China Metal International Holdings Inc reports 10.8% revenue decline in 2015 and 1.00 pp EBITDA Margin growth from 21.0% to 22.0%
29/03/2016 • About China Metal International Holdings Inc (
$319) • By InTwits
China Metal International Holdings Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Metal International Holdings Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.5%. At the same time it's a lot of higher than industry average of 13.8%.
- CAPEX is quite volatile: 13.3 in 2015, 19.3 in 2014, 35.0 in 2013, 42.7 in 2012, 22.3 in 2011
- The company has business model with average profitability: ROIC is at 11.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Metal International Holdings Inc ($319) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 307.0 | 299.3 | 321.2 | 346.9 | 309.5 | -10.8% |
| Gross Profit | 64.4 | 62.6 | 77.9 | 86.0 | 78.9 | -8.3% |
| SG&A | 32.8 | 32.8 | 37.2 | 36.5 | 34.2 | -6.1% |
| EBITDA | 54.7 | 59.0 | 68.3 | 72.7 | 68.0 | -6.5% |
| Net Income | 31.4 | 30.7 | 41.1 | 41.0 | 40.0 | -2.6% |
Balance Sheet
|
|---|
| Cash | 26.0 | 43.3 | 30.4 | 41.8 | 31.7 | -24.2% |
| Short Term Debt | 22.0 | 12.1 | 15.7 | 52.1 | 40.6 | -22.0% |
| Long Term Debt | 20.0 | 55.0 | 43.3 | 20.7 | 15.0 | -27.5% |
Cash flow
|
|---|
| Capex | 22.3 | 42.7 | 35.0 | 19.3 | 13.3 | -30.8% |
Ratios
|
|---|
| Revenue growth | 25.7% | -2.5% | 7.3% | 8.0% | -10.8% | |
| EBITDA growth | 0.4% | 7.7% | 15.8% | 6.5% | -6.5% | |
| Gross Margin | 21.0% | 20.9% | 24.3% | 24.8% | 25.5% | 0.7% |
| EBITDA Margin | 17.8% | 19.7% | 21.3% | 21.0% | 22.0% | 1.0% |
| Net Income Margin | 10.2% | 10.3% | 12.8% | 11.8% | 12.9% | 1.1% |
| SG&A, % of revenue | 10.7% | 11.0% | 11.6% | 10.5% | 11.1% | 0.5% |
| CAPEX, % of revenue | 7.3% | 14.3% | 10.9% | 5.6% | 4.3% | -1.2% |
| ROIC | 11.5% | 11.0% | 12.0% | 12.7% | 11.4% | -1.2% |
| ROE | 12.2% | 10.9% | 13.2% | 12.3% | 12.1% | -0.2% |
| Net Debt/EBITDA | 0.3x | 0.4x | 0.4x | 0.4x | 0.4x | -0.1x |
Revenue and profitability
The company's Revenue dropped on 10.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.00 pp from 21.0% to 22.0% in 2015.
Gross Margin increased slightly on 0.70 pp from 24.8% to 25.5% in 2015. SG&A as a % of Revenue increased slightly on 0.55 pp from 10.5% to 11.1% in 2015.
Net Income marign increased slightly on 1.1 pp from 11.8% to 12.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Metal International Holdings Inc's CAPEX/Revenue was 4.3% in 2015. China Metal International Holdings Inc's CAPEX/Revenue decreased on 10.0 pp from 14.3% in 2012 to 4.3% in 2015. For the last three years the average CAPEX/Revenue was 6.9%.
Return on investment
The company operates at good ROE (12.08%) while ROIC is low (11.44%). ROIC decreased slightly on 1.2 pp from 12.7% to 11.4% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from 0.4x to 0.4x in 2015. Debt dropped on 23.6% in 2015 while cash dropped on 24.2% in 2015.
Appendix 1: Peers in Iron/Steel
Below you can find China Metal International Holdings Inc benchmarking vs. other companies in Iron/Steel 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 |
|---|
| 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% | |
| Da Ming International Holdings Ltd ($1090) | | -2.1% | 29.3% | 29.8% | -8.1% |
| Xiwang Special Steel Co Ltd ($1266) | 58.5% | -19.3% | 2.0% | 22.9% | |
| |
|---|
| Median (19 companies) | 35.2% | -9.7% | -1.1% | -6.0% | -15.3% |
|---|
| China Metal International Holdings Inc ($319) | | -2.5% | 7.3% | 8.0% | -10.8% |
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% |
| Fosun International Ltd ($656) | 18.6% | 18.0% | 20.3% | 23.7% | |
| Xingda International Holdings Ltd ($1899) | 23.4% | 20.4% | 24.8% | 22.8% | 17.9% |
| |
|---|
| Median (19 companies) | 18.6% | 14.8% | 12.7% | 11.3% | 16.1% |
|---|
| China Metal International Holdings Inc ($319) | 21.0% | 20.9% | 24.3% | 24.8% | 25.5% |
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% |
| Fosun International Ltd ($656) | 15.8% | 16.7% | 23.0% | 20.9% | |
| Tiangong International Co Ltd ($826) | 22.5% | 25.1% | 25.8% | 19.3% | |
| |
|---|
| Median (19 companies) | 7.6% | 12.6% | 11.7% | 7.1% | -15.6% |
|---|
| China Metal International Holdings Inc ($319) | 17.8% | 19.7% | 21.3% | 21.0% | 22.0% |
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% | 8.3% | 10.5% | 8.1% | 8.8% |
|---|
| China Metal International Holdings Inc ($319) | 7.3% | 14.3% | 10.9% | 5.6% | 4.3% |
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% | |
| 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% |
| Xingda International Holdings Ltd ($1899) | 10.5% | 6.2% | 10.3% | 7.8% | 2.0% |
| |
|---|
| Median (19 companies) | 10.5% | 6.2% | 7.5% | 3.1% | -5.6% |
|---|
| China Metal International Holdings Inc ($319) | 11.5% | 11.0% | 12.0% | 12.7% | 11.4% |
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) | 2.2x | 2.3x | 3.0x | 3.2x | -0.1x |
|---|
| China Metal International Holdings Inc ($319) | 0.3x | 0.4x | 0.4x | 0.4x | 0.4x |
