China Precious Metal Resources Holdings Co Ltd Net Debt / EBITDA jumped on 7.1x from 6.4x to 13.5x in 2015 and Debt increased on 6.4%
30/03/2016 • About China Precious Metal Resources Holdings Co Ltd (
$1194) • By InTwits
China Precious Metal Resources Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Precious Metal Resources Holdings Co Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.6%
- EBITDA Margin is declining: 51.3% in 2015 vs. 59.6% in 2014 vs. 73.1% in 2011
- China Precious Metal Resources Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 75.0%. At the same time it's in pair with industry average of 67.4%.
- CAPEX is quite volatile: 53.7 in FY2015, 27.5 in FY2014, 26.2 in FY2013, 117 in FY2012, 32.0 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.6%
- It operates with high leverage: Net Debt/EBITDA is 13.5x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Precious Metal Resources Holdings Co Ltd ($1194) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,119 | 1,626 | 1,562 | 1,287 | 747 | -42.0% |
| Gross Profit | 725 | 1,039 | 857 | 660 | 312 | -52.7% |
| SG&A | 90 | 197 | 203 | 184 | 186 | 1.0% |
| EBITDA | 818 | 1,138 | 1,009 | 767 | 383 | -50.0% |
| Net Income | 417 | 445 | 181 | -184 | -138 | -25.2% |
Balance Sheet
|
|---|
| Cash | 87 | 100 | 522 | 31 | 88 | 180.0% |
| Short Term Debt | 259 | 547 | 1,954 | 1,627 | 3,699 | 127.3% |
| Long Term Debt | 1,050 | 1,295 | 2,670 | 3,310 | 1,553 | -53.1% |
Cash flow
|
|---|
| Capex | 650 | 1,091 | 1,274 | 1,059 | 640 | -39.5% |
Ratios
|
|---|
| Revenue growth | 565.6% | 45.3% | -3.9% | -17.6% | -42.0% | |
| EBITDA growth | 420.6% | 39.1% | -11.3% | -24.0% | -50.0% | |
| Gross Margin | 64.7% | 63.9% | 54.9% | 51.2% | 41.8% | -9.5% |
| EBITDA Margin | 73.1% | 70.0% | 64.6% | 59.6% | 51.3% | -8.3% |
| Net Income Margin | 37.3% | 27.4% | 11.6% | -14.3% | -18.4% | -4.1% |
| SG&A, % of revenue | 8.0% | 12.1% | 13.0% | 14.3% | 24.9% | 10.6% |
| CAPEX, % of revenue | 58.1% | 67.1% | 81.5% | 82.3% | 85.8% | 3.5% |
| ROIC | 13.0% | 12.5% | 6.8% | 4.3% | 1.6% | -2.7% |
| ROE | 12.7% | 9.7% | 3.1% | -3.1% | -2.4% | 0.8% |
| Net Debt/EBITDA | 1.5x | 1.5x | 4.1x | 6.4x | 13.5x | 7.1x |
Revenue and profitability
China Precious Metal Resources Holdings Co Ltd's Revenue dropped on 42.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.3 pp from 59.6% to 51.3% in 2015.
Gross Margin decreased on 9.5 pp from 51.2% to 41.8% in 2015. SG&A as a % of Revenue jumped on 10.6 pp from 14.3% to 24.9% in 2015.
Net Income marign decreased on 4.1 pp from -14.3% to -18.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 85.8% in 2015. China Precious Metal Resources Holdings Co Ltd showed fast CAPEX/Revenue growth of 18.7 pp from 67.1% in 2012 to 85.8% in 2015. For the last three years the average CAPEX/Revenue was 83.2%.Battling declining revenue the company made large investments to CAPEX (167% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (1.59%) and negative ROE (-2.36%). ROIC decreased on 2.7 pp from 4.3% to 1.6% in 2015. ROE increased slightly on 0.75 pp from -3.1% to -2.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 13.5x and Debt / EBITDA is 13.7x. Net Debt / EBITDA jumped on 7.1x from 6.4x to 13.5x in 2015. Debt increased on 6.4% in 2015 while cash jumped on 180% in 2015.
Appendix 1: Peers in Mining
Below we provide China Precious Metal Resources Holdings Co 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 |
|---|
| 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% | 5.0% | 2.4% | -5.1% | -13.0% |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | | 45.3% | -3.9% | -17.6% | -42.0% |
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% |
| China Billion Resources Ltd ($274) | 20.3% | 71.4% | 47.2% | 73.4% | 79.7% |
| 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% |
| |
|---|
| Median (41 companies) | 19.1% | 13.4% | 13.8% | 15.4% | 20.3% |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 64.7% | 63.9% | 54.9% | 51.2% | 41.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | 58.3% |
| 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% |
| Chinalco Mining Corp International ($3668) | | | | | 37.8% |
| |
|---|
| Median (41 companies) | 5.9% | 4.7% | 7.5% | 4.7% | 5.5% |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | 51.3% |
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) | 14.3% | 17.0% | 15.7% | 13.4% | 11.9% |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 58.1% | 67.1% | 81.5% | 82.3% | 85.8% |
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) | 2.9% | 0.9% | 2.7% | 0.0% | 1.1% |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 13.0% | 12.5% | 6.8% | 4.3% | 1.6% |
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 |
| Lingbao Gold Co Ltd ($3330) | 3.5x | 5.3x | | 8.3x | 12.7x |
| |
|---|
| Median (27 companies) | 0.9x | 2.1x | 1.9x | 4.4x | 3.4x |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 1.5x | 1.5x | 4.1x | 6.4x | 13.5x |
