Chaoda Modern Agriculture Holdings Ltd reports 41.2% CAPEX decline in 2016 and 15.0% Revenue decline
23/09/2016 • About Chaoda Modern Agriculture Holdings Ltd (
$682) • By InTwits
Chaoda Modern Agriculture Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chaoda Modern Agriculture Holdings Ltd is a company in decline: FY2016 revenue growth was -15.0%, 5 years revenue CAGR was -32.6%
- The company operates at negative EBITDA Margin: -321.5%
- Chaoda Modern Agriculture Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -184.7%0
- Chaoda Modern Agriculture Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.6%. At the same time it's a lot of higher than industry average of 9.4%.
- CAPEX is quite volatile: 96.3 in FY2016, 164 in FY2015, 280 in FY2014, 249 in FY2013, 1,645 in FY2012
- The company has unprofitable business model: ROIC is at -62.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chaoda Modern Agriculture Holdings Ltd ($682) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,160 | 2,282 | 1,459 | 1,317 | 1,120 | -15.0% |
| Gross Profit | -247 | -141 | -271 | -384 | -513 | |
| SG&A | 1,052 | 648 | 412 | 354 | 375 | 5.9% |
| EBITDA | -4,125 | -2,321 | -1,159 | -6,043 | -3,599 | |
| Net Income | -4,934 | -3,220 | -1,941 | -6,627 | -4,068 | |
Balance Sheet
|
|---|
| Cash | 520 | 371 | 432 | 239 | 204 | -14.6% |
| Short Term Debt | 0 | 0 | 29 | 4 | 0 | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 1,645 | 249 | 280 | 164 | 96 | -41.2% |
Ratios
|
|---|
| Revenue growth | -60.8% | -27.8% | -36.0% | -9.8% | -15.0% | |
| EBITDA growth | -209.4% | -43.7% | -50.1% | 421.5% | -40.4% | |
| Gross Margin | -7.8% | -6.2% | -18.6% | -29.1% | -45.8% | -16.7% |
| EBITDA Margin | -130.5% | -101.7% | -79.4% | -458.9% | -321.5% | 137.5% |
| Net Income Margin | -156.1% | -141.1% | -133.0% | -503.3% | -363.4% | 139.9% |
| SG&A, % of revenue | 33.3% | 28.4% | 28.2% | 26.9% | 33.5% | 6.6% |
| CAPEX, % of revenue | 52.1% | 10.9% | 19.2% | 12.4% | 8.6% | -3.8% |
| ROIC | -20.2% | -16.8% | -11.6% | -56.2% | -62.7% | -6.5% |
| ROE | -21.4% | -17.2% | -12.1% | -56.2% | -63.0% | -6.9% |
Revenue and profitability
The company's Revenue dropped on 15.0%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 137 pp from -459% to -321% in FY2016.
Gross Margin dropped on 16.7 pp from -29.1% to -45.8% in FY2016. SG&A as a % of Revenue increased on 6.6 pp from 26.9% to 33.5% in FY2016.
Net Income marign surged on 140 pp from -503% to -363% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Chaoda Modern Agriculture Holdings Ltd had CAPEX/Revenue of 8.6%. Chaoda Modern Agriculture Holdings Ltd's CAPEX/Revenue decreased on 2.3 pp from 10.9% in FY2013 to 8.6% in FY2016. For the last three years the average CAPEX/Revenue was 13.4%.
Return on investment
The company operates at negative ROIC (-62.72%) and ROE (-63.00%). ROIC decreased on 6.5 pp from -56.2% to -62.7% in FY2016. ROE decreased on 6.9 pp from -56.2% to -63.0% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash dropped on 14.6%.
