China National Building Material Co Ltd EBITDA dropped on 22.9% in 2015 and EBITDA Margin decreased slightly on 1.5 pp from 23.4% to 22.0%
28/03/2016 • About China National Building Material Co Ltd (
$3323) • By InTwits
China National Building Material Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China National Building Material Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.8%. At the same time it's a lot of higher than industry average of 7.4%.
- CAPEX is quite volatile: 8,485 in 2015, 4,319 in 2014, 4,881 in 2013, 3,970 in 2012, 4,052 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.4%
- It operates with high leverage: Net Debt/EBITDA is 8.5x while industry average is 2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China National Building Material Co Ltd ($3323) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 80,058 | 87,218 | 117,688 | 122,011 | 100,292 | -17.8% |
| Gross Profit | 21,317 | 20,128 | 30,138 | 33,279 | 24,619 | -26.0% |
| SG&A | 6,597 | 9,243 | 14,924 | 16,696 | 16,415 | -1.7% |
| EBITDA | 20,404 | 20,415 | 25,344 | 28,609 | 22,050 | -22.9% |
| Net Income | 8,015 | 5,580 | 5,762 | 5,965 | 1,345 | -77.5% |
Balance Sheet
|
|---|
| Cash | 9,738 | 10,222 | 8,980 | 10,291 | 10,580 | 2.8% |
| Short Term Debt | 53,992 | 92,502 | 116,021 | 143,783 | 148,882 | 3.5% |
| Long Term Debt | 34,845 | 55,380 | 64,847 | 46,874 | 48,652 | 3.8% |
Cash flow
|
|---|
| Capex | 13,071 | 11,726 | 10,166 | 9,174 | 7,957 | -13.3% |
Ratios
|
|---|
| Revenue growth | 54.0% | 8.9% | 34.9% | 3.7% | -17.8% | |
| EBITDA growth | 90.3% | 0.1% | 24.1% | 12.9% | -22.9% | |
| Gross Margin | 26.6% | 23.1% | 25.6% | 27.3% | 24.5% | -2.7% |
| EBITDA Margin | 25.5% | 23.4% | 21.5% | 23.4% | 22.0% | -1.5% |
| Net Income Margin | 10.0% | 6.4% | 4.9% | 4.9% | 1.3% | -3.5% |
| SG&A, % of revenue | 8.2% | 10.6% | 12.7% | 13.7% | 16.4% | 2.7% |
| CAPEX, % of revenue | 16.3% | 13.4% | 8.6% | 7.5% | 7.9% | 0.4% |
| ROIC | 15.9% | 9.9% | 9.0% | 8.7% | 5.4% | -3.3% |
| ROE | 35.2% | 19.6% | 17.5% | 15.6% | 2.5% | -13.1% |
| Net Debt/EBITDA | 3.9x | 6.7x | 6.8x | 6.3x | 8.5x | 2.2x |
Revenue and profitability
The company's Revenue dropped on 17.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.7 pp from 12.3% to 15.0% in 2015.
Gross Margin decreased on 2.7 pp from 27.3% to 24.5% in 2015. SG&A as a % of Revenue increased on 2.7 pp from 13.7% to 16.4% in 2015.
Net Income marign decreased on 3.5 pp from 4.9% to 1.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 7.9% in 2015. China National Building Material Co Ltd showed decline in CAPEX/Revenue of 5.5 pp from 13.4% in 2012 to 7.9% in 2015. For the last three years the average CAPEX/Revenue was 8.0%.
Return on investment
The company operates at low ROIC (5.37%) and ROE (2.47%). ROIC decreased on 3.3 pp from 8.7% to 5.4% in 2015. ROE dropped on 13.1 pp from 15.6% to 2.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.5x and Debt / EBITDA is 9.0x. Net Debt / EBITDA jumped on 2.2x from 6.3x to 8.5x in 2015. Debt increased on 3.6% in 2015 while cash increased on 2.8% in 2015.
