Sijia Group Co reports 129% EBITDA decline and 12.9 pp EBITDA Margin decline from 9.0% to -3.8%
30/03/2016 • About Sijia Group Co (
$1863) • By InTwits
Sijia Group Co reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sijia Group Co is a company in decline: 2015 revenue growth was -31.7%, 5 years revenue CAGR was -13.5%
- EBITDA Margin is declining: -3.8% in 2015 vs. 9.0% in 2014 vs. 36.3% in 2011
- EBITDA Margin is quite volatile: -3.8% in 2015, 9.0% in 2014, 10.6% in 2013, 25.3% in 2012, 36.3% in 2011
- Sijia Group Co has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.5%. At the same time it's a lot of higher than industry average of 12.4%.
- CAPEX is quite volatile: 33.9 in 2015, 38.0 in 2014, 125 in 2013, 474 in 2012, 300 in 2011
- The company has unprofitable business model: ROIC is at -8.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sijia Group Co ($1863) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,197 | 1,035 | 912 | 683 | 467 | -31.7% |
| Gross Profit | 506 | 292 | 110 | 48 | 5 | -88.7% |
| SG&A | 99 | 95 | 88 | 106 | 95 | -10.0% |
| EBITDA | 435 | 261 | 97 | 62 | -18 | -129.1% |
| Net Income | 328 | -354 | -35 | -159 | -692 | 334.7% |
Balance Sheet
|
|---|
| Cash | 205 | 78 | 48 | 70 | 28 | -60.6% |
| Short Term Debt | 174 | 385 | 479 | 403 | 352 | -12.5% |
| Long Term Debt | 0 | 100 | 80 | 60 | 40 | -33.3% |
Cash flow
|
|---|
| Capex | 300 | 474 | 125 | 38 | 34 | -11.0% |
Ratios
|
|---|
| Revenue growth | 24.0% | -13.5% | -11.9% | -25.1% | -31.7% | |
| EBITDA growth | 55.7% | -39.9% | -63.0% | -36.3% | -129.1% | |
| Gross Margin | 42.3% | 28.2% | 12.1% | 7.0% | 1.2% | -5.9% |
| EBITDA Margin | 36.3% | 25.3% | 10.6% | 9.0% | -3.8% | -12.9% |
| Net Income Margin | 27.4% | -34.2% | -3.9% | -23.3% | -148.4% | -125.1% |
| SG&A, % of revenue | 8.3% | 9.1% | 9.7% | 15.5% | 20.4% | 4.9% |
| CAPEX, % of revenue | 25.1% | 45.8% | 13.7% | 5.6% | 7.3% | 1.7% |
| ROIC | 27.4% | 12.4% | 1.9% | -0.8% | -8.9% | -8.1% |
| ROE | 24.8% | -28.1% | -3.3% | -16.6% | -129.1% | -112.5% |
| Net Debt/EBITDA | -0.1x | 1.6x | 5.3x | 6.4x | | -6.4x |
Revenue and profitability
Sijia Group Co's Revenue dropped on 31.7% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 12.9 pp from 9.0% to -3.8% in 2015.
Gross Margin decreased on 5.9 pp from 7.0% to 1.2% in 2015. SG&A as a % of Revenue increased on 4.9 pp from 15.5% to 20.4% in 2015.
Net Income marign dropped on 125 pp from -23.3% to -148% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Sijia Group Co had CAPEX/Revenue of 7.3%. Sijia Group Co showed big decline in CAPEX/Revenue of 38.6 pp from 45.8% in 2012 to 7.3% in 2015. Average CAPEX/Revenue for the last three years was 8.8%.
Return on investment
The company operates at negative ROIC (-8.87%) and ROE (-129.12%). ROIC decreased on 8.1 pp from -0.81% to -8.9% in 2015. ROE dropped on 112 pp from -16.6% to -129% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is . Net Debt / EBITDA dropped on 6.4x from 6.4x to in 2015. Debt dropped on 15.2% in 2015 while cash dropped on 60.6% in 2015.
