China Billion Resources Ltd reports 0.15% almost no change in revenue in 2015 and 0.60 pp EBITDA Margin growth from -19.8% to -19.2%
30/03/2016 • About China Billion Resources Ltd (
$274) • By InTwits
China Billion Resources Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Billion Resources Ltd doesn't have a profitable business model yet: 2015 ROIC is -6.9%
- The company operates at negative EBITDA Margin: -19.2%
- China Billion Resources Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -20.6%0
- The company has unprofitable business model: ROIC is at -6.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Billion Resources Ltd ($274) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 174.8 | 37.3 | 30.2 | 43.7 | 43.6 | -0.2% |
| Gross Profit | 35.4 | 26.6 | 14.2 | 32.1 | 34.7 | 8.3% |
| SG&A | 75.2 | 66.5 | 63.0 | 73.7 | 48.6 | -34.0% |
| EBITDA | | -30.4 | -20.5 | -8.7 | -8.4 | -3.2% |
| Net Income | -530.0 | -56.3 | -386.7 | -602.0 | -34.5 | -94.3% |
Balance Sheet
|
|---|
| Cash | 0.6 | 5.8 | 3.9 | 4.7 | 7.9 | 67.7% |
| Short Term Debt | 5.9 | 375.9 | 425.2 | 457.3 | 473.0 | 3.4% |
| Long Term Debt | 248.7 | 0.0 | 0.0 | 0.0 | 39.5 | |
Cash flow
|
|---|
| Capex | | 18.6 | 22.7 | 13.3 | 1.0 | -92.5% |
Ratios
|
|---|
| Revenue growth | -47.2% | -78.6% | -19.2% | 44.8% | -0.2% | |
| EBITDA growth | | | -32.6% | -57.8% | -3.2% | |
| Gross Margin | 20.3% | 71.4% | 47.2% | 73.4% | 79.7% | 6.2% |
| EBITDA Margin | 0.0% | -81.5% | -68.0% | -19.8% | -19.2% | 0.6% |
| Net Income Margin | -303.3% | -151.0% | -1,282.0% | -1,378.2% | -79.0% | 1,299.2% |
| SG&A, % of revenue | 43.0% | 178.2% | 209.0% | 168.7% | 111.5% | -57.1% |
| CAPEX, % of revenue | | 49.8% | 75.4% | 30.3% | 2.3% | -28.1% |
| ROIC | -2.8% | -2.2% | -2.5% | -5.5% | -6.9% | -1.4% |
| ROE | -29.7% | -5.2% | -72.8% | | | 0.0% |
Revenue and profitability
China Billion Resources Ltd's Revenue showed almost no change in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.60 pp from -19.8% to -19.2% in 2015.
Gross Margin increased on 6.2 pp from 73.4% to 79.7% in 2015. SG&A as a % of Revenue dropped on 57.1 pp from 169% to 112% in 2015.
Net Income marign surged on 1,299 pp from -1,378% to -79.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Billion Resources Ltd's CAPEX/Revenue was 2.3% in 2015. CAPEX/Revenue dropped on 47.6 pp from 49.8% in 2012 to 2.3% in 2015. It's average level of CAPEX/Revenue for the last three years was 36.0%.
Leverage (Debt)
Debt level is -88.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged on 12.1% in 2015 while cash surged on 67.7% in 2015.
