Jilin Qifeng Chemical Fiber Co Ltd Net Income surged on 283% in 2015 while Revenue decreased on 5.7%
31/03/2016 • About Jilin Qifeng Chemical Fiber Co Ltd (
$549) • By InTwits
Jilin Qifeng Chemical Fiber Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jilin Qifeng Chemical Fiber Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's a lot of higher than industry average of 4.7%.
- CAPEX is quite volatile: 26.7 in 2015, 23.6 in 2014, 22.2 in 2013, 53.8 in 2012, 324 in 2011
- The company has business model with average profitability: ROIC is at 11.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jilin Qifeng Chemical Fiber Co Ltd ($549) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,097 | 1,392 | 1,469 | 1,896 | 1,787 | -5.7% |
| Gross Profit | 215 | 16 | 101 | 149 | 332 | 122.4% |
| SG&A | | 109 | 154 | 76 | 81 | 6.9% |
| EBITDA | 294 | 114 | 269 | 341 | 397 | 16.5% |
| Net Income | 65 | -187 | -92 | -72 | 132 | -283.2% |
Balance Sheet
|
|---|
| Cash | 264 | 109 | 91 | 58 | 68 | 17.0% |
| Short Term Debt | 1,165 | 1,410 | 1,480 | 1,570 | 1,161 | -26.0% |
| Long Term Debt | 365 | 308 | 364 | 308 | 115 | -62.6% |
Cash flow
|
|---|
| Capex | 324 | 54 | 22 | 24 | 27 | 13.3% |
Ratios
|
|---|
| Revenue growth | 39.7% | -33.6% | 5.5% | 29.1% | -5.7% | |
| EBITDA growth | 44.2% | -61.1% | 134.6% | 26.9% | 16.5% | |
| Gross Margin | 10.3% | 1.2% | 6.9% | 7.9% | 18.6% | 10.7% |
| EBITDA Margin | 14.0% | 8.2% | 18.3% | 18.0% | 22.2% | 4.2% |
| Net Income Margin | 3.1% | -13.4% | -6.3% | -3.8% | 7.4% | 11.2% |
| SG&A, % of revenue | | 7.9% | 10.5% | 4.0% | 4.5% | 0.5% |
| CAPEX, % of revenue | 15.5% | 3.9% | 1.5% | 1.2% | 1.5% | 0.3% |
| ROIC | 6.4% | -1.3% | 2.6% | 5.9% | 11.6% | 5.7% |
| ROE | 6.6% | -20.3% | -11.9% | -10.3% | 18.2% | 28.5% |
| Net Debt/EBITDA | 4.3x | 14.1x | 6.5x | 5.3x | 3.0x | -2.3x |
Revenue and profitability
The company's Revenue decreased on 5.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.2 pp from 18.0% to 22.2% in 2015.
Gross Margin surged on 10.7 pp from 7.9% to 18.6% in 2015. SG&A as a % of Revenue increased slightly on 0.54 pp from 4.0% to 4.5% in 2015.
Net Income marign surged on 11.2 pp from -3.8% to 7.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.5% in 2015. The company showed decline in CAPEX/Revenue of 2.4 pp from 3.9% in 2012 to 1.5% in 2015. Average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at good ROE (18.16%) while ROIC is low (11.60%). ROIC increased on 5.7 pp from 5.9% to 11.6% in 2015. ROE jumped on 28.5 pp from -10.3% to 18.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.0x and Debt / EBITDA is 3.2x. Net Debt / EBITDA dropped on 2.3x from 5.3x to 3.0x in 2015. Debt dropped on 32.0% in 2015 while cash surged on 17.0% in 2015.
