China Sunshine Paper Holdings Co Ltd Debt dropped on 18.0% in 2015 while Revenue increased on 8.1%
31/03/2016 • About China Sunshine Paper Holdings Co Ltd (
$2002) • By InTwits
China Sunshine Paper Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Sunshine Paper Holdings Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.5%. At the same time it's in pair with industry average of 4.3%.
- CAPEX is quite volatile: 148 in 2015, 301 in 2014, 361 in 2013, 547 in 2012, 387 in 2011
- The company has business model with low profitability: ROIC is at 7.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 4.1x while industry average is 3.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Sunshine Paper Holdings Co Ltd ($2002) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,721 | 3,704 | 3,658 | 3,448 | 3,726 | 8.1% |
| Gross Profit | 626 | 615 | 603 | 656 | 746 | 13.7% |
| SG&A | | 359 | 411 | 403 | 430 | 6.7% |
| EBITDA | 512 | 530 | 466 | 499 | 577 | 15.6% |
| Net Income | 82 | 44 | 22 | -38 | 51 | -235.0% |
Balance Sheet
|
|---|
| Cash | 248 | 258 | 467 | 302 | 327 | 8.2% |
| Short Term Debt | 2,353 | 2,555 | 3,401 | 2,705 | 1,953 | -27.8% |
| Long Term Debt | 994 | 852 | 267 | 613 | 768 | 25.2% |
Cash flow
|
|---|
| Capex | 387 | 547 | 361 | 301 | 148 | -50.8% |
Ratios
|
|---|
| Revenue growth | 51.5% | -0.5% | -1.3% | -5.7% | 8.1% | |
| EBITDA growth | 36.0% | 3.5% | -12.1% | 7.2% | 15.6% | |
| Gross Margin | 16.8% | 16.6% | 16.5% | 19.0% | 20.0% | 1.0% |
| EBITDA Margin | 13.8% | 14.3% | 12.7% | 14.5% | 15.5% | 1.0% |
| Net Income Margin | 2.2% | 1.2% | 0.6% | -1.1% | 1.4% | 2.5% |
| SG&A, % of revenue | | 9.7% | 11.2% | 11.7% | 11.5% | -0.2% |
| CAPEX, % of revenue | 10.4% | 14.8% | 9.9% | 8.7% | 4.0% | -4.8% |
| ROIC | 7.5% | 6.8% | 5.1% | 5.5% | 7.6% | 2.2% |
| ROE | 5.8% | 3.0% | 1.5% | -2.6% | 3.4% | 6.0% |
| Net Debt/EBITDA | 6.1x | 5.9x | 6.9x | 6.0x | 4.1x | -1.9x |
Revenue and profitability
China Sunshine Paper Holdings Co Ltd's Revenue increased on 8.1% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.0 pp from 14.5% to 15.5% in 2015.
Gross Margin increased slightly on 0.99 pp from 19.0% to 20.0% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 2.5 pp from -1.1% to 1.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Sunshine Paper Holdings Co Ltd's CAPEX/Revenue was 4.0% in 2015. The company's CAPEX/Revenue dropped on 10.8 pp from 14.8% in 2012 to 4.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 7.5%.
Return on investment
The company operates at low ROIC (7.63%) and ROE (3.45%). ROIC increased on 2.2 pp from 5.5% to 7.6% in 2015. ROE increased on 6.0 pp from -2.6% to 3.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.1x and Debt / EBITDA is 4.7x. Net Debt / EBITDA dropped on 1.9x from 6.0x to 4.1x in 2015. Debt dropped on 18.0% in 2015 while cash increased on 8.2% in 2015.
