Pan Asia Mining Ltd EBITDA Margin jumped on 6,789 pp from -346% to 6,443% in 2016 while Revenue dropped on 86.2%
26/06/2016 • About Pan Asia Mining Ltd (
$8173) • By InTwits
Pan Asia Mining Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pan Asia Mining Ltd is a company in decline: FY2016 revenue growth was -86.2%, 5 years revenue CAGR was -32.4%
- EBITDA Margin is quite volatile: 6,443.1% in FY2016, -346.0% in FY2015, -14.3% in FY2014, -12.8% in FY2013, -7.6% in FY2012
- Pan Asia Mining Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -6.0% for the sames years0
- Pan Asia Mining Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.2%. At the same time it's a lot of higher than industry average of 6.6%.
- CAPEX is quite volatile: 0.11 in FY2016, 2.6 in FY2015, 9.7 in FY2014, 0.96 in FY2013, 5.1 in FY2012
- The company has highly profitable business model: ROIC is at 57.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 6.1x while industry average is 6.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pan Asia Mining Ltd ($8173) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 331.3 | 274.5 | 408.8 | 10.7 | 1.5 | -86.2% |
| Gross Profit | 2.4 | 1.9 | 2.5 | 1.8 | -0.2 | -113.8% |
| SG&A | | | | 51.6 | 55.3 | 7.2% |
| EBITDA | -25.1 | -35.3 | -58.5 | -36.9 | 94.5 | |
| Net Income | -4,815.1 | -127.7 | -175.4 | -887.3 | -225.8 | |
Balance Sheet
|
|---|
| Cash | 47.2 | 175.9 | 42.1 | 9.8 | 3.8 | -61.5% |
| Short Term Debt | 0.1 | 2.5 | 26.8 | 25.2 | 114.8 | 355.4% |
| Long Term Debt | 526.1 | 619.2 | 730.4 | 858.0 | 465.3 | -45.8% |
Cash flow
|
|---|
| Capex | 5.1 | 1.0 | 9.7 | 2.6 | 0.1 | -95.7% |
Ratios
|
|---|
| Revenue growth | 3,079.7% | -17.1% | 48.9% | -97.4% | -86.2% | |
| EBITDA growth | 51.2% | 40.5% | 65.9% | -36.9% | -356.2% | |
| Gross Margin | 0.7% | 0.7% | 0.6% | 16.6% | -16.6% | -33.2% |
| EBITDA Margin | -7.6% | -12.8% | -14.3% | -346.0% | 6,443.1% | 6,789.2% |
| Net Income Margin | -1,453.4% | -46.5% | -42.9% | -8,323.2% | -15,392.6% | -7,069.4% |
| SG&A, % of revenue | | | | 484.4% | 3,772.6% | 3,288.2% |
| CAPEX, % of revenue | 1.5% | 0.4% | 2.4% | 24.4% | 7.6% | -16.8% |
| ROIC | -0.5% | -3.1% | -5.5% | -6.4% | 57.1% | 63.5% |
| ROE | -178.2% | -54.0% | -180.0% | | | 0.0% |
| Net Debt/EBITDA | | | | | 6.1x | 6.1x |
Revenue and profitability
The company's Revenue dropped on 86.2%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 6,789 pp from -346% to 6,443% in FY2016.
Gross Margin dropped on 33.2 pp from 16.6% to -16.6% in FY2016. SG&A as a % of Revenue surged on 3,288 pp from 484% to 3,773% in FY2016.
Net Income marign dropped on 7,069 pp from -8,323% to -15,393% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Pan Asia Mining Ltd had CAPEX/Revenue of 7.6%. Pan Asia Mining Ltd showed CAPEX/Revenue growth of 7.2 pp from 0.35% in FY2013 to 7.6% in FY2016. It's average level of CAPEX/Revenue for the last three years was 11.4%.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.1x and Debt / EBITDA is 6.1x. Net Debt / EBITDA jumped6.1x from to 6.1x in FY2016. Debt dropped on 34.3% while cash dropped on 61.5%.
