Xinjiang Xinxin Mining Industry Co Ltd reports 211% EBITDA decline and 20.8% Revenue decline
30/03/2016 • About Xinjiang Xinxin Mining Industry Co Ltd (
$3833) • By InTwits
Xinjiang Xinxin Mining Industry Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Xinjiang Xinxin Mining Industry Co Ltd doesn't have a profitable business model yet: 2015 ROIC is -7.4%
- EBITDA Margin is quite volatile: -17.0% in 2015, 12.1% in 2014, 11.1% in 2013, 8.5% in 2012, 23.3% in 2011
- Xinjiang Xinxin Mining Industry Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 60.6%. At the same time it's in pair with industry average of 67.4%.
- CAPEX is quite volatile: 329 in 2015, 581 in 2014, 1,019 in 2013, 1,005 in 2012, 1,239 in 2011
- The company has unprofitable business model: ROIC is at -7.4%
- It operates with high leverage: Net Debt/EBITDA is 5.2x 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.
Xinjiang Xinxin Mining Industry Co Ltd ($3833) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,448 | 1,518 | 839 | 3,379 | 2,678 | -20.8% |
| Gross Profit | 388 | 199 | 143 | 397 | -214 | -153.8% |
| SG&A | | | 153 | 201 | 251 | 25.0% |
| EBITDA | 337 | 130 | 93 | 410 | -456 | -211.1% |
| Net Income | 191 | 22 | -59 | 78 | -741 | -1,052.9% |
Balance Sheet
|
|---|
| Cash | 569 | 483 | 651 | 737 | 506 | -31.3% |
| Short Term Debt | 305 | 875 | 2,283 | 2,806 | 2,824 | 0.6% |
| Long Term Debt | 569 | 690 | 2,050 | 2,135 | 2,369 | 10.9% |
Cash flow
|
|---|
| Capex | 1,239 | 1,005 | 1,019 | 581 | 329 | -43.4% |
Ratios
|
|---|
| Revenue growth | 24.0% | 4.8% | -44.7% | 303.0% | -20.8% | |
| EBITDA growth | -14.4% | -61.5% | -27.9% | 339.4% | -211.1% | |
| Gross Margin | 26.8% | 13.1% | 17.1% | 11.8% | -8.0% | -19.7% |
| EBITDA Margin | 23.3% | 8.5% | 11.1% | 12.1% | -17.0% | -29.1% |
| Net Income Margin | 13.2% | 1.4% | -7.0% | 2.3% | -27.7% | -30.0% |
| SG&A, % of revenue | | | 18.2% | 5.9% | 9.4% | 3.4% |
| CAPEX, % of revenue | 85.6% | 66.2% | 121.5% | 17.2% | 12.3% | -4.9% |
| ROIC | 3.7% | 0.2% | -0.6% | 1.9% | -7.4% | -9.3% |
| ROE | 3.5% | 0.4% | -1.1% | 1.5% | -15.0% | -16.5% |
| Net Debt/EBITDA | 0.9x | 8.4x | 39.4x | 10.3x | | -10.3x |
Revenue and profitability
The company's Revenue dropped on 20.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 29.1 pp from 12.1% to -17.0% in 2015.
Gross Margin dropped on 19.7 pp from 11.8% to -8.0% in 2015. SG&A as a % of Revenue increased on 3.4 pp from 5.9% to 9.4% in 2015.
Net Income marign dropped on 30.0 pp from 2.3% to -27.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
Xinjiang Xinxin Mining Industry Co Ltd's CAPEX/Revenue was 12.3% in 2015. CAPEX/Revenue dropped on 54.0 pp from 66.2% in 2012 to 12.3% in 2015. It's average CAPEX/Revenue for the last three years was 50.3%.
Return on investment
The company operates at negative ROIC (-7.41%) and ROE (-14.98%). ROIC decreased on 9.3 pp from 1.9% to -7.4% in 2015. ROE dropped on 16.5 pp from 1.5% to -15.0% in 2015.
Leverage (Debt)
Debt level is 5.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 10.3x from 10.3x to in 2015. Debt increased on 5.1% in 2015 while cash dropped on 31.3% in 2015.
Appendix 1: Peers in Mining
Below you can find Xinjiang Xinxin Mining Industry Co Ltd benchmarking vs. other companies in Mining industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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% | 5.4% | 2.4% | -5.9% | -13.0% |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | | 4.8% | -44.7% | 303.0% | -20.8% |
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) | 19.1% | 14.4% | 13.8% | 15.5% | 26.9% |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 26.8% | 13.1% | 17.1% | 11.8% | -8.0% |
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% | 7.5% | 4.7% | 6.4% |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 23.3% | 8.5% | 11.1% | 12.1% | -17.0% |
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) | 14.3% | 17.0% | 15.7% | 13.4% | 11.9% |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 85.6% | 66.2% | 121.5% | 17.2% | 12.3% |
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% | 1.9% | 3.0% | 0.0% | 1.5% |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 3.7% | 0.2% | -0.6% | 1.9% | -7.4% |
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 (28 companies) | 1.4x | 1.5x | 1.9x | 4.4x | 3.8x |
|---|
