Samson Paper Holdings Ltd Net Debt / EBITDA jumped on 2.4x from 8.9x to 11.3x in 2016 and Debt increased on 2.4%
27/06/2016 • About Samson Paper Holdings Ltd (
$731) • By InTwits
Samson Paper Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Samson Paper Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is 2.0%
- EBITDA Margin is relatively stable: 3.2% in FY2016 vs. 3.7% in FY2015 vs. 3.4% in FY2012
- Samson Paper Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's in pair with industry average of 22.0%.
- CAPEX is quite volatile: 131 in FY2016, 122 in FY2015, 110 in FY2014, 228 in FY2013, 350 in FY2012
- The company has potentially unprofitable business model: ROIC is at 2.0%
- It operates with high leverage: Net Debt/EBITDA is 11.3x while industry average is 3.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Samson Paper Holdings Ltd ($731) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,025 | 4,670 | 4,969 | 5,278 | 5,001 | -5.2% |
| Gross Profit | 455 | 461 | 452 | 497 | 482 | -3.2% |
| SG&A | 354 | 375 | 363 | 393 | 402 | 2.2% |
| EBITDA | 170 | 131 | 190 | 195 | 162 | -16.9% |
| Net Income | 57 | 64 | 57 | 114 | 47 | -59.1% |
Balance Sheet
|
|---|
| Cash | 765 | 392 | 287 | 411 | 359 | -12.6% |
| Short Term Debt | 1,589 | 1,455 | 1,590 | 1,334 | 1,396 | 4.7% |
| Long Term Debt | 584 | 642 | 456 | 814 | 804 | -1.2% |
Cash flow
|
|---|
| Capex | 350 | 228 | 110 | 122 | 131 | 7.5% |
Ratios
|
|---|
| Revenue growth | 7.4% | -7.1% | 6.4% | 6.2% | -5.2% | |
| EBITDA growth | 40.3% | -23.1% | 45.2% | 2.8% | -16.9% | |
| Gross Margin | 9.1% | 9.9% | 9.1% | 9.4% | 9.6% | 0.2% |
| EBITDA Margin | 3.4% | 2.8% | 3.8% | 3.7% | 3.2% | -0.5% |
| Net Income Margin | 1.1% | 1.4% | 1.2% | 2.2% | 0.9% | -1.2% |
| SG&A, % of revenue | 7.0% | 8.0% | 7.3% | 7.4% | 8.0% | 0.6% |
| CAPEX, % of revenue | 7.0% | 4.9% | 2.2% | 2.3% | 2.6% | 0.3% |
| ROIC | 3.2% | 1.8% | 2.9% | 2.9% | 2.0% | -0.9% |
| ROE | 4.0% | 3.9% | 3.3% | 6.2% | 2.6% | -3.6% |
| Net Debt/EBITDA | 8.3x | 13.0x | 9.3x | 8.9x | 11.3x | 2.4x |
Revenue and profitability
The company's Revenue decreased on 5.2%. EBITDA Margin showed almost no change in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased slightly on 0.58 pp from 7.4% to 8.0% in FY2016.
Net Income marign decreased slightly on 1.2 pp from 2.2% to 0.93% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.6% in FY2016. The company's CAPEX/Revenue decreased on 2.3 pp from 4.9% in FY2013 to 2.6% in FY2016. It's average CAPEX/Revenue for the last three years was 2.4%.The company invested a big chunk of EBITDA (80.7%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (1.98%) and ROE (2.58%). ROIC decreased slightly on 0.91 pp from 2.9% to 2.0% in FY2016. ROE decreased on 3.6 pp from 6.2% to 2.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 11.3x and Debt / EBITDA is 13.6x. Net Debt / EBITDA jumped on 2.4x from 8.9x to 11.3x in FY2016. Debt increased on 2.4% while cash dropped on 12.6%.
Appendix 1: Peers in Forest Products&Paper
Below you can find Samson Paper Holdings Ltd benchmarking vs. other companies in Forest Products&Paper 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 |
|---|
| 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% | |
| PNG Resources Holdings Ltd ($221) | | 248.6% | 8.5% | 8.7% | -44.3% |
| China Sunshine Paper Holdings Co Ltd ($2002) | -0.5% | -1.3% | -5.7% | 8.1% | |
| |
|---|
| Median (11 companies) | 3.9% | 4.9% | 0.7% | 5.8% | -44.3% |
|---|
| Samson Paper Holdings Ltd ($731) | | -7.1% | 6.4% | 6.2% | -5.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KuangChi Science Ltd ($439) | | 20.3% | 17.3% | 63.6% | |
| PNG Resources Holdings Ltd ($221) | 19.4% | 18.6% | 24.2% | 35.3% | 31.9% |
| 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% | |
| |
|---|
| Median (12 companies) | 16.4% | 18.0% | 18.2% | 20.0% | 31.9% |
|---|
| Samson Paper Holdings Ltd ($731) | 9.1% | 9.9% | 9.1% | 9.4% | 9.6% |
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% | |
| PNG Resources Holdings Ltd ($221) | -6.1% | 9.6% | 12.2% | 26.5% | 21.9% |
| 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% | |
| |
|---|
| Median (12 companies) | 11.4% | 11.2% | 11.2% | 13.6% | 21.9% |
|---|
| Samson Paper Holdings Ltd ($731) | 3.4% | 2.8% | 3.8% | 3.7% | 3.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KuangChi Science Ltd ($439) | | 3.2% | 0.5% | 65.6% | |
| PNG Resources Holdings Ltd ($221) | 133.1% | 35.6% | 53.0% | 44.8% | 31.1% |
| 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% | |
| |
|---|
| Median (12 companies) | 14.8% | 11.5% | 8.4% | 10.0% | 31.1% |
|---|
| Samson Paper Holdings Ltd ($731) | 7.0% | 4.9% | 2.2% | 2.3% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| PNG Resources Holdings Ltd ($221) | -1.2% | 5.8% | 8.3% | 19.9% | 8.1% |
| 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% | |
| |
|---|
| Median (13 companies) | 0.2% | 2.8% | -0.5% | 2.6% | 8.1% |
|---|
| Samson Paper Holdings Ltd ($731) | 3.2% | 1.8% | 2.9% | 2.9% | 2.0% |
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 | |
| 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 | |
| Youyuan International Holdings Ltd ($2268) | 1.5x | 2.1x | 1.5x | 1.4x | |
| |
|---|
| Median (9 companies) | 2.5x | 3.6x | 3.3x | 1.4x | -0.8x |
|---|
| Samson Paper Holdings Ltd ($731) | 8.3x | 13.0x | 9.3x | 8.9x | 11.3x |
