Sino Haijing Holdings Ltd reports 47.1% CAPEX growth while 11.3% Revenue decline
24/03/2016 • About Sino Haijing Holdings Ltd (
$1106) • By InTwits
Sino Haijing Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sino Haijing Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.8%
- EBITDA Margin is relatively stable: 6.5% in 2015 vs. 6.7% in 2014 vs. 8.2% in 2011
- Sino Haijing Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.5%. At the same time it's in pair with industry average of 7.0%.
- CAPEX is quite volatile: 7.2 in 2015, 22.6 in 2014, 8.0 in 2013, 10.7 in 2012, 9.4 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.8%
- It operates with high leverage: Net Debt/EBITDA is 10.1x 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.
Sino Haijing Holdings Ltd ($1106) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 520.1 | 517.8 | 575.6 | 563.6 | 499.9 | -11.3% |
| Gross Profit | 72.0 | 64.2 | 72.7 | 80.4 | 91.6 | 14.0% |
| SG&A | | | | 81.7 | 78.7 | -3.7% |
| EBITDA | 42.5 | 32.3 | 36.3 | 37.7 | 32.7 | -13.2% |
| Net Income | -19.6 | -25.1 | -20.1 | -11.6 | -68.0 | 486.8% |
Balance Sheet
|
|---|
| Cash | 34.4 | 21.1 | 29.0 | 9.1 | 90.1 | 885.3% |
| Short Term Debt | 231.9 | 228.2 | 250.5 | 242.6 | 139.2 | -42.6% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 280.0 | |
Cash flow
|
|---|
| Capex | 25.4 | 50.4 | 41.1 | 22.9 | 33.6 | 47.1% |
Ratios
|
|---|
| Revenue growth | 1.1% | -0.4% | 11.1% | -2.1% | -11.3% | |
| EBITDA growth | -39.0% | -23.9% | 12.5% | 3.8% | -13.2% | |
| Gross Margin | 13.8% | 12.4% | 12.6% | 14.3% | 18.3% | 4.1% |
| EBITDA Margin | 8.2% | 6.2% | 6.3% | 6.7% | 6.5% | -0.1% |
| Net Income Margin | -3.8% | -4.9% | -3.5% | -2.1% | -13.6% | -11.5% |
| SG&A, % of revenue | | | | 14.5% | 15.7% | 1.2% |
| CAPEX, % of revenue | 4.9% | 9.7% | 7.1% | 4.1% | 6.7% | 2.7% |
| ROIC | 3.8% | 1.9% | 2.5% | 2.9% | 1.8% | -1.2% |
| ROE | -5.9% | -7.9% | -6.6% | -4.0% | -21.6% | -17.6% |
| Net Debt/EBITDA | 4.7x | 6.4x | 6.1x | 6.2x | 10.1x | 3.9x |
Revenue and profitability
The company's Revenue dropped on 11.3% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin increased on 4.1 pp from 14.3% to 18.3% in 2015. SG&A as a % of Revenue increased slightly on 1.2 pp from 14.5% to 15.7% in 2015.
Net Income marign dropped on 11.5 pp from -2.1% to -13.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.7% in 2015. The company's CAPEX/Revenue decreased on 3.0 pp from 9.7% in 2012 to 6.7% in 2015. It's average CAPEX/Revenue for the last three years was 6.0%.Battling declining revenue the company made large investments to CAPEX (103% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (1.76%) and negative ROE (-21.57%). ROIC decreased slightly on 1.2 pp from 2.9% to 1.8% in 2015. ROE dropped on 17.6 pp from -4.0% to -21.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 10.1x and Debt / EBITDA is 12.8x. Net Debt / EBITDA jumped on 3.9x from 6.2x to 10.1x in 2015. Debt surged on 72.8% in 2015 while cash surged on 885% in 2015.
Appendix 1: Peers in Packaging&Containers
Below we provide Sino Haijing Holdings Ltd benchmarking against other companies in Packaging&Containers 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 |
|---|
| 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% |
|---|
| Sino Haijing Holdings Ltd ($1106) | | -0.4% | 11.1% | -2.1% | -11.3% |
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) | 18.7% | 20.9% | 20.7% | 23.4% | 20.9% |
|---|
| Sino Haijing Holdings Ltd ($1106) | 13.8% | 12.4% | 12.6% | 14.3% | 18.3% |
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) | 12.1% | 14.5% | 15.6% | 13.2% | 8.3% |
|---|
| Sino Haijing Holdings Ltd ($1106) | 8.2% | 6.2% | 6.3% | 6.7% | 6.5% |
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% |
| Jin Bao Bao Holdings Ltd ($1239) | 3.8% | 5.2% | 3.3% | 8.3% | 5.5% |
| |
|---|
| Median (19 companies) | 5.6% | 5.2% | 4.4% | 4.1% | 4.3% |
|---|
| Sino Haijing Holdings Ltd ($1106) | 4.9% | 9.7% | 7.1% | 4.1% | 6.7% |
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) | 11.3% | 8.1% | 7.0% | 7.3% | 4.4% |
|---|
| Sino Haijing Holdings Ltd ($1106) | 3.8% | 1.9% | 2.5% | 2.9% | 1.8% |
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 |
| 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 |
| Kith Holdings Ltd ($1201) | 2.9x | 3.0x | 3.2x | 2.9x | |
| |
|---|
| Median (18 companies) | 0.6x | 1.0x | 0.6x | 0.5x | 2.7x |
|---|
| Sino Haijing Holdings Ltd ($1106) | 4.7x | 6.4x | 6.1x | 6.2x | 10.1x |