Appendix 1: Peers in Building Materials
Below you can find China National Building Material Co Ltd benchmarking vs. other companies in Building Materials 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 |
|---|
| Summit Ascent Holdings Ltd ($102) | | -86.4% | -19.6% | 177.1% | -14.1% |
| Pacific Plywood Hldg Ltd ($767) | | -34.9% | -14.5% | 119.5% | 57.3% |
| Luoyang Glass Co Ltd ($1108) | | -40.3% | -32.3% | 76.2% | 0.7% |
| Prosperity International Holdings HK Ltd ($803) | | -23.9% | -43.3% | 55.2% | -34.4% |
| China Singyes Solar Technologies Holdings Ltd ($750) | 35.0% | 28.7% | 34.0% | 20.7% | |
| |
|---|
| Median (24 companies) | 35.0% | -3.5% | 9.6% | 6.3% | -9.8% |
|---|
| China National Building Material Co Ltd ($3323) | | 8.9% | 34.9% | 3.7% | -17.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 95.0% | 91.4% | 82.0% | 97.2% | 98.6% |
| Dongpeng Holdings Co Ltd ($3386) | 28.7% | 35.6% | 37.1% | 38.5% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 37.6% | 37.2% | 36.9% | 37.0% | 36.4% |
| Anhui Conch Cement Co Ltd ($914) | 39.4% | 27.3% | 32.5% | 33.2% | 26.9% |
| China Resources Cement Holdings Ltd ($1313) | 31.1% | 24.1% | 28.5% | 31.3% | 24.0% |
| |
|---|
| Median (24 companies) | 26.0% | 20.0% | 22.0% | 20.8% | 20.1% |
|---|
| China National Building Material Co Ltd ($3323) | 26.6% | 23.1% | 25.6% | 27.3% | 24.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 53.6% | 12.6% | -19.8% | 50.5% | 34.7% |
| Anhui Conch Cement Co Ltd ($914) | 38.8% | 27.1% | 31.1% | 32.1% | 29.7% |
| TCC International Holdings Ltd ($1136) | 26.5% | 19.2% | 26.1% | 29.0% | 14.0% |
| Asia Cement China Holdings Corp ($743) | 30.3% | 20.6% | 24.9% | 27.0% | 18.1% |
| China Tianrui Group Cement Co Ltd ($1252) | 32.4% | 28.5% | 23.7% | 26.7% | 32.8% |
| |
|---|
| Median (24 companies) | 18.3% | 15.1% | 16.9% | 17.4% | 17.5% |
|---|
| China National Building Material Co Ltd ($3323) | 25.5% | 23.4% | 21.5% | 23.4% | 22.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 40.4% | 11.9% | 32.1% | 23.6% | |
| West China Cement Ltd ($2233) | 54.8% | 17.2% | 13.9% | 15.9% | 10.1% |
| China Glass Holdings Ltd ($3300) | 37.2% | 19.6% | 12.5% | 12.4% | |
| China Shanshui Cement Group Ltd ($691) | 13.5% | 18.9% | 21.1% | 12.1% | |
| China Lesso Group Holdings Ltd ($2128) | 12.0% | 13.6% | 9.1% | 11.8% | 8.1% |
| |
|---|
| Median (24 companies) | 6.3% | 9.7% | 8.5% | 5.4% | 6.4% |
|---|
| China National Building Material Co Ltd ($3323) | 16.3% | 13.4% | 8.6% | 7.5% | 7.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 49.7% | 37.1% | 35.8% | 27.2% | |
| Anhui Conch Cement Co Ltd ($914) | 27.2% | 12.7% | 17.5% | 18.4% | 11.7% |
| China Lesso Group Holdings Ltd ($2128) | 26.8% | 20.5% | 19.4% | 18.2% | 17.2% |
| China Wood Optimization Holding Ltd ($8099) | | 33.5% | 27.3% | 17.7% | 17.7% |
| China Singyes Solar Technologies Holdings Ltd ($750) | 21.1% | 18.6% | 19.9% | 16.0% | |
| |
|---|
| Median (24 companies) | 12.1% | 5.0% | 6.9% | 4.8% | 1.4% |
|---|
| China National Building Material Co Ltd ($3323) | 15.9% | 9.9% | 9.0% | 8.7% | 5.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sustainable Forest Holdings Ltd ($723) | 0.9x | | | 9.6x | |
| BBMG Corp ($2009) | 4.4x | 4.6x | 5.0x | 6.1x | 6.6x |
| China Tianrui Group Cement Co Ltd ($1252) | 3.0x | 4.2x | 5.1x | 5.2x | 7.9x |
| China Shanshui Cement Group Ltd ($691) | 1.8x | 3.0x | 4.1x | 4.8x | |
| China Glass Holdings Ltd ($3300) | 3.0x | 9.9x | 2.9x | 4.7x | |
| |
|---|
| Median (20 companies) | 0.9x | 2.4x | 1.1x | 1.9x | 3.8x |
|---|
| China National Building Material Co Ltd ($3323) | 3.9x | 6.7x | 6.8x | 6.3x | 8.5x |
