Sino Distillery Group Ltd CAPEX surged on 31,119% in 2015 and Revenue jumped on 882%
28/03/2016 • About Sino Distillery Group Ltd (
$39) • By InTwits
Sino Distillery Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sino Distillery Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -6.1%
- The company operates at negative EBITDA Margin: -5.5%
- Sino Distillery Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -11.6% for the sames years0
- Sino Distillery Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.5%. At the same time it's in pair with industry average of 10.8%.
- CAPEX is quite volatile: 94.0 in 2015, 0.30 in 2014, 6.2 in 2013, 46.9 in 2012, 23.9 in 2011
- The company has unprofitable business model: ROIC is at -6.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino Distillery Group Ltd ($39) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 384.9 | 144.7 | 94.2 | 80.0 | 785.7 | 882.1% |
| Gross Profit | 23.9 | 36.9 | 15.8 | 11.1 | 10.6 | -4.3% |
| SG&A | | 74.1 | 41.7 | 42.1 | 122.3 | 190.2% |
| EBITDA | -35.0 | -107.3 | 9.1 | 4.2 | -43.4 | -1,128.9% |
| Net Income | -125.5 | -277.8 | -126.8 | 117.8 | 19.4 | -83.5% |
Balance Sheet
|
|---|
| Cash | 16.5 | 8.4 | 25.5 | 79.2 | 363.3 | 359.0% |
| Short Term Debt | 69.2 | 36.1 | 67.4 | 61.2 | 105.6 | 72.6% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 92.4 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 23.9 | 46.9 | 6.2 | 0.3 | 94.0 | 31,118.6% |
Ratios
|
|---|
| Revenue growth | -12.4% | -62.4% | -34.9% | -15.0% | 882.1% | |
| EBITDA growth | 143.5% | 206.8% | -108.4% | -53.5% | -1,128.9% | |
| Gross Margin | 6.2% | 25.5% | 16.8% | 13.9% | 1.4% | -12.5% |
| EBITDA Margin | -9.1% | -74.2% | 9.6% | 5.3% | -5.5% | -10.8% |
| Net Income Margin | -32.6% | -191.9% | -134.6% | 147.3% | 2.5% | -144.8% |
| SG&A, % of revenue | | 51.2% | 44.2% | 52.7% | 15.6% | -37.1% |
| CAPEX, % of revenue | 6.2% | 32.4% | 6.5% | 0.4% | 12.0% | 11.6% |
| ROIC | -13.7% | -46.5% | -30.9% | -5.9% | -6.1% | -0.2% |
| ROE | -31.9% | -129.0% | | | 3.0% | 3.0% |
| Net Debt/EBITDA | | | 4.6x | 17.7x | | -17.7x |
Revenue and profitability
The company's Revenue jumped on 882% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 10.8 pp from 5.3% to -5.5% in 2015.
Gross Margin dropped on 12.5 pp from 13.9% to 1.4% in 2015. SG&A as a % of Revenue dropped on 37.1 pp from 52.7% to 15.6% in 2015.
Net Income marign dropped on 145 pp from 147% to 2.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Sino Distillery Group Ltd had CAPEX/Revenue of 12.0%. Sino Distillery Group Ltd showed big decline in CAPEX/Revenue of 20.5 pp from 32.4% in 2012 to 12.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 6.3%.
Return on investment
The company operates at negative ROIC (-6.08%) and low but positive ROE (2.98%). ROIC showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is . Net Debt / EBITDA dropped on 17.7x from 17.7x to in 2015. Debt dropped on 31.2% in 2015 while cash surged on 359% in 2015.
Management team
Li Jianqing is a Sino Distillery Group Ltd's CEO. Li Jianqing has spent 4 years at the company. Sino Distillery Group Ltd's CFO Chai Chung Wai has spent 4 years at the company.
