China Polymetallic Mining Ltd EBITDA dropped on 2,957% and Revenue dropped on 75.4%
14/02/2017 • About China Polymetallic Mining Ltd (
$2133) • By InTwits
China Polymetallic Mining Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Polymetallic Mining Ltd is a company in decline: FY2016 revenue growth was -75.4%, 5 years revenue CAGR was -20.1%
- EBITDA Margin is declining: -320.9% in FY2016 vs. 2.8% in FY2015 vs. 62.8% in FY2012
- China Polymetallic Mining Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 113.1%. At the same time it's a lot of higher than industry average of 31.6%.
- CAPEX is quite volatile: 88.3 in FY2016, 32.5 in FY2015, 103 in FY2014, 212 in FY2013, 216 in FY2012
- The company has unprofitable business model: ROIC is at -4.8%
- It operates with high leverage: Net Debt/EBITDA is 37.8x while industry average is 4.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Polymetallic Mining Ltd ($2133) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 477.1 | 489.9 | 187.5 | 92.5 | 22.8 | -75.4% |
| Gross Profit | 390.2 | 363.7 | 97.2 | 35.9 | -1.1 | -102.9% |
| SG&A | 121.8 | 129.6 | 50.3 | 43.7 | 52.3 | 19.7% |
| EBITDA | 299.8 | 286.6 | 101.5 | 2.6 | -73.2 | -2,957.1% |
| Net Income | 177.0 | 138.5 | 12.3 | -94.1 | -126.9 | |
Balance Sheet
|
|---|
| Cash | 267.0 | 587.4 | 781.6 | 672.7 | 40.8 | -93.9% |
| Short Term Debt | 60.0 | 188.0 | 966.5 | 201.0 | 505.2 | 151.4% |
| Long Term Debt | 60.0 | 0.0 | 0.0 | 304.9 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 216.3 | 212.0 | 102.6 | 32.5 | 88.3 | 171.6% |
Ratios
|
|---|
| Revenue growth | 579.8% | 2.7% | -61.7% | -50.7% | -75.4% | |
| EBITDA growth | -232.7% | -4.4% | -64.6% | -97.5% | -2,957.1% | |
| Gross Margin | 81.8% | 74.2% | 51.8% | 38.9% | -4.6% | -43.5% |
| EBITDA Margin | 62.8% | 58.5% | 54.1% | 2.8% | -320.9% | -323.7% |
| Net Income Margin | 37.1% | 28.3% | 6.5% | -101.7% | -556.4% | -454.7% |
| SG&A, % of revenue | 25.5% | 26.5% | 26.8% | 47.3% | 229.4% | 182.2% |
| CAPEX, % of revenue | 45.3% | 43.3% | 54.7% | 35.1% | 387.1% | 352.0% |
| ROIC | 16.6% | 12.3% | 2.4% | -1.5% | -4.8% | -3.3% |
| ROE | 12.4% | 8.6% | 0.7% | -5.7% | -8.3% | -2.6% |
| Net Debt/EBITDA | -0.5x | -1.4x | 1.8x | -65.2x | | 65.2x |
Revenue and profitability
China Polymetallic Mining Ltd's Revenue dropped on 75.4%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 324 pp from 2.8% to -321% in FY2016.
Gross Margin dropped on 43.5 pp from 38.9% to -4.6% in FY2016. SG&A as a % of Revenue jumped on 182 pp from 47.3% to 229% in FY2016.
Net Income marign dropped on 455 pp from -102% to -556% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 387% in FY2016. CAPEX/Revenue jumped on 344 pp from 43.3% in FY2013 to 387% in FY2016. For the last three years the average CAPEX/Revenue was 159%.
Return on investment
The company operates at negative ROIC (-4.77%) and ROE (-8.29%). ROIC decreased on 3.3 pp from -1.5% to -4.8% in FY2016. ROE decreased on 2.6 pp from -5.7% to -8.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 37.8x and Debt / EBITDA is . Net Debt / EBITDA surged on 65.2x from -65.2x to in FY2016. Debt showed almost no change in FY2016 while cash dropped on 93.9%.
