Xingfa Aluminium Holdings Ltd Net Income jumped on 18.3% in 2015 and Revenue increased on 2.8%
31/03/2016 • About Xingfa Aluminium Holdings Ltd (
$98) • By InTwits
Xingfa Aluminium Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 13.1% in 2015 vs. 12.0% in 2014 vs. 5.4% in 2011
- Xingfa Aluminium Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.8%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 102 in FY2015, 65.6 in FY2014, 111 in FY2013, 74.3 in FY2012, 27.7 in FY2011
- The company has business model with average profitability: ROIC is at 11.8%
- It operates with high leverage: Net Debt/EBITDA is 3.2x while industry average is 2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Xingfa Aluminium Holdings Ltd ($98) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,067 | 3,547 | 3,907 | 4,844 | 4,978 | 2.8% |
| Gross Profit | 254 | 397 | 510 | 758 | 830 | 9.5% |
| SG&A | | 201 | 252 | 361 | 401 | 11.1% |
| EBITDA | 165 | 312 | 394 | 580 | 652 | 12.5% |
| Net Income | 15 | 87 | 131 | 225 | 266 | 18.3% |
Balance Sheet
|
|---|
| Cash | 244 | 265 | 241 | 306 | 416 | 36.0% |
| Short Term Debt | 1,492 | 1,706 | 1,958 | 2,584 | 2,178 | -15.7% |
| Long Term Debt | 643 | 572 | 526 | 286 | 301 | 5.4% |
Cash flow
|
|---|
| Capex | 401 | 272 | 307 | 295 | 224 | -24.0% |
Ratios
|
|---|
| Revenue growth | 33.0% | 15.6% | 10.2% | 24.0% | 2.8% | |
| EBITDA growth | -6.6% | 88.7% | 26.2% | 47.2% | 12.5% | |
| Gross Margin | 8.3% | 11.2% | 13.1% | 15.6% | 16.7% | 1.0% |
| EBITDA Margin | 5.4% | 8.8% | 10.1% | 12.0% | 13.1% | 1.1% |
| Net Income Margin | 0.5% | 2.4% | 3.3% | 4.6% | 5.3% | 0.7% |
| SG&A, % of revenue | | 5.7% | 6.4% | 7.5% | 8.1% | 0.6% |
| CAPEX, % of revenue | 13.1% | 7.7% | 7.9% | 6.1% | 4.5% | -1.6% |
| ROIC | 3.8% | 7.6% | 8.8% | 11.7% | 11.8% | 0.1% |
| ROE | 1.9% | 10.6% | 14.2% | 20.8% | 20.4% | -0.4% |
| Net Debt/EBITDA | 11.4x | 6.4x | 5.7x | 4.4x | 3.2x | -1.3x |
Revenue and profitability
Xingfa Aluminium Holdings Ltd's Revenue increased on 2.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.6 pp from 2.7% to 12.3% in FY2015.
Gross Margin increased slightly on 1.0 pp from 15.6% to 16.7% in 2015. SG&A as a % of Revenue increased slightly on 0.61 pp from 7.5% to 8.1% in 2015.
Net Income marign increased slightly on 0.70 pp from 4.6% to 5.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.5% in 2015. The company showed decline in CAPEX/Revenue of 3.2 pp from 7.7% in 2012 to 4.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 6.1%.
Return on investment
The company operates at good ROE (20.41%) while ROIC is low (11.76%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.2x and Debt / EBITDA is 3.8x. Net Debt / EBITDA dropped on 1.3x from 4.4x to 3.2x in 2015. Debt dropped on 13.6% in 2015 while cash surged on 36.0% in 2015.
