China Aluminum Cans Holdings Ltd reports 71.5% CAPEX decline and 7.8% Revenue decline
31/03/2016 • About China Aluminum Cans Holdings Ltd (
$6898) • By InTwits
China Aluminum Cans Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Aluminum Cans Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.0%. At the same time it's in pair with industry average of 27.6%.
- CAPEX is quite volatile: 44.5 in 2015, 156 in 2014, 24.6 in 2013, 19.0 in 2012, 3.2 in 2011
- The company has highly profitable business model: ROIC is at 17.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Aluminum Cans Holdings Ltd ($6898) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 237.1 | 273.9 | 260.3 | 752.7 | 693.7 | -7.8% |
| Gross Profit | 69.4 | 91.2 | 96.8 | 214.7 | 209.9 | -2.2% |
| SG&A | 30.5 | 38.3 | 52.2 | 93.5 | 95.5 | 2.2% |
| EBITDA | 56.6 | 73.1 | 68.8 | 126.3 | 131.0 | 3.7% |
| Net Income | 25.1 | 38.3 | 37.3 | 81.1 | 79.0 | -2.7% |
Balance Sheet
|
|---|
| Cash | 25.0 | 2.4 | 107.4 | 105.3 | 179.6 | 70.5% |
| Short Term Debt | 87.7 | 56.3 | 64.9 | 120.2 | 41.3 | -65.7% |
| Long Term Debt | 24.6 | 54.5 | 42.4 | 20.8 | 19.8 | -4.7% |
Cash flow
|
|---|
| Capex | 3.2 | 19.0 | 24.6 | 156.0 | 44.5 | -71.5% |
Ratios
|
|---|
| Revenue growth | 19.6% | 15.5% | -5.0% | 189.1% | -7.8% | |
| EBITDA growth | 15.8% | 29.1% | -5.9% | 83.7% | 3.7% | |
| Gross Margin | 29.3% | 33.3% | 37.2% | 28.5% | 30.3% | 1.7% |
| EBITDA Margin | 23.9% | 26.7% | 26.4% | 16.8% | 18.9% | 2.1% |
| Net Income Margin | 10.6% | 14.0% | 14.3% | 10.8% | 11.4% | 0.6% |
| SG&A, % of revenue | 12.9% | 14.0% | 20.1% | 12.4% | 13.8% | 1.4% |
| CAPEX, % of revenue | 1.3% | 6.9% | 9.5% | 20.7% | 6.4% | -14.3% |
| ROIC | 14.8% | 19.7% | 14.6% | 20.2% | 17.1% | -3.2% |
| ROE | 18.1% | 24.6% | 16.2% | 23.0% | 16.9% | -6.2% |
| Net Debt/EBITDA | 1.5x | 1.5x | -0.0x | 0.3x | -0.9x | -1.2x |
Revenue and profitability
China Aluminum Cans Holdings Ltd's Revenue decreased on 7.8% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.1 pp from 16.8% to 18.9% in 2015.
Gross Margin increased slightly on 1.7 pp from 28.5% to 30.3% in 2015. SG&A as a % of Revenue increased slightly on 1.4 pp from 12.4% to 13.8% in 2015.
Net Income marign increased slightly on 0.60 pp from 10.8% to 11.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Aluminum Cans Holdings Ltd's CAPEX/Revenue was 6.4% in 2015. CAPEX/Revenue decreased slightly on 0.53 pp from 6.9% in 2012 to 6.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 12.2%.
Return on investment
The company operates at good ROIC (17.06%) and ROE (16.86%). ROIC decreased on 3.2 pp from 20.2% to 17.1% in 2015. ROE decreased on 6.2 pp from 23.0% to 16.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.9x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped on 1.2x from 0.3x to -0.9x in 2015. Debt dropped on 56.7% in 2015 while cash jumped on 70.5% in 2015.
