Jin Bao Bao Holdings Ltd reports 118% Net Income decline and 13.5% Revenue decline
24/03/2016 • About Jin Bao Bao Holdings Ltd (
$1239) • By InTwits
Jin Bao Bao Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jin Bao Bao Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%. At the same time it's in pair with industry average of 7.0%.
- CAPEX is quite volatile: 10.3 in 2015, 18.0 in 2014, 7.7 in 2013, 10.5 in 2012, 8.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.4%
- It operates with high leverage: Net Debt/EBITDA is 4.2x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jin Bao Bao Holdings Ltd ($1239) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 212.8 | 199.3 | 234.7 | 218.6 | 189.0 | -13.5% |
| Gross Profit | 61.4 | 45.7 | 46.5 | 46.1 | 40.4 | -12.4% |
| SG&A | | 20.2 | 22.2 | 24.9 | 24.6 | -1.1% |
| EBITDA | 45.0 | 33.9 | 32.7 | 30.3 | 24.4 | -19.5% |
| Net Income | 29.9 | 18.8 | 19.1 | 14.1 | -2.6 | -118.2% |
Balance Sheet
|
|---|
| Cash | 80.1 | 64.5 | 56.7 | 37.0 | 65.7 | 77.4% |
| Short Term Debt | 3.5 | 7.4 | 2.0 | 2.0 | 0.5 | -75.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 167.5 | |
Cash flow
|
|---|
| Capex | 8.0 | 10.5 | 7.7 | 18.0 | 10.3 | -42.8% |
Ratios
|
|---|
| Revenue growth | 28.2% | -6.4% | 17.8% | -6.9% | -13.5% | |
| EBITDA growth | -4.8% | -24.6% | -3.4% | -7.6% | -19.5% | |
| Gross Margin | 28.8% | 23.0% | 19.8% | 21.1% | 21.4% | 0.3% |
| EBITDA Margin | 21.1% | 17.0% | 13.9% | 13.8% | 12.9% | -1.0% |
| Net Income Margin | 14.1% | 9.5% | 8.1% | 6.5% | -1.4% | -7.8% |
| SG&A, % of revenue | | 10.1% | 9.4% | 11.4% | 13.0% | 1.6% |
| CAPEX, % of revenue | 3.8% | 5.2% | 3.3% | 8.3% | 5.5% | -2.8% |
| ROIC | 20.3% | 12.2% | 11.2% | 10.3% | 5.4% | -4.8% |
| ROE | 16.6% | 9.1% | 9.0% | 6.9% | -1.3% | -8.2% |
| Net Debt/EBITDA | -1.7x | -1.7x | -1.7x | -1.2x | 4.2x | 5.4x |
Revenue and profitability
The company's Revenue dropped on 13.5% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.96 pp from 13.8% to 12.9% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 1.6 pp from 11.4% to 13.0% in 2015.
Net Income marign decreased on 7.8 pp from 6.5% to -1.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
Jin Bao Bao Holdings Ltd's CAPEX/Revenue was 5.5% in 2015. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 5.7%.
Return on investment
The company operates at low but positive ROIC (5.44%) and negative ROE (-1.30%). ROIC decreased on 4.8 pp from 10.3% to 5.4% in 2015. ROE decreased on 8.2 pp from 6.9% to -1.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.2x and Debt / EBITDA is 6.9x. Net Debt / EBITDA jumped on 5.4x from -1.2x to 4.2x in 2015. Debt surged on 8,302% in 2015 while cash jumped on 77.4% in 2015.
