China Silver Group Ltd Net Income dropped on 104% in 2015 and EBITDA Margin dropped on 18.6 pp from 19.6% to 0.96%
31/03/2016 • About China Silver Group Ltd (
$815) • By InTwits
China Silver Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Silver Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.2%
- EBITDA Margin is quite volatile: 1.0% in 2015, 19.6% in 2014, 13.6% in 2013, 17.3% in 2012, 17.6% in 2011
- China Silver Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 23.3%.
- CAPEX is quite volatile: 24.5 in 2015, 17.7 in 2014, 53.9 in 2013, 4.6 in 2012, 14.3 in 2011
- The company has unprofitable business model: ROIC is at -0.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Silver Group Ltd ($815) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 984 | 1,540 | 1,507 | 1,523 | 1,707 | 12.1% |
| Gross Profit | 188 | 279 | 222 | 343 | 175 | -49.1% |
| SG&A | | 22 | 29 | 58 | 153 | 162.4% |
| EBITDA | 173 | 266 | 204 | 298 | 16 | -94.5% |
| Net Income | 115 | 158 | 131 | 248 | -11 | -104.4% |
Balance Sheet
|
|---|
| Cash | 41 | 222 | 381 | 740 | 1,019 | 37.6% |
| Short Term Debt | 100 | 110 | 130 | 130 | 130 | -0.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 14 | 5 | 54 | 18 | 24 | 38.2% |
Ratios
|
|---|
| Revenue growth | 76.0% | 56.5% | -2.1% | 1.0% | 12.1% | |
| EBITDA growth | 19.3% | 53.8% | -23.1% | 45.9% | -94.5% | |
| Gross Margin | 19.1% | 18.1% | 14.7% | 22.6% | 10.2% | -12.3% |
| EBITDA Margin | 17.6% | 17.3% | 13.6% | 19.6% | 1.0% | -18.6% |
| Net Income Margin | 11.7% | 10.2% | 8.7% | 16.3% | -0.6% | -17.0% |
| SG&A, % of revenue | | 1.4% | 1.9% | 3.8% | 9.0% | 5.1% |
| CAPEX, % of revenue | 1.5% | 0.3% | 3.6% | 1.2% | 1.4% | 0.3% |
| ROIC | 48.0% | 57.6% | 31.6% | 35.8% | -0.2% | -36.0% |
| ROE | 46.3% | 49.2% | 28.3% | 38.5% | -1.0% | -39.5% |
| Net Debt/EBITDA | 0.3x | -0.4x | -1.2x | -2.0x | -54.4x | -52.3x |
Revenue and profitability
China Silver Group Ltd's Revenue surged on 12.1% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 18.6 pp from 19.6% to 0.96% in 2015.
Gross Margin dropped on 12.3 pp from 22.6% to 10.2% in 2015. SG&A as a % of Revenue increased on 5.1 pp from 3.8% to 9.0% in 2015.
Net Income marign dropped on 17.0 pp from 16.3% to -0.64% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Silver Group Ltd's CAPEX/Revenue was 1.4% in 2015. CAPEX/Revenue increased slightly on 1.1 pp from 0.30% in 2012 to 1.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 2.1%.To secure this fast growth the company made large investments to CAPEX (150% of EBITDA).
Return on investment
The company operates at negative ROIC (-0.20%) and ROE (-1.00%). ROIC dropped on 36.0 pp from 35.8% to -0.20% in 2015. ROE dropped on 39.5 pp from 38.5% to -1.00% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -54.4x and Debt / EBITDA is 8.0x. Net Debt / EBITDA dropped on 52.3x from -2.0x to -54.4x in 2015. Debt showed almost no change in 2015 while cash jumped on 37.6% in 2015.
Appendix 1: Peers in Mining
Below we provide China Silver Group 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% | 2.4% | -5.9% | -13.6% |
|---|
| China Silver Group Ltd ($815) | | 56.5% | -2.1% | 1.0% | 12.1% |
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% | 13.4% | 13.3% | 13.8% | 14.3% |
|---|
| China Silver Group Ltd ($815) | 19.1% | 18.1% | 14.7% | 22.6% | 10.2% |
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) | 5.7% | 4.7% | 7.5% | 4.7% | 5.1% |
|---|
| China Silver Group Ltd ($815) | 17.6% | 17.3% | 13.6% | 19.6% | 1.0% |
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 (49 companies) | 15.6% | 17.2% | 16.8% | 15.8% | 11.9% |
|---|
| China Silver Group Ltd ($815) | 1.5% | 0.3% | 3.6% | 1.2% | 1.4% |
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% | -1.1% |
|---|
| China Silver Group Ltd ($815) | 48.0% | 57.6% | 31.6% | 35.8% | -0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 5.8x | 9.2x | 9.7x | 9.2x | 31.5x |
| 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 |
| |
|---|
| Median (30 companies) | 1.4x | 2.0x | 1.9x | 4.5x | 3.8x |
|---|
| China Silver Group Ltd ($815) | 0.3x | -0.4x | -1.2x | -2.0x | -54.4x |
