China Yurun Food Group Ltd EBITDA dropped on 355% in 2015 and EBITDA Margin dropped on 13.9 pp from 4.1% to -9.8%
30/03/2016 • About China Yurun Food Group Ltd (
$1068) • By InTwits
China Yurun Food Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Yurun Food Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -11.5%
- EBITDA Margin is quite volatile: -9.8% in 2015, 4.1% in 2014, 4.1% in 2013, 0.4% in 2012, 7.3% in 2011
- China Yurun Food Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.6%. At the same time it's in pair with industry average of 45.0%.
- CAPEX is quite volatile: 348 in 2015, 700 in 2014, 1,752 in 2013, 2,421 in 2012, 4,957 in 2011
- The company has unprofitable business model: ROIC is at -11.5%
- It operates with high leverage: Net Debt/EBITDA is 3.8x while industry average is -1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Yurun Food Group Ltd ($1068) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 32,315 | 26,782 | 21,440 | 19,158 | 20,165 | 5.3% |
| Gross Profit | 2,785 | 398 | 766 | 987 | 642 | -35.0% |
| SG&A | 1,546 | 1,764 | 1,707 | 1,703 | 2,992 | 75.7% |
| EBITDA | 2,345 | 110 | 873 | 780 | -1,985 | -354.7% |
| Net Income | 1,799 | -605 | 44 | 57 | -2,976 | -5,342.6% |
Balance Sheet
|
|---|
| Cash | 5,160 | 2,815 | 2,478 | 891 | 411 | -53.9% |
| Short Term Debt | 5,142 | 3,618 | 3,416 | 5,464 | 6,564 | 20.1% |
| Long Term Debt | 962 | 3,659 | 5,081 | 2,793 | 894 | -68.0% |
Cash flow
|
|---|
| Capex | 4,957 | 2,421 | 1,752 | 700 | 348 | -50.3% |
Ratios
|
|---|
| Revenue growth | 50.5% | -17.1% | -19.9% | -10.6% | 5.3% | |
| EBITDA growth | -27.9% | -95.3% | 695.6% | -10.7% | -354.7% | |
| Gross Margin | 8.6% | 1.5% | 3.6% | 5.1% | 3.2% | -2.0% |
| EBITDA Margin | 7.3% | 0.4% | 4.1% | 4.1% | -9.8% | -13.9% |
| Net Income Margin | 5.6% | -2.3% | 0.2% | 0.3% | -14.8% | -15.1% |
| SG&A, % of revenue | 4.8% | 6.6% | 8.0% | 8.9% | 14.8% | 5.9% |
| CAPEX, % of revenue | 15.3% | 9.0% | 8.2% | 3.7% | 1.7% | -1.9% |
| ROIC | 9.5% | -1.9% | 1.1% | 0.7% | -11.5% | -12.2% |
| ROE | 11.8% | -3.8% | 0.3% | 0.4% | -21.1% | -21.5% |
| Net Debt/EBITDA | 0.4x | 40.7x | 6.9x | 9.4x | | -9.4x |
Revenue and profitability
China Yurun Food Group Ltd's Revenue increased on 5.3% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 11.3 pp from 42.3% to 53.6% in 2015.
Gross Margin decreased slightly on 2.0 pp from 5.1% to 3.2% in 2015. SG&A as a % of Revenue increased on 5.9 pp from 8.9% to 14.8% in 2015.
Net Income marign dropped on 15.1 pp from 0.30% to -14.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.7% in 2015. China Yurun Food Group Ltd showed decline in CAPEX/Revenue of 7.3 pp from 9.0% in 2012 to 1.7% in 2015. Average CAPEX/Revenue for the last three years was 4.5%.
Return on investment
The company operates at negative ROIC (-11.48%) and ROE (-21.13%). ROIC dropped on 12.2 pp from 0.68% to -11.5% in 2015. ROE dropped on 21.5 pp from 0.36% to -21.1% in 2015.
Leverage (Debt)
Debt level is 3.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 9.4x from 9.4x to in 2015. Debt decreased on 9.7% in 2015 while cash dropped on 53.9% in 2015.
Management team
The company's CEO is Li Shibao. Li Shibao has 6 years tenure at the company.
