (Debt)
Debt level is 13.5x Net Debt / EBITDA and 13.7x Debt / EBITDA. Net Debt / EBITDA dropped on 4.6x from 18.1x to 13.5x in 2015. Debt decreased on 4.9% in 2015 while cash dropped on 77.0% in 2015.
Appendix 1: Peers in Chemicals
Below you can find China Sanjiang Fine Chemicals Co Ltd benchmarking vs. other companies in Chemicals 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 |
|---|
| 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% |
| Century Sunshine Group Holdings Ltd ($509) | | 68.7% | 32.0% | 26.4% | 21.4% |
| Landing International Development Ltd ($582) | | 2.1% | 15.9% | 23.3% | 10.4% |
| |
|---|
| Median (32 companies) | 32.5% | 2.0% | 8.5% | 2.2% | -0.6% |
|---|
| China Sanjiang Fine Chemicals Co Ltd ($2198) | | 16.0% | 63.5% | -7.7% | 36.6% |
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) | 19.8% | 18.9% | 18.7% | 18.4% | 22.4% |
|---|
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 20.9% | 23.8% | 16.2% | 6.7% | 3.3% |
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% | 19.0% |
| Century Sunshine Group Holdings Ltd ($509) | 15.5% | 24.2% | 28.1% | 27.6% | 26.1% |
| |
|---|
| Median (32 companies) | 15.2% | 12.3% | 11.8% | 12.5% | 13.4% |
|---|
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 23.1% | 25.1% | 15.4% | 8.8% | 8.6% |
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) | 8.5% | 6.8% | 8.5% | 5.8% | 8.2% |
|---|
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 8.3% | 20.5% | 29.8% | 0.0% | 20.3% |
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% |
| Century Sunshine Group Holdings Ltd ($509) | 3.5% | 11.3% | 15.9% | 16.4% | 13.3% |
| 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% |
| |
|---|
| Median (32 companies) | 7.8% | 6.9% | 7.7% | 5.9% | 6.5% |
|---|
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 14.4% | 14.3% | 9.4% | 2.0% | -0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 | |
| Billion Industrial Holdings Ltd ($2299) | -0.3x | 0.5x | 2.7x | 4.1x | 3.5x |
| |
|---|
| Median (25 companies) | 1.2x | 1.0x | 2.0x | 1.3x | 1.7x |
|---|
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 2.4x | 2.2x | 4.6x | 18.1x | 13.5x |
