China Putian Food Holdings Ltd reports 113% Net Income decline while 5.7% Revenue growth
30/03/2016 • About China Putian Food Holdings Ltd (
$1699) • By InTwits
China Putian Food Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Putian Food Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.4%. At the same time it's a lot of higher than industry average of 10.1%.
- CAPEX is quite volatile: 110 in 2015, 56.2 in 2014, 168 in 2013, 109 in 2012, 29.8 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 5.2x while industry average is 5.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Putian Food Holdings Ltd ($1699) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 519.3 | 580.2 | 626.1 | 624.0 | 659.9 | 5.7% |
| Gross Profit | 122.0 | 149.9 | 161.9 | 143.7 | 129.2 | -10.1% |
| SG&A | | 46.5 | 47.5 | 60.4 | 72.9 | 20.7% |
| EBITDA | 104.0 | 116.9 | 129.9 | 100.3 | 60.9 | -39.3% |
| Net Income | 90.0 | 105.1 | 106.4 | 60.4 | -8.1 | -113.4% |
Balance Sheet
|
|---|
| Cash | 13.4 | 110.9 | 7.2 | 79.9 | 3.9 | -95.1% |
| Short Term Debt | 70.0 | 118.0 | 150.0 | 150.0 | 162.7 | 8.5% |
| Long Term Debt | 1.5 | 0.0 | 0.0 | 130.0 | 155.5 | 19.7% |
Cash flow
|
|---|
| Capex | 29.8 | 108.9 | 167.5 | 56.2 | 110.0 | 95.7% |
Ratios
|
|---|
| Revenue growth | 16.9% | 11.7% | 7.9% | -0.3% | 5.7% | |
| EBITDA growth | 46.7% | 12.4% | 11.1% | -22.8% | -39.3% | |
| Gross Margin | 23.5% | 25.8% | 25.9% | 23.0% | 19.6% | -3.5% |
| EBITDA Margin | 20.0% | 20.1% | 20.7% | 16.1% | 9.2% | -6.9% |
| Net Income Margin | 17.3% | 18.1% | 17.0% | 9.7% | -1.2% | -10.9% |
| SG&A, % of revenue | | 8.0% | 7.6% | 9.7% | 11.0% | 1.4% |
| CAPEX, % of revenue | 5.7% | 18.8% | 26.8% | 9.0% | 16.7% | 7.7% |
| ROIC | 39.3% | 27.8% | 20.4% | 11.4% | 5.0% | -6.4% |
| ROE | 51.8% | 36.9% | 24.6% | 11.4% | -1.4% | -12.8% |
| Net Debt/EBITDA | 0.6x | 0.1x | 1.1x | 2.0x | 5.2x | 3.2x |
Revenue and profitability
The company's Revenue increased on 5.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 14.5% to 16.7% in 2015.
Gross Margin decreased on 3.5 pp from 23.0% to 19.6% in 2015. SG&A as a % of Revenue increased slightly on 1.4 pp from 9.7% to 11.0% in 2015.
Net Income marign dropped on 10.9 pp from 9.7% to -1.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 16.7% in 2015. The company's CAPEX/Revenue decreased on 2.1 pp from 18.8% in 2012 to 16.7% in 2015. It's average CAPEX/Revenue for the last three years was 17.5%.The company maintained rich investment policy and has spent a lot to CAPEX (181% of EBITDA).
Return on investment
The company operates at low but positive ROIC (4.98%) and negative ROE (-1.38%). ROIC decreased on 6.4 pp from 11.4% to 5.0% in 2015. ROE dropped on 12.8 pp from 11.4% to -1.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.2x and Debt / EBITDA is 5.2x. Net Debt / EBITDA surged on 3.2x from 2.0x to 5.2x in 2015. Debt jumped on 13.7% in 2015 while cash dropped on 95.1% in 2015.
