CITIC Dameng Holdings Ltd revenue jumped on 29.0% and EBITDA Margin surged on 26.3 pp from -11.0% to 15.3%
15/02/2017 • About CITIC Dameng Holdings Ltd (
$1091) • By InTwits
CITIC Dameng Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CITIC Dameng Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is 1.9%
- EBITDA Margin is quite volatile: 15.3% in FY2016, -11.0% in FY2015, 17.8% in FY2014, 6.8% in FY2013, -1.2% in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.9%
- It operates with high leverage: Net Debt/EBITDA is 5.8x 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.
CITIC Dameng Holdings Ltd ($1091) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,986 | 2,916 | 3,195 | 2,517 | 3,248 | 29.0% |
| Gross Profit | 250 | 328 | 553 | -88 | 424 | |
| SG&A | 559 | 529 | 546 | 582 | 469 | -19.4% |
| EBITDA | -36 | 197 | 569 | -276 | 497 | |
| Net Income | -397 | -243 | 15 | -956 | -88 | |
Balance Sheet
|
|---|
| Cash | 1,778 | 1,108 | 870 | 410 | 990 | 141.5% |
| Short Term Debt | 2,058 | 1,579 | 2,559 | 3,227 | 2,607 | -19.2% |
| Long Term Debt | 1,770 | 2,290 | 1,882 | 1,505 | 1,280 | -15.0% |
Cash flow
|
|---|
| Capex | 651 | 530 | 505 | 277 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -18.3% | -2.4% | 9.6% | -21.2% | 29.0% | |
| EBITDA growth | -104.9% | -647.4% | 188.7% | -148.5% | -279.9% | |
| Gross Margin | 8.4% | 11.3% | 17.3% | -3.5% | 13.1% | 16.5% |
| EBITDA Margin | -1.2% | 6.8% | 17.8% | -11.0% | 15.3% | 26.3% |
| Net Income Margin | -13.3% | -8.3% | 0.5% | -38.0% | -2.7% | 35.3% |
| SG&A, % of revenue | 18.7% | 18.1% | 17.1% | 23.1% | 14.4% | -8.7% |
| CAPEX, % of revenue | 21.8% | 18.2% | 15.8% | 11.0% | | -11.0% |
| ROIC | -4.6% | -2.1% | 2.3% | -8.3% | 1.9% | 10.2% |
| ROE | -10.4% | -6.9% | 0.4% | -30.1% | -3.2% | 26.9% |
| Net Debt/EBITDA | | 14.0x | 6.3x | | 5.8x | 5.8x |
Revenue and profitability
CITIC Dameng Holdings Ltd's Revenue jumped on 29.0%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 26.3 pp from -11.0% to 15.3% in FY2016.
Gross Margin jumped on 16.5 pp from -3.5% to 13.1% in FY2016. SG&A as a % of Revenue decreased on 8.7 pp from 23.1% to 14.4% in FY2016.
Net Income marign jumped on 35.3 pp from -38.0% to -2.7% in FY2016.
Return on investment
The company operates at low but positive ROIC (1.90%) and negative ROE (-3.20%). ROIC jumped on 10.2 pp from -8.3% to 1.9% in FY2016. ROE jumped on 26.9 pp from -30.1% to -3.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.8x and Debt / EBITDA is 7.8x. Net Debt / EBITDA jumped5.8x from to 5.8x in FY2016. Debt dropped on 17.9% while cash jumped on 142%.
Appendix 1: Peers in Mining
Below you can find CITIC Dameng Holdings Ltd benchmarking vs. other companies in Mining 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 |
|---|
| 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) | 6.7% | 0.6% | -5.9% | -14.0% | -20.0% |
|---|
| CITIC Dameng Holdings Ltd ($1091) | | -2.4% | 9.6% | -21.2% | 29.0% |
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) | 15.8% | 14.4% | 15.4% | 15.5% | 34.0% |
|---|
| CITIC Dameng Holdings Ltd ($1091) | 8.4% | 11.3% | 17.3% | -3.5% | 13.1% |
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) | 5.3% | 8.5% | 5.2% | 5.1% | -49.7% |
|---|
| CITIC Dameng Holdings Ltd ($1091) | -1.2% | 6.8% | 17.8% | -11.0% | 15.3% |
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% | 16.5% | 12.5% | 4.9% |
|---|
| CITIC Dameng Holdings Ltd ($1091) | 21.8% | 18.2% | 15.8% | 11.0% | |
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) | 1.9% | 2.7% | 0.0% | -1.0% | -5.3% |
|---|
| CITIC Dameng Holdings Ltd ($1091) | -4.6% | -2.1% | 2.3% | -8.3% | 1.9% |
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 (29 companies) | 2.0x | 1.8x | 4.4x | 3.4x | -1.8x |
|---|
