Lingbao Gold Co Ltd Net Debt / EBITDA jumped on 4.4x from 8.3x to 12.7x in 2015 while Revenue dropped on 11.4%
30/03/2016 • About Lingbao Gold Co Ltd (
$3330) • By InTwits
Lingbao Gold Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lingbao Gold Co Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.6%
- EBITDA Margin is quite volatile: 5.5% in 2015, 7.1% in 2014, -3.8% in 2013, 11.6% in 2012, 14.4% in 2011
- Lingbao Gold Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's in pair with industry average of 28.6%.
- CAPEX is quite volatile: 192 in 2015, 35.5 in 2014, 295 in 2013, 376 in 2012, 370 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.6%
- It operates with high leverage: Net Debt/EBITDA is 12.7x 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.
Lingbao Gold Co Ltd ($3330) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,721 | 6,393 | 7,942 | 6,496 | 5,757 | -11.4% |
| Gross Profit | 879 | 803 | -131 | 574 | 449 | -21.9% |
| SG&A | 279 | 361 | 441 | 360 | 460 | 27.7% |
| EBITDA | 825 | 739 | -304 | 464 | 316 | -31.9% |
| Net Income | 311 | 165 | -673 | 34 | -462 | -1,471.9% |
Balance Sheet
|
|---|
| Cash | 350 | 268 | 367 | 372 | 1,118 | 200.2% |
| Short Term Debt | 1,535 | 2,782 | 1,749 | 2,141 | 4,473 | 109.0% |
| Long Term Debt | 1,730 | 1,435 | 2,068 | 2,080 | 659 | -68.3% |
Cash flow
|
|---|
| Capex | 370 | 376 | 295 | 35 | 192 | 440.8% |
Ratios
|
|---|
| Revenue growth | 18.3% | 11.8% | 24.2% | -18.2% | -11.4% | |
| EBITDA growth | 6.1% | -10.3% | -141.1% | -252.5% | -31.9% | |
| Gross Margin | 15.4% | 12.6% | -1.6% | 8.8% | 7.8% | -1.1% |
| EBITDA Margin | 14.4% | 11.6% | -3.8% | 7.1% | 5.5% | -1.7% |
| Net Income Margin | 5.4% | 2.6% | -8.5% | 0.5% | -8.0% | -8.5% |
| SG&A, % of revenue | 4.9% | 5.7% | 5.6% | 5.5% | 8.0% | 2.4% |
| CAPEX, % of revenue | 6.5% | 5.9% | 3.7% | 0.5% | 3.3% | 2.8% |
| ROIC | 12.3% | 7.8% | -9.0% | 4.4% | 1.6% | -2.8% |
| ROE | 14.2% | 7.1% | -33.2% | 2.0% | -31.7% | -33.7% |
| Net Debt/EBITDA | 3.5x | 5.3x | | 8.3x | 12.7x | 4.4x |
Revenue and profitability
Lingbao Gold Co Ltd's Revenue dropped on 11.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 9.1% to 10.3% in 2015.
Gross Margin decreased slightly on 1.1 pp from 8.8% to 7.8% in 2015. SG&A as a % of Revenue increased on 2.4 pp from 5.5% to 8.0% in 2015.
Net Income marign decreased on 8.5 pp from 0.52% to -8.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Lingbao Gold Co Ltd had CAPEX/Revenue of 3.3%. Lingbao Gold Co Ltd showed decline in CAPEX/Revenue of 2.5 pp from 5.9% in 2012 to 3.3% in 2015. It's average CAPEX/Revenue for the last three years was 2.5%.Battling declining revenue the company invested a large share of EBITDA (60.8%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (1.60%) and negative ROE (-31.70%). ROIC decreased on 2.8 pp from 4.4% to 1.6% in 2015. ROE dropped on 33.7 pp from 2.0% to -31.7% in 2015.
Leverage (Debt)
Debt level is 12.7x Net Debt / EBITDA and 16.3x Debt / EBITDA. Net Debt / EBITDA jumped on 4.4x from 8.3x to 12.7x in 2015. Debt jumped on 21.6% in 2015 while cash surged on 200% in 2015.
Appendix 1: Peers in Mining
Below we provide Lingbao Gold 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% | 0.6% | -5.1% | -13.6% |
|---|
| Lingbao Gold Co Ltd ($3330) | | 11.8% | 24.2% | -18.2% | -11.4% |
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) | 19.2% | 14.4% | 14.4% | 15.5% | 26.9% |
|---|
| Lingbao Gold Co Ltd ($3330) | 15.4% | 12.6% | -1.6% | 8.8% | 7.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | 58.3% |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | 51.3% |
| 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% |
| |
|---|
| Median (41 companies) | 5.9% | 4.7% | 7.9% | 4.7% | 6.4% |
|---|
| Lingbao Gold Co Ltd ($3330) | 14.4% | 11.6% | -3.8% | 7.1% | 5.5% |
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) | 16.3% | 17.4% | 16.8% | 15.8% | 12.3% |
|---|
| Lingbao Gold Co Ltd ($3330) | 6.5% | 5.9% | 3.7% | 0.5% | 3.3% |
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% | 3.0% | 0.0% | 1.1% |
|---|
| Lingbao Gold Co Ltd ($3330) | 12.3% | 7.8% | -9.0% | 4.4% | 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 |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 1.5x | 1.5x | 4.1x | 6.4x | 13.5x |
| |
|---|
| Median (27 companies) | 0.9x | 1.5x | 1.9x | 4.4x | 3.4x |
|---|
| Lingbao Gold Co Ltd ($3330) | 3.5x | 5.3x | | 8.3x | 12.7x |
