Zhejiang Yonglong Enterprises Co Ltd revenue growth decelerated to 14.6% in FY2016 vs. 220% a year earliner
10/03/2017 • About Zhejiang Yonglong Enterprises Co Ltd (
$8211) • By InTwits
Zhejiang Yonglong Enterprises Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zhejiang Yonglong Enterprises Co Ltd is a company in decline: FY2016 revenue growth was -13.6%, 5 years revenue CAGR was -3.2%
- EBITDA Margin is declining: in FY2016 vs. 9.9% in FY2015 vs. 19.9% in FY2012
- It operates with high leverage: Net Debt/EBITDA is 6.1x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zhejiang Yonglong Enterprises Co Ltd ($8211) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 130.0 | 206.4 | 188.6 | 192.0 | 165.8 | -13.6% |
| Gross Profit | 15.2 | 26.1 | 22.6 | 23.0 | | -100.0% |
| SG&A | 14.1 | 10.7 | 11.1 | 13.5 | | -100.0% |
| EBITDA | 25.9 | 28.8 | 23.5 | 19.0 | | -100.0% |
| Net Income | -17.6 | 43.7 | -7.3 | -17.2 | -7.2 | |
Balance Sheet
|
|---|
| Cash | 43.3 | 168.9 | 127.9 | 195.3 | | -100.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | | |
| Long Term Debt | 151.3 | 172.9 | 197.5 | 219.9 | | -100.0% |
Cash flow
|
|---|
| Capex | 1.1 | 0.4 | 0.5 | 0.3 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -33.5% | 58.8% | -8.6% | 1.8% | -13.6% | |
| EBITDA growth | -93.5% | 11.2% | -18.6% | -18.9% | | |
| Gross Margin | 11.7% | 12.6% | 12.0% | 12.0% | | -12.0% |
| EBITDA Margin | 19.9% | 14.0% | 12.4% | 9.9% | 0.0% | -9.9% |
| Net Income Margin | -13.6% | 21.2% | -3.9% | -8.9% | -4.4% | 4.6% |
| SG&A, % of revenue | 10.8% | 5.2% | 5.9% | 7.0% | | -7.0% |
| CAPEX, % of revenue | 0.9% | 0.2% | 0.3% | 0.1% | | -0.1% |
| ROIC | 2.4% | 7.5% | 5.0% | 3.5% | | -3.5% |
| ROE | -25.3% | 51.2% | -6.9% | -17.3% | | 17.3% |
| Net Debt/EBITDA | 4.2x | 0.1x | 3.0x | 1.3x | | -1.3x |
Revenue and profitability
The company's Revenue dropped on 13.6%.
Net Income marign increased on 4.6 pp from -8.9% to -4.4% in FY2016.
Appendix 1: Peers in Textiles
Below we provide Zhejiang Yonglong Enterprises Co Ltd benchmarking against other companies in Textiles 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 |
|---|
| Ping Shan Tea Group Ltd ($364) | -25.9% | 63.7% | -45.7% | 71.6% | |
| China Weaving Materials Holdings Ltd ($3778) | -15.4% | -4.2% | -3.8% | 53.9% | |
| Easyknit Enterprises Holdings Ltd ($616) | 9.6% | 10.2% | 7.3% | 22.3% | |
| Kingdom Holding Co Ltd ($528) | 1.1% | 6.0% | 20.0% | 12.2% | |
| Kam Hing International Holdings Ltd ($2307) | 0.9% | -4.3% | 1.6% | 4.2% | |
| |
|---|
| Median (21 companies) | 1.0% | -4.3% | -3.8% | -6.1% | 0.2% |
|---|
| Zhejiang Yonglong Enterprises Co Ltd ($8211) | | 58.8% | -8.6% | 1.8% | -13.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Art Textile Technology International Co Ltd ($565) | 9.4% | 11.8% | 18.0% | 81.8% | 65.1% |