Appendix 1: Peers in Chemicals
Below you can find Jilin Qifeng Chemical Fiber Co Ltd benchmarking vs. other companies in Chemicals 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 |
|---|
| Bestway International Holdings Ltd ($718) | | -25.4% | -62.1% | 330.3% | 238.4% |
| China First Chemical Holdings Ltd ($2121) | | 6.2% | -6.8% | -18.0% | 72.5% |
| Strong Petrochemical Holdings Ltd ($852) | | 40.8% | 87.9% | -60.8% | 42.3% |
| Ko Yo Chemical Group Ltd ($827) | | -5.6% | -0.6% | 2.3% | 40.8% |
| China Sanjiang Fine Chemicals Co Ltd ($2198) | | 16.0% | 63.5% | -7.7% | 36.6% |
| |
|---|
| Median (30 companies) | 38.7% | 2.4% | 9.7% | 1.8% | -0.9% |
|---|
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | | -33.6% | 5.5% | 29.1% | -5.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 74.3% | 70.5% | 69.1% | 70.8% | 69.9% |
| China Flavors & Fragrances Co Ltd ($3318) | 41.3% | 46.8% | 48.6% | 47.8% | 48.9% |
| Bestway International Holdings Ltd ($718) | 5.4% | 5.1% | 4.6% | 8.6% | 40.4% |
| Bracell Ltd ($1768) | 40.1% | 30.5% | 37.3% | 37.3% | 38.4% |
| Shaanxi Northwest New Technology Industry Co Ltd ($8258) | 22.1% | 28.7% | 30.9% | 30.0% | 37.9% |
| |
|---|
| Median (30 companies) | 20.3% | 20.8% | 18.7% | 18.4% | 20.5% |
|---|
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 10.3% | 1.2% | 6.9% | 7.9% | 18.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 66.4% | 63.8% | 59.1% | 60.0% | 58.3% |
| Bracell Ltd ($1768) | 30.1% | 22.3% | 30.8% | 38.2% | 35.9% |
| Yingde Gases Group Co Ltd ($2168) | 32.3% | 29.4% | 29.8% | 32.3% | 33.4% |
| Tiande Chemical Holdings Ltd ($609) | 21.7% | 25.5% | 27.3% | 25.1% | 27.8% |
| Century Sunshine Group Holdings Ltd ($509) | 15.5% | 24.2% | 28.1% | 27.6% | 26.1% |
| |
|---|
| Median (30 companies) | 15.4% | 14.5% | 11.8% | 10.7% | 11.8% |
|---|
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 14.0% | 8.2% | 18.3% | 18.0% | 22.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Landing International Development Ltd ($582) | 27.9% | 7.2% | 29.6% | 419.5% | 247.4% |
| China Zenith Chemical Group Ltd ($362) | 36.8% | 147.3% | 55.7% | 67.4% | 152.2% |
| Smartac Group China Holdings Ltd ($395) | 22.5% | 14.0% | 4.7% | 49.3% | 52.4% |
| China Flavors & Fragrances Co Ltd ($3318) | 16.4% | 15.8% | 20.1% | 42.4% | 35.8% |
| Ko Yo Chemical Group Ltd ($827) | 31.3% | 45.2% | 43.2% | 20.7% | 27.5% |
| |
|---|
| Median (30 companies) | 8.3% | 8.4% | 8.9% | 5.8% | 7.2% |
|---|
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 15.5% | 3.9% | 1.5% | 1.2% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 34.6% | 28.7% | 25.2% | 26.2% | 23.3% |
| Tiande Chemical Holdings Ltd ($609) | 24.4% | 26.2% | 29.4% | 20.7% | 20.6% |
| Sinopec Shanghai Petrochemical Co Ltd ($338) | 4.5% | -6.9% | 8.1% | -2.4% | 16.5% |
| Century Sunshine Group Holdings Ltd ($509) | 3.5% | 11.3% | 15.9% | 16.4% | 13.3% |
| Infinity Chemical Holdings Co Ltd ($640) | 9.2% | 11.1% | 10.2% | 8.8% | 12.7% |
| |
|---|
| Median (30 companies) | 8.2% | 7.3% | 8.3% | 5.6% | 5.1% |
|---|
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 6.4% | -1.3% | 2.6% | 5.9% | 11.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ko Yo Chemical Group Ltd ($827) | 7.4x | 8.8x | 22.0x | | 141.5x |
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 2.4x | 2.2x | 4.6x | 18.1x | 13.5x |
| Sinofert Holdings Ltd ($297) | 4.3x | 2.9x | 32.4x | 5.0x | 8.4x |
| Ngai Hing Hong Co Ltd ($1047) | 4.8x | 11.7x | 5.3x | 5.4x | 5.3x |
| China XLX Fertiliser Ltd ($1866) | 2.4x | 2.6x | 5.1x | 5.8x | 5.1x |
| |
|---|
| Median (26 companies) | 1.2x | 1.0x | 2.0x | 1.3x | 1.7x |
|---|
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 4.3x | 14.1x | 6.5x | 5.3x | 3.0x |