Appendix 1: Peers in Beverages
Below we provide Sino Distillery Group Ltd benchmarking against other companies in Beverages 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 |
|---|
| Besunyen Holdings Co Ltd ($926) | | -43.5% | 2.6% | 15.7% | 17.5% |
| Vitasoy International Holdings Ltd ($345) | | 11.6% | 9.0% | 10.9% | 12.4% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | | 7.7% | 15.4% | -1.8% | 7.7% |
| China Tontine Wines Group Ltd ($389) | | -20.7% | -73.3% | 62.7% | 2.6% |
| Yantai North Andre Juice Co ($2218) | | -6.5% | -27.2% | -5.6% | -3.1% |
| |
|---|
| Median (12 companies) | 18.7% | 0.4% | -8.1% | 3.1% | -7.4% |
|---|
| Sino Distillery Group Ltd ($39) | | -62.4% | -34.9% | -15.0% | 882.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Besunyen Holdings Co Ltd ($926) | 87.8% | 82.5% | 83.3% | 84.3% | 89.7% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 61.6% | 64.1% | 61.2% | 62.2% | 61.4% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 78.8% | 81.4% | 73.2% | 62.7% | 60.3% |
| Vitasoy International Holdings Ltd ($345) | 48.1% | 47.4% | 47.5% | 48.4% | 49.7% |
| San Miguel Brewery Hong Kong Ltd ($236) | 43.4% | 42.8% | 42.2% | 42.8% | 41.7% |
| |
|---|
| Median (12 companies) | 46.1% | 44.8% | 37.7% | 36.6% | 37.5% |
|---|
| Sino Distillery Group Ltd ($39) | 6.2% | 25.5% | 16.8% | 13.9% | 1.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 72.2% | 73.3% | 73.2% | 69.2% | 52.8% |
| China Tianyi Holdings Ltd ($756) | 17.7% | 28.4% | 26.1% | 29.7% | 23.0% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 27.4% | 27.5% | 25.3% | 26.1% | 22.5% |
| Yantai North Andre Juice Co ($2218) | 16.1% | 14.1% | 11.9% | 15.5% | 15.7% |
| Vitasoy International Holdings Ltd ($345) | 16.1% | 14.9% | 15.2% | 14.5% | 14.4% |
| |
|---|
| Median (12 companies) | 17.7% | 17.3% | 10.5% | 11.3% | 11.6% |
|---|
| Sino Distillery Group Ltd ($39) | -9.1% | -74.2% | 9.6% | 5.3% | -5.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 39.1% | 26.8% | 52.2% | 81.8% | 75.8% |
| Vitasoy International Holdings Ltd ($345) | 14.0% | 11.1% | 4.2% | 5.1% | 11.1% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 11.2% | 18.3% | 8.8% | 12.0% | 9.2% |
| China Tianyi Holdings Ltd ($756) | 7.5% | 5.8% | 6.2% | 33.6% | 6.1% |
| Besunyen Holdings Co Ltd ($926) | 53.8% | 18.7% | 7.3% | 8.8% | 5.6% |
| |
|---|
| Median (12 companies) | 7.5% | 10.1% | 7.3% | 8.8% | 4.3% |
|---|
| Sino Distillery Group Ltd ($39) | 6.2% | 32.4% | 6.5% | 0.4% | 12.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitasoy International Holdings Ltd ($345) | 23.8% | 20.8% | 20.6% | 21.7% | 23.5% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 26.1% | 19.4% | 17.9% | 15.7% | 11.0% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 41.0% | 23.3% | 20.3% | 14.9% | 11.0% |
| Tsingtao Brewery Co Ltd ($168) | 16.4% | 13.4% | 12.0% | 12.2% | 6.7% |
| Besunyen Holdings Co Ltd ($926) | 0.2% | -24.2% | -8.9% | 3.2% | 4.1% |
| |
|---|
| Median (12 companies) | 14.9% | 12.7% | 3.7% | 3.2% | 3.6% |
|---|
| Sino Distillery Group Ltd ($39) | -13.7% | -46.5% | -30.9% | -5.9% | -6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| San Miguel Brewery Hong Kong Ltd ($236) | | | 2.0x | 1.0x | 3.8x |
| Yantai North Andre Juice Co ($2218) | 2.6x | 2.3x | 2.4x | 2.2x | 3.0x |
| China Tianyi Holdings Ltd ($756) | -3.7x | -1.0x | -0.8x | 0.9x | 1.1x |
| Tenfu Cayman Holdings Co Ltd ($6868) | -1.7x | -1.0x | -0.2x | 0.8x | 0.1x |
| Vitasoy International Holdings Ltd ($345) | -0.1x | 0.3x | 0.0x | -0.3x | -0.2x |
| |
|---|
| Median (9 companies) | -0.8x | -1.0x | 0.0x | 0.9x | -0.2x |
|---|
