Infinity Chemical Holdings Co Ltd Net Income dropped on 24.4% and EBITDA Margin decreased slightly on 1.8 pp from 12.5% to 10.8%
30/12/2016 • About Infinity Chemical Holdings Co Ltd (
$640) • By InTwits
Infinity Chemical Holdings Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Infinity Chemical Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's in pair with industry average of 20.9%.
- CAPEX is quite volatile: 20.6 in FY2016, 25.1 in FY2015, 11.4 in FY2014, 7.6 in FY2013, 11.1 in FY2012
- The company has business model with low profitability: ROIC is at 7.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Infinity Chemical Holdings Co Ltd ($640) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 402.9 | 452.4 | 499.1 | 543.6 | 496.2 | -8.7% |
| Gross Profit | 102.3 | 126.7 | 149.0 | 180.7 | 175.8 | -2.7% |
| SG&A | 73.7 | 96.4 | 116.6 | 131.8 | 142.8 | 8.3% |
| EBITDA | 36.0 | 42.1 | 45.0 | 68.1 | 53.4 | -21.5% |
| Net Income | 24.5 | 34.1 | 39.5 | 49.2 | 37.2 | -24.4% |
Balance Sheet
|
|---|
| Cash | 15.4 | 17.7 | 29.4 | 94.4 | 105.5 | 11.8% |
| Short Term Debt | 60.1 | 49.3 | 56.6 | 24.5 | 46.6 | 90.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 11.1 | 7.6 | 11.4 | 25.1 | 20.6 | -18.0% |
Ratios
|
|---|
| Revenue growth | 7.9% | 12.3% | 10.3% | 8.9% | -8.7% | |
| EBITDA growth | 37.2% | 17.0% | 6.7% | 51.3% | -21.5% | |
| Gross Margin | 25.4% | 28.0% | 29.8% | 33.2% | 35.4% | 2.2% |
| EBITDA Margin | 8.9% | 9.3% | 9.0% | 12.5% | 10.8% | -1.8% |
| Net Income Margin | 6.1% | 7.5% | 7.9% | 9.0% | 7.5% | -1.6% |
| SG&A, % of revenue | 18.3% | 21.3% | 23.4% | 24.3% | 28.8% | 4.5% |
| CAPEX, % of revenue | 2.7% | 1.7% | 2.3% | 4.6% | 4.1% | -0.5% |
| ROIC | 11.1% | 10.2% | 8.8% | 12.7% | 7.4% | -5.3% |
| ROE | 12.4% | 14.2% | 13.3% | 13.1% | 8.7% | -4.4% |
| Net Debt/EBITDA | 1.2x | 0.8x | 0.6x | -1.0x | -1.1x | -0.1x |
Revenue and profitability
The company's Revenue decreased on 8.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from 12.5% to 10.8% in FY2016.
Gross Margin increased on 2.2 pp from 33.2% to 35.4% in FY2016. SG&A as a % of Revenue increased on 4.5 pp from 24.3% to 28.8% in FY2016.
Net Income marign decreased slightly on 1.6 pp from 9.0% to 7.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Infinity Chemical Holdings Co Ltd's CAPEX/Revenue was 4.1% in FY2016. Infinity Chemical Holdings Co Ltd's CAPEX/Revenue increased on 2.5 pp from 1.7% in FY2013 to 4.1% in FY2016. It's average CAPEX/Revenue for the last three years was 3.7%.
Return on investment
The company operates at low ROIC (7.45%) and ROE (8.68%). ROIC decreased on 5.3 pp from 12.7% to 7.4% in FY2016. ROE decreased on 4.4 pp from 13.1% to 8.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is 0.9x. Net Debt / EBITDA decreased on 0.1x from -1.0x to -1.1x in FY2016. Debt jumped on 90.0% while cash surged on 11.8%.
