Dongpeng Holdings Co Ltd reports 14.0% EBITDA growth and 1.8 pp EBITDA Margin growth from 22.6% to 24.4%
31/03/2016 • About Dongpeng Holdings Co Ltd (
$3386) • By InTwits
Dongpeng Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dongpeng Holdings Co Ltd is a growth stock: 2015 revenue growth was 5.6%, 5 year revenue CAGR was 33.4% at 2015 ROIC 26.6%
- EBITDA Margin is expanding: 24.4% in 2015 vs. 22.6% in 2014 vs. 14.1% in 2011
- Dongpeng Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.9%. At the same time it's a lot of higher than industry average of 7.2%.
- CAPEX is quite volatile: 297 in 2015, 846 in 2014, 757 in 2013, 36.3 in 2012, 98.5 in 2011
- The company has highly profitable business model: ROIC is at 26.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dongpeng Holdings Co Ltd ($3386) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,979 | 2,498 | 3,368 | 3,893 | 4,111 | 5.6% |
| Gross Profit | 568 | 888 | 1,248 | 1,498 | 1,607 | 7.3% |
| SG&A | 351 | 630 | 639 | 787 | 900 | 14.4% |
| EBITDA | 279 | 358 | 726 | 881 | 1,004 | 14.0% |
| Net Income | 141 | 167 | 339 | 564 | 626 | 11.1% |
Balance Sheet
|
|---|
| Cash | 113 | 240 | 803 | 388 | 650 | 67.6% |
| Short Term Debt | 193 | 433 | 364 | 179 | 315 | 75.3% |
| Long Term Debt | 129 | 113 | 117 | 75 | 20 | -73.8% |
Cash flow
|
|---|
| Capex | 285 | 332 | 358 | 303 | 338 | 11.5% |
Ratios
|
|---|
| Revenue growth | 103.0% | 26.2% | 34.8% | 15.6% | 5.6% | |
| EBITDA growth | 192.2% | 28.5% | 102.6% | 21.4% | 14.0% | |
| Gross Margin | 28.7% | 35.6% | 37.1% | 38.5% | 39.1% | 0.6% |
| EBITDA Margin | 14.1% | 14.3% | 21.5% | 22.6% | 24.4% | 1.8% |
| Net Income Margin | 7.1% | 6.7% | 10.1% | 14.5% | 15.2% | 0.8% |
| SG&A, % of revenue | 17.7% | 25.2% | 19.0% | 20.2% | 21.9% | 1.7% |
| CAPEX, % of revenue | 14.4% | 13.3% | 10.6% | 7.8% | 8.2% | 0.4% |
| ROIC | 49.7% | 37.1% | 35.8% | 27.2% | 26.6% | -0.6% |
| ROE | 94.3% | 71.2% | 32.4% | 26.7% | 24.0% | -2.7% |
| Net Debt/EBITDA | 0.8x | 0.9x | -0.4x | -0.2x | -0.3x | -0.2x |
Revenue and profitability
The company's Revenue increased on 5.6% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.8 pp from 22.6% to 24.4% in 2015.
Gross Margin increased slightly on 0.61 pp from 38.5% to 39.1% in 2015. SG&A as a % of Revenue increased slightly on 1.7 pp from 20.2% to 21.9% in 2015.
Net Income marign increased slightly on 0.75 pp from 14.5% to 15.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 8.2%. The company showed decline in CAPEX/Revenue of 5.0 pp from 13.3% in 2012 to 8.2% in 2015. Average CAPEX/Revenue for the last three years was 8.9%.
Return on investment
The company operates at high and attractive ROIC (26.58%) and ROE (24.01%). ROIC decreased slightly on 0.63 pp from 27.2% to 26.6% in 2015. ROE decreased on 2.7 pp from 26.7% to 24.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.2x from -0.2x to -0.3x in 2015. Debt jumped on 31.2% in 2015 while cash surged on 67.6% in 2015.
