Feishang Anthracite Resources Ltd Net Debt / EBITDA jumped on 8.3x from 24.3x to 32.6x in 2015 while Revenue dropped on 34.0%
29/03/2016 • About Feishang Anthracite Resources Ltd (
$1738) • By InTwits
Feishang Anthracite Resources Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Feishang Anthracite Resources Ltd doesn't have a profitable business model yet: 2015 ROIC is -5.7%
- Feishang Anthracite Resources Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 177.3%. At the same time it's a lot of higher than industry average of 45.6%.
- CAPEX is quite volatile: 22.9 in 2015, 24.1 in 2014, 30.7 in 2013, 64.8 in 2012, 69.5 in 2011
- The company has unprofitable business model: ROIC is at -5.7%
- It operates with high leverage: Net Debt/EBITDA is 32.6x while industry average is 7.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Feishang Anthracite Resources Ltd ($1738) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 105.2 | 141.9 | 178.5 | 363.4 | 239.9 | -34.0% |
| Gross Profit | 30.9 | 46.1 | 70.3 | 87.2 | 2.1 | -97.5% |
| SG&A | 52.4 | 81.0 | 148.2 | 123.8 | 87.1 | -29.6% |
| EBITDA | -9.7 | -18.6 | -58.8 | 68.9 | 38.1 | -44.7% |
| Net Income | -64.2 | -75.3 | -334.1 | -223.6 | -515.0 | 130.3% |
Balance Sheet
|
|---|
| Cash | 73.6 | 161.0 | 146.9 | 270.1 | 71.9 | -73.4% |
| Short Term Debt | 247.6 | 476.6 | 1,066.3 | 1,147.8 | 930.2 | -19.0% |
| Long Term Debt | 614.3 | 647.4 | 944.9 | 795.4 | 384.8 | -51.6% |
Cash flow
|
|---|
| Capex | 326.7 | 347.7 | 285.1 | 294.1 | 216.5 | -26.4% |
Ratios
|
|---|
| Revenue growth | 172.1% | 34.9% | 25.8% | 103.6% | -34.0% | |
| EBITDA growth | -98.6% | 91.8% | 216.1% | -217.2% | -44.7% | |
| Gross Margin | 29.4% | 32.4% | 39.4% | 24.0% | 0.9% | -23.1% |
| EBITDA Margin | -9.2% | -13.1% | -32.9% | 19.0% | 15.9% | -3.1% |
| Net Income Margin | -61.0% | -53.1% | -187.2% | -61.5% | -214.7% | -153.1% |
| SG&A, % of revenue | 49.8% | 57.1% | 83.0% | 34.1% | 36.3% | 2.3% |
| CAPEX, % of revenue | 310.5% | 244.9% | 159.7% | 80.9% | 90.2% | 9.3% |
| ROIC | -1.4% | -2.0% | -3.8% | -1.8% | -5.7% | -3.9% |
| ROE | -12.4% | -16.9% | -116.1% | -195.2% | | 195.2% |
| Net Debt/EBITDA | | | | 24.3x | 32.6x | 8.3x |
Revenue and profitability
Feishang Anthracite Resources Ltd's Revenue dropped on 34.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.1 pp from 19.0% to 15.9% in 2015.
Gross Margin dropped on 23.1 pp from 24.0% to 0.90% in 2015. SG&A as a % of Revenue increased on 2.3 pp from 34.1% to 36.3% in 2015.
Net Income marign dropped on 153 pp from -61.5% to -215% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 90.2%. The company showed big decline in CAPEX/Revenue of 155 pp from 245% in 2012 to 90.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 110%.Battling declining revenue Feishang Anthracite Resources Ltd made large investments to CAPEX (568% of EBITDA) but that didn't help at least in this year.
Leverage (Debt)
Company's Net Debt / EBITDA is 32.6x and Debt / EBITDA is 34.5x. Net Debt / EBITDA surged on 8.3x from 24.3x to 32.6x in 2015. Debt dropped on 32.3% in 2015 while cash dropped on 73.4% in 2015.
