China Daye Non-Ferrous Metals Mining Ltd Net Debt / EBITDA surged on 22.3x from 9.2x to 31.5x in 2015 while EBITDA dropped on 71.3%
31/03/2016 • About China Daye Non-Ferrous Metals Mining Ltd (
$661) • By InTwits
China Daye Non-Ferrous Metals Mining Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Daye Non-Ferrous Metals Mining Ltd doesn't have a profitable business model yet: 2015 ROIC is -2.2%
- EBITDA Margin is quite volatile: 0.7% in 2015, 2.3% in 2014, 2.1% in 2013, 2.9% in 2012, 3.0% in 2011
- China Daye Non-Ferrous Metals Mining Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's in pair with industry average of 3.2%.
- CAPEX is quite volatile: 1,161 in FY2015, 1,939 in FY2014, 1,111 in FY2013, 839 in FY2012, 533 in FY2011
- The company has unprofitable business model: ROIC is at -2.2%
- It operates with high leverage: Net Debt/EBITDA is 31.5x while industry average is 2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Daye Non-Ferrous Metals Mining Ltd ($661) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 27,145 | 28,878 | 43,598 | 42,808 | 39,362 | -8.1% |
| Gross Profit | 921 | 863 | 896 | 798 | 54 | -93.3% |
| SG&A | 519 | 449 | 420 | 423 | 395 | -6.5% |
| EBITDA | 814 | 827 | 933 | 992 | 285 | -71.3% |
| Net Income | 149 | 157 | -1,949 | -96 | -976 | 921.8% |
Balance Sheet
|
|---|
| Cash | 691 | 1,031 | 1,433 | 1,401 | 1,294 | -7.7% |
| Short Term Debt | 3,705 | 5,135 | 5,902 | 5,146 | 4,249 | -17.4% |
| Long Term Debt | 1,697 | 3,504 | 4,549 | 5,339 | 6,020 | 12.8% |
Cash flow
|
|---|
| Capex | 1,190 | 1,629 | 1,242 | 1,127 | 702 | -37.7% |
Ratios
|
|---|
| Revenue growth | 3,164.9% | 6.4% | 51.0% | -1.8% | -8.1% | |
| EBITDA growth | -3,514.6% | 1.6% | 12.7% | 6.4% | -71.3% | |
| Gross Margin | 3.4% | 3.0% | 2.1% | 1.9% | 0.1% | -1.7% |
| EBITDA Margin | 3.0% | 2.9% | 2.1% | 2.3% | 0.7% | -1.6% |
| Net Income Margin | 0.5% | 0.5% | -4.5% | -0.2% | -2.5% | -2.3% |
| SG&A, % of revenue | 1.9% | 1.6% | 1.0% | 1.0% | 1.0% | 0.0% |
| CAPEX, % of revenue | 4.4% | 5.6% | 2.8% | 2.6% | 1.8% | -0.8% |
| ROIC | 6.8% | 3.8% | 3.1% | 3.3% | -2.2% | -5.5% |
| ROE | 6.6% | 3.5% | -43.0% | -2.7% | -31.6% | -29.0% |
| Net Debt/EBITDA | 5.8x | 9.2x | 9.7x | 9.2x | 31.5x | 22.3x |
Revenue and profitability
China Daye Non-Ferrous Metals Mining Ltd's Revenue decreased on 8.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.88 pp from 4.0% to 4.9% in 2015.
Gross Margin decreased slightly on 1.7 pp from 1.9% to 0.14% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 2.3 pp from -0.22% to -2.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Daye Non-Ferrous Metals Mining Ltd had CAPEX/Revenue of 1.8%. The company showed decline in CAPEX/Revenue of 3.9 pp from 5.6% in 2012 to 1.8% in 2015. It's average CAPEX/Revenue for the last three years was 2.4%.Battling declining revenue China Daye Non-Ferrous Metals Mining Ltd made large investments to CAPEX (246% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-2.20%) and ROE (-31.65%). ROIC decreased on 5.5 pp from 3.3% to -2.2% in 2015. ROE dropped on 29.0 pp from -2.7% to -31.6% in 2015.
Leverage (Debt)
Debt level is 31.5x Net Debt / EBITDA and 36.0x Debt / EBITDA. Net Debt / EBITDA jumped on 22.3x from 9.2x to 31.5x in 2015. Debt decreased on 2.1% in 2015 while cash decreased on 7.7% in 2015.
Appendix 1: Peers in Mining
Below we provide China Daye Non-Ferrous Metals Mining 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% |
| Real Gold Mining Ltd ($246) | | -44.0% | -68.0% | -26.2% | 106.2% |
| 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% |
| |
|---|
| Median (48 companies) | 54.5% | 5.0% | 0.6% | -5.9% | -13.6% |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | | 6.4% | 51.0% | -1.8% | -8.1% |
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 (49 companies) | 19.2% | 14.4% | 13.8% | 15.4% | 14.3% |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 3.4% | 3.0% | 2.1% | 1.9% | 0.1% |
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 (49 companies) | 6.3% | 4.9% | 7.9% | 5.2% | 5.1% |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 3.0% | 2.9% | 2.1% | 2.3% | 0.7% |
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 (49 companies) | 15.6% | 17.2% | 16.8% | 15.8% | 11.9% |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 4.4% | 5.6% | 2.8% | 2.6% | 1.8% |
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% |
| Xingfa Aluminium Holdings Ltd ($98) | 3.8% | 7.6% | 8.8% | 11.7% | 11.8% |
| 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% |
| |
|---|
| Median (50 companies) | 2.8% | 0.9% | 2.7% | 0.0% | -0.6% |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 6.8% | 3.8% | 3.1% | 3.3% | -2.2% |
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 (30 companies) | 1.1x | 1.7x | 1.8x | 3.8x | 3.3x |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 5.8x | 9.2x | 9.7x | 9.2x | 31.5x |
