CITIC Resources Holdings Ltd Net Income jumped on 106% in 2016 while Revenue dropped on 20.4%
19/02/2017 • About CITIC Resources Holdings Ltd (
$1205) • By InTwits
CITIC Resources Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CITIC Resources Holdings Ltd is a company in decline: FY2016 revenue growth was -20.4%, 5 years revenue CAGR was -40.1%
- EBITDA Margin is quite volatile: 53.8% in FY2016, -34.6% in FY2015, 9.6% in FY2014, 1.8% in FY2013, 1.7% in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CITIC Resources Holdings Ltd ($1205) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 42,747 | 39,319 | 17,805 | 3,713 | 2,957 | -20.4% |
| Gross Profit | 717 | 484 | 938 | -318 | -100 | |
| SG&A | 435 | 396 | 517 | 389 | 357 | -8.2% |
| EBITDA | 710 | 713 | 1,711 | -1,286 | 1,591 | |
| Net Income | -1,284 | -1,465 | 224 | -6,105 | 363 | |
Balance Sheet
|
|---|
| Cash | 8,387 | 6,994 | 3,246 | 1,300 | 1,161 | -10.7% |
| Short Term Debt | 1,116 | 7,086 | 3,414 | 1,369 | 1,385 | 1.2% |
| Long Term Debt | 8,995 | 6,603 | 5,816 | 6,475 | 6,168 | -4.7% |
Cash flow
|
|---|
| Capex | 889 | 1,337 | 1,182 | 988 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 11.0% | -8.0% | -54.7% | -79.1% | -20.4% | |
| EBITDA growth | -74.5% | 0.4% | 140.0% | -175.2% | -223.7% | |
| Gross Margin | 1.7% | 1.2% | 5.3% | -8.6% | -3.4% | 5.2% |
| EBITDA Margin | 1.7% | 1.8% | 9.6% | -34.6% | 53.8% | 88.4% |
| Net Income Margin | -3.0% | -3.7% | 1.3% | -164.4% | 12.3% | 176.7% |
| SG&A, % of revenue | 1.0% | 1.0% | 2.9% | 10.5% | 12.1% | 1.6% |
| CAPEX, % of revenue | 2.1% | 3.4% | 6.6% | 26.6% | | -26.6% |
| ROIC | 1.8% | 1.5% | 4.6% | -13.7% | 6.3% | 20.0% |
| ROE | -9.3% | -11.8% | 2.0% | -81.2% | 8.1% | 89.3% |
| Net Debt/EBITDA | 2.4x | 9.4x | 3.5x | | 4.0x | 4.0x |
Revenue and profitability
The company's Revenue dropped on 20.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 88.4 pp from -34.6% to 53.8% in FY2016.
Gross Margin increased on 5.2 pp from -8.6% to -3.4% in FY2016. SG&A as a % of Revenue increased slightly on 1.6 pp from 10.5% to 12.1% in FY2016.
Net Income marign surged on 177 pp from -164% to 12.3% in FY2016.
Return on investment
The company operates at low ROIC (6.31%) and ROE (8.09%). ROIC surged on 20.0 pp from -13.7% to 6.3% in FY2016. ROE jumped on 89.3 pp from -81.2% to 8.1% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.0x and Debt / EBITDA is 4.7x. Net Debt / EBITDA surged4.0x from to 4.0x in FY2016. Debt decreased on 3.7% while cash dropped on 10.7%.
Management team
The company's CEO Suo Zhengang has spent 3 years at the company.
