China Aluminum Cans Holdings Ltd Net Income surged on 20.1% and EBITDA Margin increased on 3.1 pp from 18.9% to 22.0%
10/03/2017 • About China Aluminum Cans Holdings Ltd (
$6898) • By InTwits
China Aluminum Cans Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has highly profitable business model: ROIC is at 20.8%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Aluminum Cans Holdings Ltd ($6898) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 273.9 | 260.3 | 752.7 | 693.7 | 696.3 | 0.4% |
| Gross Profit | 91.2 | 96.8 | 214.7 | 209.9 | 244.6 | 16.5% |
| SG&A | 38.3 | 52.2 | 93.5 | 95.5 | 104.1 | 8.9% |
| EBITDA | 73.1 | 68.8 | 126.3 | 131.0 | 153.0 | 16.8% |
| Net Income | 38.3 | 37.3 | 81.1 | 79.0 | 94.8 | 20.1% |
Balance Sheet
|
|---|
| Cash | 2.4 | 107.4 | 105.3 | 179.6 | 122.4 | -31.8% |
| Short Term Debt | 56.3 | 64.9 | 120.2 | 41.3 | 13.5 | -67.4% |
| Long Term Debt | 54.5 | 42.4 | 20.8 | 19.8 | 5.1 | -74.3% |
Cash flow
|
|---|
| Capex | 19.0 | 24.6 | 156.0 | 44.5 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 15.5% | -5.0% | 189.1% | -7.8% | 0.4% | |
| EBITDA growth | 29.1% | -5.9% | 83.7% | 3.7% | 16.8% | |
| Gross Margin | 33.3% | 37.2% | 28.5% | 30.3% | 35.1% | 4.9% |
| EBITDA Margin | 26.7% | 26.4% | 16.8% | 18.9% | 22.0% | 3.1% |
| Net Income Margin | 14.0% | 14.3% | 10.8% | 11.4% | 13.6% | 2.2% |
| SG&A, % of revenue | 14.0% | 20.1% | 12.4% | 13.8% | 14.9% | 1.2% |
| CAPEX, % of revenue | 6.9% | 9.5% | 20.7% | 6.4% | | -6.4% |
| ROIC | 19.7% | 14.6% | 20.2% | 17.1% | 20.8% | 3.8% |
| ROE | 24.6% | 16.2% | 23.0% | 16.9% | 18.2% | 1.3% |
| Net Debt/EBITDA | 1.5x | -0.0x | 0.3x | -0.9x | -0.7x | 0.2x |
Revenue and profitability
The company's Revenue showed almost no change in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from -6.0% to -3.5% in FY2016.
Gross Margin increased on 4.9 pp from 30.3% to 35.1% in FY2016. SG&A as a % of Revenue increased slightly on 1.2 pp from 13.8% to 14.9% in FY2016.
Net Income marign increased on 2.2 pp from 11.4% to 13.6% in FY2016.
Return on investment
The company operates at high and attractive ROIC (20.84%) while ROE is a bit lower (18.17%). ROIC increased on 3.8 pp from 17.1% to 20.8% in FY2016. ROE increased slightly on 1.3 pp from 16.9% to 18.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is 0.1x. Net Debt / EBITDA surged on 0.2x from -0.9x to -0.7x in FY2016. Debt dropped on 69.6% while cash dropped on 31.8%.
