Sino Resources Group Ltd reports 323% Net Income growth in 2016 and almost no change in Revenue of 194
27/06/2016 • About Sino Resources Group Ltd (
$223) • By InTwits
Sino Resources Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sino Resources Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is -18.5%
- The company operates at negative EBITDA Margin: -20.9%
- Sino Resources Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -31.1% for the sames years0
- Sino Resources Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.5%. At the same time it's a lot of higher than industry average of 6.5%.
- CAPEX is quite volatile: 1.3 in FY2016, 2.0 in FY2015, 1.8 in FY2014, 15.9 in FY2013, 2.5 in FY2012
- The company has unprofitable business model: ROIC is at -18.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sino Resources Group Ltd ($223) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 67.2 | 37.1 | 42.5 | 193.3 | 194.2 | 0.4% |
| Gross Profit | 1.2 | 0.5 | 1.3 | 5.8 | 13.8 | 139.1% |
| EBITDA | -32.5 | -31.2 | -23.7 | -38.0 | -40.6 | |
| Net Income | -34.1 | -83.3 | -46.0 | -120.1 | 267.5 | |
Balance Sheet
|
|---|
| Cash | 15.8 | 21.9 | 26.1 | 12.3 | 7.3 | -40.4% |
| Short Term Debt | 192.6 | 217.6 | 189.0 | 196.1 | 9.0 | -95.4% |
| Long Term Debt | 0.5 | 8.8 | 11.6 | 70.6 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 2.5 | 15.9 | 1.8 | 2.0 | 1.3 | -34.5% |
Ratios
|
|---|
| Revenue growth | -18.5% | -44.8% | 14.7% | 354.5% | 0.4% | |
| EBITDA growth | 61.4% | -4.2% | -24.0% | 60.2% | 6.9% | |
| Gross Margin | 1.7% | 1.4% | 2.9% | 3.0% | 7.1% | 4.1% |
| EBITDA Margin | -48.4% | -84.1% | -55.7% | -19.6% | -20.9% | -1.3% |
| Net Income Margin | -50.8% | -224.5% | -108.2% | -62.1% | 137.8% | 199.9% |
| CAPEX, % of revenue | 3.7% | 42.8% | 4.2% | 1.0% | 0.7% | -0.4% |
| ROIC | | | -81.3% | -28.6% | -18.5% | 10.1% |
Revenue and profitability
The company's Revenue showed almost no change in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.6 pp from -9.6% to -15.3% in FY2016.
Gross Margin increased on 4.1 pp from 3.0% to 7.1% in FY2016.
Net Income marign surged on 200 pp from -62.1% to 138% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Sino Resources Group Ltd's CAPEX/Revenue was 0.68% in FY2016. Sino Resources Group Ltd showed big decline in CAPEX/Revenue of 42.1 pp from 42.8% in FY2013 to 0.68% in FY2016. For the last three years the average CAPEX/Revenue was 2.0%.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 96.6% while cash dropped on 40.4%.
Appendix 1: Peers in Coal
Below you can find Sino Resources Group Ltd benchmarking vs. other companies in Coal 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 |
|---|
| Asia Coal Ltd ($835) | | -15.3% | 43.2% | 133.6% | -60.1% |
| Dowell Property Holdings Ltd ($668) | -19.2% | -55.7% | -35.8% | 83.2% | |
| Capital Finance Holdings Ltd ($8239) | 83.6% | -5.2% | -5.5% | 70.6% | |
| Up Energy Development Group Ltd ($307) | | | | 60.5% | |
| Rosan Resources Holdings Ltd ($578) | -74.1% | 71.1% | 49.1% | 49.9% | |
| |
|---|
| Median (21 companies) | -9.0% | -7.8% | -14.2% | -22.9% | -56.0% |
|---|
| Sino Resources Group Ltd ($223) | | -44.8% | 14.7% | 354.5% | 0.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital Finance Holdings Ltd ($8239) | 6.4% | 7.2% | 8.7% | 98.2% | |
| Nan Nan Resources Enterprise Ltd ($1229) | 23.9% | 17.6% | 18.1% | 44.3% | 41.0% |
| Agritrade Resources Ltd ($1131) | 22.9% | 29.4% | 31.8% | 30.0% | |
| Shougang Fushan Resources Group Ltd ($639) | 63.5% | 50.9% | 40.1% | 24.5% | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 35.2% | 33.7% | 27.4% | 19.2% | |
| |
|---|
| Median (20 companies) | 20.0% | 17.5% | 10.2% | 3.8% | 23.2% |
|---|
| Sino Resources Group Ltd ($223) | 1.7% | 1.4% | 2.9% | 3.0% | 7.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital Finance Holdings Ltd ($8239) | -27.2% | -23.7% | -56.2% | 71.5% | |
| Nan Nan Resources Enterprise Ltd ($1229) | 19.1% | 14.1% | -0.2% | 40.5% | 24.1% |
| Agritrade Resources Ltd ($1131) | 41.6% | 37.3% | 33.4% | 31.1% | |
| Feishang Anthracite Resources Ltd ($1738) | -13.1% | -32.9% | 19.0% | 15.9% | |
| Kinetic Mines and Energy Ltd ($1277) | -277.0% | -51.9% | 29.3% | 15.8% | |
| |
|---|
| Median (21 companies) | 1.5% | -0.8% | -7.5% | -14.3% | -190.2% |
|---|
| Sino Resources Group Ltd ($223) | -48.4% | -84.1% | -55.7% | -19.6% | -20.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Siberian Mining Group Co Ltd ($1142) | 4.6% | 78.8% | 217.3% | 279.7% | |
| Feishang Anthracite Resources Ltd ($1738) | 244.9% | 159.7% | 80.9% | 90.2% | |
| Up Energy Development Group Ltd ($307) | | | 279.5% | 75.2% | |
| King Stone Energy Group Ltd ($663) | 58.5% | 135.3% | 205.7% | 69.3% | |
| SouthGobi Resources Ltd ($1878) | 124.8% | 20.2% | 11.5% | 52.6% | |
| |
|---|
| Median (20 companies) | 14.9% | 25.8% | 20.6% | 20.3% | 5.4% |
|---|
| Sino Resources Group Ltd ($223) | 3.7% | 42.8% | 4.2% | 1.0% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital Finance Holdings Ltd ($8239) | -25.1% | -14.9% | -26.9% | 21.0% | |
| Nan Nan Resources Enterprise Ltd ($1229) | 6.4% | 1.6% | -1.2% | 10.0% | 1.5% |
| Agritrade Resources Ltd ($1131) | 2.7% | 5.8% | 6.4% | 6.9% | |
| Kinetic Mines and Energy Ltd ($1277) | -6.6% | -5.7% | 8.5% | 3.2% | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 28.5% | 15.2% | 8.5% | 2.0% | |
| |
|---|
| Median (21 companies) | -2.6% | -2.1% | -3.5% | -3.9% | -150.1% |
|---|
| Sino Resources Group Ltd ($223) | | | -81.3% | -28.6% | -18.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Feishang Anthracite Resources Ltd ($1738) | | | 24.3x | 32.6x | |
| China Coal Energy Co Ltd ($1898) | 1.9x | 4.9x | 9.7x | 14.4x | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 0.4x | 1.7x | 3.5x | 9.8x | |
| Yanzhou Coal Mining Co Ltd ($1171) | 2.9x | 6.2x | 4.9x | 9.0x | |
| Kinetic Mines and Energy Ltd ($1277) | | | 4.5x | 5.9x | |
| |
|---|
| Median (8 companies) | 2.9x | 4.7x | 4.7x | 7.5x | -1.8x |
|---|