Appendix 1: Peers in Agriculture
Below we provide Chaoda Modern Agriculture Holdings Ltd benchmarking against other companies in Agriculture 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Putian Food Holdings Ltd ($1699) | 11.7% | 7.9% | -0.3% | 5.7% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | 1,594.6% | 0.2% | -61.3% | -2.5% | |
| CP Pokphand Co Ltd ($43) | 36.9% | 9.2% | 1.7% | -6.9% | |
| China Agri-Industries Holdings Ltd ($606) | 10.9% | 3.5% | -1.4% | -11.5% | |
| |
|---|
| Median (4 companies) | 24.3% | 5.7% | -0.9% | -4.7% | |
|---|
| Chaoda Modern Agriculture Holdings Ltd ($682) | | -27.8% | -36.0% | -9.8% | -15.0% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Putian Food Holdings Ltd ($1699) | 25.8% | 25.9% | 23.0% | 19.6% | |
| CP Pokphand Co Ltd ($43) | 13.6% | 12.7% | 15.5% | 17.6% | |
| China Agri-Industries Holdings Ltd ($606) | 6.4% | 6.0% | 4.6% | 5.2% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | 32.8% | 30.6% | -19.2% | 3.4% | |
| |
|---|
| Median (4 companies) | 19.7% | 19.3% | 10.1% | 11.4% | |
|---|
| Chaoda Modern Agriculture Holdings Ltd ($682) | -7.8% | -6.2% | -18.6% | -29.1% | -45.8% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cypress Jade Agricultural Holdings Ltd ($875) | 1.9% | -5.7% | -68.5% | 13.2% | |
| CP Pokphand Co Ltd ($43) | 7.6% | 6.1% | 8.0% | 9.9% | |
| China Putian Food Holdings Ltd ($1699) | 20.1% | 20.7% | 16.1% | 9.2% | |
| China Agri-Industries Holdings Ltd ($606) | 3.7% | 2.7% | 1.7% | 3.1% | |
| |
|---|
| Median (4 companies) | 5.6% | 4.4% | 4.9% | 9.5% | |
|---|
| Chaoda Modern Agriculture Holdings Ltd ($682) | -130.5% | -101.7% | -79.4% | -458.9% | -321.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Putian Food Holdings Ltd ($1699) | 18.8% | 26.8% | 9.0% | 16.7% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | 17.7% | 16.2% | 14.6% | 13.1% | |
| CP Pokphand Co Ltd ($43) | 3.6% | 5.2% | 5.9% | 6.5% | |
| China Agri-Industries Holdings Ltd ($606) | 5.4% | 3.5% | 2.0% | 1.9% | |
| |
|---|
| Median (4 companies) | 11.5% | 10.7% | 7.5% | 9.8% | |
|---|
| Chaoda Modern Agriculture Holdings Ltd ($682) | 52.1% | 10.9% | 19.2% | 12.4% | 8.6% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CP Pokphand Co Ltd ($43) | 19.7% | 13.5% | 15.2% | 16.7% | |
| China Putian Food Holdings Ltd ($1699) | 27.8% | 20.4% | 11.4% | 5.0% | |
| China Agri-Industries Holdings Ltd ($606) | 3.5% | 1.8% | -0.1% | 1.3% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | -15.4% | -17.7% | -52.2% | -0.1% | |
| |
|---|
| Median (4 companies) | 11.6% | 7.7% | 5.7% | 3.2% | |
|---|
| Chaoda Modern Agriculture Holdings Ltd ($682) | -20.2% | -16.8% | -11.6% | -56.2% | -62.7% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Agri-Industries Holdings Ltd ($606) | 6.7x | 7.6x | 13.8x | 8.8x | |
| Cypress Jade Agricultural Holdings Ltd ($875) | 1.3x | | | 6.2x | |
| China Putian Food Holdings Ltd ($1699) | 0.1x | 1.1x | 2.0x | 5.2x | |
| CP Pokphand Co Ltd ($43) | 1.0x | 1.8x | 1.9x | 1.6x | |
| |
|---|
| Median (4 companies) | 1.1x | 1.8x | 2.0x | 5.7x | |
|---|
