Changmao Biochemical Engineering Co Ltd Net Income dropped on 26.7% while Revenue surged on 15.5%
08/03/2017 • About Changmao Biochemical Engineering Co Ltd (
$954) • By InTwits
Changmao Biochemical Engineering Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has potentially unprofitable business model: ROIC is at 4.4%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Changmao Biochemical Engineering Co Ltd ($954) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 653.2 | 703.0 | 561.7 | 514.8 | 594.4 | 15.5% |
| Gross Profit | 127.5 | 169.0 | 111.3 | 114.8 | 105.5 | -8.1% |
| SG&A | 77.6 | 84.5 | 73.2 | 74.7 | 79.9 | 7.0% |
| EBITDA | 103.0 | 121.3 | 78.9 | 79.0 | 65.6 | -17.0% |
| Net Income | 49.5 | 70.0 | 37.2 | 45.3 | 33.2 | -26.7% |
Balance Sheet
|
|---|
| Cash | 108.2 | 64.8 | 61.7 | 95.8 | 50.7 | -47.1% |
| Short Term Debt | 144.5 | 105.0 | 113.2 | 119.4 | 46.9 | -60.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 42.1 | 58.4 | 64.9 | 30.6 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 5.3% | 7.6% | -20.1% | -8.3% | 15.5% | |
| EBITDA growth | 9.2% | 17.8% | -35.0% | 0.2% | -17.0% | |
| Gross Margin | 19.5% | 24.0% | 19.8% | 22.3% | 17.8% | -4.6% |
| EBITDA Margin | 15.8% | 17.3% | 14.0% | 15.4% | 11.0% | -4.3% |
| Net Income Margin | 7.6% | 10.0% | 6.6% | 8.8% | 5.6% | -3.2% |
| SG&A, % of revenue | 11.9% | 12.0% | 13.0% | 14.5% | 13.4% | -1.1% |
| CAPEX, % of revenue | 6.4% | 8.3% | 11.6% | 5.9% | | -5.9% |
| ROIC | 10.8% | 13.9% | 7.1% | 6.3% | 4.4% | -1.9% |
| ROE | 11.1% | 14.3% | 7.1% | 8.2% | 5.8% | -2.5% |
| Net Debt/EBITDA | 0.4x | 0.3x | 0.7x | 0.3x | -0.1x | -0.4x |
Revenue and profitability
Changmao Biochemical Engineering Co Ltd's Revenue surged on 15.5%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 4.3 pp from 15.4% to 11.0% in FY2016.
Gross Margin decreased on 4.6 pp from 22.3% to 17.8% in FY2016. SG&A as a % of Revenue decreased slightly on 1.1 pp from 14.5% to 13.4% in FY2016.
Net Income marign decreased on 3.2 pp from 8.8% to 5.6% in FY2016.
Return on investment
The company operates at low ROIC (4.43%) and ROE (5.75%). ROIC decreased slightly on 1.9 pp from 6.3% to 4.4% in FY2016. ROE decreased on 2.5 pp from 8.2% to 5.8% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.1x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 0.4x from 0.3x to -0.1x in FY2016. Debt dropped on 60.7% while cash dropped on 47.1%.
Appendix 1: Peers in Chemicals
Below you can find Changmao Biochemical Engineering Co Ltd benchmarking vs. other companies in Chemicals 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 |
|---|
| 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) | 2.1% | 9.7% | 2.2% | -1.2% | -7.0% |
|---|
| Changmao Biochemical Engineering Co Ltd ($954) | | 7.6% | -20.1% | -8.3% | 15.5% |
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) | 20.1% | 17.3% | 16.8% | 18.6% | 30.9% |
|---|
| Changmao Biochemical Engineering Co Ltd ($954) | 19.5% | 24.0% | 19.8% | 22.3% | 17.8% |
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) | 12.3% | 11.8% | 10.7% | 11.1% | 5.0% |
|---|
| Changmao Biochemical Engineering Co Ltd ($954) | 15.8% | 17.3% | 14.0% | 15.4% | 11.0% |
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% | 5.4% | 8.1% | 3.5% |
|---|
| Changmao Biochemical Engineering Co Ltd ($954) | 6.4% | 8.3% | 11.6% | 5.9% | |
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% | |
| Infinity Chemical Holdings Co Ltd ($640) | 11.1% | 10.2% | 8.8% | 12.7% | 7.4% |
| |
|---|
| Median (31 companies) | 6.9% | 7.7% | 5.6% | 4.8% | 4.2% |
|---|
| Changmao Biochemical Engineering Co Ltd ($954) | 10.8% | 13.9% | 7.1% | 6.3% | 4.4% |
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) | 1.6x | 2.2x | 1.4x | 2.0x | 3.0x |
|---|
| Changmao Biochemical Engineering Co Ltd ($954) | 0.4x | 0.3x | 0.7x | 0.3x | -0.1x |
