Loudong General Nice Resources China Holdings Ltd EBITDA dropped on 110% in 2015 and Revenue dropped on 73.1%
01/04/2016 • About Loudong General Nice Resources China Holdings Ltd (
$988) • By InTwits
Loudong General Nice Resources China Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Loudong General Nice Resources China Holdings Ltd is a company in decline: 2015 revenue growth was -73.1%, 5 years revenue CAGR was -7.8%
- EBITDA Margin is quite volatile: -2.6% in 2015, 7.0% in 2014, 17.7% in 2013, 15.9% in 2012, 26.2% in 2011
- Loudong General Nice Resources China Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has unprofitable business model: ROIC is at -1.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Loudong General Nice Resources China Holdings Ltd ($988) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,560 | 2,233 | 3,106 | 5,826 | 1,570 | -73.1% |
| Gross Profit | 784 | 447 | 648 | 639 | 75 | -88.3% |
| SG&A | | 198 | 263 | 240 | 205 | -14.8% |
| EBITDA | 671 | 354 | 551 | 406 | -41 | -110.1% |
| Net Income | 291 | 138 | -2,582 | -377 | -1,292 | 242.7% |
Balance Sheet
|
|---|
| Cash | 12 | 32 | 8 | 23 | 457 | 1,929.8% |
| Short Term Debt | 1,155 | 1,840 | 2,063 | 1,820 | 1,125 | -38.2% |
| Long Term Debt | 221 | 257 | 392 | 626 | 1,481 | 136.5% |
Cash flow
|
|---|
| Capex | 10 | 12 | 37 | 102 | 0 | -99.9% |
Ratios
|
|---|
| Revenue growth | 8.5% | -12.7% | 39.1% | 87.6% | -73.1% | |
| EBITDA growth | 12.5% | -47.2% | 55.6% | -26.4% | -110.1% | |
| Gross Margin | 30.6% | 20.0% | 20.9% | 11.0% | 4.8% | -6.2% |
| EBITDA Margin | 26.2% | 15.9% | 17.7% | 7.0% | -2.6% | -9.6% |
| Net Income Margin | 11.4% | 6.2% | -83.1% | -6.5% | -82.3% | -75.8% |
| SG&A, % of revenue | | 8.9% | 8.5% | 4.1% | 13.0% | 8.9% |
| CAPEX, % of revenue | 0.4% | 0.6% | 1.2% | 1.8% | 0.0% | -1.7% |
| ROIC | 11.5% | 4.1% | 8.2% | 9.6% | -1.6% | -11.2% |
| ROE | 8.7% | 3.8% | -106.4% | -36.6% | -197.9% | -161.2% |
| Net Debt/EBITDA | 2.0x | 5.8x | 4.4x | 6.0x | | -6.0x |
Revenue and profitability
Loudong General Nice Resources China Holdings Ltd's Revenue dropped on 73.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 9.6 pp from 7.0% to -2.6% in 2015.
Gross Margin decreased on 6.2 pp from 11.0% to 4.8% in 2015. SG&A as a % of Revenue increased on 8.9 pp from 4.1% to 13.0% in 2015.
Net Income marign dropped on 75.8 pp from -6.5% to -82.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Loudong General Nice Resources China Holdings Ltd's CAPEX/Revenue was 0.0058% in 2015. The company showed small CAPEX/Revenue decline of 0.55 pp from 0.56% in 2012 to 0.0058% in 2015. It's average CAPEX/Revenue for the last three years was 0.99%.
Return on investment
The company operates at negative ROIC (-1.62%) and ROE (-197.85%). ROIC dropped on 11.2 pp from 9.6% to -1.6% in 2015. ROE dropped on 161 pp from -36.6% to -198% in 2015.
Leverage (Debt)
Debt level is -0.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 6.0x from 6.0x to in 2015. Debt increased on 6.6% in 2015 while cash jumped on 1,930% in 2015.
