Jin Cai Holdings Co Ltd CAPEX surged on 5,726% in 2015 and Revenue jumped on 40.8%
29/03/2016 • About Jin Cai Holdings Co Ltd (
$1250) • By InTwits
Jin Cai Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jin Cai Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 25.0%. At the same time it's a lot of higher than industry average of 12.8%.
- CAPEX is quite volatile: 286 in 2015, 4.9 in 2014, 0 in 2013, 0 in 2012, 0 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jin Cai Holdings Co Ltd ($1250) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 179.5 | 183.3 | 171.8 | 166.4 | 234.2 | 40.8% |
| Gross Profit | 71.1 | 67.1 | 67.1 | 62.7 | 104.6 | 67.0% |
| SG&A | 17.3 | 13.0 | 19.6 | 24.1 | 66.5 | 175.8% |
| EBITDA | 64.2 | 60.8 | 44.8 | 45.9 | 46.3 | 0.9% |
| Net Income | 32.6 | 31.0 | 21.2 | 22.9 | 31.2 | 36.5% |
Balance Sheet
|
|---|
| Cash | 26.5 | 30.9 | 102.1 | 102.9 | 919.2 | 793.5% |
| Short Term Debt | 20.0 | 29.6 | 51.5 | 24.4 | 151.7 | 522.8% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 123.4 | |
Cash flow
|
|---|
| Capex | 0.0 | 0.0 | 0.0 | 4.9 | 286.4 | 5,726.1% |
Ratios
|
|---|
| Revenue growth | 10.4% | 2.1% | -6.3% | -3.1% | 40.8% | |
| EBITDA growth | -0.5% | -5.2% | -26.4% | 2.5% | 0.9% | |
| Gross Margin | 39.6% | 36.6% | 39.1% | 37.7% | 44.7% | 7.0% |
| EBITDA Margin | 35.7% | 33.2% | 26.1% | 27.6% | 19.8% | -7.8% |
| Net Income Margin | 18.2% | 16.9% | 12.4% | 13.7% | 13.3% | -0.4% |
| SG&A, % of revenue | 9.6% | 7.1% | 11.4% | 14.5% | 28.4% | 13.9% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 3.0% | 122.3% | 119.3% |
| ROIC | 38.7% | 35.3% | 18.4% | 15.4% | 3.4% | -12.0% |
| ROE | 34.2% | 28.6% | 13.5% | 11.3% | 3.3% | -8.1% |
| Net Debt/EBITDA | -0.1x | -0.0x | -1.1x | -1.7x | -13.9x | -12.2x |
Revenue and profitability
The company's Revenue jumped on 40.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.1 pp from -11.1% to -4.0% in 2015.
Gross Margin increased on 7.0 pp from 37.7% to 44.7% in 2015. SG&A as a % of Revenue surged on 13.9 pp from 14.5% to 28.4% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Jin Cai Holdings Co Ltd had CAPEX/Revenue of 122%. Jin Cai Holdings Co Ltd's CAPEX/Revenue jumped122 pp from 0% in 2012 to 122% in 2015.The company has spent a lot to CAPEX (619% of EBITDA) to secure its growth.
Return on investment
The company operates at low ROIC (3.43%) and ROE (3.25%). ROIC dropped on 12.0 pp from 15.4% to 3.4% in 2015. ROE decreased on 8.1 pp from 11.3% to 3.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -13.9x and Debt / EBITDA is 5.9x. Net Debt / EBITDA dropped on 12.2x from -1.7x to -13.9x in 2015. Debt jumped on 1,030% in 2015 while cash surged on 793% in 2015.
Appendix 1: Peers in Packaging&Containers
Below we provide Jin Cai Holdings Co 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 |
|---|
| Overseas Chinese Town Asia Holdings Ltd ($3366) | | 34.9% | 17.5% | -6.5% | 69.5% |
| Hao Tian Development Group Ltd ($474) | | 14.8% | | | 51.0% |
| Huaxi Holdings Co Ltd ($1689) | | 25.3% | 5.0% | -5.1% | 12.5% |
| Huajun Holdings Ltd ($377) | | 11.2% | 3.3% | 3.4% | 10.4% |
| Starlite Holdings Ltd ($403) | | -12.0% | 5.0% | 2.0% | 9.3% |
| |
|---|
| Median (16 companies) | 19.6% | 4.9% | 5.3% | 0.8% | 3.0% |
|---|
| Jin Cai Holdings Co Ltd ($1250) | | 2.1% | -6.3% | -3.1% | 40.8% |
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% |
| 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% |
| Greatview Aseptic Packaging Co Ltd ($468) | 30.2% | 31.6% | 26.8% | 24.4% | 27.8% |
| Come Sure Group Holdings Ltd ($794) | 17.7% | 17.5% | 20.7% | 22.3% | 22.4% |
| |
|---|
| Median (15 companies) | 18.5% | 19.0% | 19.8% | 21.7% | 20.3% |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 39.6% | 36.6% | 39.1% | 37.7% | 44.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | 7.8% | 14.5% | 21.2% | 27.1% | 29.1% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 25.5% | 27.9% | 30.7% | 27.4% | 26.3% |
| Greatview Aseptic Packaging Co Ltd ($468) | 24.1% | 25.9% | 23.1% | 21.6% | 23.4% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 19.3% | 14.6% | 17.2% | 18.7% | 21.6% |
| CPMC Holdings Ltd ($906) | 10.8% | 11.9% | 13.7% | 13.2% | 13.3% |
| |
|---|
| Median (16 companies) | 10.8% | 11.9% | 13.8% | 12.2% | 8.5% |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 35.7% | 33.2% | 26.1% | 27.6% | 19.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hao Tian Development Group Ltd ($474) | 88.2% | 81.6% | | 13.0% | 25.4% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 13.5% | 19.7% | 13.7% | 13.1% | 17.1% |
| CPMC Holdings Ltd ($906) | 13.7% | 16.7% | 19.7% | 8.6% | 9.2% |
| Huajun Holdings Ltd ($377) | 5.6% | 18.4% | 4.0% | 4.1% | 7.2% |
| Sino Haijing Holdings Ltd ($1106) | 4.9% | 9.7% | 7.1% | 4.1% | 6.7% |
| |
|---|
| Median (16 companies) | 5.6% | 6.9% | 5.0% | 4.1% | 5.4% |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 0.0% | 0.0% | 0.0% | 3.0% | 122.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | | 21.4% | 28.5% | 26.2% | 23.6% |
| Greatview Aseptic Packaging Co Ltd ($468) | 19.6% | 20.2% | 18.9% | 15.7% | 17.7% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 11.3% | 7.2% | 8.7% | 8.0% | 9.2% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 13.3% | 8.1% | 6.4% | 4.9% | 8.0% |
| Zhengye International Holdings Co Ltd ($3363) | 10.0% | 7.7% | 6.2% | 5.4% | 6.8% |
| |
|---|
| Median (16 companies) | 10.0% | 7.7% | 6.4% | 5.4% | 4.9% |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 38.7% | 35.3% | 18.4% | 15.4% | 3.4% |
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 | 5.5x |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 0.7x | 9.4x | 6.7x | 7.4x | 4.4x |
| Sino Haijing Holdings Ltd ($1106) | 4.7x | 6.4x | 6.1x | 6.2x | 10.1x |
| 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 |
| |
|---|
| Median (18 companies) | 0.9x | 1.2x | 0.9x | 0.7x | 3.0x |
|---|
| Jin Cai Holdings Co Ltd ($1250) | -0.1x | -0.0x | -1.1x | -1.7x | -13.9x |
