Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd reports 48.3% CAPEX decline and 5.2% Revenue decline
31/03/2016 • About Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd (
$1938) • By InTwits
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -2.0%
- The company operates at negative EBITDA Margin: -1.7%
- EBITDA Margin is quite volatile: -1.7% in 2015, -2.4% in 2014, 5.8% in 2013, 13.1% in 2012, 11.0% in 2011
- Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 33.3%. At the same time it's a lot of higher than industry average of 18.1%.
- CAPEX is quite volatile: 435 in 2015, 841 in 2014, 1,453 in 2013, 1,018 in 2012, 686 in 2011
- The company has unprofitable business model: ROIC is at -2.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,377 | 3,926 | 2,027 | 2,679 | 2,539 | -5.2% |
| Gross Profit | 510 | 667 | 313 | 312 | 407 | 30.7% |
| SG&A | | 306 | 469 | 593 | 612 | 3.2% |
| EBITDA | 373 | 513 | 118 | -63 | -43 | -32.3% |
| Net Income | 231 | 311 | 41 | -359 | 19 | -105.2% |
Balance Sheet
|
|---|
| Cash | 982 | 1,039 | 1,610 | 638 | 286 | -55.1% |
| Short Term Debt | 1,950 | 1,831 | 3,542 | 3,692 | 3,350 | -9.3% |
| Long Term Debt | 732 | 1,636 | 2,580 | 2,824 | 3,456 | 22.4% |
Cash flow
|
|---|
| Capex | 686 | 1,018 | 1,453 | 841 | 435 | -48.3% |
Ratios
|
|---|
| Revenue growth | 100.8% | 16.3% | -48.4% | 32.2% | -5.2% | |
| EBITDA growth | 151.7% | 37.5% | -77.0% | -153.7% | -32.3% | |
| Gross Margin | 15.1% | 17.0% | 15.4% | 11.6% | 16.0% | 4.4% |
| EBITDA Margin | 11.0% | 13.1% | 5.8% | -2.4% | -1.7% | 0.7% |
| Net Income Margin | 6.8% | 7.9% | 2.0% | -13.4% | 0.7% | 14.1% |
| SG&A, % of revenue | | 7.8% | 23.1% | 22.1% | 24.1% | 2.0% |
| CAPEX, % of revenue | 20.3% | 25.9% | 71.7% | 31.4% | 17.1% | -14.2% |
| ROIC | 8.3% | 8.3% | 0.1% | -2.0% | -2.0% | -0.0% |
| ROE | 11.0% | 13.4% | 1.4% | -10.4% | 0.6% | 11.0% |
| Net Debt/EBITDA | 4.6x | 4.7x | 38.3x | | | 0.0x |
Revenue and profitability
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd's Revenue decreased on 5.2% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.67 pp from -2.4% to -1.7% in 2015.
Gross Margin increased on 4.4 pp from 11.6% to 16.0% in 2015. SG&A as a % of Revenue increased slightly on 2.0 pp from 22.1% to 24.1% in 2015.
Net Income marign surged on 14.1 pp from -13.4% to 0.74% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd had CAPEX/Revenue of 17.1%. The company showed decline in CAPEX/Revenue of 8.8 pp from 25.9% in 2012 to 17.1% in 2015. Average CAPEX/Revenue for the last three years was 40.1%.
Return on investment
The company operates at negative ROIC (-2.01%) and low but positive ROE (0.58%). ROIC showed almost no change in 2015. ROE surged on 11.0 pp from -10.4% to 0.58% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt increased on 4.5% in 2015 while cash dropped on 55.1% in 2015.
