China Glass Holdings Ltd EBITDA dropped on 133% in 2015 and EBITDA Margin dropped on 17.2 pp from 12.1% to -5.0%
30/03/2016 • About China Glass Holdings Ltd (
$3300) • By InTwits
China Glass Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Glass Holdings Ltd is a company in decline: 2015 revenue growth was -20.9%, 5 years revenue CAGR was -9.0%
- EBITDA Margin is quite volatile: -5.0% in 2015, 12.1% in 2014, 17.2% in 2013, 6.2% in 2012, 14.1% in 2011
- China Glass Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.0%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 265 in 2015, 310 in 2014, 344 in 2013, 499 in 2012, 1,096 in 2011
- The company has unprofitable business model: ROIC is at -8.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Glass Holdings Ltd ($3300) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,946 | 2,550 | 2,760 | 2,489 | 1,969 | -20.9% |
| Gross Profit | 442 | 210 | 537 | 372 | 78 | -79.0% |
| SG&A | | 345 | 336 | 369 | 470 | 27.3% |
| EBITDA | 415 | 158 | 473 | 302 | -99 | -132.8% |
| Net Income | 182 | -174 | 82 | 2 | -426 | -23,696.5% |
Balance Sheet
|
|---|
| Cash | 536 | 317 | 422 | 762 | 705 | -7.5% |
| Short Term Debt | 1,327 | 1,616 | 1,512 | 1,431 | 1,160 | -19.0% |
| Long Term Debt | 435 | 262 | 276 | 749 | 613 | -18.2% |
Cash flow
|
|---|
| Capex | 1,096 | 499 | 344 | 310 | 265 | -14.5% |
Ratios
|
|---|
| Revenue growth | -6.6% | -13.4% | 8.2% | -9.8% | -20.9% | |
| EBITDA growth | -50.7% | -62.0% | 200.0% | -36.1% | -132.8% | |
| Gross Margin | 15.0% | 8.2% | 19.5% | 15.0% | 4.0% | -11.0% |
| EBITDA Margin | 14.1% | 6.2% | 17.2% | 12.1% | -5.0% | -17.2% |
| Net Income Margin | 6.2% | -6.8% | 3.0% | 0.1% | -21.7% | -21.7% |
| SG&A, % of revenue | | 13.5% | 12.2% | 14.8% | 23.9% | 9.0% |
| CAPEX, % of revenue | 37.2% | 19.6% | 12.5% | 12.4% | 13.5% | 1.0% |
| ROIC | 4.4% | -2.1% | 5.1% | 0.6% | -8.6% | -9.2% |
| ROE | 9.8% | -8.0% | 3.9% | 0.1% | -20.0% | -20.1% |
| Net Debt/EBITDA | 3.0x | 9.9x | 2.9x | 4.7x | | -4.7x |
Revenue and profitability
China Glass Holdings Ltd's Revenue dropped on 20.9% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 17.2 pp from 12.1% to -5.0% in 2015.
Gross Margin dropped on 11.0 pp from 15.0% to 4.0% in 2015. SG&A as a % of Revenue increased on 9.0 pp from 14.8% to 23.9% in 2015.
Net Income marign dropped on 21.7 pp from 0.073% to -21.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Glass Holdings Ltd's CAPEX/Revenue was 13.5% in 2015. CAPEX/Revenue decreased on 6.1 pp from 19.6% in 2012 to 13.5% in 2015. Average CAPEX/Revenue for the last three years was 12.8%.
Return on investment
The company operates at negative ROIC (-8.62%) and ROE (-20.04%). ROIC decreased on 9.2 pp from 0.57% to -8.6% in 2015. ROE dropped on 20.1 pp from 0.081% to -20.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is . Net Debt / EBITDA dropped on 4.7x from 4.7x to in 2015. Debt dropped on 18.7% in 2015 while cash decreased on 7.5% in 2015.
Appendix 1: Peers in Building Materials
Below you can find China Glass 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% | -1.3% | 10.7% | 6.3% | -15.2% |
|---|
| China Glass Holdings Ltd ($3300) | | -13.4% | 8.2% | -9.8% | -20.9% |
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% |
|---|
| China Glass Holdings Ltd ($3300) | 15.0% | 8.2% | 19.5% | 15.0% | 4.0% |
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% | 17.9% | 18.6% | 15.1% |
|---|
| China Glass Holdings Ltd ($3300) | 14.1% | 6.2% | 17.2% | 12.1% | -5.0% |
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% |
| 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% |
| China Singyes Solar Technologies Holdings Ltd ($750) | 40.4% | 11.9% | 32.1% | 23.6% | 10.9% |
| |
|---|
| Median (22 companies) | 6.3% | 9.7% | 8.3% | 5.4% | 6.5% |
|---|
| China Glass Holdings Ltd ($3300) | 37.2% | 19.6% | 12.5% | 12.4% | 13.5% |
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% |
|---|
| China Glass Holdings Ltd ($3300) | 4.4% | -2.1% | 5.1% | 0.6% | -8.6% |
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) | 0.9x | 2.4x | 1.1x | 1.9x | 4.0x |
|---|
| China Glass Holdings Ltd ($3300) | 3.0x | 9.9x | 2.9x | 4.7x | |
