China Weaving Materials Holdings Ltd EBITDA surged on 180% in 2015 and Revenue surged on 53.9%
24/03/2016 • About China Weaving Materials Holdings Ltd (
$3778) • By InTwits
China Weaving Materials Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 9.4% in 2015, 5.2% in 2014, 7.7% in 2013, 5.4% in 2012, 11.6% in 2011
- China Weaving Materials Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.6%. At the same time it's a lot of higher than industry average of 31.4%.
- CAPEX is quite volatile: 38.0 in 2015, 65.2 in 2014, 99.8 in 2013, 123 in 2012, 26.1 in 2011
- The company has business model with low profitability: ROIC is at 7.2%
- It operates with high leverage: Net Debt/EBITDA is 5.5x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Weaving Materials Holdings Ltd ($3778) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,086 | 919 | 880 | 847 | 1,303 | 53.9% |
| Gross Profit | 139 | 44 | 58 | 42 | 106 | 151.6% |
| SG&A | | 37 | 35 | 41 | 69 | 67.7% |
| EBITDA | 126 | 50 | 68 | 44 | 122 | 180.0% |
| Net Income | 61 | 1 | 21 | -51 | 14 | -127.2% |
Balance Sheet
|
|---|
| Cash | 86 | 87 | 58 | 91 | 41 | -54.6% |
| Short Term Debt | 252 | 257 | 259 | 306 | 628 | 105.3% |
| Long Term Debt | 3 | 7 | 0 | 15 | 83 | 453.3% |
Cash flow
|
|---|
| Capex | 26 | 123 | 100 | 65 | 38 | -41.8% |
Ratios
|
|---|
| Revenue growth | 16.7% | -15.4% | -4.2% | -3.8% | 53.9% | |
| EBITDA growth | -15.8% | -60.7% | 35.8% | -35.4% | 180.0% | |
| Gross Margin | 12.8% | 4.8% | 6.6% | 5.0% | 8.1% | 3.2% |
| EBITDA Margin | 11.6% | 5.4% | 7.7% | 5.2% | 9.4% | 4.2% |
| Net Income Margin | 5.6% | 0.1% | 2.4% | -6.0% | 1.1% | 7.1% |
| SG&A, % of revenue | | 4.0% | 3.9% | 4.8% | 5.3% | 0.4% |
| CAPEX, % of revenue | 2.4% | 13.4% | 11.3% | 7.7% | 2.9% | -4.8% |
| ROIC | 17.1% | 4.4% | 6.4% | 2.2% | 7.2% | 5.0% |
| ROE | 19.5% | 0.3% | 5.2% | -12.0% | 3.1% | 15.2% |
| Net Debt/EBITDA | 1.3x | 3.6x | 3.0x | 5.3x | 5.5x | 0.2x |
Revenue and profitability
The company's Revenue jumped on 53.9% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.2 pp from 5.2% to 9.4% in 2015.
Gross Margin increased on 3.2 pp from 5.0% to 8.1% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 7.1 pp from -6.0% to 1.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Weaving Materials Holdings Ltd's CAPEX/Revenue was 2.9% in 2015. CAPEX/Revenue dropped on 10.5 pp from 13.4% in 2012 to 2.9% in 2015. It's average CAPEX/Revenue for the last three years was 7.3%.
Return on investment
The company operates at low ROIC (7.20%) and ROE (3.14%). ROIC increased on 5.0 pp from 2.2% to 7.2% in 2015. ROE surged on 15.2 pp from -12.0% to 3.1% in 2015.
Leverage (Debt)
Debt level is 5.5x Net Debt / EBITDA and 5.8x Debt / EBITDA. Net Debt / EBITDA jumped on 0.2x from 5.3x to 5.5x in 2015. Debt surged on 122% in 2015 while cash dropped on 54.6% in 2015.
Appendix 1: Peers in Textiles
Below we provide China Weaving Materials Holdings 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) | | 6.1% | -4.5% | 29.0% | -14.9% |
| 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) | 17.9% | 0.5% | -4.3% | -10.1% | -4.4% |
|---|
| China Weaving Materials Holdings Ltd ($3778) | | -15.4% | -4.2% | -3.8% | 53.9% |
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% | 15.3% | 22.2% |
|---|
| China Weaving Materials Holdings Ltd ($3778) | 12.8% | 4.8% | 6.6% | 5.0% | 8.1% |
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% | 12.7% |
|---|
| China Weaving Materials Holdings Ltd ($3778) | 11.6% | 5.4% | 7.7% | 5.2% | 9.4% |
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% | 2.6% | 1.7% | 3.7% | 4.7% |
|---|
| China Weaving Materials Holdings Ltd ($3778) | 2.4% | 13.4% | 11.3% | 7.7% | 2.9% |
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% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 7.9% | 6.2% | 13.2% | 15.4% | 19.6% |
| Kingdom Holding Co Ltd ($528) | 16.3% | 13.8% | 12.7% | 13.8% | 12.7% |
| |
|---|
| Median (20 companies) | 7.3% | 5.2% | 4.5% | 4.2% | 6.1% |
|---|
| China Weaving Materials Holdings Ltd ($3778) | 17.1% | 4.4% | 6.4% | 2.2% | 7.2% |
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 | |
| 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 |
| Zhejiang Yonglong Enterprises Co Ltd ($8211) | 0.2x | 4.2x | 0.1x | 3.0x | 1.3x |
| |
|---|
| Median (18 companies) | 1.3x | 1.5x | 0.6x | 0.5x | -0.2x |
|---|
| China Weaving Materials Holdings Ltd ($3778) | 1.3x | 3.6x | 3.0x | 5.3x | 5.5x |