Appendix 1: Peers in Metal Fabricate/Hardware
Below you can find Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd benchmarking vs. other companies in Metal Fabricate/Hardware 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 |
|---|
| EVA Precision Industrial Holdings Ltd ($838) | | 19.7% | 12.2% | 30.1% | 2.3% |
| China Zhongwang Holdings Ltd ($1333) | | 31.0% | 6.0% | 11.6% | 1.3% |
| Ka Shui International Holdings Ltd ($822) | | 31.7% | 15.1% | -12.4% | -2.7% |
| Shengli Oil & Gas Pipe Holdings Ltd ($1080) | | 5.4% | 33.1% | -21.4% | -2.7% |
| Lung Kee Bermuda Holdings ($255) | | -5.2% | -7.5% | 8.2% | -5.2% |
| |
|---|
| Median (8 companies) | | 2.8% | 11.1% | 2.2% | -4.0% |
|---|
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | | 16.3% | -48.4% | 32.2% | -5.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 21.6% | 24.2% | 26.8% | 28.0% | 32.9% |
| EVA Precision Industrial Holdings Ltd ($838) | 24.7% | 21.6% | 24.1% | 26.2% | 26.5% |
| Ka Shui International Holdings Ltd ($822) | 19.4% | 22.5% | 22.1% | 19.6% | 19.0% |
| New Times Energy Corp Ltd ($166) | 1.0% | -2.7% | 0.8% | 22.6% | 4.6% |
| Shengli Oil & Gas Pipe Holdings Ltd ($1080) | 7.9% | 3.7% | 3.4% | 1.3% | 2.0% |
| |
|---|
| Median (7 companies) | 9.3% | 3.7% | 11.5% | 19.6% | 4.6% |
|---|
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 15.1% | 17.0% | 15.4% | 11.6% | 16.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 22.0% | 22.3% | 24.3% | 24.2% | 29.1% |
| Lung Kee Bermuda Holdings ($255) | 19.3% | 15.3% | 14.8% | 11.7% | 15.2% |
| EVA Precision Industrial Holdings Ltd ($838) | 16.8% | 10.4% | 9.9% | 16.7% | 14.9% |
| Ka Shui International Holdings Ltd ($822) | 12.6% | 14.3% | 9.5% | 12.0% | 6.1% |
| Burwill Holdings Ltd ($24) | 0.6% | -0.8% | -0.6% | -0.4% | -1.4% |
| |
|---|
| Median (8 companies) | 10.7% | 8.9% | 9.7% | 8.4% | 2.4% |
|---|
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 11.0% | 13.1% | 5.8% | -2.4% | -1.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 25.1% | 56.3% | 41.6% | 54.8% | 63.1% |
| New Times Energy Corp Ltd ($166) | 9.0% | 11.4% | 1.7% | 52.1% | 61.1% |
| EVA Precision Industrial Holdings Ltd ($838) | 15.3% | 9.2% | 6.3% | 6.3% | 8.0% |
| Ka Shui International Holdings Ltd ($822) | 5.0% | 9.3% | 7.4% | 11.1% | 6.5% |
| Lung Kee Bermuda Holdings ($255) | 21.9% | 11.6% | 9.6% | 11.0% | 4.5% |
| |
|---|
| Median (8 companies) | 12.1% | 10.3% | 6.8% | 8.6% | 5.5% |
|---|
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 20.3% | 25.9% | 71.7% | 31.4% | 17.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 7.8% | 9.5% | 8.8% | 7.4% | 6.9% |
| EVA Precision Industrial Holdings Ltd ($838) | 10.5% | 3.3% | 1.9% | 9.1% | 6.4% |
| Lung Kee Bermuda Holdings ($255) | 12.3% | 6.7% | 4.9% | 3.2% | 4.8% |
| Ka Shui International Holdings Ltd ($822) | 10.5% | 14.6% | 7.1% | 7.6% | 0.5% |
| New Times Energy Corp Ltd ($166) | -1.8% | -1.7% | -1.8% | -2.6% | -2.1% |
| |
|---|
| Median (8 companies) | 5.9% | 2.9% | 1.9% | 0.8% | -0.8% |
|---|
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 8.3% | 8.3% | 0.1% | -2.0% | -2.0% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | -0.8x | 1.3x | 2.6x | 4.1x | 6.2x |
| Ka Shui International Holdings Ltd ($822) | 0.7x | 0.9x | 1.3x | 1.7x | 3.6x |
| EVA Precision Industrial Holdings Ltd ($838) | -0.4x | 1.1x | 1.8x | 1.2x | 0.7x |
| Lung Kee Bermuda Holdings ($255) | -0.7x | -1.5x | -1.6x | -0.9x | -1.4x |
| |
|---|
| Median (4 companies) | 0.7x | 1.1x | 2.2x | 1.7x | 2.2x |
|---|
