Wanguo International Mining Group Ltd CAPEX dropped on 46.1% in 2015 and Revenue increased slightly on 0.74%
30/03/2016 • About Wanguo International Mining Group Ltd (
$3939) • By InTwits
Wanguo International Mining Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 26.7% in 2015 vs. 31.3% in 2014 vs. 46.5% in 2011
- Wanguo International Mining Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 25.3%. At the same time it's in pair with industry average of 21.5%.
- CAPEX is quite volatile: 38.3 in 2015, 71.2 in 2014, 103 in 2013, 70.6 in 2012, 39.3 in 2011
- The company has business model with average profitability: ROIC is at 11.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wanguo International Mining Group Ltd ($3939) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 296.7 | 293.6 | 261.4 | 219.2 | 220.8 | 0.7% |
| Gross Profit | 151.6 | 139.2 | 132.5 | 86.8 | 64.6 | -25.6% |
| SG&A | | 34.6 | 35.5 | 37.7 | 29.4 | -21.8% |
| EBITDA | 137.9 | 116.6 | 94.6 | 68.7 | 58.9 | -14.3% |
| Net Income | 73.3 | 60.2 | 66.3 | 24.0 | 16.6 | -31.1% |
Balance Sheet
|
|---|
| Cash | 37.4 | 192.0 | 133.4 | 37.7 | 12.3 | -67.4% |
| Short Term Debt | 9.0 | 9.0 | 9.0 | 40.3 | 30.0 | -25.6% |
| Long Term Debt | 36.0 | 27.0 | 18.0 | 9.0 | 30.0 | 233.3% |
Cash flow
|
|---|
| Capex | 39.3 | 70.6 | 102.8 | 71.2 | 38.3 | -46.1% |
Ratios
|
|---|
| Revenue growth | 45.2% | -1.0% | -11.0% | -16.2% | 0.7% | |
| EBITDA growth | 65.6% | -15.4% | -18.9% | -27.4% | -14.3% | |
| Gross Margin | 51.1% | 47.4% | 50.7% | 39.6% | 29.2% | -10.4% |
| EBITDA Margin | 46.5% | 39.7% | 36.2% | 31.3% | 26.7% | -4.7% |
| Net Income Margin | 24.7% | 20.5% | 25.4% | 11.0% | 7.5% | -3.5% |
| SG&A, % of revenue | | 11.8% | 13.6% | 17.2% | 13.3% | -3.9% |
| CAPEX, % of revenue | 13.2% | 24.0% | 39.3% | 32.5% | 17.4% | -15.1% |
| ROIC | 74.9% | 38.4% | 24.4% | 15.0% | 11.1% | -3.9% |
| ROE | 80.3% | 28.8% | 23.8% | 8.5% | 6.1% | -2.4% |
| Net Debt/EBITDA | 0.1x | -1.3x | -1.1x | 0.2x | 0.8x | 0.6x |
Revenue and profitability
Wanguo International Mining Group Ltd's Revenue increased slightly on 0.74% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 12.0 pp from 9.1% to -2.9% in 2015.
Gross Margin dropped on 10.4 pp from 39.6% to 29.2% in 2015. SG&A as a % of Revenue decreased on 3.9 pp from 17.2% to 13.3% in 2015.
Net Income marign decreased on 3.5 pp from 11.0% to 7.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Wanguo International Mining Group Ltd's CAPEX/Revenue was 17.4% in 2015. Wanguo International Mining Group Ltd's CAPEX/Revenue decreased on 6.7 pp from 24.0% in 2012 to 17.4% in 2015. For the last three years the average CAPEX/Revenue was 29.7%.Wanguo International Mining Group Ltd maintained rich investment policy and has spent a big chunk of EBITDA (65.1%) to CAPEX.
Return on investment
The company operates at low ROIC (11.09%) and ROE (6.08%). ROIC decreased on 3.9 pp from 15.0% to 11.1% in 2015. ROE decreased on 2.4 pp from 8.5% to 6.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.8x and Debt / EBITDA is 1.0x. Net Debt / EBITDA jumped on 0.6x from 0.2x to 0.8x in 2015. Debt jumped on 21.7% in 2015 while cash dropped on 67.4% in 2015.
