Allied Cement Holdings Ltd reports 111% EBITDA decline and 9.6 pp EBITDA Margin decline from 8.1% to -1.4%
30/03/2016 • About Allied Cement Holdings Ltd (
$1312) • By InTwits
Allied Cement Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Allied Cement Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.2%
- EBITDA Margin is quite volatile: -1.4% in 2015, 8.1% in 2014, 7.8% in 2013, 4.2% in 2012, 12.2% in 2011
- Allied Cement Holdings 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 7.1%.
- CAPEX is quite volatile: 14.6 in 2015, 29.9 in 2014, 28.8 in 2013, 69.1 in 2012, 28.7 in 2011
- The company has unprofitable business model: ROIC is at -1.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Allied Cement Holdings Ltd ($1312) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 725.3 | 704.7 | 703.5 | 733.1 | 465.7 | -36.5% |
| Gross Profit | 111.8 | 58.8 | 70.6 | 70.1 | 24.2 | -65.5% |
| SG&A | | 42.4 | 46.7 | 53.6 | 66.5 | 24.1% |
| EBITDA | 88.1 | 29.4 | 54.8 | 59.5 | -6.7 | -111.3% |
| Net Income | 76.2 | 26.8 | 32.6 | 17.3 | -34.2 | -298.1% |
Balance Sheet
|
|---|
| Cash | 100.6 | 30.2 | 37.6 | 1,026.6 | 897.9 | -12.5% |
| Short Term Debt | 93.1 | 59.9 | 28.7 | 257.6 | 777.5 | 201.9% |
| Long Term Debt | 29.5 | 42.1 | 65.8 | 185.0 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 28.7 | 69.1 | 28.8 | 29.9 | 14.6 | -51.2% |
Ratios
|
|---|
| Revenue growth | 60.7% | -2.8% | -0.2% | 4.2% | -36.5% | |
| EBITDA growth | 84.1% | -66.6% | 86.4% | 8.6% | -111.3% | |
| Gross Margin | 15.4% | 8.3% | 10.0% | 9.6% | 5.2% | -4.4% |
| EBITDA Margin | 12.2% | 4.2% | 7.8% | 8.1% | -1.4% | -9.6% |
| Net Income Margin | 10.5% | 3.8% | 4.6% | 2.4% | -7.4% | -9.7% |
| SG&A, % of revenue | | 6.0% | 6.6% | 7.3% | 14.3% | 7.0% |
| CAPEX, % of revenue | 4.0% | 9.8% | 4.1% | 4.1% | 3.1% | -0.9% |
| ROIC | 6.1% | 0.6% | 2.2% | 2.0% | -1.2% | -3.2% |
| ROE | 18.6% | 4.1% | 4.3% | 1.7% | -2.7% | -4.4% |
| Net Debt/EBITDA | 0.2x | 2.4x | 1.0x | -9.8x | | 9.8x |
Revenue and profitability
The company's Revenue dropped on 36.5% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 9.6 pp from 8.1% to -1.4% in 2015.
Gross Margin decreased on 4.4 pp from 9.6% to 5.2% in 2015. SG&A as a % of Revenue increased on 7.0 pp from 7.3% to 14.3% in 2015.
Net Income marign decreased on 9.7 pp from 2.4% to -7.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
Allied Cement Holdings Ltd's CAPEX/Revenue was 3.1% in 2015. Allied Cement Holdings Ltd showed decline in CAPEX/Revenue of 6.7 pp from 9.8% in 2012 to 3.1% in 2015. Average CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at negative ROIC (-1.25%) and ROE (-2.75%). ROIC decreased on 3.2 pp from 2.0% to -1.2% in 2015. ROE decreased on 4.4 pp from 1.7% to -2.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is . Net Debt / EBITDA surged on 9.8x from -9.8x to in 2015. Debt surged on 75.7% in 2015 while cash dropped on 12.5% in 2015.
