China LNG Group Ltd EBITDA Margin surged on 1,180 pp from 97.9% to 1,278% in 2015 while Revenue dropped on 91.4%
30/03/2016 • About China LNG Group Ltd (
$931) • By InTwits
China LNG Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 1,277.8% in 2015, 97.9% in 2014, 76.4% in 2013, 95.1% in 2012, 195.2% in 2011
- China LNG Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 580.5%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 4.8 in 2015, 2.0 in 2014, 0.081 in 2013, 2.4 in 2012, 79.1 in 2011
- The company has highly profitable business model: ROIC is at 56.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China LNG Group Ltd ($931) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2.8 | 21.9 | 24.8 | 357.9 | 30.8 | -91.4% |
| Gross Profit | -2.7 | | | | | |
| SG&A | 4.8 | 5.0 | 5.9 | 9.5 | 52.3 | 451.9% |
| EBITDA | 5.4 | 20.8 | 19.0 | 350.2 | 394.2 | 12.5% |
| Net Income | 6.2 | 20.1 | 20.6 | 293.7 | 401.1 | 36.5% |
Balance Sheet
|
|---|
| Cash | 91.6 | 167.2 | 170.2 | 246.2 | 170.0 | -30.9% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 79.1 | 2.4 | 0.1 | 2.0 | 4.8 | 140.0% |
Ratios
|
|---|
| Revenue growth | -84.5% | 694.8% | 13.6% | 1,341.3% | -91.4% | |
| EBITDA growth | 0.2% | 287.4% | -8.8% | 1,745.3% | 12.5% | |
| Gross Margin | -99.2% | | | | | 0.0% |
| EBITDA Margin | 195.2% | 95.1% | 76.4% | 97.9% | 1,277.8% | 1,180.0% |
| Net Income Margin | 223.7% | 91.8% | 83.0% | 82.1% | 1,300.2% | 1,218.1% |
| SG&A, % of revenue | 175.7% | 23.0% | 23.6% | 2.6% | 169.6% | 167.0% |
| CAPEX, % of revenue | 2,875.2% | 11.1% | 0.3% | 0.6% | 15.6% | 15.0% |
| ROIC | 2.2% | 8.4% | 7.4% | 87.0% | 56.2% | -30.8% |
| ROE | 2.6% | 8.2% | 8.1% | 78.6% | 59.8% | -18.8% |
| Net Debt/EBITDA | -17.1x | -8.0x | -9.0x | -0.7x | -0.4x | 0.3x |
Revenue and profitability
The company's Revenue dropped on 91.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 1,180 pp from 97.9% to 1,278% in 2015.
SG&A as a % of Revenue jumped on 167 pp from 2.6% to 170% in 2015.
Net Income marign jumped on 1,218 pp from 82.1% to 1,300% in 2015.
Capital expenditures (CAPEX) and working capital investments
China LNG Group Ltd's CAPEX/Revenue was 15.6% in 2015. CAPEX/Revenue increased on 4.5 pp from 11.1% in 2012 to 15.6% in 2015. It's average CAPEX/Revenue for the last three years was 5.5%.
Return on investment
The company operates at high and attractive ROIC (56.22%) and ROE (59.85%). ROIC dropped on 30.8 pp from 87.0% to 56.2% in 2015. ROE dropped on 18.8 pp from 78.6% to 59.8% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 30.9% in 2015.
Appendix 1: Peers in Distribution/Wholesale
Below you can find China LNG Group Ltd benchmarking vs. other companies in Distribution/Wholesale 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 |
|---|
| C Y Foundation Group Ltd ($1182) | | 8.3% | -65.6% | 5.9% | 214.6% |
| Hailiang International Holdings Ltd ($2336) | | 9.7% | -30.8% | -69.1% | 99.7% |
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | 72.0% |
| Yestar International Holdings Co Ltd ($2393) | | -2.2% | 22.8% | 30.5% | 60.3% |
| Goldin Financial Holdings Ltd ($530) | | -39.4% | 63.5% | 60.3% | 42.9% |
| |
|---|
| Median (33 companies) | 24.2% | 2.6% | 0.0% | 0.8% | -0.5% |
|---|
| China LNG Group Ltd ($931) | | 694.8% | 13.6% | 1,341.3% | -91.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 32.6% | 79.6% | 66.3% | | 98.7% |
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | 60.0% |
| E.Bon Holdings Ltd ($599) | 36.6% | 40.3% | 37.4% | 35.8% | 39.6% |
| |
|---|
| Median (32 companies) | 16.4% | 17.4% | 17.8% | 18.7% | 21.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -649.6% | -1,064.4% | -252.1% | | 62.8% |
| Goldlion Holdings Ltd ($533) | 27.8% | 25.8% | 23.4% | 22.5% | 22.8% |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | 20.3% |
| E.Bon Holdings Ltd ($599) | 6.0% | 9.0% | 8.7% | 5.5% | 15.1% |
| |
|---|
| Median (34 companies) | 2.2% | 2.1% | 1.9% | 4.5% | 4.3% |
|---|
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | 1,277.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | 49.8% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | 25.6% |
| YGM Trading Ltd ($375) | 2.0% | 1.8% | 2.1% | 3.5% | 14.5% |
| Victory Group Ltd ($1139) | | 0.7% | 0.1% | 6.1% | 12.6% |
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| |
|---|
| Median (33 companies) | 1.3% | 1.3% | 1.8% | 1.7% | 1.2% |
|---|
| China LNG Group Ltd ($931) | 2,875.2% | 11.1% | 0.3% | 0.6% | 15.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | 27.1% |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | 25.4% |
| E.Bon Holdings Ltd ($599) | 4.4% | 7.0% | 7.2% | 3.3% | 16.9% |
| Goldin Financial Holdings Ltd ($530) | -10.1% | 5.9% | 20.6% | 10.4% | 16.0% |
| Li & Fung Ltd ($494) | 16.2% | 13.0% | 11.8% | 12.3% | 13.1% |
| |
|---|
| Median (35 companies) | 2.9% | 2.1% | 0.9% | 3.1% | 2.6% |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | 56.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | 16.8x |
| Leeport Holdings Ltd ($387) | 3.1x | | | | 16.1x |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | 15.4x |
| Forefront Group Ltd ($885) | | | | -0.0x | 15.3x |
| |
|---|
| Median (25 companies) | -0.2x | -0.1x | -0.5x | 0.3x | 0.3x |
|---|
| China LNG Group Ltd ($931) | -17.1x | -8.0x | -9.0x | -0.7x | -0.4x |