Appendix 1: Peers in Holding Companies-Divers
Below you can find CITIC Resources Holdings Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Beijing Development HK Ltd ($154) | 12.5% | | | 1,048.9% | |
| Kong Sun Holdings Ltd ($295) | -88.3% | 5.1% | 7,067.0% | 231.2% | |
| CIAM Group Ltd ($378) | -62.2% | 47.9% | -40.0% | 211.5% | |
| Melco International Development Ltd ($200) | 16.5% | 21.7% | 3.0% | 134.9% | |
| New Century Group Hong Kong Ltd ($234) | | 326.7% | -70.3% | 118.2% | -78.2% |
| |
|---|
| Median (45 companies) | 7.8% | 5.1% | 15.7% | 7.2% | -5.1% |
|---|
| CITIC Resources Holdings Ltd ($1205) | | -8.0% | -54.7% | -79.1% | -20.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | 27.3% | 85.2% | 82.8% | 91.5% | 43.4% |
| Melco International Development Ltd ($200) | 63.1% | 52.9% | 54.5% | 79.4% | |
| CIAM Group Ltd ($378) | | | | 75.8% | |
| Emperor International Holdings Ltd ($163) | 71.3% | 64.9% | 79.2% | 75.3% | 55.3% |
| Heng Fai Enterprises Ltd ($185) | 89.0% | 89.5% | 58.3% | 74.7% | |
| |
|---|
| Median (39 companies) | 33.4% | 36.0% | 34.4% | 37.5% | 40.7% |
|---|
| CITIC Resources Holdings Ltd ($1205) | 1.7% | 1.2% | 5.3% | -8.6% | -3.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Century Group Hong Kong Ltd ($234) | -5.5% | 78.8% | 58.3% | 85.0% | 33.8% |
| Emperor International Holdings Ltd ($163) | 180.7% | 131.8% | 100.6% | 73.9% | -20.1% |
| Pioneer Global Group Ltd ($224) | -0.5% | -9.9% | -11.6% | 64.3% | 66.8% |
| C C Land Holdings Ltd ($1224) | 27.0% | 23.6% | 24.6% | 55.7% | |
| China Merchants Holdings International Co Ltd ($144) | 56.4% | 50.8% | 45.2% | 55.7% | |
| |
|---|
| Median (45 companies) | 3.3% | 3.8% | 7.4% | 6.8% | 9.1% |
|---|
| CITIC Resources Holdings Ltd ($1205) | 1.7% | 1.8% | 9.6% | -34.6% | 53.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heng Fai Enterprises Ltd ($185) | 4.8% | 77.1% | 310.0% | 458.1% | |
| Chinney Investments Ltd ($216) | 17.5% | 103.4% | 111.3% | 230.9% | 26.6% |
| China Investments Holdings Ltd ($132) | 4.8% | 81.9% | 382.2% | 222.5% | |
| Goldin Properties Holdings Ltd ($283) | 2,178.4% | 1,190.0% | 50.1% | 202.4% | 128.8% |
| Carnival Group International Holdings Ltd ($996) | | 137.9% | 61.0% | 133.3% | |
| |
|---|
| Median (45 companies) | 2.7% | 3.8% | 5.4% | 6.0% | 8.5% |
|---|
| CITIC Resources Holdings Ltd ($1205) | 2.1% | 3.4% | 6.6% | 26.6% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fulum Group Holdings Ltd ($1443) | | 116.3% | 55.5% | 29.8% | 12.9% |
| C C Land Holdings Ltd ($1224) | 7.4% | 5.3% | 7.9% | 15.0% | |
| Chinney Alliance Group Ltd ($385) | 6.4% | 8.1% | 13.6% | 15.0% | |
| Niraku GC Holdings Inc ($1245) | | 19.0% | 18.8% | 13.1% | 2.7% |
| Top Spring International Holdings Ltd ($3688) | 15.6% | 6.9% | 7.3% | 8.0% | |
| |
|---|
| Median (45 companies) | -0.2% | 0.2% | 0.8% | 0.3% | 1.8% |
|---|
| CITIC Resources Holdings Ltd ($1205) | 1.8% | 1.5% | 4.6% | -13.7% | 6.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinney Investments Ltd ($216) | 10.3x | 63.7x | 48.6x | 93.7x | 13.5x |
| Carnival Group International Holdings Ltd ($996) | | | 23.7x | 92.3x | |
| Multifield International Holdings Ltd ($898) | 3.2x | 7.3x | 3.0x | 55.9x | |
| Kong Sun Holdings Ltd ($295) | | | -23.0x | 34.0x | |
| CIAM Group Ltd ($378) | | | | 32.6x | |
| |
|---|
| Median (27 companies) | 2.4x | 2.6x | 2.6x | 2.8x | 4.3x |
|---|
