Sinoref Holdings Ltd revenue surged on 19.9% in 2015 and EBITDA Margin surged on 20.5 pp from -58.7% to -38.3%
31/03/2016 • About Sinoref Holdings Ltd (
$1020) • By InTwits
Sinoref Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sinoref Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -19.5%
- The company operates at negative EBITDA Margin: -38.3%
- Sinoref Holdings 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 -2.9%0
- Sinoref Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's in pair with industry average of 5.8%.
- CAPEX is quite volatile: 9.9 in 2015, 8.3 in 2014, 6.7 in 2013, 5.0 in 2012, 64.5 in 2011
- The company has unprofitable business model: ROIC is at -19.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sinoref Holdings Ltd ($1020) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 323.4 | 322.7 | 186.4 | 240.9 | 288.9 | 19.9% |
| Gross Profit | 180.7 | 153.0 | 24.5 | -26.1 | -26.5 | 1.8% |
| SG&A | | 60.7 | 53.5 | 53.1 | 64.2 | 21.0% |
| EBITDA | 122.4 | 105.3 | -15.8 | -141.5 | -110.6 | -21.9% |
| Net Income | 92.0 | 72.5 | -56.8 | -173.7 | -271.4 | 56.3% |
Balance Sheet
|
|---|
| Cash | 305.6 | 369.8 | 312.3 | 102.7 | 83.7 | -18.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 20.0 | 20.4 | 1.8% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 207.7 | |
Cash flow
|
|---|
| Capex | 64.5 | 5.0 | 6.7 | 8.3 | 9.9 | 18.8% |
Ratios
|
|---|
| Revenue growth | 1.5% | -0.2% | -42.2% | 29.2% | 19.9% | |
| EBITDA growth | -26.3% | -14.0% | -115.0% | 793.9% | -21.9% | |
| Gross Margin | 55.9% | 47.4% | 13.2% | -10.8% | -9.2% | 1.6% |
| EBITDA Margin | 37.9% | 32.6% | -8.5% | -58.7% | -38.3% | 20.5% |
| Net Income Margin | 28.4% | 22.5% | -30.5% | -72.1% | -93.9% | -21.8% |
| SG&A, % of revenue | | 18.8% | 28.7% | 22.0% | 22.2% | 0.2% |
| CAPEX, % of revenue | 19.9% | 1.6% | 3.6% | 3.5% | 3.4% | -0.0% |
| ROIC | 21.8% | 15.3% | -4.7% | -27.1% | -19.5% | 7.6% |
| ROE | 18.1% | 12.4% | -9.6% | -31.9% | -50.5% | -18.6% |
| Net Debt/EBITDA | -2.5x | -3.5x | | | | 0.0x |
Revenue and profitability
The company's Revenue jumped on 19.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 18.6 pp from -29.1% to -10.5% in FY2015.
Gross Margin increased slightly on 1.6 pp from -10.8% to -9.2% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign dropped on 21.8 pp from -72.1% to -93.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
Sinoref Holdings Ltd's CAPEX/Revenue was 3.4% in 2015. CAPEX/Revenue increased slightly on 1.9 pp from 1.6% in 2012 to 3.4% in 2015. For the last three years the average CAPEX/Revenue was 3.5%.
Return on investment
The company operates at negative ROIC (-19.53%) and ROE (-50.49%). ROIC increased on 7.6 pp from -27.1% to -19.5% in 2015. ROE dropped on 18.6 pp from -31.9% to -50.5% in 2015.
Leverage (Debt)
Debt level is -2.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped on 1,040% in 2015 while cash dropped on 18.5% in 2015.