Appendix 1: Peers in Mining
Below we provide China Polymetallic Mining Ltd benchmarking against other companies in Mining 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 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 89.7% | -95.8% | 2,361.6% | 1,178.3% |
| Real Gold Mining Ltd ($246) | -44.0% | -68.0% | -26.2% | 106.2% | |
| REX Global Entertainment Holdings Ltd ($164) | | 81.6% | -15.5% | 96.4% | 30.4% |
| Hengxing Gold Holding Co Ltd ($2303) | | | 3,467.3% | 78.0% | |
| Zijin Mining Group Co Ltd ($2899) | 21.6% | 2.5% | 18.1% | 26.9% | |
| |
|---|
| Median (47 companies) | 6.4% | -1.7% | -5.1% | -14.0% | -17.7% |
|---|
| China Polymetallic Mining Ltd ($2133) | | 2.7% | -61.7% | -50.7% | -75.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino Prosper Group Holdings Ltd ($766) | 2.5% | 5.1% | 39.6% | 93.0% | 87.4% |
| REX Global Entertainment Holdings Ltd ($164) | -15.8% | -7.8% | -0.8% | 88.6% | 87.3% |
| China Billion Resources Ltd ($274) | 71.4% | 47.2% | 73.4% | 79.7% | |
| Sun International Resources Ltd ($8029) | 83.2% | 73.1% | 64.8% | 69.4% | 58.8% |
| Timeless Software Ltd ($8028) | 17.7% | 48.5% | 29.4% | 42.1% | 39.9% |
| |
|---|
| Median (48 companies) | 14.4% | 13.8% | 15.4% | 12.7% | 39.9% |
|---|
| China Polymetallic Mining Ltd ($2133) | 81.8% | 74.2% | 51.8% | 38.9% | -4.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| G-Resources Group Ltd ($1051) | | 54.5% | 53.4% | 58.3% | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 70.0% | 64.6% | 59.6% | 51.3% | |
| Timeless Software Ltd ($8028) | -113.1% | 24.7% | -13.7% | 46.1% | 28.0% |
| Hengxing Gold Holding Co Ltd ($2303) | | -766.2% | 24.5% | 43.9% | |
| Sino Prosper Group Holdings Ltd ($766) | -138.6% | -138.2% | -378.4% | 42.9% | 28.5% |
| |
|---|
| Median (48 companies) | 4.9% | 7.8% | 5.2% | 5.1% | -37.0% |
|---|
| China Polymetallic Mining Ltd ($2133) | 62.8% | 58.5% | 54.1% | 2.8% | -320.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mongolia Energy Corp Ltd ($276) | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% | 20.9% |
| Kaz Minerals ($847) | 36.6% | 136.5% | 168.8% | 168.7% | |
| Chinalco Mining Corp International ($3668) | | | | 115.6% | |
| China Dynamics Holdings Ltd ($476) | 1.8% | 0.0% | 1.0% | 113.8% | 5.7% |
| MMG Ltd ($1208) | 25.7% | 22.6% | 41.9% | 100.4% | |
| |
|---|
| Median (48 companies) | 17.2% | 16.8% | 15.8% | 12.1% | 4.1% |
|---|
| China Polymetallic Mining Ltd ($2133) | 45.3% | 43.3% | 54.7% | 35.1% | 387.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CGN Mining Co Ltd ($1164) | 2.6% | 3.3% | 7.9% | 16.7% | |
| United Co RUSAL PLC ($486) | 0.3% | -9.0% | 6.3% | 12.3% | |
| Xingfa Aluminium Holdings Ltd ($98) | 7.6% | 8.8% | 11.7% | 11.8% | |
| Timeless Software Ltd ($8028) | -29.1% | 7.3% | -4.6% | 11.6% | 3.9% |
| China Hongqiao Group Ltd ($1378) | 24.8% | 17.0% | 14.1% | 10.6% | |
| |
|---|
| Median (49 companies) | 0.9% | 2.3% | 0.0% | -1.0% | -5.7% |
|---|
| China Polymetallic Mining Ltd ($2133) | 16.6% | 12.3% | 2.4% | -1.5% | -4.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 9.2x | 9.7x | 9.2x | 31.5x | |
| Chinalco Mining Corp International ($3668) | | | | 25.0x | |
| MMG Ltd ($1208) | 2.1x | 2.0x | 10.2x | 20.2x | |
| Kaz Minerals ($847) | 2.4x | 2.9x | 5.5x | 18.7x | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 1.5x | 4.1x | 6.4x | 13.5x | |
| |
|---|
| Median (28 companies) | 2.0x | 1.9x | 4.6x | 3.8x | -1.8x |
|---|
| China Polymetallic Mining Ltd ($2133) | -0.5x | -1.4x | 1.8x | -65.2x | |
