Xingye Copper International Group Ltd CAPEX dropped on 41.5% in 2015 and Revenue dropped on 12.7%
29/03/2016 • About Xingye Copper International Group Ltd (
$505) • By InTwits
Xingye Copper International Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Xingye Copper International Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.0%. At the same time it's in pair with industry average of 7.9%.
- CAPEX is quite volatile: 177 in 2015, 302 in 2014, 131 in 2013, 126 in 2012, 91.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.9%
- It operates with high leverage: Net Debt/EBITDA is 4.1x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Xingye Copper International Group Ltd ($505) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,509 | 3,229 | 3,604 | 3,371 | 2,943 | -12.7% |
| Gross Profit | 181 | 148 | 217 | 269 | 258 | -4.1% |
| SG&A | 101 | 99 | 196 | 196 | 204 | 4.3% |
| EBITDA | 160 | 129 | 98 | 149 | 150 | 0.3% |
| Net Income | 90 | 32 | 9 | 19 | 19 | 0.5% |
Balance Sheet
|
|---|
| Cash | 240 | 88 | 57 | 123 | 210 | 70.6% |
| Short Term Debt | 844 | 766 | 776 | 841 | 488 | -42.0% |
| Long Term Debt | 0 | 1 | 19 | 285 | 337 | 18.3% |
Cash flow
|
|---|
| Capex | 91 | 126 | 131 | 302 | 177 | -41.5% |
Ratios
|
|---|
| Revenue growth | 21.2% | -8.0% | 11.6% | -6.5% | -12.7% | |
| EBITDA growth | -40.3% | -19.2% | -24.1% | 52.2% | 0.3% | |
| Gross Margin | 5.1% | 4.6% | 6.0% | 8.0% | 8.8% | 0.8% |
| EBITDA Margin | 4.5% | 4.0% | 2.7% | 4.4% | 5.1% | 0.7% |
| Net Income Margin | 2.6% | 1.0% | 0.2% | 0.6% | 0.6% | 0.1% |
| SG&A, % of revenue | 2.9% | 3.1% | 5.5% | 5.8% | 6.9% | 1.1% |
| CAPEX, % of revenue | 2.6% | 3.9% | 3.6% | 8.9% | 6.0% | -2.9% |
| ROIC | 7.2% | 5.4% | 3.0% | 5.0% | 4.9% | -0.1% |
| ROE | 13.6% | 4.8% | 1.3% | 2.8% | 2.6% | -0.2% |
| Net Debt/EBITDA | 3.8x | 5.3x | 7.5x | 6.7x | 4.1x | -2.6x |
Revenue and profitability
Xingye Copper International Group Ltd's Revenue dropped on 12.7% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.66 pp from 4.4% to 5.1% in 2015.
Gross Margin increased slightly on 0.79 pp from 8.0% to 8.8% in 2015. SG&A as a % of Revenue increased slightly on 1.1 pp from 5.8% to 6.9% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.0% in 2015. The company's CAPEX/Revenue increased on 2.1 pp from 3.9% in 2012 to 6.0% in 2015. It's average CAPEX/Revenue for the last three years was 6.2%.The company has spent a lot to CAPEX (118% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (4.88%) and ROE (2.58%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 4.1x Net Debt / EBITDA and 5.5x Debt / EBITDA. Net Debt / EBITDA dropped on 2.6x from 6.7x to 4.1x in 2015. Debt dropped on 26.8% in 2015 while cash surged on 70.6% in 2015.
