Winsway Enterprises Holdings Ltd revenue decline decelerated from 43.3% in 2014 to 24.0% in 2015
22/04/2016 • About Winsway Enterprises Holdings Ltd (
$1733) • By InTwits
Winsway Enterprises Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Winsway Enterprises Holdings Ltd is a company in decline: 2015 revenue growth was -24.0%, 5 years revenue CAGR was -9.2%
- The company operates at negative EBITDA Margin: -24.4%
- Winsway Enterprises 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 -1.7%0
- Winsway Enterprises Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 19.6%.
- CAPEX is quite volatile: 54.6 in 2015, 316 in 2014, 779 in 2013, 769 in 2012, 643 in 2011
- The company has unprofitable business model: ROIC is at -49.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Winsway Enterprises Holdings Ltd ($1733) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,610 | 12,387 | 13,320 | 7,548 | 5,735 | -24.0% |
| Gross Profit | 2,197 | -133 | 10 | 102 | 159 | 55.2% |
| SG&A | 783 | 863 | 574 | 538 | 477 | -11.3% |
| EBITDA | 1,618 | -465 | -101 | -489 | -1,400 | 186.4% |
| Net Income | 1,051 | -1,491 | -1,789 | -3,693 | -1,723 | -53.3% |
Balance Sheet
|
|---|
| Cash | 3,138 | 2,111 | 2,018 | 439 | 260 | -40.8% |
| Short Term Debt | 661 | 1,936 | 1,223 | 1,192 | 3,462 | 190.4% |
| Long Term Debt | 3,863 | 6,245 | 5,580 | 2,364 | 27 | -98.8% |
Cash flow
|
|---|
| Capex | 643 | 769 | 779 | 316 | 55 | -82.7% |
Ratios
|
|---|
| Revenue growth | 25.2% | 6.7% | 7.5% | -43.3% | -24.0% | |
| EBITDA growth | 18.9% | -128.8% | -78.2% | 382.9% | 186.4% | |
| Gross Margin | 18.9% | -1.1% | 0.1% | 1.4% | 2.8% | 1.4% |
| EBITDA Margin | 13.9% | -3.8% | -0.8% | -6.5% | -24.4% | -17.9% |
| Net Income Margin | 9.1% | -12.0% | -13.4% | -48.9% | -30.0% | 18.9% |
| SG&A, % of revenue | 6.7% | 7.0% | 4.3% | 7.1% | 8.3% | 1.2% |
| CAPEX, % of revenue | 5.5% | 6.2% | 5.8% | 4.2% | 1.0% | -3.2% |
| ROIC | 15.8% | -6.7% | -4.3% | -9.6% | -49.9% | -40.4% |
| ROE | 15.3% | -23.0% | -36.8% | -171.4% | | 171.4% |
| Net Debt/EBITDA | 0.9x | | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 24.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 17.9 pp from -6.5% to -24.4% in 2015.
Gross Margin increased slightly on 1.4 pp from 1.4% to 2.8% in 2015. SG&A as a % of Revenue increased slightly on 1.2 pp from 7.1% to 8.3% in 2015.
Net Income marign surged on 18.9 pp from -48.9% to -30.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.95%. Winsway Enterprises Holdings Ltd's CAPEX/Revenue decreased on 5.3 pp from 6.2% in 2012 to 0.95% in 2015. It's average CAPEX/Revenue for the last three years was 3.7%.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt decreased slightly on 1.9% in 2015 while cash dropped on 40.8% in 2015.
Appendix 1: Peers in Coal
Below you can find Winsway Enterprises Holdings Ltd benchmarking vs. other companies in Coal 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 |
|---|
| 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 (22 companies) | 17.4% | -6.5% | -8.6% | -8.2% | -19.5% |
|---|
| Winsway Enterprises Holdings Ltd ($1733) | | 6.7% | 7.5% | -43.3% | -24.0% |
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 (21 companies) | 31.5% | 20.3% | 17.6% | 10.5% | 4.8% |
|---|
| Winsway Enterprises Holdings Ltd ($1733) | 18.9% | -1.1% | 0.1% | 1.4% | 2.8% |
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 (22 companies) | 14.6% | 7.2% | -3.3% | -8.6% | -10.1% |
|---|
| Winsway Enterprises Holdings Ltd ($1733) | 13.9% | -3.8% | -0.8% | -6.5% | -24.4% |
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 (21 companies) | 22.1% | 18.2% | 26.0% | 20.5% | 19.3% |
|---|
| Winsway Enterprises Holdings Ltd ($1733) | 5.5% | 6.2% | 5.8% | 4.2% | 1.0% |
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 (22 companies) | 0.6% | -1.3% | -0.4% | -1.8% | -2.7% |
|---|
| Winsway Enterprises Holdings Ltd ($1733) | 15.8% | -6.7% | -4.3% | -9.6% | -49.9% |
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 |
|---|