Appendix 1: Peers in Machinery-Diversified
Below you can find Sinoref Holdings Ltd benchmarking vs. other companies in Machinery-Diversified 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 |
|---|
| Shanghai Prime Machinery Co Ltd ($2345) | | 2.6% | -8.9% | 37.3% | 52.8% |
| North Asia Strategic Holdings Ltd ($8080) | | -52.2% | -29.1% | 23.7% | 42.6% |
| Huazhang Technology Holding Ltd ($1673) | | 131.6% | 9.5% | 22.9% | 23.5% |
| LK Technology Holdings Ltd ($558) | | 15.7% | -15.0% | 3.7% | 18.5% |
| First Tractor Co Ltd ($38) | | -1.7% | -4.2% | -18.4% | 6.9% |
| |
|---|
| Median (21 companies) | 13.1% | -6.8% | -2.4% | -1.5% | -5.6% |
|---|
| Sinoref Holdings Ltd ($1020) | | -0.2% | -42.2% | 29.2% | 19.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jingwei Textile Machinery ($350) | 38.3% | 49.1% | 51.7% | 54.9% | 65.5% |
| Renheng Enterprise Holdings Ltd ($3628) | 36.4% | 44.3% | 44.8% | 45.4% | 48.9% |
| Haitian International Holdings Ltd ($1882) | 29.7% | 30.1% | 31.6% | 32.4% | 33.0% |
| CHTC Fong's Industries Co Ltd ($641) | 26.5% | 24.4% | 30.0% | 32.3% | 31.2% |
| Good Friend International Holdings Inc ($2398) | 23.3% | 20.1% | 22.9% | 26.5% | 27.1% |
| |
|---|
| Median (21 companies) | 23.8% | 23.8% | 22.6% | 20.0% | 21.0% |
|---|
| Sinoref Holdings Ltd ($1020) | 55.9% | 47.4% | 13.2% | -10.8% | -9.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jingwei Textile Machinery ($350) | 18.5% | 24.0% | 26.9% | 28.0% | 28.5% |
| Haitian International Holdings Ltd ($1882) | 20.5% | 19.7% | 20.7% | 21.9% | 22.8% |
| Renheng Enterprise Holdings Ltd ($3628) | 22.9% | 24.7% | 23.9% | 20.7% | 17.3% |
| Huazhang Technology Holding Ltd ($1673) | 3.1% | 11.6% | 11.2% | 12.5% | 11.3% |
| Good Friend International Holdings Inc ($2398) | 11.7% | 6.7% | 9.1% | 12.9% | 9.9% |
| |
|---|
| Median (21 companies) | 9.6% | 8.7% | 8.7% | 8.7% | 5.7% |
|---|
| Sinoref Holdings Ltd ($1020) | 37.9% | 32.6% | -8.5% | -58.7% | -38.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | 1.3% | 2.3% | 10.1% | 7.8% | 31.9% |
| Honghua Group Ltd ($196) | 9.9% | 11.5% | 14.6% | 6.8% | 27.3% |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 14.9% | 20.5% | 20.3% | 11.6% | 15.6% |
| Shenji Group Kunming Machine Tool Co Ltd ($300) | 9.2% | 9.5% | 6.7% | 5.0% | 8.3% |
| Haitian International Holdings Ltd ($1882) | 2.1% | 4.2% | 6.8% | 6.3% | 6.3% |
| |
|---|
| Median (21 companies) | 5.3% | 4.2% | 4.3% | 4.5% | 2.2% |
|---|
| Sinoref Holdings Ltd ($1020) | 19.9% | 1.6% | 3.6% | 3.5% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Haitian International Holdings Ltd ($1882) | 26.8% | 19.8% | 21.2% | 19.4% | 16.3% |
| Huazhang Technology Holding Ltd ($1673) | | 29.6% | 16.2% | 16.3% | 16.2% |
| Jingwei Textile Machinery ($350) | 23.3% | 19.4% | 20.9% | 17.4% | 14.9% |
| Good Friend International Holdings Inc ($2398) | 20.0% | 6.5% | 8.7% | 12.1% | 5.9% |
| Shanghai Prime Machinery Co Ltd ($2345) | 5.4% | 2.5% | 2.8% | 2.5% | 5.8% |
| |
|---|
| Median (21 companies) | 9.8% | 7.1% | 4.3% | 3.0% | 1.9% |
|---|
| Sinoref Holdings Ltd ($1020) | 21.8% | 15.3% | -4.7% | -27.1% | -19.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 1.9x | 3.0x | 11.4x | 5.6x | 129.4x |
| Honghua Group Ltd ($196) | 0.1x | 1.2x | 3.2x | 5.2x | 14.2x |
| First Tractor Co Ltd ($38) | 1.1x | 0.5x | 2.5x | 9.2x | 6.3x |
| LK Technology Holdings Ltd ($558) | 0.9x | 2.5x | 5.1x | 4.9x | 4.6x |
| Cosmos Machinery Enterprises Ltd ($118) | 1.3x | 2.2x | 1.7x | 2.1x | 3.9x |
| |
|---|
| Median (17 companies) | -0.2x | -0.6x | -0.5x | -0.5x | 3.1x |
|---|