Appendix 1: Peers in Coal
Below we provide Loudong General Nice Resources China Holdings Ltd benchmarking against other companies in Coal 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 |
|---|
| Sino Resources Group Ltd ($223) | | -18.5% | -44.8% | 14.7% | 354.5% |
| Asia Coal Ltd ($835) | | 32.1% | -15.3% | 43.2% | 133.6% |
| Dowell Property Holdings Ltd ($668) | | -19.2% | -55.7% | -35.8% | 83.2% |
| Capital Finance Holdings Ltd ($8239) | | 83.6% | -5.2% | -5.5% | 70.6% |
| Up Energy Development Group Ltd ($307) | | | | | 60.5% |
| |
|---|
| Median (21 companies) | 21.3% | 1.4% | -8.6% | -12.5% | -16.1% |
|---|
| Loudong General Nice Resources China Holdings Ltd ($988) | | -12.7% | 39.1% | 87.6% | -73.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital Finance Holdings Ltd ($8239) | 6.3% | 6.4% | 7.2% | 8.7% | 98.2% |
| Nan Nan Resources Enterprise Ltd ($1229) | 0.1% | 23.9% | 17.6% | 18.1% | 44.3% |
| China Shenhua Energy Co Ltd ($1088) | 39.9% | 31.4% | 28.7% | 29.6% | 35.5% |
| Agritrade Resources Ltd ($1131) | 7.6% | 22.9% | 29.4% | 31.8% | 30.0% |
| Shougang Fushan Resources Group Ltd ($639) | 70.4% | 63.5% | 50.9% | 40.1% | 24.5% |
| |
|---|
| Median (20 companies) | 30.9% | 20.2% | 17.3% | 9.4% | 4.4% |
|---|
| Loudong General Nice Resources China Holdings Ltd ($988) | 30.6% | 20.0% | 20.9% | 11.0% | 4.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital Finance Holdings Ltd ($8239) | -90.6% | -27.2% | -23.7% | -56.2% | 71.5% |
| Nan Nan Resources Enterprise Ltd ($1229) | -6.6% | 19.1% | 14.1% | -0.2% | 40.5% |
| China Shenhua Energy Co Ltd ($1088) | 41.2% | 35.6% | 31.6% | 34.2% | 33.9% |
| Agritrade Resources Ltd ($1131) | 1.4% | 41.6% | 37.3% | 33.4% | 31.1% |
| Feishang Anthracite Resources Ltd ($1738) | -9.2% | -13.1% | -32.9% | 19.0% | 15.9% |
| |
|---|
| Median (21 companies) | 11.1% | -1.1% | -4.3% | -8.6% | -14.3% |
|---|
| Loudong General Nice Resources China Holdings Ltd ($988) | 26.2% | 15.9% | 17.7% | 7.0% | -2.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Siberian Mining Group Co Ltd ($1142) | 129.1% | 4.6% | 78.8% | 217.3% | 279.7% |
| Feishang Anthracite Resources Ltd ($1738) | 310.5% | 244.9% | 159.7% | 80.9% | 90.2% |
| Up Energy Development Group Ltd ($307) | | | | 279.5% | 75.2% |
| King Stone Energy Group Ltd ($663) | 82.7% | 58.5% | 135.3% | 205.7% | 69.3% |
| SouthGobi Resources Ltd ($1878) | | 124.8% | 20.2% | 11.5% | 52.6% |
| |
|---|
| Median (20 companies) | 22.1% | 18.2% | 26.0% | 20.5% | 20.3% |
|---|
| Loudong General Nice Resources China Holdings Ltd ($988) | 0.4% | 0.6% | 1.2% | 1.8% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital Finance Holdings Ltd ($8239) | -31.3% | -25.1% | -14.9% | -26.9% | 21.0% |
| Nan Nan Resources Enterprise Ltd ($1229) | -3.9% | 6.4% | 1.6% | -1.2% | 10.0% |
| China Shenhua Energy Co Ltd ($1088) | 21.0% | 19.5% | 17.4% | 14.6% | 7.7% |
| Agritrade Resources Ltd ($1131) | -2.3% | 2.7% | 5.8% | 6.4% | 6.9% |
| Kinetic Mines and Energy Ltd ($1277) | -2.6% | -6.6% | -5.7% | 8.5% | 3.2% |
| |
|---|
| Median (21 companies) | 0.6% | -2.6% | -2.1% | -5.2% | -3.9% |
|---|
| Loudong General Nice Resources China Holdings Ltd ($988) | 11.5% | 4.1% | 8.2% | 9.6% | -1.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Feishang Anthracite Resources Ltd ($1738) | | | | 24.3x | 32.6x |
| China Coal Energy Co Ltd ($1898) | 0.5x | 1.9x | 4.9x | 9.7x | 14.4x |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 0.4x | 0.4x | 1.7x | 3.5x | 9.8x |
| Yanzhou Coal Mining Co Ltd ($1171) | 1.1x | 2.9x | 6.2x | 4.9x | 9.0x |
| Kinetic Mines and Energy Ltd ($1277) | | | | 4.5x | 5.9x |
| |
|---|
| Median (9 companies) | 1.0x | 1.9x | 3.3x | 4.0x | 5.9x |
|---|