Appendix 1: Peers in Mining
Below you can find China Billion Resources Ltd benchmarking vs. other companies in Mining 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 |
|---|
| Mongolia Energy Corp Ltd ($276) | | | 89.7% | -95.8% | 2,361.6% |
| REX Global Entertainment Holdings Ltd ($164) | | -12.3% | 81.6% | -15.5% | 96.4% |
| Hengxing Gold Holding Co Ltd ($2303) | | | | 3,467.3% | 78.0% |
| Zijin Mining Group Co Ltd ($2899) | | 21.6% | 2.5% | 18.1% | 26.9% |
| China Gold International Resources Corp Ltd ($2099) | | | -9.0% | -8.2% | 22.4% |
| |
|---|
| Median (40 companies) | 68.5% | 5.4% | 2.4% | -5.9% | -13.6% |
|---|
| China Billion Resources Ltd ($274) | | -78.6% | -19.2% | 44.8% | -0.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Prosper Group Holdings Ltd ($766) | -6.5% | 2.5% | 5.1% | 39.6% | 93.0% |
| REX Global Entertainment Holdings Ltd ($164) | 15.4% | -15.8% | -7.8% | -0.8% | 88.6% |
| Sun International Resources Ltd ($8029) | 77.6% | 83.2% | 73.1% | 64.8% | 69.4% |
| Timeless Software Ltd ($8028) | 19.2% | 17.7% | 48.5% | 29.4% | 42.1% |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 64.7% | 63.9% | 54.9% | 51.2% | 41.8% |
| |
|---|
| Median (41 companies) | 19.1% | 13.4% | 13.8% | 15.4% | 20.3% |
|---|
| China Billion Resources Ltd ($274) | 20.3% | 71.4% | 47.2% | 73.4% | 79.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | 58.3% |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | 51.3% |
| Timeless Software Ltd ($8028) | -70.8% | -113.1% | 24.7% | -13.7% | 46.1% |
| Hengxing Gold Holding Co Ltd ($2303) | | | -766.2% | 24.5% | 43.9% |
| Sino Prosper Group Holdings Ltd ($766) | -127.2% | -138.6% | -138.2% | -378.4% | 42.9% |
| |
|---|
| Median (41 companies) | 6.4% | 4.9% | 7.9% | 5.2% | 6.4% |
|---|
| China Billion Resources Ltd ($274) | | -81.5% | -68.0% | -19.8% | -19.2% |
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% |
| Kaz Minerals ($847) | 19.8% | 36.6% | 136.5% | 168.8% | 168.7% |
| Chinalco Mining Corp International ($3668) | | | | | 115.6% |
| China Dynamics Holdings Ltd ($476) | 1.6% | 1.8% | 0.0% | 1.0% | 113.8% |
| MMG Ltd ($1208) | 17.1% | 25.7% | 22.6% | 41.9% | 100.4% |
| |
|---|
| Median (41 companies) | 15.6% | 17.0% | 15.7% | 13.4% | 12.3% |
|---|
| China Billion Resources Ltd ($274) | | 49.8% | 75.4% | 30.3% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CGN Mining Co Ltd ($1164) | -6.4% | 2.6% | 3.3% | 7.9% | 16.7% |
| United Co RUSAL PLC ($486) | 7.5% | 0.3% | -9.0% | 6.3% | 12.3% |
| Timeless Software Ltd ($8028) | -18.0% | -29.1% | 7.3% | -4.6% | 11.6% |
| China Hongqiao Group Ltd ($1378) | 44.6% | 24.8% | 17.0% | 14.1% | 10.6% |
| Hengxing Gold Holding Co Ltd ($2303) | | -7.2% | -8.1% | 0.0% | 8.6% |
| |
|---|
| Median (42 companies) | 3.7% | 1.9% | 3.0% | 1.5% | 1.5% |
|---|
| China Billion Resources Ltd ($274) | -2.8% | -2.2% | -2.5% | -5.5% | -6.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinalco Mining Corp International ($3668) | | | | | 25.0x |
| MMG Ltd ($1208) | -0.0x | 2.1x | 2.0x | 10.2x | 20.2x |
| Kaz Minerals ($847) | 0.6x | 2.4x | 2.9x | 5.5x | 18.7x |
| Aluminum Corp of China Ltd ($2600) | 7.7x | 139.2x | 8.5x | | 18.0x |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 1.5x | 1.5x | 4.1x | 6.4x | 13.5x |
| |
|---|
| Median (28 companies) | 1.1x | 1.8x | 1.9x | 4.5x | 3.8x |
|---|