Appendix 1: Peers in Packaging&Containers
Below you can find Jin Bao Bao Holdings Ltd benchmarking vs. other companies in Packaging&Containers 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 |
|---|
| China For You Group Co Ltd ($572) | | -46.9% | -99.7% | 36,225.6% | -52.5% |
| China Aluminum Cans Holdings Ltd ($6898) | 19.6% | 15.5% | -5.0% | 189.1% | |
| Zhengye International Holdings Co Ltd ($3363) | 10.5% | 6.8% | 16.4% | 18.6% | |
| Come Sure Group Holdings Ltd ($794) | | 10.7% | -0.7% | 16.8% | 2.9% |
| Huajun Holdings Ltd ($377) | | 11.2% | 3.3% | 3.4% | 10.4% |
| |
|---|
| Median (18 companies) | 15.0% | 4.9% | 5.0% | 0.8% | 3.0% |
|---|
| Jin Bao Bao Holdings Ltd ($1239) | | -6.4% | 17.8% | -6.9% | -13.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | 13.1% | 19.0% | 28.2% | 40.9% | 37.5% |
| Sheen Tai Holdings Grp Co Ltd ($1335) | 36.5% | 36.4% | 37.8% | 39.6% | |
| Jin Cai Holdings Co Ltd ($1250) | 39.6% | 36.6% | 39.1% | 37.7% | |
| China For You Group Co Ltd ($572) | 18.7% | 12.4% | | 34.6% | 31.9% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 30.2% | 34.3% | 36.5% | 32.8% | 31.4% |
| |
|---|
| Median (18 companies) | 18.5% | 19.0% | 20.7% | 23.4% | 20.3% |
|---|
| Jin Bao Bao Holdings Ltd ($1239) | 28.8% | 23.0% | 19.8% | 21.1% | 21.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheen Tai Holdings Grp Co Ltd ($1335) | 35.5% | 31.9% | 32.2% | 32.1% | |
| Jin Cai Holdings Co Ltd ($1250) | 35.7% | 33.2% | 26.1% | 27.6% | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 25.5% | 27.9% | 30.7% | 27.4% | 26.3% |
| Huaxi Holdings Co Ltd ($1689) | 7.8% | 14.5% | 21.2% | 27.1% | 29.1% |
| Greatview Aseptic Packaging Co Ltd ($468) | 24.1% | 25.9% | 23.1% | 21.6% | |
| |
|---|
| Median (19 companies) | 10.8% | 11.9% | 15.5% | 12.2% | 7.5% |
|---|
| Jin Bao Bao Holdings Ltd ($1239) | 21.1% | 17.0% | 13.9% | 13.8% | 12.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 1.3% | 6.9% | 9.5% | 20.7% | |
| Lee & Man Paper Manufacturing Ltd ($2314) | 13.5% | 19.7% | 13.7% | 13.1% | 17.1% |
| Hao Tian Development Group Ltd ($474) | 88.2% | 81.6% | | 13.0% | 25.4% |
| CPMC Holdings Ltd ($906) | 13.7% | 16.7% | 19.7% | 8.6% | 9.2% |
| Greatview Aseptic Packaging Co Ltd ($468) | 30.8% | 15.8% | 9.6% | 7.2% | |
| |
|---|
| Median (19 companies) | 5.6% | 6.9% | 5.0% | 4.1% | 4.3% |
|---|
| Jin Bao Bao Holdings Ltd ($1239) | 3.8% | 5.2% | 3.3% | 8.3% | 5.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | | 21.4% | 28.5% | 26.2% | 23.6% |
| Sheen Tai Holdings Grp Co Ltd ($1335) | 32.5% | 26.8% | 26.2% | 24.7% | |
| China Aluminum Cans Holdings Ltd ($6898) | 14.8% | 19.7% | 14.6% | 20.2% | |
| Greatview Aseptic Packaging Co Ltd ($468) | 19.6% | 20.2% | 18.9% | 15.7% | |
| Jin Cai Holdings Co Ltd ($1250) | 38.7% | 35.3% | 18.4% | 15.4% | |
| |
|---|
| Median (19 companies) | 10.0% | 7.7% | 6.4% | 5.4% | 3.0% |
|---|
| Jin Bao Bao Holdings Ltd ($1239) | 20.3% | 12.2% | 11.2% | 10.3% | 5.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zhengye International Holdings Co Ltd ($3363) | 4.0x | 6.2x | 6.4x | 7.8x | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 0.7x | 9.4x | 6.7x | 7.4x | 4.4x |
| Sino Haijing Holdings Ltd ($1106) | 4.7x | 6.4x | 6.1x | 6.2x | 10.1x |
| Come Sure Group Holdings Ltd ($794) | -1.1x | 3.6x | 4.1x | 3.8x | 3.4x |
| Lee & Man Paper Manufacturing Ltd ($2314) | 2.5x | 4.1x | 3.5x | 3.4x | 3.0x |
| |
|---|
| Median (18 companies) | 0.9x | 1.2x | 0.9x | 0.7x | 2.7x |
|---|
| Jin Bao Bao Holdings Ltd ($1239) | -1.7x | -1.7x | -1.7x | -1.2x | 4.2x |
