Rosan Resources Holdings Ltd reports 49.9% revenue growth in 2015 and 5.8 pp EBITDA Margin decline from -8.6% to -14.3%
01/04/2016 • About Rosan Resources Holdings Ltd (
$578) • By InTwits
Rosan Resources Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rosan Resources Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -9.2%
- The company operates at negative EBITDA Margin: -14.3%
- Rosan Resources 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 -10.6%0
- Rosan Resources Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 27.5%. At the same time it's in pair with industry average of 38.4%.
- CAPEX is quite volatile: 3.1 in 2015, 161 in 2014, 163 in 2013, 77.6 in 2012, 88.8 in 2011
- The company has unprofitable business model: ROIC is at -9.2%
- It operates with high leverage: Net Debt/EBITDA is 11.8x while industry average is 8.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rosan Resources Holdings Ltd ($578) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 727.5 | 188.7 | 322.9 | 481.6 | 721.8 | 49.9% |
| Gross Profit | 348.3 | -157.0 | -21.1 | -45.6 | -125.5 | 174.9% |
| SG&A | 165.8 | 129.0 | 137.8 | 86.1 | 73.5 | -14.6% |
| EBITDA | 221.8 | -245.8 | -89.0 | -41.3 | -103.5 | 150.5% |
| Net Income | 25.6 | -344.2 | -323.5 | -347.3 | -335.3 | -3.5% |
Balance Sheet
|
|---|
| Cash | 697.9 | 633.3 | 580.8 | 524.8 | 541.2 | 3.1% |
| Short Term Debt | 705.2 | 1,264.0 | 739.2 | 917.6 | 1,297.9 | 41.4% |
| Long Term Debt | 176.3 | 184.1 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 88.8 | 77.6 | 162.8 | 160.9 | 3.1 | -98.1% |
Ratios
|
|---|
| Revenue growth | -19.9% | -74.1% | 71.1% | 49.1% | 49.9% | |
| EBITDA growth | -21.6% | -210.8% | -63.8% | -53.6% | 150.5% | |
| Gross Margin | 47.9% | -83.2% | -6.5% | -9.5% | -17.4% | -7.9% |
| EBITDA Margin | 30.5% | -130.3% | -27.6% | -8.6% | -14.3% | -5.8% |
| Net Income Margin | 3.5% | -182.4% | -100.2% | -72.1% | -46.5% | 25.7% |
| SG&A, % of revenue | 22.8% | 68.3% | 42.7% | 17.9% | 10.2% | -7.7% |
| CAPEX, % of revenue | 12.2% | 41.1% | 50.4% | 33.4% | 0.4% | -33.0% |
| ROIC | 7.1% | -10.0% | -5.9% | -5.2% | -9.2% | -4.0% |
| ROE | 1.7% | -21.5% | -25.4% | -36.8% | -57.5% | -20.7% |
| Net Debt/EBITDA | 0.8x | | | | | 0.0x |
Revenue and profitability
Rosan Resources Holdings Ltd's Revenue surged on 49.9% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 32.4 pp from -9.1% to 23.4% in 2015.
Gross Margin decreased on 7.9 pp from -9.5% to -17.4% in 2015. SG&A as a % of Revenue decreased on 7.7 pp from 17.9% to 10.2% in 2015.
Net Income marign jumped on 25.7 pp from -72.1% to -46.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.43%. CAPEX/Revenue dropped on 40.7 pp from 41.1% in 2012 to 0.43% in 2015. Average CAPEX/Revenue for the last three years was 28.1%.
Return on investment
The company operates at negative ROIC (-9.24%) and ROE (-57.50%). ROIC decreased on 4.0 pp from -5.2% to -9.2% in 2015. ROE dropped on 20.7 pp from -36.8% to -57.5% in 2015.
Leverage (Debt)
Debt level is 11.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped on 41.4% in 2015 while cash increased on 3.1% in 2015.
Appendix 1: Peers in Coal
Below we provide Rosan Resources 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% | -22.9% |
|---|
| Rosan Resources Holdings Ltd ($578) | | -74.1% | 71.1% | 49.1% | 49.9% |
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) | 30.0% | 20.3% | 17.6% | 10.5% | 5.3% |
|---|
| Rosan Resources Holdings Ltd ($578) | 47.9% | -83.2% | -6.5% | -9.5% | -17.4% |
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% | 7.2% | 0.2% | -6.5% | -5.8% |
|---|
| Rosan Resources Holdings Ltd ($578) | 30.5% | -130.3% | -27.6% | -8.6% | -14.3% |
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% | 13.7% | 23.0% | 17.8% | 20.3% |
|---|
| Rosan Resources Holdings Ltd ($578) | 12.2% | 41.1% | 50.4% | 33.4% | 0.4% |
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% | -1.3% | -0.4% | -1.8% | -1.6% |
|---|
| Rosan Resources Holdings Ltd ($578) | 7.1% | -10.0% | -5.9% | -5.2% | -9.2% |
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) | 1.6x | 2.4x | 4.4x | 4.5x | 5.9x |
|---|