Appendix 1: Peers in Packaging&Containers
Below you can find China Aluminum Cans Holdings Ltd benchmarking vs. other companies in Packaging&Containers 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 |
|---|
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 34.9% | 17.5% | -6.5% | 69.5% | |
| Hao Tian Development Group Ltd ($474) | | | | 51.0% | 113.4% |
| Jin Cai Holdings Co Ltd ($1250) | 2.1% | -6.3% | -3.1% | 40.8% | |
| Huaxi Holdings Co Ltd ($1689) | | 5.0% | -5.1% | 12.5% | -15.3% |
| Huajun Holdings Ltd ($377) | | 3.3% | 3.4% | 10.4% | 73.2% |
| |
|---|
| Median (19 companies) | 2.9% | 5.3% | 0.7% | 3.0% | 3.0% |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | | -5.0% | 189.1% | -7.8% | 0.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 36.6% | 39.1% | 37.7% | 44.7% | |
| Huaxi Holdings Co Ltd ($1689) | 19.0% | 28.2% | 40.9% | 37.5% | 37.3% |
| China For You Group Co Ltd ($572) | 12.4% | | 34.6% | 31.9% | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 34.3% | 36.5% | 32.8% | 31.4% | |
| Kith Holdings Ltd ($1201) | 30.8% | 31.9% | 31.4% | 30.5% | |
| |
|---|
| Median (18 companies) | 19.0% | 19.8% | 21.7% | 21.8% | 22.1% |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 33.3% | 37.2% | 28.5% | 30.3% | 35.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huaxi Holdings Co Ltd ($1689) | 14.5% | 21.2% | 27.1% | 29.1% | 25.7% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 27.9% | 30.7% | 27.4% | 26.3% | |
| Greatview Aseptic Packaging Co Ltd ($468) | 25.9% | 23.1% | 21.6% | 23.4% | |
| Lee & Man Paper Manufacturing Ltd ($2314) | 14.6% | 17.2% | 18.7% | 21.6% | 23.7% |
| Kith Holdings Ltd ($1201) | 21.6% | 19.4% | 20.1% | 20.5% | |
| |
|---|
| Median (19 companies) | 11.9% | 13.8% | 12.2% | 11.0% | 7.2% |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 26.7% | 26.4% | 16.8% | 18.9% | 22.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 0.0% | 0.0% | 3.0% | 122.3% | |
| Sheen Tai Holdings Grp Co Ltd ($1335) | 3.7% | 1.2% | 3.1% | 42.2% | |
| Hao Tian Development Group Ltd ($474) | 81.6% | | 13.0% | 25.4% | 4.3% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 19.7% | 13.7% | 13.1% | 17.1% | |
| Kith Holdings Ltd ($1201) | 3.7% | 4.8% | 3.3% | 13.3% | |
| |
|---|
| Median (19 companies) | 5.2% | 4.4% | 4.1% | 5.5% | 4.0% |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 6.9% | 9.5% | 20.7% | 6.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huaxi Holdings Co Ltd ($1689) | 21.4% | 28.5% | 26.2% | 23.6% | 16.6% |
| Greatview Aseptic Packaging Co Ltd ($468) | 20.2% | 18.9% | 15.7% | 17.7% | |
| Kith Holdings Ltd ($1201) | 6.9% | 5.6% | 7.8% | 12.2% | |
| Lee & Man Paper Manufacturing Ltd ($2314) | 7.2% | 8.7% | 8.0% | 9.2% | 10.6% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 8.1% | 6.4% | 4.9% | 8.0% | |
| |
|---|
| Median (19 companies) | 7.7% | 6.4% | 5.4% | 4.4% | 5.2% |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 19.7% | 14.6% | 20.2% | 17.1% | 20.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino Haijing Holdings Ltd ($1106) | 6.4x | 6.1x | 6.2x | 10.1x | |
| Huajun Holdings Ltd ($377) | 0.0x | 0.3x | 0.7x | 9.9x | 19.9x |
| Zhengye International Holdings Co Ltd ($3363) | 6.2x | 6.4x | 7.8x | 5.5x | |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 9.4x | 6.7x | 7.4x | 4.4x | |
| Jin Bao Bao Holdings Ltd ($1239) | -1.7x | -1.7x | -1.2x | 4.2x | |
| |
|---|
| Median (16 companies) | 1.0x | 0.9x | 0.7x | 2.2x | 2.8x |
|---|
| China Aluminum Cans Holdings Ltd ($6898) | 1.5x | -0.0x | 0.3x | -0.9x | -0.7x |