Appendix 1: Peers in Textiles
Below we provide Sijia Group Co benchmarking against other companies in Textiles 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 |
|---|
| Ping Shan Tea Group Ltd ($364) | | -25.9% | 63.7% | -45.7% | 71.6% |
| China Weaving Materials Holdings Ltd ($3778) | | -15.4% | -4.2% | -3.8% | 53.9% |
| Easyknit Enterprises Holdings Ltd ($616) | | 9.6% | 10.2% | 7.3% | 22.3% |
| Kingdom Holding Co Ltd ($528) | | 1.1% | 6.0% | 20.0% | 12.2% |
| Kam Hing International Holdings Ltd ($2307) | | 0.9% | -4.3% | 1.6% | 4.2% |
| |
|---|
| Median (20 companies) | -5.2% | 0.9% | -4.2% | -3.8% | -4.9% |
|---|
| Sijia Group Co ($1863) | | -13.5% | -11.9% | -25.1% | -31.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Art Textile Technology International Co Ltd ($565) | 13.9% | 9.4% | 11.8% | 18.0% | 81.8% |
| TAI Ping Carpet International Ltd ($146) | 40.4% | 41.0% | 45.4% | 46.7% | 46.6% |
| Texwinca Holdings Ltd ($321) | 33.7% | 29.6% | 30.9% | 33.3% | 34.1% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 5.6% | 4.9% | 7.3% | 24.9% | 28.8% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 30.3% | 31.1% | 32.5% | 32.5% | 28.3% |
| |
|---|
| Median (19 companies) | 15.3% | 17.1% | 17.8% | 16.3% | 17.7% |
|---|
| Sijia Group Co ($1863) | 42.3% | 28.2% | 12.1% | 7.0% | 1.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Weiqiao Textile Co ($2698) | 10.2% | 17.5% | 20.2% | 21.4% | 30.8% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 26.2% | 28.1% | 28.7% | 30.2% | 23.4% |
| Kingdom Holding Co Ltd ($528) | 29.3% | 26.3% | 25.3% | 24.8% | 23.0% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 3.2% | 2.5% | 5.1% | 17.5% | 18.9% |
| Pacific Textiles Holdings Ltd ($1382) | 19.5% | 19.1% | 19.0% | 19.5% | 18.4% |
| |
|---|
| Median (19 companies) | 13.3% | 11.2% | 10.0% | 11.8% | 12.2% |
|---|
| Sijia Group Co ($1863) | 36.3% | 25.3% | 10.6% | 9.0% | -3.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Art Textile Technology International Co Ltd ($565) | 2.6% | 1.0% | 1.9% | 3.9% | 105.3% |
| Kam Hing International Holdings Ltd ($2307) | 5.5% | 10.6% | 10.5% | 7.6% | 8.3% |
| TAI Ping Carpet International Ltd ($146) | 6.3% | 8.2% | 10.1% | 6.9% | 7.4% |
| Wang Tai Holdings Ltd ($1400) | 23.9% | 34.1% | 18.8% | 7.5% | 7.3% |
| Victory City International Holdings Ltd ($539) | 2.3% | 4.2% | 10.1% | 8.6% | 6.8% |
| |
|---|
| Median (19 companies) | 2.6% | 2.6% | 1.8% | 3.9% | 3.8% |
|---|
| Sijia Group Co ($1863) | 25.1% | 45.8% | 13.7% | 5.6% | 7.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 28.8% | 23.7% | 26.4% | 31.6% | 25.9% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 7.9% | 6.2% | 13.2% | 15.4% | 19.6% |
| Kingdom Holding Co Ltd ($528) | 16.3% | 13.8% | 12.7% | 13.8% | 12.7% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 24.2% | 22.3% | 20.1% | 17.6% | 11.0% |
| Texwinca Holdings Ltd ($321) | 15.5% | 8.3% | 5.3% | 5.5% | 8.1% |
| |
|---|
| Median (20 companies) | 7.3% | 5.2% | 5.3% | 4.4% | 5.0% |
|---|
| Sijia Group Co ($1863) | 27.4% | 12.4% | 1.9% | -0.8% | -8.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangdong Tannery Ltd ($1058) | 8.9x | 6.5x | 5.8x | 11.6x | |
| China Weaving Materials Holdings Ltd ($3778) | 1.3x | 3.6x | 3.0x | 5.3x | 5.5x |
| Co-Prosperity Holdings Ltd ($707) | 8.3x | 34.8x | | 4.5x | |
| Victory City International Holdings Ltd ($539) | 1.8x | 1.5x | 2.0x | 3.2x | 2.5x |
| Zhejiang Yonglong Enterprises Co Ltd ($8211) | 0.2x | 4.2x | 0.1x | 3.0x | 1.3x |
| |
|---|
| Median (19 companies) | 1.3x | 1.5x | 1.3x | 0.7x | 0.5x |
|---|
| Sijia Group Co ($1863) | -0.1x | 1.6x | 5.3x | 6.4x | |