Appendix 1: Peers in Iron/Steel
Below we provide Wanguo International Mining Group Ltd benchmarking against other companies in Iron/Steel 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 |
|---|
| CAA Resources Ltd ($2112) | | 99.6% | 103.2% | 38.0% | 261.2% |
| Newton Resources Ltd ($1231) | | | | -41.6% | 170.9% |
| Fosun International Ltd ($656) | | -8.9% | -1.4% | 21.0% | 27.6% |
| Da Ming International Holdings Ltd ($1090) | | -2.1% | 29.3% | 29.8% | -8.1% |
| China Metal International Holdings Inc ($319) | | -2.5% | 7.3% | 8.0% | -10.8% |
| |
|---|
| Median (16 companies) | 41.1% | -9.7% | 0.6% | -1.7% | -17.9% |
|---|
| Wanguo International Mining Group Ltd ($3939) | | -1.0% | -11.0% | -16.2% | 0.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newton Resources Ltd ($1231) | 63.3% | | -223.7% | 15.7% | 37.5% |
| China Metal International Holdings Inc ($319) | 21.0% | 20.9% | 24.3% | 24.8% | 25.5% |
| China Hanking Holdings Ltd ($3788) | 66.1% | 53.6% | 54.4% | 35.1% | 23.8% |
| Fosun International Ltd ($656) | 18.6% | 18.0% | 20.3% | 23.7% | 22.4% |
| Vale SA ($6210) | 58.4% | 45.4% | 48.3% | 33.1% | 19.6% |
| |
|---|
| Median (16 companies) | 18.6% | 14.8% | 12.7% | 11.3% | 13.7% |
|---|
| Wanguo International Mining Group Ltd ($3939) | 51.1% | 47.4% | 50.7% | 39.6% | 29.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fosun International Ltd ($656) | 15.8% | 16.7% | 23.0% | 20.9% | 22.2% |
| China Metal International Holdings Inc ($319) | 17.8% | 19.7% | 21.3% | 21.0% | 22.0% |
| Xingda International Holdings Ltd ($1899) | 21.6% | 17.3% | 22.2% | 19.1% | 13.6% |
| Tiangong International Co Ltd ($826) | 22.5% | 25.1% | 25.8% | 19.3% | 11.6% |
| China Hanking Holdings Ltd ($3788) | 63.1% | 40.4% | 40.9% | 30.6% | 8.7% |
| |
|---|
| Median (16 companies) | 7.6% | 12.6% | 11.7% | 7.1% | 0.6% |
|---|
| Wanguo International Mining Group Ltd ($3939) | 46.5% | 39.7% | 36.2% | 31.3% | 26.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newton Resources Ltd ($1231) | 690.4% | | 926.9% | 1,395.7% | 197.0% |
| Vale SA ($6210) | 25.8% | 34.0% | 28.1% | 29.8% | 34.5% |
| China Hanking Holdings Ltd ($3788) | 24.5% | 38.0% | 35.7% | 20.2% | 30.5% |
| Pan Asia Mining Ltd ($8173) | 0.4% | 1.5% | 0.4% | 2.4% | 24.4% |
| China Vanadium Titano - Magnetite Mining Co Ltd ($893) | 14.2% | 8.9% | 10.5% | 20.4% | 24.1% |
| |
|---|
| Median (16 companies) | 7.3% | 8.3% | 10.5% | 6.4% | 8.0% |
|---|
| Wanguo International Mining Group Ltd ($3939) | 13.2% | 24.0% | 39.3% | 32.5% | 17.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Metal International Holdings Inc ($319) | 11.5% | 11.0% | 12.0% | 12.7% | 11.4% |
| Golik Holdings Ltd ($1118) | 9.0% | 7.0% | 7.4% | 10.0% | 10.8% |
| CAA Resources Ltd ($2112) | 33.0% | 69.2% | 33.5% | 2.2% | 6.9% |
| Fosun International Ltd ($656) | 6.7% | 6.1% | 7.9% | 6.8% | 6.9% |
| Tiangong International Co Ltd ($826) | 14.8% | 14.5% | 13.4% | 10.7% | 2.9% |
| |
|---|
| Median (16 companies) | 10.5% | 6.2% | 7.5% | 3.1% | -4.7% |
|---|
| Wanguo International Mining Group Ltd ($3939) | 74.9% | 38.4% | 24.4% | 15.0% | 11.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fosun International Ltd ($656) | 4.6x | 4.4x | 4.8x | 5.5x | 4.4x |
| Maanshan Iron & Steel Co Ltd ($323) | 5.0x | 55.2x | 7.3x | 5.3x | |
| China Hanking Holdings Ltd ($3788) | 0.3x | 0.4x | 2.5x | 4.7x | 27.3x |
| China Oriental Group Co Ltd ($581) | 2.4x | 4.6x | 5.3x | 4.5x | |
| Angang Steel Co Ltd ($347) | 6.6x | 21.4x | 4.0x | 4.3x | 29.1x |
| |
|---|
| Median (13 companies) | 2.2x | 2.3x | 3.0x | 3.2x | 2.6x |
|---|
| Wanguo International Mining Group Ltd ($3939) | 0.1x | -1.3x | -1.1x | 0.2x | 0.8x |
