PNG Resources Holdings Ltd Net Income dropped on 64.1% and EBITDA Margin decreased on 4.6 pp from 26.5% to 21.9%
09/06/2016 • About PNG Resources Holdings Ltd (
$221) • By InTwits
PNG Resources Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 21.9% in FY2016, 26.5% in FY2015, 12.2% in FY2014, 9.6% in FY2013, -6.1% in FY2012
- PNG Resources Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 59.5%. At the same time it's a lot of higher than industry average of 15.6%.
- CAPEX is quite volatile: 195 in FY2016, 504 in FY2015, 548 in FY2014, 339 in FY2013, 364 in FY2012
- The company has business model with low profitability: ROIC is at 8.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
PNG Resources Holdings Ltd ($221) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 274 | 953 | 1,034 | 1,124 | 626 | -44.3% |
| Gross Profit | 53 | 178 | 250 | 397 | 200 | -49.8% |
| SG&A | | 89 | 127 | 104 | 78 | -25.2% |
| EBITDA | -17 | 92 | 126 | 298 | 137 | -54.0% |
| Net Income | 4 | 42 | 77 | 145 | 52 | -64.1% |
Balance Sheet
|
|---|
| Cash | 215 | 270 | 565 | 524 | 399 | -23.8% |
| Short Term Debt | 185 | 392 | 198 | 146 | 145 | -0.7% |
| Long Term Debt | 455 | 195 | 310 | 202 | 141 | -30.3% |
Cash flow
|
|---|
| Capex | 364 | 339 | 548 | 504 | 195 | -61.3% |
Ratios
|
|---|
| Revenue growth | 323.7% | 248.6% | 8.5% | 8.7% | -44.3% | |
| EBITDA growth | -62.3% | -652.5% | 37.2% | 136.4% | -54.0% | |
| Gross Margin | 19.4% | 18.6% | 24.2% | 35.3% | 31.9% | -3.4% |
| EBITDA Margin | -6.1% | 9.6% | 12.2% | 26.5% | 21.9% | -4.6% |
| Net Income Margin | 1.4% | 4.4% | 7.4% | 12.9% | 8.3% | -4.6% |
| SG&A, % of revenue | | 9.3% | 12.3% | 9.3% | 12.4% | 3.2% |
| CAPEX, % of revenue | 133.1% | 35.6% | 53.0% | 44.8% | 31.1% | -13.7% |
| ROIC | -1.2% | 5.8% | 8.3% | 19.9% | 8.1% | -11.8% |
| ROE | 0.6% | 6.7% | 9.9% | 14.9% | 4.2% | -10.7% |
| Net Debt/EBITDA | | 3.5x | -0.5x | -0.6x | -0.8x | -0.2x |
Revenue and profitability
PNG Resources Holdings Ltd's Revenue dropped on 44.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.0 pp from 2.2% to 3.3% in FY2016.
Gross Margin decreased on 3.4 pp from 35.3% to 31.9% in FY2016. SG&A as a % of Revenue increased on 3.2 pp from 9.3% to 12.4% in FY2016.
Net Income marign decreased on 4.6 pp from 12.9% to 8.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 31.1% in FY2016. The company showed decline in CAPEX/Revenue of 4.4 pp from 35.6% in FY2013 to 31.1% in FY2016. It's average level of CAPEX/Revenue for the last three years was 43.0%.The company has spent a lot to CAPEX (142% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (8.14%) and ROE (4.17%). ROIC dropped on 11.8 pp from 19.9% to 8.1% in FY2016. ROE dropped on 10.7 pp from 14.9% to 4.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.8x and Debt / EBITDA is 2.1x. Net Debt / EBITDA dropped on 0.2x from -0.6x to -0.8x in FY2016. Debt dropped on 17.9% while cash dropped on 23.8%.