Appendix 1: Peers in Coal
Below you can find Feishang Anthracite Resources Ltd benchmarking vs. other companies in Coal 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 |
|---|
| Kinetic Mines and Energy Ltd ($1277) | | | 299.9% | 563.4% | 40.0% |
| Loudong General Nice Resources China Holdings Ltd ($988) | 8.5% | -12.7% | 39.1% | 87.6% | |
| Rosan Resources Holdings Ltd ($578) | -19.9% | -74.1% | 71.1% | 49.1% | |
| Asia Coal Ltd ($835) | | 32.1% | -15.3% | 43.2% | 133.6% |
| Agritrade Resources Ltd ($1131) | | 97.2% | 64.1% | 37.2% | 28.4% |
| |
|---|
| Median (22 companies) | 5.2% | -6.5% | -8.6% | -12.5% | -16.1% |
|---|
| Feishang Anthracite Resources Ltd ($1738) | | 34.9% | 25.8% | 103.6% | -34.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Coal Ltd ($835) | 32.4% | 56.7% | 62.6% | 76.7% | 5.8% |
| Shougang Fushan Resources Group Ltd ($639) | 70.4% | 63.5% | 50.9% | 40.1% | 24.5% |
| Agritrade Resources Ltd ($1131) | 7.6% | 22.9% | 29.4% | 31.8% | 30.0% |
| Kinetic Mines and Energy Ltd ($1277) | | 20.6% | 28.8% | 30.3% | 10.9% |
| China Shenhua Energy Co Ltd ($1088) | 39.9% | 31.4% | 28.7% | 29.6% | 35.5% |
| |
|---|
| Median (22 companies) | 31.5% | 19.9% | 17.3% | 9.4% | 6.9% |
|---|
| Feishang Anthracite Resources Ltd ($1738) | 29.4% | 32.4% | 39.4% | 24.0% | 0.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Shenhua Energy Co Ltd ($1088) | 41.2% | 35.6% | 31.6% | 34.2% | 33.9% |
| Agritrade Resources Ltd ($1131) | 1.4% | 41.6% | 37.3% | 33.4% | 31.1% |
| Kinetic Mines and Energy Ltd ($1277) | | -277.0% | -51.9% | 29.3% | 15.8% |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 40.9% | 33.1% | 30.7% | 22.8% | |
| Yanzhou Coal Mining Co Ltd ($1171) | 32.3% | 14.9% | 11.5% | 12.2% | 14.1% |
| |
|---|
| Median (23 companies) | 17.4% | 7.2% | 0.2% | -8.6% | -18.0% |
|---|
| Feishang Anthracite Resources Ltd ($1738) | -9.2% | -13.1% | -32.9% | 19.0% | 15.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Up Energy Development Group Ltd ($307) | | | | 279.5% | 75.2% |
| Siberian Mining Group Co Ltd ($1142) | 129.1% | 4.6% | 78.8% | 217.3% | 279.7% |
| King Stone Energy Group Ltd ($663) | 82.7% | 58.5% | 135.3% | 205.7% | |
| Asia Coal Ltd ($835) | 121.4% | 12.5% | 25.8% | 111.0% | 0.3% |
| Hidili Industry International Development Ltd ($1393) | 74.1% | 82.3% | 144.6% | 92.3% | |
| |
|---|
| Median (23 companies) | 21.9% | 13.7% | 23.0% | 17.8% | 18.4% |
|---|
| Feishang Anthracite Resources Ltd ($1738) | 310.5% | 244.9% | 159.7% | 80.9% | 90.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Shenhua Energy Co Ltd ($1088) | 21.0% | 19.5% | 17.4% | 14.6% | 7.7% |
| Loudong General Nice Resources China Holdings Ltd ($988) | 11.5% | 4.1% | 8.2% | 9.6% | |
| Kinetic Mines and Energy Ltd ($1277) | -2.6% | -6.6% | -5.7% | 8.5% | 3.2% |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 37.6% | 28.5% | 15.2% | 8.5% | |
| Agritrade Resources Ltd ($1131) | -2.3% | 2.7% | 5.8% | 6.4% | 6.9% |
| |
|---|
| Median (23 companies) | 4.8% | -1.9% | -0.4% | -5.2% | -0.9% |
|---|
| Feishang Anthracite Resources Ltd ($1738) | -1.4% | -2.0% | -3.8% | -1.8% | -5.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Coal Energy Co Ltd ($1898) | 0.5x | 1.9x | 4.9x | 9.7x | 14.4x |
| Yanzhou Coal Mining Co Ltd ($1171) | 1.1x | 2.9x | 6.2x | 4.9x | 9.0x |
| Kinetic Mines and Energy Ltd ($1277) | | | | 4.5x | 5.9x |
| Capital Finance Holdings Ltd ($8239) | | | | | 3.6x |
| China Shenhua Energy Co Ltd ($1088) | -0.0x | 0.2x | 0.6x | 0.7x | 1.1x |
| |
|---|
| Median (7 companies) | 1.1x | 2.4x | 4.4x | 4.0x | 3.6x |
|---|
| Feishang Anthracite Resources Ltd ($1738) | | | | 24.3x | 32.6x |
