Shaanxi Northwest New Technology Industry Co Ltd revenue dropped on 30.4% in 2015 while EBITDA Margin increased slightly on 1.4 pp from 14.4% to 15.8%
31/03/2016 • About Shaanxi Northwest New Technology Industry Co Ltd (
$8258) • By InTwits
Shaanxi Northwest New Technology Industry Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shaanxi Northwest New Technology Industry Co Ltd is a company in decline: 2015 revenue growth was -30.4%, 5 years revenue CAGR was -5.1%
- Shaanxi Northwest New Technology Industry Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -3.2%0
- Shaanxi Northwest New Technology Industry Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.0%.
- The company has potentially unprofitable business model: ROIC is at 4.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shaanxi Northwest New Technology Industry Co Ltd ($8258) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 46.106 | 53.908 | 57.186 | 58.675 | 40.861 | -30.4% |
| Gross Profit | 10.188 | 15.463 | 17.681 | 17.596 | 15.506 | -11.9% |
| SG&A | | 14.363 | 7.644 | 7.708 | 9.341 | 21.2% |
| EBITDA | 13.488 | 14.742 | -51.374 | 8.434 | 6.443 | -23.6% |
| Net Income | 10.004 | 10.308 | -56.365 | 4.716 | 4.307 | -8.7% |
Balance Sheet
|
|---|
| Cash | 61.499 | 27.353 | 34.426 | 48.755 | 41.883 | -14.1% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.012 | 0.000 | 0.000 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | -13.1% | 16.9% | 6.1% | 2.6% | -30.4% | |
| EBITDA growth | -12.6% | 9.3% | -448.5% | -116.4% | -23.6% | |
| Gross Margin | 22.1% | 28.7% | 30.9% | 30.0% | 37.9% | 8.0% |
| EBITDA Margin | 29.3% | 27.3% | -89.8% | 14.4% | 15.8% | 1.4% |
| Net Income Margin | 21.7% | 19.1% | -98.6% | 8.0% | 10.5% | 2.5% |
| SG&A, % of revenue | | 26.6% | 13.4% | 13.1% | 22.9% | 9.7% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| ROIC | 6.1% | 6.9% | -38.1% | 5.2% | 4.1% | -1.1% |
| ROE | 7.8% | 7.5% | -49.1% | 5.3% | 4.3% | -1.0% |
| Net Debt/EBITDA | -4.6x | -1.9x | | -5.8x | -6.5x | -0.7x |
Revenue and profitability
The company's Revenue dropped on 30.4% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.4 pp from 14.4% to 15.8% in 2015.
Gross Margin increased on 8.0 pp from 30.0% to 37.9% in 2015. SG&A as a % of Revenue increased on 9.7 pp from 13.1% to 22.9% in 2015.
Net Income marign increased on 2.5 pp from 8.0% to 10.5% in 2015.
Return on investment
The company operates at low ROIC (4.09%) and ROE (4.28%). ROIC decreased slightly on 1.1 pp from 5.2% to 4.1% in 2015. ROE decreased slightly on 1.0 pp from 5.3% to 4.3% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 14.1% in 2015.
Appendix 1: Peers in Chemicals
Below we provide Shaanxi Northwest New Technology Industry Co Ltd benchmarking against other companies in Chemicals 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 |
|---|
| 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% | 2.0% | 9.7% | 1.8% | -0.9% |
|---|
| Shaanxi Northwest New Technology Industry Co Ltd ($8258) | | 16.9% | 6.1% | 2.6% | -30.4% |
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% |
| Infinity Chemical Holdings Co Ltd ($640) | 22.0% | 25.4% | 28.0% | 29.8% | 33.2% |
| |
|---|
| Median (30 companies) | 19.8% | 18.9% | 17.3% | 16.8% | 18.7% |
|---|
| Shaanxi Northwest New Technology Industry Co Ltd ($8258) | 22.1% | 28.7% | 30.9% | 30.0% | 37.9% |
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) | 15.2% | 12.3% | 13.6% | 10.7% | 11.8% |
|---|
| Shaanxi Northwest New Technology Industry Co Ltd ($8258) | 29.3% | 27.3% | -89.8% | 14.4% | 15.8% |
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) | 8.5% | 8.4% | 8.9% | 5.8% | 7.2% |
|---|
| Shaanxi Northwest New Technology Industry Co Ltd ($8258) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
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% | 5.9% | 5.9% |
|---|
| Shaanxi Northwest New Technology Industry Co Ltd ($8258) | 6.1% | 6.9% | -38.1% | 5.2% | 4.1% |
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) | 1.3x | 1.6x | 2.1x | 1.4x | 2.0x |
|---|
| Shaanxi Northwest New Technology Industry Co Ltd ($8258) | -4.6x | -1.9x | | -5.8x | -6.5x |