| TAI Ping Carpet International Ltd ($146) | 41.0% | 45.4% | 46.7% | 46.6% | |
| Texwinca Holdings Ltd ($321) | 29.6% | 30.9% | 33.3% | 34.1% | 34.0% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 4.9% | 7.3% | 24.9% | 28.8% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 31.1% | 32.5% | 32.5% | 28.3% | |
| |
|---|
| Median (20 companies) | 17.3% | 17.8% | 16.3% | 17.4% | 24.7% |
|---|
| Zhejiang Yonglong Enterprises Co Ltd ($8211) | 11.7% | 12.6% | 12.0% | 12.0% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Weiqiao Textile Co ($2698) | 17.5% | 20.2% | 21.4% | 30.8% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 28.1% | 28.7% | 30.2% | 23.4% | |
| Kingdom Holding Co Ltd ($528) | 26.3% | 25.3% | 24.8% | 23.0% | |
| Yongsheng Advanced Materials Co Ltd ($3608) | 2.5% | 5.1% | 17.5% | 18.9% | |
| Pacific Textiles Holdings Ltd ($1382) | 19.1% | 19.0% | 19.5% | 18.4% | 19.0% |
| |
|---|
| Median (20 companies) | 11.2% | 10.0% | 11.7% | 11.2% | 15.8% |
|---|
| Zhejiang Yonglong Enterprises Co Ltd ($8211) | 19.9% | 14.0% | 12.4% | 9.9% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Art Textile Technology International Co Ltd ($565) | 1.0% | 1.9% | 3.9% | 105.3% | 8.3% |
| Hua Lien International Holding Co Ltd ($969) | 19.7% | 40.5% | 79.6% | 58.1% | |
| Kam Hing International Holdings Ltd ($2307) | 10.6% | 10.5% | 7.6% | 8.3% | |
| TAI Ping Carpet International Ltd ($146) | 8.2% | 10.1% | 6.9% | 7.4% | |
| Wang Tai Holdings Ltd ($1400) | 34.1% | 18.8% | 7.5% | 7.3% | |
| |
|---|
| Median (20 companies) | 4.2% | 2.1% | 5.6% | 5.0% | 5.1% |
|---|
| Zhejiang Yonglong Enterprises Co Ltd ($8211) | 0.9% | 0.2% | 0.3% | 0.1% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 23.7% | 26.4% | 31.6% | 25.9% | 26.6% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 6.2% | 13.2% | 15.4% | 19.6% | |
| Kingdom Holding Co Ltd ($528) | 13.8% | 12.7% | 13.8% | 12.7% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 22.3% | 20.1% | 17.6% | 11.0% | |
| Texwinca Holdings Ltd ($321) | 8.3% | 5.3% | 5.5% | 8.1% | 14.9% |
| |
|---|
| Median (21 companies) | 5.3% | 5.3% | 4.0% | 4.9% | 4.2% |
|---|
| Zhejiang Yonglong Enterprises Co Ltd ($8211) | 2.4% | 7.5% | 5.0% | 3.5% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Weaving Materials Holdings Ltd ($3778) | 3.6x | 3.0x | 5.3x | 5.5x | |
| Silverman Holdings Ltd ($1616) | 1.5x | 2.5x | 2.0x | 3.2x | |
| Wang Tai Holdings Ltd ($1400) | 3.2x | 1.9x | 1.8x | 2.7x | |
| Kam Hing International Holdings Ltd ($2307) | 2.5x | 2.5x | 2.8x | 2.6x | |
| Victory City International Holdings Ltd ($539) | 1.5x | 2.0x | 3.2x | 2.5x | 3.3x |
| |
|---|
| Median (14 companies) | 1.5x | 1.9x | 0.7x | 0.1x | 1.4x |
|---|
| Zhejiang Yonglong Enterprises Co Ltd ($8211) | 4.2x | 0.1x | 3.0x | 1.3x | |
