China Qinfa Group Ltd revenue decline accelerated to 78.6% in 2015 vs. 40.4% a year earliner
29/04/2016 • About China Qinfa Group Ltd (
$866) • By InTwits
China Qinfa Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Qinfa Group Ltd is a company in decline: 2015 revenue growth was -78.6%, 5 years revenue CAGR was -26.6%
- The company operates at negative EBITDA Margin: -536.8%
- China Qinfa Group 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 -11.8%0
- China Qinfa Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.0%. At the same time it's in pair with industry average of 14.8%.
- CAPEX is quite volatile: 313 in 2015, 1,218 in 2014, 885 in 2013, 837 in 2012, 249 in 2011
- The company has unprofitable business model: ROIC is at -114.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Qinfa Group Ltd ($866) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,971 | 11,085 | 10,830 | 6,449 | 1,377 | -78.6% |
| Gross Profit | 1,088 | 1,513 | 1,063 | -203 | -677 | 232.9% |
| SG&A | | 507 | 493 | 233 | 208 | -10.8% |
| EBITDA | 866 | 1,190 | 895 | -250 | -7,393 | 2,860.1% |
| Net Income | 570 | 258 | -248 | -1,183 | -6,011 | 407.9% |
Balance Sheet
|
|---|
| Cash | 592 | 1,191 | 483 | 54 | 21 | -61.6% |
| Short Term Debt | 1,565 | 5,103 | 6,483 | 4,734 | 3,303 | -30.2% |
| Long Term Debt | 1,783 | 2,170 | 2,575 | 2,918 | 2,602 | -10.8% |
Cash flow
|
|---|
| Capex | 249 | 837 | 885 | 1,218 | 313 | -74.3% |
Ratios
|
|---|
| Revenue growth | 54.5% | 11.2% | -2.3% | -40.4% | -78.6% | |
| EBITDA growth | 55.6% | 37.4% | -24.8% | -127.9% | 2,860.1% | |
| Gross Margin | 10.9% | 13.7% | 9.8% | -3.2% | -49.1% | -46.0% |
| EBITDA Margin | 8.7% | 10.7% | 8.3% | -3.9% | -536.8% | -532.9% |
| Net Income Margin | 5.7% | 2.3% | -2.3% | -18.3% | -436.5% | -418.1% |
| SG&A, % of revenue | | 4.6% | 4.5% | 3.6% | 15.1% | 11.5% |
| CAPEX, % of revenue | 2.5% | 7.6% | 8.2% | 18.9% | 22.7% | 3.8% |
| ROIC | 11.4% | 9.2% | 4.9% | -3.7% | -114.7% | -111.0% |
| ROE | 28.8% | 10.6% | -10.0% | -72.6% | | 72.6% |
| Net Debt/EBITDA | 3.2x | 5.1x | 9.6x | | | 0.0x |
Revenue and profitability
China Qinfa Group Ltd's Revenue dropped on 78.6% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 533 pp from -3.9% to -537% in 2015.
Gross Margin dropped on 46.0 pp from -3.2% to -49.1% in 2015. SG&A as a % of Revenue surged on 11.5 pp from 3.6% to 15.1% in 2015.
Net Income marign dropped on 418 pp from -18.3% to -436% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Qinfa Group Ltd had CAPEX/Revenue of 22.7%. China Qinfa Group Ltd showed fast CAPEX/Revenue growth of 15.2 pp from 7.6% in 2012 to 22.7% in 2015. It's average CAPEX/Revenue for the last three years was 16.6%.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 22.8% in 2015 while cash dropped on 61.6% in 2015.
Appendix 1: Peers in Mining
Below you can find China Qinfa Group Ltd benchmarking vs. other companies in Mining 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 |
|---|
| 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 (49 companies) | | 5.0% | 2.4% | -5.1% | -13.3% |
|---|
| China Qinfa Group Ltd ($866) | | 11.2% | -2.3% | -40.4% | -78.6% |
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 (50 companies) | 19.2% | 14.2% | 13.8% | 15.4% | 12.7% |
|---|
| China Qinfa Group Ltd ($866) | 10.9% | 13.7% | 9.8% | -3.2% | -49.1% |
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 (50 companies) | 5.7% | 4.7% | 7.5% | 5.2% | 4.7% |
|---|
| China Qinfa Group Ltd ($866) | 8.7% | 10.7% | 8.3% | -3.9% | -536.8% |
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 (50 companies) | 15.6% | 17.2% | 16.8% | 13.4% | 11.5% |
|---|
| China Qinfa Group Ltd ($866) | 2.5% | 7.6% | 8.2% | 18.9% | 22.7% |
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% |
| Xingfa Aluminium Holdings Ltd ($98) | 3.8% | 7.6% | 8.8% | 11.7% | 11.8% |
| 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% |
| |
|---|
| Median (51 companies) | 2.8% | 0.9% | 2.7% | 1.5% | -1.0% |
|---|
| China Qinfa Group Ltd ($866) | 11.4% | 9.2% | 4.9% | -3.7% | -114.7% |
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 (31 companies) | 1.1x | 1.7x | 1.8x | 4.4x | 3.4x |
|---|