Appendix 1: Peers in Forest Products&Paper
Below you can find China Sunshine Paper Holdings Co Ltd benchmarking vs. other companies in Forest Products&Paper 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 |
|---|
| KuangChi Science Ltd ($439) | | | | 39.7% | 211.9% |
| Merdeka Mobile Group Ltd ($8163) | | -11.0% | 415.4% | 71.4% | 88.0% |
| Youyuan International Holdings Ltd ($2268) | | 0.4% | 6.7% | 0.8% | 10.3% |
| PNG Resources Holdings Ltd ($221) | | 323.7% | 248.6% | 8.5% | 8.7% |
| Samson Paper Holdings Ltd ($731) | | 7.4% | -7.1% | 6.4% | 6.2% |
| |
|---|
| Median (10 companies) | -7.7% | 9.4% | 5.8% | 0.8% | 6.0% |
|---|
| China Sunshine Paper Holdings Co Ltd ($2002) | | -0.5% | -1.3% | -5.7% | 8.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| KuangChi Science Ltd ($439) | | | 20.3% | 17.3% | 63.6% |
| PNG Resources Holdings Ltd ($221) | 31.9% | 19.4% | 18.6% | 24.2% | 35.3% |
| Youyuan International Holdings Ltd ($2268) | 29.6% | 29.8% | 32.9% | 31.3% | 29.2% |
| China Asean Resources Ltd ($8186) | 40.2% | 19.8% | 40.3% | | 27.8% |
| Shandong Chenming Paper Holdings Ltd ($1812) | 15.5% | 15.2% | 18.0% | 19.4% | 26.6% |
| |
|---|
| Median (11 companies) | 16.9% | 16.0% | 17.4% | 16.7% | 19.9% |
|---|
| China Sunshine Paper Holdings Co Ltd ($2002) | 16.8% | 16.6% | 16.5% | 19.0% | 20.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Youyuan International Holdings Ltd ($2268) | 27.6% | 27.2% | 30.8% | 29.8% | 30.0% |
| PNG Resources Holdings Ltd ($221) | -68.2% | -6.1% | 9.6% | 12.2% | 26.5% |
| Shandong Chenming Paper Holdings Ltd ($1812) | 11.6% | 11.4% | 13.2% | 14.5% | 20.4% |
| Nine Dragons Paper Holdings Ltd ($2689) | 17.1% | 16.4% | 17.2% | 18.6% | 16.9% |
| Hop Fung Group Holdings Ltd ($2320) | 9.7% | 10.3% | 10.3% | 10.2% | 11.8% |
| |
|---|
| Median (11 companies) | -8.0% | 6.8% | 10.3% | 3.8% | 6.2% |
|---|
| China Sunshine Paper Holdings Co Ltd ($2002) | 13.8% | 14.3% | 12.7% | 14.5% | 15.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| KuangChi Science Ltd ($439) | | | 3.2% | 0.5% | 65.6% |
| PNG Resources Holdings Ltd ($221) | 294.9% | 133.1% | 35.6% | 53.0% | 44.8% |
| China Agroforestry Low-Carbon Holdings Ltd ($1069) | 0.1% | 0.2% | 11.5% | 26.7% | 26.3% |
| Shandong Chenming Paper Holdings Ltd ($1812) | 28.7% | 14.4% | 18.8% | 16.3% | 18.5% |
| Youyuan International Holdings Ltd ($2268) | 35.7% | 28.4% | 14.8% | 8.4% | 14.2% |
| |
|---|
| Median (11 companies) | 35.0% | 15.6% | 10.7% | 8.4% | 5.9% |
|---|
| China Sunshine Paper Holdings Co Ltd ($2002) | 10.4% | 14.8% | 9.9% | 8.7% | 4.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PNG Resources Holdings Ltd ($221) | -3.6% | -1.2% | 5.8% | 8.3% | 19.9% |
| Youyuan International Holdings Ltd ($2268) | 15.6% | 12.6% | 12.9% | 10.4% | 10.6% |
| Nine Dragons Paper Holdings Ltd ($2689) | 7.5% | 6.5% | 6.1% | 5.9% | 5.3% |
| Shandong Chenming Paper Holdings Ltd ($1812) | 2.4% | 1.9% | 3.3% | 3.0% | 4.5% |
| Samson Paper Holdings Ltd ($731) | 3.0% | 3.2% | 1.8% | 2.9% | 2.9% |
| |
|---|
| Median (12 companies) | -2.5% | -1.2% | 1.8% | -2.7% | 1.5% |
|---|
| China Sunshine Paper Holdings Co Ltd ($2002) | 7.5% | 6.8% | 5.1% | 5.5% | 7.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Greenheart Group Ltd ($94) | | | 7.1x | 26.8x | 53.0x |
| Shandong Chenming Paper Holdings Ltd ($1812) | 9.0x | 10.4x | 9.0x | 10.9x | 12.4x |
| Samson Paper Holdings Ltd ($731) | 11.3x | 8.3x | 13.0x | 9.3x | 8.9x |
| Nine Dragons Paper Holdings Ltd ($2689) | 5.2x | 4.9x | 5.7x | 5.1x | 4.7x |
| Youyuan International Holdings Ltd ($2268) | 1.2x | 1.5x | 2.1x | 1.5x | 1.4x |
| |
|---|
| Median (8 companies) | 4.2x | 3.5x | 3.8x | 5.1x | 3.1x |
|---|
| China Sunshine Paper Holdings Co Ltd ($2002) | 6.1x | 5.9x | 6.9x | 6.0x | 4.1x |
