Bestway International Holdings Ltd revenue jumped on 14,591% and EBITDA Margin jumped on 121 pp from -116% to 5.0%
05/06/2016 • About Bestway International Holdings Ltd (
$718) • By InTwits
Bestway International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 5.0% in FY2016 vs. -115.6% in FY2015 vs. -290.2% in FY2012
- Bestway International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has potentially unprofitable business model: ROIC is at 4.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 7.0x while industry average is 6.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bestway International Holdings Ltd ($718) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1 | 1 | 2 | 8 | 1,121 | 14,591.4% |
| Gross Profit | 0 | 0 | 0 | 3 | 80 | 2,485.2% |
| SG&A | | | 7 | 12 | 26 | 122.2% |
| EBITDA | -4 | -9 | -7 | -9 | 56 | |
| Net Income | -5 | -9 | -7 | -58 | -116 | |
Balance Sheet
|
|---|
| Cash | 1 | 0 | 25 | 97 | 523 | 436.8% |
| Short Term Debt | 20 | 0 | 0 | 0 | 40 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 877 | |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | 0 | 12 | 10,118.0% |
Ratios
|
|---|
| Revenue growth | -25.4% | -62.1% | 330.3% | 238.4% | 14,591.4% | |
| EBITDA growth | 3.6% | 117.6% | -22.4% | 30.0% | -735.2% | |
| Gross Margin | 5.1% | 4.6% | 8.6% | 40.4% | 7.1% | -33.3% |
| EBITDA Margin | -290.2% | -1,668.3% | -301.0% | -115.6% | 5.0% | 120.6% |
| Net Income Margin | -352.0% | -1,709.4% | -305.7% | -760.3% | -10.4% | 749.9% |
| SG&A, % of revenue | | | 329.5% | 154.1% | 2.3% | -151.7% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.7% | 1.6% | 1.1% | -0.5% |
| ROIC | -0.6% | -1.2% | -0.9% | -1.2% | 4.2% | 5.3% |
| ROE | -0.9% | -1.6% | -1.2% | -9.5% | -15.8% | -6.3% |
| Net Debt/EBITDA | | | | | 7.0x | 7.0x |
Revenue and profitability
Bestway International Holdings Ltd's Revenue surged on 14,591%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 23.3 pp from -105% to -129% in FY2016.
Gross Margin dropped on 33.3 pp from 40.4% to 7.1% in FY2016. SG&A as a % of Revenue dropped on 152 pp from 154% to 2.3% in FY2016.
Net Income marign jumped on 750 pp from -760% to -10.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Bestway International Holdings Ltd's CAPEX/Revenue was 1.1% in FY2016. Bestway International Holdings Ltd showed small growth in CAPEX/Revenue1.1 pp from 0% in FY2013 to 1.1% in FY2016. It's average level of CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at low but positive ROIC (4.19%) and negative ROE (-15.79%). ROIC increased on 5.3 pp from -1.2% to 4.2% in FY2016. ROE decreased on 6.3 pp from -9.5% to -15.8% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.0x and Debt / EBITDA is 16.4x. Net Debt / EBITDA surged7.0x from to 7.0x in FY2016. Debt jumped while cash surged on 437%.
Appendix 1: Peers in Chemicals
Below you can find Bestway International Holdings 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Century Sunshine Group Holdings Ltd ($509) | 68.7% | 32.0% | 26.4% | 21.4% | |
| |
|---|
| Median (31 companies) | 2.4% | 9.7% | 1.8% | -3.7% | |
|---|
| Bestway International Holdings Ltd ($718) | | -62.1% | 330.3% | 238.4% | 14,591.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huabao International Holdings Ltd ($336) | 70.5% | 69.1% | 70.8% | 69.9% | |
| China Flavors & Fragrances Co Ltd ($3318) | 46.8% | 48.6% | 47.8% | 48.9% | |
| Bracell Ltd ($1768) | 30.5% | 37.3% | 37.3% | 38.4% | |
| Shaanxi Northwest New Technology Industry Co Ltd ($8258) | 28.7% | 30.9% | 30.0% | 37.9% | |
| Infinity Chemical Holdings Co Ltd ($640) | 25.4% | 28.0% | 29.8% | 33.2% | |
| |
|---|
| Median (31 companies) | 20.8% | 18.7% | 18.4% | 18.6% | |
|---|
| Bestway International Holdings Ltd ($718) | 5.1% | 4.6% | 8.6% | 40.4% | 7.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huabao International Holdings Ltd ($336) | 63.8% | 59.1% | 60.0% | 58.3% | |
| Bracell Ltd ($1768) | 22.3% | 30.8% | 38.2% | 35.9% | |
| Yingde Gases Group Co Ltd ($2168) | 29.4% | 29.8% | 32.3% | 33.4% | |
| Tiande Chemical Holdings Ltd ($609) | 25.5% | 27.3% | 25.1% | 27.8% | |
| Century Sunshine Group Holdings Ltd ($509) | 24.2% | 28.1% | 27.6% | 26.1% | |
| |
|---|
| Median (31 companies) | 14.5% | 13.6% | 12.5% | 12.5% | |
|---|
| Bestway International Holdings Ltd ($718) | -290.2% | -1,668.3% | -301.0% | -115.6% | 5.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Landing International Development Ltd ($582) | 7.2% | 29.6% | 419.5% | 247.4% | |
| China Zenith Chemical Group Ltd ($362) | 147.3% | 55.7% | 67.4% | 152.2% | |
| Smartac Group China Holdings Ltd ($395) | 14.0% | 4.7% | 49.3% | 52.4% | |
| China Flavors & Fragrances Co Ltd ($3318) | 15.8% | 20.1% | 42.4% | 35.8% | |
| Ko Yo Chemical Group Ltd ($827) | 45.2% | 43.2% | 20.7% | 27.5% | |
| |
|---|
| Median (31 companies) | 8.4% | 8.9% | 5.8% | 8.1% | |
|---|
| Bestway International Holdings Ltd ($718) | 0.0% | 0.0% | 0.7% | 1.6% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huabao International Holdings Ltd ($336) | 28.7% | 25.2% | 26.2% | 23.3% | |
| Tiande Chemical Holdings Ltd ($609) | 26.2% | 29.4% | 20.7% | 20.6% | |
| Sinopec Shanghai Petrochemical Co Ltd ($338) | -6.9% | 8.1% | -2.4% | 16.5% | |
| Century Sunshine Group Holdings Ltd ($509) | 11.3% | 15.9% | 16.4% | 13.3% | |
| Infinity Chemical Holdings Co Ltd ($640) | 11.1% | 10.2% | 8.8% | 12.7% | |
| |
|---|
| Median (31 companies) | 7.3% | 8.3% | 5.9% | 5.4% | |
|---|
| Bestway International Holdings Ltd ($718) | -0.6% | -1.2% | -0.9% | -1.2% | 4.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ko Yo Chemical Group Ltd ($827) | 8.8x | 22.0x | | 141.5x | |
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 2.2x | 4.6x | 18.1x | 13.5x | |
| Sinofert Holdings Ltd ($297) | 2.9x | 32.4x | 5.0x | 8.4x | |
| Ngai Hing Hong Co Ltd ($1047) | 11.7x | 5.3x | 5.4x | 5.3x | |
| China XLX Fertiliser Ltd ($1866) | 2.6x | 5.1x | 5.8x | 5.1x | |
| |
|---|
| Median (27 companies) | 1.2x | 2.1x | 1.4x | 1.7x | |
|---|