Appendix 1: Peers in Agriculture
Below we provide China Putian Food Holdings Ltd benchmarking against other companies in Agriculture 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cypress Jade Agricultural Holdings Ltd ($875) | | 1,594.6% | 0.2% | -61.3% | -2.5% |
| CP Pokphand Co Ltd ($43) | | 36.9% | 9.2% | 1.7% | -6.9% |
| Chaoda Modern Agriculture Holdings Ltd ($682) | | -60.8% | -27.8% | -36.0% | -9.8% |
| China Agri-Industries Holdings Ltd ($606) | | 10.9% | 3.5% | -1.4% | -11.5% |
| |
|---|
| Median (4 companies) | | 23.9% | 1.9% | -18.7% | -8.3% |
|---|
| China Putian Food Holdings Ltd ($1699) | | 11.7% | 7.9% | -0.3% | 5.7% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CP Pokphand Co Ltd ($43) | 15.3% | 13.6% | 12.7% | 15.5% | 17.6% |
| China Agri-Industries Holdings Ltd ($606) | 8.2% | 6.4% | 6.0% | 4.6% | 5.2% |
| Cypress Jade Agricultural Holdings Ltd ($875) | 2.6% | 32.8% | 30.6% | -19.2% | 3.4% |
| Chaoda Modern Agriculture Holdings Ltd ($682) | 61.8% | -7.8% | -6.2% | -18.6% | -29.1% |
| |
|---|
| Median (4 companies) | 11.8% | 10.0% | 9.4% | -7.0% | 4.3% |
|---|
| China Putian Food Holdings Ltd ($1699) | 23.5% | 25.8% | 25.9% | 23.0% | 19.6% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cypress Jade Agricultural Holdings Ltd ($875) | -76.7% | 1.9% | -5.7% | -68.5% | 13.2% |
| CP Pokphand Co Ltd ($43) | 8.3% | 7.6% | 6.1% | 8.0% | 9.9% |
| China Agri-Industries Holdings Ltd ($606) | 5.3% | 3.7% | 2.7% | 1.7% | 3.1% |
| Chaoda Modern Agriculture Holdings Ltd ($682) | 46.8% | -130.5% | -101.7% | -79.4% | -458.9% |
| |
|---|
| Median (4 companies) | 6.8% | 2.8% | -1.5% | -33.4% | 6.5% |
|---|
| China Putian Food Holdings Ltd ($1699) | 20.0% | 20.1% | 20.7% | 16.1% | 9.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cypress Jade Agricultural Holdings Ltd ($875) | 0.0% | 17.7% | 16.2% | 14.6% | 13.1% |
| Chaoda Modern Agriculture Holdings Ltd ($682) | 55.4% | 52.1% | 10.9% | 19.2% | 12.4% |
| CP Pokphand Co Ltd ($43) | 2.3% | 3.6% | 5.2% | 5.9% | 6.5% |
| China Agri-Industries Holdings Ltd ($606) | 7.4% | 5.4% | 3.5% | 2.0% | 1.9% |
| |
|---|
| Median (4 companies) | 4.9% | 11.5% | 8.1% | 10.2% | 9.5% |
|---|
| China Putian Food Holdings Ltd ($1699) | 5.7% | 18.8% | 26.8% | 9.0% | 16.7% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CP Pokphand Co Ltd ($43) | 22.3% | 19.7% | 13.5% | 15.2% | 16.7% |
| China Agri-Industries Holdings Ltd ($606) | 6.5% | 3.5% | 1.8% | -0.1% | 1.3% |
| Cypress Jade Agricultural Holdings Ltd ($875) | | -15.4% | -17.7% | -52.2% | -0.1% |
| Chaoda Modern Agriculture Holdings Ltd ($682) | 12.8% | -20.2% | -16.8% | -11.6% | -56.2% |
| |
|---|
| Median (4 companies) | 12.8% | -5.9% | -7.5% | -5.8% | 0.6% |
|---|
| China Putian Food Holdings Ltd ($1699) | 39.3% | 27.8% | 20.4% | 11.4% | 5.0% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Agri-Industries Holdings Ltd ($606) | 5.4x | 6.7x | 7.6x | 13.8x | 8.8x |
| Cypress Jade Agricultural Holdings Ltd ($875) | | 1.3x | | | 6.2x |
| CP Pokphand Co Ltd ($43) | 1.2x | 1.0x | 1.8x | 1.9x | 1.6x |
| |
|---|
| Median (3 companies) | 1.2x | 1.3x | 4.7x | 7.8x | 6.2x |
|---|
| China Putian Food Holdings Ltd ($1699) | 0.6x | 0.1x | 1.1x | 2.0x | 5.2x |