Appendix 1: Peers in Building Materials
Below you can find Dongpeng Holdings Co Ltd benchmarking vs. other companies in Building Materials 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 |
|---|
| Pacific Plywood Hldg Ltd ($767) | | -34.9% | -14.5% | 119.5% | 57.3% |
| Far East Global Group Ltd ($830) | | 52.9% | 9.5% | 18.6% | 30.5% |
| WLS Holdings Ltd/Hong Kong ($8021) | | 8.9% | 9.4% | -11.1% | 22.0% |
| China Wood Optimization Holding Ltd ($8099) | | 68.7% | 77.9% | 6.5% | 18.9% |
| China Lesso Group Holdings Ltd ($2128) | | 7.4% | 20.0% | 13.4% | 3.0% |
| |
|---|
| Median (24 companies) | | -3.5% | 9.6% | 5.1% | -16.3% |
|---|
| Dongpeng Holdings Co Ltd ($3386) | | 26.2% | 34.8% | 15.6% | 5.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 95.0% | 91.4% | 82.0% | 97.2% | 98.6% |
| Sustainable Forest Holdings Ltd ($723) | 58.2% | -2.4% | 12.1% | 19.7% | 55.2% |
| Luks Group Vietnam Holdings Co Ltd ($366) | 37.6% | 37.2% | 36.9% | 37.0% | 36.4% |
| Anhui Conch Cement Co Ltd ($914) | 39.4% | 27.3% | 32.5% | 33.2% | 26.9% |
| China Lesso Group Holdings Ltd ($2128) | 24.2% | 24.3% | 25.0% | 25.6% | 25.8% |
| |
|---|
| Median (24 companies) | 26.0% | 20.0% | 22.0% | 20.8% | 15.2% |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 28.7% | 35.6% | 37.1% | 38.5% | 39.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 53.6% | 12.6% | -19.8% | 50.5% | 34.7% |
| China Tianrui Group Cement Co Ltd ($1252) | 32.4% | 28.5% | 23.7% | 26.7% | 32.8% |
| Anhui Conch Cement Co Ltd ($914) | 38.8% | 27.1% | 31.1% | 32.1% | 29.7% |
| Luks Group Vietnam Holdings Co Ltd ($366) | 30.8% | 30.4% | 29.9% | 23.8% | 26.2% |
| West China Cement Ltd ($2233) | 36.4% | 30.0% | 28.5% | 25.5% | 23.5% |
| |
|---|
| Median (24 companies) | 22.0% | 16.3% | 16.9% | 17.4% | 13.8% |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 14.1% | 14.3% | 21.5% | 22.6% | 24.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Wood Optimization Holding Ltd ($8099) | 59.7% | 10.9% | 9.6% | 1.8% | 19.3% |
| China Shanshui Cement Group Ltd ($691) | 13.5% | 18.9% | 21.1% | 12.1% | 14.3% |
| Luks Group Vietnam Holdings Co Ltd ($366) | 1.7% | 0.6% | 0.5% | 4.1% | 14.2% |
| China Glass Holdings Ltd ($3300) | 37.2% | 19.6% | 12.5% | 12.4% | 13.5% |
| WLS Holdings Ltd/Hong Kong ($8021) | 4.9% | 6.0% | 6.6% | 7.9% | 11.5% |
| |
|---|
| Median (24 companies) | 6.3% | 9.7% | 8.3% | 5.4% | 7.2% |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 14.4% | 13.3% | 10.6% | 7.8% | 8.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Wood Optimization Holding Ltd ($8099) | | 33.5% | 27.3% | 17.7% | 17.7% |
| China Lesso Group Holdings Ltd ($2128) | 26.8% | 20.5% | 19.4% | 18.2% | 17.2% |
| Anhui Conch Cement Co Ltd ($914) | 27.2% | 12.7% | 17.5% | 18.4% | 11.7% |
| China Singyes Solar Technologies Holdings Ltd ($750) | 21.1% | 18.6% | 19.9% | 16.0% | 8.1% |
| China Resources Cement Holdings Ltd ($1313) | 14.0% | 8.0% | 9.6% | 13.0% | 5.5% |
| |
|---|
| Median (24 companies) | 12.1% | 5.0% | 6.9% | 4.8% | 1.2% |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 49.7% | 37.1% | 35.8% | 27.2% | 26.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sustainable Forest Holdings Ltd ($723) | 0.9x | | | 9.6x | |
| China National Building Material Co Ltd ($3323) | 3.9x | 6.7x | 6.8x | 6.3x | 8.5x |
| BBMG Corp ($2009) | 4.4x | 4.6x | 5.0x | 6.1x | 6.6x |
| China Tianrui Group Cement Co Ltd ($1252) | 3.0x | 4.2x | 5.1x | 5.2x | 7.9x |
| China Shanshui Cement Group Ltd ($691) | 1.8x | 3.0x | 4.1x | 4.8x | |
| |
|---|
| Median (20 companies) | 1.4x | 3.0x | 2.7x | 2.0x | 4.0x |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 0.8x | 0.9x | -0.4x | -0.2x | -0.3x |