Appendix 1: Peers in Mining
Below we provide Xingye Copper International Group Ltd benchmarking against other companies in Mining 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 |
|---|
| Hengxing Gold Holding Co Ltd ($2303) | | | | 3,467.3% | 78.0% |
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 24.0% | 4.8% | -44.7% | 303.0% | |
| Huili Resources Group Ltd ($1303) | | -33.6% | -91.6% | 219.4% | -8.8% |
| North Mining Shares Co Ltd ($433) | | -5.5% | -57.1% | 187.0% | -45.9% |
| China Kingstone Mining Holdings Ltd ($1380) | 4,275.3% | -94.5% | -55.6% | 155.2% | |
| |
|---|
| Median (48 companies) | 61.5% | 5.4% | 0.6% | -5.1% | -8.1% |
|---|
| Xingye Copper International Group Ltd ($505) | | -8.0% | 11.6% | -6.5% | -12.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Billion Resources Ltd ($274) | 20.3% | 71.4% | 47.2% | 73.4% | |
| Sun International Resources Ltd ($8029) | 77.6% | 83.2% | 73.1% | 64.8% | 69.4% |
| China Polymetallic Mining Ltd ($2133) | 76.9% | 81.8% | 74.2% | 51.8% | 38.9% |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 64.7% | 63.9% | 54.9% | 51.2% | |
| Hengshi Mining Investments Ltd ($1370) | 54.6% | 32.4% | 55.3% | 50.1% | |
| |
|---|
| Median (48 companies) | 19.2% | 14.4% | 14.4% | 15.5% | 19.4% |
|---|
| Xingye Copper International Group Ltd ($505) | 5.1% | 4.6% | 6.0% | 8.0% | 8.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | |
| China Polymetallic Mining Ltd ($2133) | -322.0% | 62.8% | 58.5% | 54.1% | 2.8% |
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | 58.3% |
| China Gold International Resources Corp Ltd ($2099) | | 41.7% | 38.3% | 47.3% | 33.7% |
| Hengshi Mining Investments Ltd ($1370) | 45.7% | 22.8% | 52.0% | 45.4% | |
| |
|---|
| Median (48 companies) | 7.0% | 4.9% | 7.9% | 5.2% | 12.4% |
|---|
| Xingye Copper International Group Ltd ($505) | 4.5% | 4.0% | 2.7% | 4.4% | 5.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% |
| Huili Resources Group Ltd ($1303) | 3.9% | 181.0% | 1,508.6% | 279.5% | 42.5% |
| Kaz Minerals ($847) | 19.8% | 36.6% | 136.5% | 168.8% | 168.7% |
| China Gold International Resources Corp Ltd ($2099) | | 64.7% | 156.1% | 95.6% | 81.4% |
| IRC Ltd ($1029) | 129.7% | 102.1% | 70.6% | 82.5% | |
| |
|---|
| Median (48 companies) | 16.3% | 17.4% | 16.8% | 15.8% | 12.4% |
|---|
| Xingye Copper International Group Ltd ($505) | 2.6% | 3.9% | 3.6% | 8.9% | 6.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Silver Group Ltd ($815) | 48.0% | 57.6% | 31.6% | 35.8% | |
| Hengshi Mining Investments Ltd ($1370) | 153.0% | 50.1% | 60.1% | 20.7% | |
| China Hongqiao Group Ltd ($1378) | 44.6% | 24.8% | 17.0% | 14.1% | 10.6% |
| China Nonferrous Mining Corp Ltd ($1258) | 10.9% | 14.7% | 10.8% | 11.8% | 3.5% |
| Xingfa Aluminium Holdings Ltd ($98) | 3.8% | 7.6% | 8.8% | 11.7% | |
| |
|---|
| Median (49 companies) | 2.9% | 0.9% | 2.7% | 0.0% | 1.5% |
|---|
| Xingye Copper International Group Ltd ($505) | 7.2% | 5.4% | 3.0% | 5.0% | 4.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hengxing Gold Holding Co Ltd ($2303) | | | | 10.5x | 2.2x |
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 0.9x | 8.4x | 39.4x | 10.3x | |
| MMG Ltd ($1208) | -0.0x | 2.1x | 2.0x | 10.2x | 20.2x |
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 5.8x | 9.2x | 9.7x | 9.2x | |
| Midas Holdings Ltd ($1021) | 1.4x | 4.3x | 6.5x | 8.7x | 8.0x |
| |
|---|
| Median (27 companies) | 0.9x | 1.5x | 1.9x | 4.4x | 3.4x |
|---|
| Xingye Copper International Group Ltd ($505) | 3.8x | 5.3x | 7.5x | 6.7x | 4.1x |