Appendix 1: Peers in Forest Products&Paper
Below we provide PNG Resources Holdings Ltd benchmarking against other companies in Forest Products&Paper 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KuangChi Science Ltd ($439) | | | 39.7% | 211.9% | |
| Merdeka Mobile Group Ltd ($8163) | -11.0% | 415.4% | 71.4% | 88.0% | |
| Youyuan International Holdings Ltd ($2268) | 0.4% | 6.7% | 0.8% | 10.3% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | -0.5% | -1.3% | -5.7% | 8.1% | |
| Samson Paper Holdings Ltd ($731) | 7.4% | -7.1% | 6.4% | 6.2% | |
| |
|---|
| Median (11 companies) | 7.4% | 3.6% | 0.7% | 5.8% | |
|---|
| PNG Resources Holdings Ltd ($221) | | 248.6% | 8.5% | 8.7% | -44.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KuangChi Science Ltd ($439) | | 20.3% | 17.3% | 63.6% | |
| Youyuan International Holdings Ltd ($2268) | 29.8% | 32.9% | 31.3% | 29.2% | |
| China Asean Resources Ltd ($8186) | 19.8% | 40.3% | | 27.8% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 15.2% | 18.0% | 19.4% | 26.6% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 16.6% | 16.5% | 19.0% | 20.0% | |
| |
|---|
| Median (12 companies) | 16.1% | 16.9% | 17.0% | 19.9% | |
|---|
| PNG Resources Holdings Ltd ($221) | 19.4% | 18.6% | 24.2% | 35.3% | 31.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Youyuan International Holdings Ltd ($2268) | 27.2% | 30.8% | 29.8% | 30.0% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 11.4% | 13.2% | 14.5% | 20.4% | |
| Changgang Dunxin Enterprise Co Ltd ($2229) | 20.9% | 22.2% | 22.8% | 19.9% | |
| Nine Dragons Paper Holdings Ltd ($2689) | 16.4% | 17.2% | 18.6% | 16.9% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 14.3% | 12.7% | 14.5% | 15.5% | |
| |
|---|
| Median (12 companies) | 11.4% | 11.2% | 7.0% | 9.0% | |
|---|
| PNG Resources Holdings Ltd ($221) | -6.1% | 9.6% | 12.2% | 26.5% | 21.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KuangChi Science Ltd ($439) | | 3.2% | 0.5% | 65.6% | |
| Changgang Dunxin Enterprise Co Ltd ($2229) | 2.1% | 15.8% | 2.0% | 36.7% | |
| China Agroforestry Low-Carbon Holdings Ltd ($1069) | 0.2% | 11.5% | 26.7% | 26.3% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 14.4% | 18.8% | 16.3% | 18.5% | |
| Youyuan International Holdings Ltd ($2268) | 28.4% | 14.8% | 8.4% | 14.2% | |
| |
|---|
| Median (12 companies) | 14.4% | 9.9% | 5.9% | 5.6% | |
|---|
| PNG Resources Holdings Ltd ($221) | 133.1% | 35.6% | 53.0% | 44.8% | 31.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Youyuan International Holdings Ltd ($2268) | 12.6% | 12.9% | 10.4% | 10.6% | |
| Changgang Dunxin Enterprise Co Ltd ($2229) | 41.0% | 32.5% | 23.3% | 10.4% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 6.8% | 5.1% | 5.5% | 7.6% | |
| Nine Dragons Paper Holdings Ltd ($2689) | 6.5% | 6.1% | 5.9% | 5.3% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 1.9% | 3.3% | 3.0% | 4.5% | |
| |
|---|
| Median (13 companies) | 1.8% | 2.0% | -0.5% | 2.6% | |
|---|
| PNG Resources Holdings Ltd ($221) | -1.2% | 5.8% | 8.3% | 19.9% | 8.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Greenheart Group Ltd ($94) | | 7.1x | 26.8x | 53.0x | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 10.4x | 9.0x | 10.9x | 12.4x | |
| Samson Paper Holdings Ltd ($731) | 8.3x | 13.0x | 9.3x | 8.9x | |
| Nine Dragons Paper Holdings Ltd ($2689) | 4.9x | 5.7x | 5.1x | 4.7x | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 5.9x | 6.9x | 6.0x | 4.1x | |
| |
|---|
| Median (9 companies) | 3.5x | 4.8x | 5.6x | 4.1x | |
|---|
| PNG Resources Holdings Ltd ($221) | | 3.5x | -0.5x | -0.6x | -0.8x |