Appendix 1: Peers in Packaging&Containers
Below we provide China Aluminum Cans Holdings Ltd benchmarking against other companies in Packaging&Containers 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 |
|---|
| Overseas Chinese Town Asia Holdings Ltd ($3366) | | 34.9% | 17.5% | -6.5% | 69.5% |
| Hao Tian Development Group Ltd ($474) | | 14.8% | | | 51.0% |
| Jin Cai Holdings Co Ltd ($1250) | | 2.1% | -6.3% | -3.1% | 40.8% |
| Huaxi Holdings Co Ltd ($1689) | | 25.3% | 5.0% | -5.1% | 12.5% |
| Huajun Holdings Ltd ($377) | | 11.2% | 3.3% | 3.4% | 10.4% |
| |
|---|
| Median (19 companies) | | 3.6% | 5.3% | 0.7% | 3.0% |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | | 15.5% | -5.0% | 189.1% | -7.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 39.6% | 36.6% | 39.1% | 37.7% | 44.7% |
| Huaxi Holdings Co Ltd ($1689) | 13.1% | 19.0% | 28.2% | 40.9% | 37.5% |
| China For You Group Co Ltd ($572) | 18.7% | 12.4% | | 34.6% | 31.9% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 30.2% | 34.3% | 36.5% | 32.8% | 31.4% |
| Kith Holdings Ltd ($1201) | 12.7% | 30.8% | 31.9% | 31.4% | 30.5% |
| |
|---|
| Median (18 companies) | 18.5% | 19.0% | 19.8% | 21.7% | 21.8% |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 29.3% | 33.3% | 37.2% | 28.5% | 30.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | 7.8% | 14.5% | 21.2% | 27.1% | 29.1% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 25.5% | 27.9% | 30.7% | 27.4% | 26.3% |
| Greatview Aseptic Packaging Co Ltd ($468) | 24.1% | 25.9% | 23.1% | 21.6% | 23.4% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 19.3% | 14.6% | 17.2% | 18.7% | 21.6% |
| Kith Holdings Ltd ($1201) | 8.7% | 21.6% | 19.4% | 20.1% | 20.5% |
| |
|---|
| Median (19 companies) | 10.8% | 11.9% | 13.8% | 12.2% | 11.0% |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 23.9% | 26.7% | 26.4% | 16.8% | 18.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 0.0% | 0.0% | 0.0% | 3.0% | 122.3% |
| Sheen Tai Holdings Grp Co Ltd ($1335) | 9.6% | 3.7% | 1.2% | 3.1% | 42.2% |
| Hao Tian Development Group Ltd ($474) | 88.2% | 81.6% | | 13.0% | 25.4% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 13.5% | 19.7% | 13.7% | 13.1% | 17.1% |
| Kith Holdings Ltd ($1201) | 1.3% | 3.7% | 4.8% | 3.3% | 13.3% |
| |
|---|
| Median (19 companies) | 5.6% | 5.2% | 4.4% | 4.1% | 5.5% |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 1.3% | 6.9% | 9.5% | 20.7% | 6.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | | 21.4% | 28.5% | 26.2% | 23.6% |
| Greatview Aseptic Packaging Co Ltd ($468) | 19.6% | 20.2% | 18.9% | 15.7% | 17.7% |
| Kith Holdings Ltd ($1201) | 7.7% | 6.9% | 5.6% | 7.8% | 12.2% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 11.3% | 7.2% | 8.7% | 8.0% | 9.2% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 13.3% | 8.1% | 6.4% | 4.9% | 8.0% |
| |
|---|
| Median (19 companies) | 10.0% | 7.7% | 6.4% | 5.4% | 4.4% |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 14.8% | 19.7% | 14.6% | 20.2% | 17.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Haijing Holdings Ltd ($1106) | 4.7x | 6.4x | 6.1x | 6.2x | 10.1x |
| Huajun Holdings Ltd ($377) | -0.8x | 0.0x | 0.3x | 0.7x | 9.9x |
| Zhengye International Holdings Co Ltd ($3363) | 4.0x | 6.2x | 6.4x | 7.8x | 5.5x |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 0.7x | 9.4x | 6.7x | 7.4x | 4.4x |
| Jin Bao Bao Holdings Ltd ($1239) | -1.7x | -1.7x | -1.7x | -1.2x | 4.2x |
| |
|---|
| Median (16 companies) | 0.6x | 1.0x | 0.9x | 0.7x | 2.2x |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 1.5x | 1.5x | -0.0x | 0.3x | -0.9x |
