China Infrastructure Investment Ltd reports 82.5 pp EBITDA Margin growth from 52.0% to 135% in 2015 while 49.7% Revenue decline
31/03/2016 • About China Infrastructure Investment Ltd (
$600) • By InTwits
China Infrastructure Investment Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Infrastructure Investment Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -8.9% for the sames years0
- China Infrastructure Investment Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 93.8%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 0 in 2015, 0.0080 in 2014, 0.21 in 2013, 8.4 in 2012, 10.7 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Infrastructure Investment Ltd ($600) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2.659 | 13.617 | 6.683 | 43.966 | 22.133 | -49.7% |
| Gross Profit | 2.218 | 5.513 | 5.841 | 0.262 | 0.135 | -48.5% |
| SG&A | 38.820 | 51.620 | 39.945 | 18.126 | 11.544 | -36.3% |
| EBITDA | -31.143 | -37.434 | 8.019 | 22.868 | 29.771 | 30.2% |
| Net Income | -22.755 | -15.414 | -85.148 | 16.370 | 5.249 | -67.9% |
Balance Sheet
|
|---|
| Cash | 472.347 | 25.009 | 122.566 | 20.194 | 90.669 | 349.0% |
| Short Term Debt | 186.140 | 116.768 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 10.738 | 8.430 | 0.210 | 0.008 | 0.000 | -100.0% |
Ratios
|
|---|
| Revenue growth | 346.9% | 412.1% | -50.9% | 557.9% | -49.7% | |
| EBITDA growth | 130.7% | 20.2% | -121.4% | 185.2% | 30.2% | |
| Gross Margin | 83.4% | 40.5% | 87.4% | 0.6% | 0.6% | 0.0% |
| EBITDA Margin | -1,171.2% | -274.9% | 120.0% | 52.0% | 134.5% | 82.5% |
| Net Income Margin | -855.8% | -113.2% | -1,274.1% | 37.2% | 23.7% | -13.5% |
| SG&A, % of revenue | 1,459.9% | 379.1% | 597.7% | 41.2% | 52.2% | 10.9% |
| CAPEX, % of revenue | 403.8% | 61.9% | 3.1% | 0.0% | 0.0% | -0.0% |
| ROIC | -2.5% | -4.0% | 0.2% | 2.0% | 2.8% | 0.8% |
| ROE | -2.3% | -1.6% | -9.1% | 1.8% | 0.6% | -1.2% |
| Net Debt/EBITDA | | | -15.3x | -0.9x | -3.0x | -2.2x |
Revenue and profitability
The company's Revenue dropped on 49.7% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 82.5 pp from 52.0% to 135% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue jumped on 10.9 pp from 41.2% to 52.2% in 2015.
Net Income marign dropped on 13.5 pp from 37.2% to 23.7% in 2015.
Return on investment
The company operates at low ROIC (2.84%) and ROE (0.58%). ROIC increased slightly on 0.81 pp from 2.0% to 2.8% in 2015. ROE decreased slightly on 1.2 pp from 1.8% to 0.58% in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 349% in 2015.
Appendix 1: Peers in Distribution/Wholesale
Below you can find China Infrastructure Investment Ltd benchmarking vs. other companies in Distribution/Wholesale 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 |
|---|
| C Y Foundation Group Ltd ($1182) | | 8.3% | -65.6% | 5.9% | 214.6% |
| China Fortune Holdings Ltd ($110) | | -64.7% | -68.2% | -71.0% | 174.2% |
| Hailiang International Holdings Ltd ($2336) | | 9.7% | -30.8% | -69.1% | 99.7% |
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | 72.0% |
| Yestar International Holdings Co Ltd ($2393) | | -2.2% | 22.8% | 30.5% | 60.3% |
| |
|---|
| Median (35 companies) | 24.2% | 2.6% | 2.1% | 0.8% | -0.5% |
|---|
| China Infrastructure Investment Ltd ($600) | | 412.1% | -50.9% | 557.9% | -49.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 32.6% | 79.6% | 66.3% | | 98.7% |
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | 60.0% |
| E.Bon Holdings Ltd ($599) | 36.6% | 40.3% | 37.4% | 35.8% | 39.6% |
| |
|---|
| Median (33 companies) | 15.5% | 17.3% | 17.1% | 19.3% | 21.1% |
|---|
| China Infrastructure Investment Ltd ($600) | 83.4% | 40.5% | 87.4% | 0.6% | 0.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | 1,277.8% |
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -649.6% | -1,064.4% | -252.1% | | 62.8% |
| Goldlion Holdings Ltd ($533) | 27.8% | 25.8% | 23.4% | 22.5% | 22.8% |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | 20.3% |
| |
|---|
| Median (36 companies) | 2.9% | 2.6% | 1.9% | 4.5% | 4.3% |
|---|
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | 134.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | 49.8% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | 25.6% |
| China LNG Group Ltd ($931) | 2,875.2% | 11.1% | 0.3% | 0.6% | 15.6% |
| YGM Trading Ltd ($375) | 2.0% | 1.8% | 2.1% | 3.5% | 14.5% |
| Victory Group Ltd ($1139) | | 0.7% | 0.1% | 6.1% | 12.6% |
| |
|---|
| Median (35 companies) | 1.3% | 1.3% | 1.7% | 1.7% | 1.2% |
|---|
| China Infrastructure Investment Ltd ($600) | 403.8% | 61.9% | 3.1% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | 56.2% |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | 27.1% |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | 25.4% |
| E.Bon Holdings Ltd ($599) | 4.4% | 7.0% | 7.2% | 3.3% | 16.9% |
| Goldin Financial Holdings Ltd ($530) | -10.1% | 5.9% | 20.6% | 10.4% | 16.0% |
| |
|---|
| Median (37 companies) | 2.9% | 2.7% | 1.7% | 3.2% | 2.6% |
|---|
| China Infrastructure Investment Ltd ($600) | -2.5% | -4.0% | 0.2% | 2.0% | 2.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | 16.8x |
| Leeport Holdings Ltd ($387) | 3.1x | | | | 16.1x |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | 15.4x |
| Forefront Group Ltd ($885) | | | | -0.0x | 15.3x |
| |
|---|
| Median (26 companies) | -0.2x | -0.2x | -0.5x | 0.3x | 0.0x |
|---|
| China Infrastructure Investment Ltd ($600) | | | -15.3x | -0.9x | -3.0x |