Appendix 1: Peers in Food
Below we provide China Yurun Food Group Ltd benchmarking against other companies in Food 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 |
|---|
| Imperial Pacific International Holdings Ltd ($1076) | | -27.6% | -18.5% | 2.7% | 70.3% |
| China Shengmu Organic Milk Ltd ($1432) | | 80.0% | 63.2% | 86.4% | 45.4% |
| Chinese Food and Beverage Group ($8272) | | 207.7% | 149.2% | 26.8% | 31.6% |
| Huisheng International Holdings Ltd ($1340) | | -2.4% | 5.6% | 8.7% | 25.9% |
| Honworld Group Ltd ($2226) | | 207.9% | 57.3% | 26.0% | 19.5% |
| |
|---|
| Median (37 companies) | 15.8% | 10.2% | 8.7% | 4.9% | -2.3% |
|---|
| China Yurun Food Group Ltd ($1068) | | -17.1% | -19.9% | -10.6% | 5.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hung Fook Tong Group Holdings Ltd ($1446) | 57.0% | 60.7% | 60.0% | 58.7% | 60.7% |
| Honworld Group Ltd ($2226) | 42.2% | 57.2% | 59.0% | 57.8% | 56.4% |
| Yashili International Holdings Ltd ($1230) | 52.0% | 53.7% | 53.5% | 51.2% | 50.8% |
| Natural Dairy NZ Holdings Ltd ($462) | 16.3% | -13.7% | 27.5% | 48.8% | 49.6% |
| China Shengmu Organic Milk Ltd ($1432) | 29.4% | 33.4% | 42.9% | 50.2% | 47.7% |
| |
|---|
| Median (36 companies) | 18.5% | 17.2% | 19.9% | 20.1% | 26.0% |
|---|
| China Yurun Food Group Ltd ($1068) | 8.6% | 1.5% | 3.6% | 5.1% | 3.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenguan Holdings Group Ltd ($829) | 57.2% | 58.7% | 59.2% | 54.5% | 43.6% |
| Honworld Group Ltd ($2226) | 28.4% | 44.4% | 42.1% | 42.0% | 42.9% |
| China Shengmu Organic Milk Ltd ($1432) | 58.7% | 31.5% | 38.3% | 47.1% | 41.9% |
| China Huishan Dairy Holdings Co Ltd ($6863) | 109.2% | 45.1% | 47.9% | 47.1% | 37.2% |
| YuanShengTai Dairy Farm Ltd ($1431) | 147.8% | 40.3% | 48.4% | 47.1% | 35.4% |
| |
|---|
| Median (36 companies) | 8.6% | 8.0% | 6.8% | 7.7% | 8.5% |
|---|
| China Yurun Food Group Ltd ($1068) | 7.3% | 0.4% | 4.1% | 4.1% | -9.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Huishan Dairy Holdings Co Ltd ($6863) | 453.6% | 98.2% | 29.8% | 132.0% | 109.8% |
| Imperial Pacific International Holdings Ltd ($1076) | 0.0% | 0.0% | 0.0% | 15.6% | 88.5% |
| China Modern Dairy Holdings Ltd ($1117) | 58.9% | 50.6% | | 18.7% | 42.4% |
| Labixiaoxin Snacks Group Ltd ($1262) | 23.0% | 13.3% | 10.3% | 14.6% | 32.0% |
| YuanShengTai Dairy Farm Ltd ($1431) | 182.5% | 26.1% | 18.3% | 43.4% | 30.1% |
| |
|---|
| Median (35 companies) | 4.4% | 5.5% | 5.4% | 5.2% | 5.6% |
|---|
| China Yurun Food Group Ltd ($1068) | 15.3% | 9.0% | 8.2% | 3.7% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Want Want China Holdings Ltd ($151) | 24.9% | 27.9% | 29.4% | 22.8% | 21.8% |
| China Shengmu Organic Milk Ltd ($1432) | | 16.4% | 19.6% | 22.5% | 17.3% |
| Honworld Group Ltd ($2226) | 22.1% | 50.4% | 44.5% | 23.6% | 16.5% |
| WH Group Ltd ($288) | | 20.3% | 3.6% | 15.0% | 13.3% |
| Tenwow International Holdings Ltd ($1219) | 20.3% | 19.7% | 15.7% | 12.8% | 11.9% |
| |
|---|
| Median (37 companies) | 11.6% | 8.4% | 6.9% | 6.4% | 5.7% |
|---|
| China Yurun Food Group Ltd ($1068) | 9.5% | -1.9% | 1.1% | 0.7% | -11.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ausnutria Dairy Corp Ltd ($1717) | -3.5x | -1.4x | 0.8x | 1.7x | 27.9x |
| Beijing Jingkelong Co Ltd ($814) | 3.4x | 5.0x | 4.8x | 5.3x | 9.3x |
| First Pacific Co Ltd/Hong Kong ($142) | 1.3x | 1.8x | 3.8x | 4.5x | 5.6x |
| China Kangda Food Co Ltd ($834) | 2.1x | 2.8x | 2.5x | 2.3x | 5.4x |
| China Modern Dairy Holdings Ltd ($1117) | 1.3x | 3.7x | 5.2x | 4.1x | 5.3x |
| |
|---|
| Median (31 companies) | 0.2x | -0.4x | 0.8x | 0.7x | 1.3x |
|---|