Appendix 1: Peers in Iron/Steel
Below we provide Pan Asia Mining Ltd benchmarking against other companies in Iron/Steel 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 |
|---|
| CAA Resources Ltd ($2112) | 99.6% | 103.2% | 38.0% | 261.2% | |
| Newton Resources Ltd ($1231) | | | -41.6% | 170.9% | |
| Fosun International Ltd ($656) | -8.9% | -1.4% | 21.0% | 27.6% | |
| Wanguo International Mining Group Ltd ($3939) | -1.0% | -11.0% | -16.2% | 0.7% | |
| Da Ming International Holdings Ltd ($1090) | -2.1% | 29.3% | 29.8% | -8.1% | |
| |
|---|
| Median (19 companies) | -9.7% | 0.6% | -6.0% | -20.4% | |
|---|
| Pan Asia Mining Ltd ($8173) | | -17.1% | 48.9% | -97.4% | -86.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newton Resources Ltd ($1231) | | -223.7% | 15.7% | 37.5% | |
| Wanguo International Mining Group Ltd ($3939) | 47.4% | 50.7% | 39.6% | 29.2% | |
| China Metal International Holdings Inc ($319) | 20.9% | 24.3% | 24.8% | 25.5% | |
| China Hanking Holdings Ltd ($3788) | 53.6% | 54.4% | 35.1% | 23.8% | |
| Fosun International Ltd ($656) | 18.0% | 20.3% | 23.7% | 22.4% | |
| |
|---|
| Median (19 companies) | 17.8% | 20.3% | 12.9% | 8.5% | |
|---|
| Pan Asia Mining Ltd ($8173) | 0.7% | 0.7% | 0.6% | 16.6% | -16.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wanguo International Mining Group Ltd ($3939) | 39.7% | 36.2% | 31.3% | 26.7% | |
| Fosun International Ltd ($656) | 16.7% | 23.0% | 20.9% | 22.2% | |
| China Metal International Holdings Inc ($319) | 19.7% | 21.3% | 21.0% | 22.0% | |
| Xingda International Holdings Ltd ($1899) | 17.3% | 22.2% | 19.1% | 13.6% | |
| Tiangong International Co Ltd ($826) | 25.1% | 25.8% | 19.3% | 11.6% | |
| |
|---|
| Median (19 companies) | 16.4% | 21.3% | 8.1% | 2.1% | |
|---|
| Pan Asia Mining Ltd ($8173) | -7.6% | -12.8% | -14.3% | -346.0% | 6,443.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newton Resources Ltd ($1231) | | 926.9% | 1,395.7% | 197.0% | |
| Vale SA ($6210) | 34.0% | 28.1% | 29.8% | 34.5% | |
| China Hanking Holdings Ltd ($3788) | 38.0% | 35.7% | 20.2% | 30.5% | |
| China Vanadium Titano - Magnetite Mining Co Ltd ($893) | 8.9% | 10.5% | 20.4% | 24.1% | |
| Xiwang Special Steel Co Ltd ($1266) | 22.6% | 31.5% | 21.5% | 22.9% | |
| |
|---|
| Median (19 companies) | 9.0% | 10.9% | 8.1% | 7.2% | |
|---|
| Pan Asia Mining Ltd ($8173) | 1.5% | 0.4% | 2.4% | 24.4% | 7.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Metal International Holdings Inc ($319) | 11.0% | 12.0% | 12.7% | 11.4% | |
| Wanguo International Mining Group Ltd ($3939) | 38.4% | 24.4% | 15.0% | 11.1% | |
| Golik Holdings Ltd ($1118) | 7.0% | 7.4% | 10.0% | 10.8% | |
| CAA Resources Ltd ($2112) | 69.2% | 33.5% | 2.2% | 6.9% | |
| Fosun International Ltd ($656) | 6.1% | 7.9% | 6.8% | 6.9% | |
| |
|---|
| Median (19 companies) | 6.7% | 7.9% | 5.0% | -3.0% | |
|---|
| Pan Asia Mining Ltd ($8173) | -0.5% | -3.1% | -5.5% | -6.4% | 57.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Angang Steel Co Ltd ($347) | 21.4x | 4.0x | 4.3x | 29.1x | |
| China Hanking Holdings Ltd ($3788) | 0.4x | 2.5x | 4.7x | 27.3x | |
| Tiangong International Co Ltd ($826) | 2.5x | 3.0x | 3.2x | 6.9x | |
| Fosun International Ltd ($656) | 4.4x | 4.8x | 5.5x | 4.4x | |
| China Oriental Group Co Ltd ($581) | 4.6x | 5.3x | 4.5x | 3.3x | |
| |
|---|
| Median (11 companies) | 2.2x | 2.8x | 3.0x | 2.1x | |
|---|