Appendix 1: Peers in Building Materials
Below you can find Allied Cement Holdings Ltd benchmarking vs. other companies in Building Materials 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 |
|---|
| Pacific Plywood Hldg Ltd ($767) | | -34.9% | -14.5% | 119.5% | 57.3% |
| Far East Global Group Ltd ($830) | | 52.9% | 9.5% | 18.6% | 30.5% |
| WLS Holdings Ltd/Hong Kong ($8021) | | 8.9% | 9.4% | -11.1% | 22.0% |
| China Wood Optimization Holding Ltd ($8099) | | 68.7% | 77.9% | 6.5% | 18.9% |
| China Lesso Group Holdings Ltd ($2128) | | 7.4% | 20.0% | 13.4% | 3.0% |
| |
|---|
| Median (22 companies) | 72.6% | -1.9% | 10.7% | 6.3% | -15.2% |
|---|
| Allied Cement Holdings Ltd ($1312) | | -2.8% | -0.2% | 4.2% | -36.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 95.0% | 91.4% | 82.0% | 97.2% | 98.6% |
| Sustainable Forest Holdings Ltd ($723) | 58.2% | -2.4% | 12.1% | 19.7% | 55.2% |
| Luks Group Vietnam Holdings Co Ltd ($366) | 37.6% | 37.2% | 36.9% | 37.0% | 36.4% |
| Anhui Conch Cement Co Ltd ($914) | 39.4% | 27.3% | 32.5% | 33.2% | 26.9% |
| China Lesso Group Holdings Ltd ($2128) | 24.2% | 24.3% | 25.0% | 25.6% | 25.8% |
| |
|---|
| Median (22 companies) | 26.5% | 21.8% | 22.6% | 21.2% | 17.7% |
|---|
| Allied Cement Holdings Ltd ($1312) | 15.4% | 8.3% | 10.0% | 9.6% | 5.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 53.6% | 12.6% | -19.8% | 50.5% | 34.7% |
| China Tianrui Group Cement Co Ltd ($1252) | 32.4% | 28.5% | 23.7% | 26.7% | 32.8% |
| Anhui Conch Cement Co Ltd ($914) | 38.8% | 27.1% | 31.1% | 32.1% | 29.7% |
| Luks Group Vietnam Holdings Co Ltd ($366) | 30.8% | 30.4% | 29.9% | 23.8% | 26.2% |
| West China Cement Ltd ($2233) | 36.4% | 30.0% | 28.5% | 25.5% | 23.5% |
| |
|---|
| Median (22 companies) | 22.0% | 16.3% | 18.2% | 18.6% | 15.1% |
|---|
| Allied Cement Holdings Ltd ($1312) | 12.2% | 4.2% | 7.8% | 8.1% | -1.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Wood Optimization Holding Ltd ($8099) | 59.7% | 10.9% | 9.6% | 1.8% | 19.3% |
| Luks Group Vietnam Holdings Co Ltd ($366) | 1.7% | 0.6% | 0.5% | 4.1% | 14.2% |
| China Glass Holdings Ltd ($3300) | 37.2% | 19.6% | 12.5% | 12.4% | 13.5% |
| WLS Holdings Ltd/Hong Kong ($8021) | 4.9% | 6.0% | 6.6% | 7.9% | 11.5% |
| China Resources Cement Holdings Ltd ($1313) | 32.7% | 14.5% | 11.4% | 10.8% | 11.1% |
| |
|---|
| Median (22 companies) | 8.2% | 10.0% | 8.9% | 6.5% | 7.2% |
|---|
| Allied Cement Holdings Ltd ($1312) | 4.0% | 9.8% | 4.1% | 4.1% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Wood Optimization Holding Ltd ($8099) | | 33.5% | 27.3% | 17.7% | 17.7% |
| China Lesso Group Holdings Ltd ($2128) | 26.8% | 20.5% | 19.4% | 18.2% | 17.2% |
| Anhui Conch Cement Co Ltd ($914) | 27.2% | 12.7% | 17.5% | 18.4% | 11.7% |
| China Singyes Solar Technologies Holdings Ltd ($750) | 21.1% | 18.6% | 19.9% | 16.0% | 8.1% |
| China Resources Cement Holdings Ltd ($1313) | 14.0% | 8.0% | 9.6% | 13.0% | 5.5% |
| |
|---|
| Median (22 companies) | 13.3% | 6.6% | 7.0% | 5.7% | 1.3% |
|---|
| Allied Cement Holdings Ltd ($1312) | 6.1% | 0.6% | 2.2% | 2.0% | -1.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sustainable Forest Holdings Ltd ($723) | 0.9x | | | 9.6x | |
| China National Building Material Co Ltd ($3323) | 3.9x | 6.7x | 6.8x | 6.3x | 8.5x |
| BBMG Corp ($2009) | 4.4x | 4.6x | 5.0x | 6.1x | 6.6x |
| China Tianrui Group Cement Co Ltd ($1252) | 3.0x | 4.2x | 5.1x | 5.2x | 7.9x |
| China Shanshui Cement Group Ltd ($691) | 1.8x | 3.0x | 4.1x | 4.8x | |
| |
|---|
| Median (20 companies) | 1.4x | 3.0x | 2.7x | 2.0x | 4.0x |
|---|
| Allied Cement Holdings Ltd ($1312) | 0.2x | 2.4x | 1.0x | -9.8x | |