Appendix 1: Peers in Mining
Below we provide Xingfa Aluminium Holdings Ltd benchmarking against other companies in Mining 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 |
|---|
| Mongolia Energy Corp Ltd ($276) | | | 89.7% | -95.8% | 2,361.6% |
| Real Gold Mining Ltd ($246) | | -44.0% | -68.0% | -26.2% | 106.2% |
| REX Global Entertainment Holdings Ltd ($164) | | -12.3% | 81.6% | -15.5% | 96.4% |
| Hengxing Gold Holding Co Ltd ($2303) | | | | 3,467.3% | 78.0% |
| Zijin Mining Group Co Ltd ($2899) | | 21.6% | 2.5% | 18.1% | 26.9% |
| |
|---|
| Median (48 companies) | 54.5% | 5.0% | 0.6% | -5.9% | -13.6% |
|---|
| Xingfa Aluminium Holdings Ltd ($98) | | 15.6% | 10.2% | 24.0% | 2.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Prosper Group Holdings Ltd ($766) | -6.5% | 2.5% | 5.1% | 39.6% | 93.0% |
| REX Global Entertainment Holdings Ltd ($164) | 15.4% | -15.8% | -7.8% | -0.8% | 88.6% |
| China Billion Resources Ltd ($274) | 20.3% | 71.4% | 47.2% | 73.4% | 79.7% |
| Sun International Resources Ltd ($8029) | 77.6% | 83.2% | 73.1% | 64.8% | 69.4% |
| Timeless Software Ltd ($8028) | 19.2% | 17.7% | 48.5% | 29.4% | 42.1% |
| |
|---|
| Median (49 companies) | 19.2% | 14.4% | 13.8% | 13.8% | 11.1% |
|---|
| Xingfa Aluminium Holdings Ltd ($98) | 8.3% | 11.2% | 13.1% | 15.6% | 16.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | 58.3% |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | 51.3% |
| Timeless Software Ltd ($8028) | -70.8% | -113.1% | 24.7% | -13.7% | 46.1% |
| Hengxing Gold Holding Co Ltd ($2303) | | | -766.2% | 24.5% | 43.9% |
| Sino Prosper Group Holdings Ltd ($766) | -127.2% | -138.6% | -138.2% | -378.4% | 42.9% |
| |
|---|
| Median (49 companies) | 6.3% | 4.7% | 7.5% | 4.7% | 4.4% |
|---|
| Xingfa Aluminium Holdings Ltd ($98) | 5.4% | 8.8% | 10.1% | 12.0% | 13.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% |
| Kaz Minerals ($847) | 19.8% | 36.6% | 136.5% | 168.8% | 168.7% |
| Chinalco Mining Corp International ($3668) | | | | | 115.6% |
| China Dynamics Holdings Ltd ($476) | 1.6% | 1.8% | 0.0% | 1.0% | 113.8% |
| MMG Ltd ($1208) | 17.1% | 25.7% | 22.6% | 41.9% | 100.4% |
| |
|---|
| Median (49 companies) | 15.6% | 17.2% | 16.8% | 15.8% | 11.9% |
|---|
| Xingfa Aluminium Holdings Ltd ($98) | 13.1% | 7.7% | 7.9% | 6.1% | 4.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CGN Mining Co Ltd ($1164) | -6.4% | 2.6% | 3.3% | 7.9% | 16.7% |
| United Co RUSAL PLC ($486) | 7.5% | 0.3% | -9.0% | 6.3% | 12.3% |
| Timeless Software Ltd ($8028) | -18.0% | -29.1% | 7.3% | -4.6% | 11.6% |
| China Hongqiao Group Ltd ($1378) | 44.6% | 24.8% | 17.0% | 14.1% | 10.6% |
| Hengxing Gold Holding Co Ltd ($2303) | | -7.2% | -8.1% | 0.0% | 8.6% |
| |
|---|
| Median (50 companies) | 2.8% | 0.9% | 2.7% | 0.0% | -1.1% |
|---|
| Xingfa Aluminium Holdings Ltd ($98) | 3.8% | 7.6% | 8.8% | 11.7% | 11.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 5.8x | 9.2x | 9.7x | 9.2x | 31.5x |
| Chinalco Mining Corp International ($3668) | | | | | 25.0x |
| MMG Ltd ($1208) | -0.0x | 2.1x | 2.0x | 10.2x | 20.2x |
| Kaz Minerals ($847) | 0.6x | 2.4x | 2.9x | 5.5x | 18.7x |
| Aluminum Corp of China Ltd ($2600) | 7.7x | 139.2x | 8.5x | | 18.0x |
| |
|---|
| Median (30 companies) | 1.1x | 1.7x | 1.8x | 3.9x | 3.8x |
|---|
| Xingfa Aluminium Holdings Ltd ($98) | 11.4x | 6.4x | 5.7x | 4.4x | 3.2x |
