Da Ming International Holdings Ltd EBITDA dropped on 128% in 2015 and Revenue decreased on 8.1%
24/03/2016 • About Da Ming International Holdings Ltd (
$1090) • By InTwits
Da Ming International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Da Ming International Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -5.6%
- EBITDA Margin is quite volatile: -0.6% in 2015, 2.1% in 2014, 2.2% in 2013, 2.1% in 2012, 2.4% in 2011
- Da Ming International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 0.7%.
- CAPEX is quite volatile: 510 in 2015, 301 in 2014, 63.1 in 2013, 44.6 in 2012, 139 in 2011
- The company has unprofitable business model: ROIC is at -5.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Da Ming International Holdings Ltd ($1090) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,941 | 11,694 | 15,121 | 19,634 | 18,043 | -8.1% |
| Gross Profit | 351 | 308 | 441 | 632 | 126 | -80.1% |
| SG&A | 155 | 177 | 221 | 319 | 206 | -35.4% |
| EBITDA | 284 | 241 | 325 | 411 | -116 | -128.2% |
| Net Income | 104 | 31 | 98 | 166 | -247 | -248.8% |
Balance Sheet
|
|---|
| Cash | 283 | 183 | 75 | 292 | 195 | -33.4% |
| Short Term Debt | 2,516 | 2,074 | 2,498 | 1,455 | 999 | -31.3% |
| Long Term Debt | 50 | 140 | 346 | 488 | 766 | 57.0% |
Cash flow
|
|---|
| Capex | 406 | 462 | 480 | 514 | 625 | 21.6% |
Ratios
|
|---|
| Revenue growth | 33.1% | -2.1% | 29.3% | 29.8% | -8.1% | |
| EBITDA growth | -31.7% | -15.3% | 35.1% | 26.5% | -128.2% | |
| Gross Margin | 2.9% | 2.6% | 2.9% | 3.2% | 0.7% | -2.5% |
| EBITDA Margin | 2.4% | 2.1% | 2.2% | 2.1% | -0.6% | -2.7% |
| Net Income Margin | 0.9% | 0.3% | 0.6% | 0.8% | -1.4% | -2.2% |
| SG&A, % of revenue | 1.3% | 1.5% | 1.5% | 1.6% | 1.1% | -0.5% |
| CAPEX, % of revenue | 3.4% | 4.0% | 3.2% | 2.6% | 3.5% | 0.8% |
| ROIC | 5.6% | 3.8% | 5.7% | 7.7% | -5.6% | -13.3% |
| ROE | 7.0% | 2.0% | 6.3% | 9.8% | -13.8% | -23.6% |
| Net Debt/EBITDA | 8.0x | 8.4x | 8.5x | 4.0x | | -4.0x |
Revenue and profitability
Da Ming International Holdings Ltd's Revenue decreased on 8.1% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.7 pp from 2.1% to -0.64% in 2015.
Gross Margin decreased on 2.5 pp from 3.2% to 0.70% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 2.2 pp from 0.84% to -1.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.5% in 2015. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 3.1%.
Return on investment
The company operates at negative ROIC (-5.58%) and ROE (-13.82%). ROIC dropped on 13.3 pp from 7.7% to -5.6% in 2015. ROE dropped on 23.6 pp from 9.8% to -13.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.6x and Debt / EBITDA is . Net Debt / EBITDA dropped on 4.0x from 4.0x to in 2015. Debt decreased on 9.1% in 2015 while cash dropped on 33.4% in 2015.
Appendix 1: Peers in Iron/Steel
Below we provide Da Ming International Holdings Ltd benchmarking against other companies in Iron/Steel 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 |
|---|
| 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% | |
| Xiwang Special Steel Co Ltd ($1266) | 58.5% | -19.3% | 2.0% | 22.9% | |
| Fosun International Ltd ($656) | 27.3% | -8.9% | -1.4% | 21.0% | |
| |
|---|
| Median (19 companies) | 33.1% | -9.7% | -1.1% | -6.0% | -17.9% |
|---|
| Da Ming International Holdings Ltd ($1090) | | -2.1% | 29.3% | 29.8% | -8.1% |
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% | 16.3% |
|---|
| Da Ming International Holdings Ltd ($1090) | 2.9% | 2.6% | 2.9% | 3.2% | 0.7% |
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% | -16.3% |
|---|
| Da Ming International Holdings Ltd ($1090) | 2.4% | 2.1% | 2.2% | 2.1% | -0.6% |
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% | 16.5% |
|---|
| Da Ming International Holdings Ltd ($1090) | 3.4% | 4.0% | 3.2% | 2.6% | 3.5% |
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% | 3.1% | -4.7% |
|---|
| Da Ming International Holdings Ltd ($1090) | 5.6% | 3.8% | 5.7% | 7.7% | -5.6% |
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 (13 companies) | 1.3x | 2.1x | 2.5x | 2.9x | -0.1x |
|---|
| Da Ming International Holdings Ltd ($1090) | 8.0x | 8.4x | 8.5x | 4.0x | |