Appendix 1: Peers in Chemicals
Below we provide Infinity Chemical Holdings Co Ltd benchmarking against other companies in Chemicals 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 |
|---|
| Bestway International Holdings Ltd ($718) | | -62.1% | 330.3% | 238.4% | 14,591.4% |
| China First Chemical Holdings Ltd ($2121) | 6.2% | -6.8% | -18.0% | 72.5% | |
| Strong Petrochemical Holdings Ltd ($852) | 40.8% | 87.9% | -60.8% | 42.3% | |
| Ko Yo Chemical Group Ltd ($827) | -5.6% | -0.6% | 2.3% | 40.8% | |
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 16.0% | 63.5% | -7.7% | 36.6% | |
| |
|---|
| Median (31 companies) | 2.4% | 8.5% | 1.8% | -3.7% | 0.8% |
|---|
| Infinity Chemical Holdings Co Ltd ($640) | | 12.3% | 10.3% | 8.9% | -8.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huabao International Holdings Ltd ($336) | 70.5% | 69.1% | 70.8% | 69.9% | 68.9% |
| China Flavors & Fragrances Co Ltd ($3318) | 46.8% | 48.6% | 47.8% | 48.9% | |
| Bestway International Holdings Ltd ($718) | 5.1% | 4.6% | 8.6% | 40.4% | 7.1% |
| Bracell Ltd ($1768) | 30.5% | 37.3% | 37.3% | 38.4% | |
| Shaanxi Northwest New Technology Industry Co Ltd ($8258) | 28.7% | 30.9% | 30.0% | 37.9% | |
| |
|---|
| Median (31 companies) | 18.9% | 17.3% | 16.8% | 18.6% | 21.7% |
|---|
| Infinity Chemical Holdings Co Ltd ($640) | 25.4% | 28.0% | 29.8% | 33.2% | 35.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huabao International Holdings Ltd ($336) | 63.8% | 59.1% | 60.0% | 58.3% | 51.2% |
| Bracell Ltd ($1768) | 22.3% | 30.8% | 38.2% | 35.9% | |
| Yingde Gases Group Co Ltd ($2168) | 29.4% | 29.8% | 32.3% | 33.4% | |
| Tiande Chemical Holdings Ltd ($609) | 25.5% | 27.3% | 25.1% | 27.8% | |
| Century Sunshine Group Holdings Ltd ($509) | 24.2% | 28.1% | 27.6% | 26.1% | |
| |
|---|
| Median (31 companies) | 14.5% | 13.6% | 12.5% | 11.1% | 3.5% |
|---|
| Infinity Chemical Holdings Co Ltd ($640) | 8.9% | 9.3% | 9.0% | 12.5% | 10.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Landing International Development Ltd ($582) | 7.2% | 29.6% | 419.5% | 247.4% | |
| China Zenith Chemical Group Ltd ($362) | 147.3% | 55.7% | 67.4% | 152.2% | 191.4% |
| Smartac Group China Holdings Ltd ($395) | 14.0% | 4.7% | 49.3% | 52.4% | |
| China Flavors & Fragrances Co Ltd ($3318) | 15.8% | 20.1% | 42.4% | 35.8% | |
| Ko Yo Chemical Group Ltd ($827) | 45.2% | 43.2% | 20.7% | 27.5% | |
| |
|---|
| Median (31 companies) | 8.4% | 8.9% | 5.8% | 8.1% | 2.3% |
|---|
| Infinity Chemical Holdings Co Ltd ($640) | 2.7% | 1.7% | 2.3% | 4.6% | 4.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huabao International Holdings Ltd ($336) | 28.7% | 25.2% | 26.2% | 23.3% | 17.1% |
| Tiande Chemical Holdings Ltd ($609) | 26.2% | 29.4% | 20.7% | 20.6% | |
| Sinopec Shanghai Petrochemical Co Ltd ($338) | -6.9% | 8.1% | -2.4% | 16.5% | |
| Century Sunshine Group Holdings Ltd ($509) | 11.3% | 15.9% | 16.4% | 13.3% | |
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | -1.3% | 2.6% | 5.9% | 11.6% | |
| |
|---|
| Median (31 companies) | 6.9% | 7.7% | 5.6% | 4.8% | 2.7% |
|---|
| Infinity Chemical Holdings Co Ltd ($640) | 11.1% | 10.2% | 8.8% | 12.7% | 7.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ko Yo Chemical Group Ltd ($827) | 8.8x | 22.0x | | 141.5x | |
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 2.2x | 4.6x | 18.1x | 13.5x | |
| Sinofert Holdings Ltd ($297) | 2.9x | 32.4x | 5.0x | 8.4x | |
| Ngai Hing Hong Co Ltd ($1047) | 11.7x | 5.3x | 5.4x | 5.3x | 7.1x |
| China XLX Fertiliser Ltd ($1866) | 2.6x | 5.1x | 5.8x | 5.1x | |
| |
|---|
| Median (26 companies) | 1.3x | 2.2x | 1.4x | 2.0x | 7.0x |
|---|
| Infinity Chemical Holdings Co Ltd ($640) | 1.2x | 0.8x | 0.6x | -1.0x | -1.1x |
