China Nonferrous Metals Co Ltd CAPEX jumped on 196% in 2015 while Revenue dropped on 27.8%
01/04/2016 • About China Nonferrous Metals Co Ltd (
$8306) • By InTwits
China Nonferrous Metals Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Nonferrous Metals Co Ltd is a company in decline: 2015 revenue growth was -27.8%, 5 years revenue CAGR was -28.6%
- The company operates at negative EBITDA Margin: -573.7%
- China Nonferrous Metals 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 -30.8%0
- China Nonferrous Metals Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.6%. At the same time it's in pair with industry average of 192.9%.
- CAPEX is quite volatile: 22.1 in 2015, 7.5 in 2014, 19.9 in 2013, 1.7 in 2012, 10.2 in 2011
- The company has unprofitable business model: ROIC is at -48.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Nonferrous Metals Co Ltd ($8306) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 526.6 | 339.7 | 383.3 | 126.1 | 91.0 | -27.8% |
| Gross Profit | 60.8 | 35.8 | 13.9 | 10.2 | 2.3 | -77.1% |
| SG&A | 51.0 | 46.9 | 48.8 | 41.7 | 42.6 | 2.2% |
| EBITDA | 53.8 | 24.1 | 1.0 | -8.1 | -522.0 | 6,374.3% |
| Net Income | 27.7 | -17.3 | -259.1 | -176.1 | -580.6 | 229.7% |
Balance Sheet
|
|---|
| Cash | 10.0 | 76.4 | 219.8 | 37.0 | 6.6 | -82.1% |
| Short Term Debt | 121.6 | 75.4 | 45.4 | 486.5 | 194.6 | -60.0% |
| Long Term Debt | 244.7 | 258.7 | 420.9 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 10.2 | 1.7 | 19.9 | 7.5 | 22.1 | 196.4% |
Ratios
|
|---|
| Revenue growth | 7.0% | -35.5% | 12.8% | -67.1% | -27.8% | |
| EBITDA growth | -34.0% | -55.2% | -95.8% | -904.7% | 6,374.3% | |
| Gross Margin | 11.5% | 10.6% | 3.6% | 8.1% | 2.6% | -5.5% |
| EBITDA Margin | 10.2% | 7.1% | 0.3% | -6.4% | -573.7% | -567.3% |
| Net Income Margin | 5.3% | -5.1% | -67.6% | -139.7% | -638.1% | -498.4% |
| SG&A, % of revenue | 9.7% | 13.8% | 12.7% | 33.1% | 46.9% | 13.8% |
| CAPEX, % of revenue | 1.9% | 0.5% | 5.2% | 5.9% | 24.3% | 18.4% |
| ROIC | 1.3% | -0.5% | -1.3% | -2.0% | -48.4% | -46.4% |
| ROE | 2.6% | -1.4% | -21.6% | -17.5% | -91.8% | -74.3% |
| Net Debt/EBITDA | 6.6x | 10.7x | 246.0x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 27.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 567 pp from -6.4% to -574% in 2015.
Gross Margin decreased on 5.5 pp from 8.1% to 2.6% in 2015. SG&A as a % of Revenue surged on 13.8 pp from 33.1% to 46.9% in 2015.
Net Income marign dropped on 498 pp from -140% to -638% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Nonferrous Metals Co Ltd's CAPEX/Revenue was 24.3% in 2015. China Nonferrous Metals Co Ltd's CAPEX/Revenue jumped on 23.8 pp from 0.50% in 2012 to 24.3% in 2015. Average CAPEX/Revenue for the last three years was 11.8%.
Return on investment
The company operates at negative ROIC (-48.36%) and ROE (-91.79%). ROIC dropped on 46.4 pp from -2.0% to -48.4% in 2015. ROE dropped on 74.3 pp from -17.5% to -91.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 60.0% in 2015 while cash dropped on 82.1% in 2015.
Appendix 1: Peers in Chemicals
Below you can find China Nonferrous Metals 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 (31 companies) | 70.4% | 2.4% | 8.5% | 2.2% | -1.2% |
|---|
| China Nonferrous Metals Co Ltd ($8306) | | -35.5% | 12.8% | -67.1% | -27.8% |
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 (31 companies) | 20.3% | 20.8% | 18.7% | 18.4% | 18.8% |
|---|
| China Nonferrous Metals Co Ltd ($8306) | 11.5% | 10.6% | 3.6% | 8.1% | 2.6% |
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 (31 companies) | 15.4% | 14.5% | 13.6% | 12.5% | 12.5% |
|---|
| China Nonferrous Metals Co Ltd ($8306) | 10.2% | 7.1% | 0.3% | -6.4% | -573.7% |
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 (31 companies) | 8.5% | 8.4% | 8.9% | 5.4% | 6.3% |
|---|
| China Nonferrous Metals Co Ltd ($8306) | 1.9% | 0.5% | 5.2% | 5.9% | 24.3% |
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 (31 companies) | 8.2% | 7.3% | 8.3% | 5.9% | 5.4% |
|---|
| China Nonferrous Metals Co Ltd ($8306) | 1.3% | -0.5% | -1.3% | -2.0% | -48.4% |
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 (27 companies) | 1.2x | 1.0x | 2.0x | 1.4x | 1.7x |
|---|
