Youyuan International Holdings Ltd reports 38.7% Net Income growth in 2016 while 1.6 pp EBITDA Margin decline from 30.0% to 28.4%
14/03/2017 • About Youyuan International Holdings Ltd (
$2268) • By InTwits
Youyuan International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has business model with low profitability: ROIC is at 9.5%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Youyuan International Holdings Ltd ($2268) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,434 | 1,531 | 1,544 | 1,703 | 1,799 | 5.7% |
| Gross Profit | 427 | 504 | 483 | 497 | 555 | 11.5% |
| SG&A | | 86 | 88 | 93 | 93 | 0.2% |
| EBITDA | 391 | 472 | 460 | 511 | 512 | 0.2% |
| Net Income | 250 | 290 | 273 | 224 | 311 | 38.7% |
Balance Sheet
|
|---|
| Cash | 337 | 142 | 735 | 735 | 465 | -36.7% |
| Short Term Debt | 405 | 724 | 575 | 873 | 520 | -40.5% |
| Long Term Debt | 523 | 397 | 860 | 590 | 1,161 | 96.8% |
Cash flow
|
|---|
| Capex | 408 | 227 | 130 | 242 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 0.4% | 6.7% | 0.8% | 10.3% | 5.7% | |
| EBITDA growth | -0.7% | 20.8% | -2.6% | 11.1% | 0.2% | |
| Gross Margin | 29.8% | 32.9% | 31.3% | 29.2% | 30.8% | 1.6% |
| EBITDA Margin | 27.2% | 30.8% | 29.8% | 30.0% | 28.4% | -1.6% |
| Net Income Margin | 17.4% | 19.0% | 17.7% | 13.1% | 17.3% | 4.1% |
| SG&A, % of revenue | | 5.6% | 5.7% | 5.5% | 5.2% | -0.3% |
| CAPEX, % of revenue | 28.4% | 14.8% | 8.4% | 14.2% | | -14.2% |
| ROIC | 12.6% | 12.9% | 10.4% | 10.6% | 9.5% | -1.1% |
| ROE | 13.5% | 14.2% | 12.3% | 9.5% | 12.1% | 2.6% |
| Net Debt/EBITDA | 1.5x | 2.1x | 1.5x | 1.4x | 2.4x | 0.9x |
Revenue and profitability
The company's Revenue increased on 5.7%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.5 pp from 14.1% to 15.6% in FY2016.
Gross Margin increased slightly on 1.6 pp from 29.2% to 30.8% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased on 4.1 pp from 13.1% to 17.3% in FY2016.
Return on investment
The company operates at good ROE (12.09%) while ROIC is low (9.46%). ROIC decreased slightly on 1.1 pp from 10.6% to 9.5% in FY2016. ROE increased on 2.6 pp from 9.5% to 12.1% in FY2016.
Leverage (Debt)
Debt level is 2.4x Net Debt / EBITDA and 3.3x Debt / EBITDA. Net Debt / EBITDA jumped on 0.9x from 1.4x to 2.4x in FY2016. Debt jumped on 14.9% while cash dropped on 36.7%.
Appendix 1: Peers in Forest Products&Paper
Below you can find Youyuan International Holdings Ltd benchmarking vs. other companies in Forest Products&Paper 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 |
|---|
| KuangChi Science Ltd ($439) | | | 39.7% | 211.9% | |
| Merdeka Mobile Group Ltd ($8163) | | 415.4% | 71.4% | 88.0% | 95.0% |
| PNG Resources Holdings Ltd ($221) | | 248.6% | 8.5% | 8.7% | -44.3% |
| China Sunshine Paper Holdings Co Ltd ($2002) | -0.5% | -1.3% | -5.7% | 8.1% | |
| Samson Paper Holdings Ltd ($731) | | -7.1% | 6.4% | 6.2% | -5.2% |
| |
|---|
| Median (11 companies) | 3.5% | 3.6% | 2.7% | 5.8% | 6.6% |
|---|
| Youyuan International Holdings Ltd ($2268) | | 6.7% | 0.8% | 10.3% | 5.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KuangChi Science Ltd ($439) | | 20.3% | 17.3% | 63.6% | |
| PNG Resources Holdings Ltd ($221) | 19.4% | 18.6% | 24.2% | 35.3% | 31.9% |
| China Asean Resources Ltd ($8186) | 19.8% | 40.3% | | 27.8% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 15.2% | 18.0% | 19.4% | 26.6% | 30.3% |
| China Sunshine Paper Holdings Co Ltd ($2002) | 16.6% | 16.5% | 19.0% | 20.0% | |
| |
|---|
| Median (12 companies) | 16.1% | 16.9% | 17.0% | 19.9% | 24.3% |
|---|
| Youyuan International Holdings Ltd ($2268) | 29.8% | 32.9% | 31.3% | 29.2% | 30.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| PNG Resources Holdings Ltd ($221) | -6.1% | 9.6% | 12.2% | 26.5% | 21.9% |
| Shandong Chenming Paper Holdings Ltd ($1812) | 11.4% | 13.2% | 14.5% | 20.4% | 23.2% |
| Changgang Dunxin Enterprise Co Ltd ($2229) | 20.9% | 22.2% | 22.8% | 19.9% | |
| Nine Dragons Paper Holdings Ltd ($2689) | 16.4% | 17.2% | 18.6% | 16.9% | 20.7% |
| China Sunshine Paper Holdings Co Ltd ($2002) | 14.3% | 12.7% | 14.5% | 15.5% | |
| |
|---|
| Median (12 companies) | 10.3% | 10.3% | 7.0% | 9.0% | 21.3% |
|---|
| Youyuan International Holdings Ltd ($2268) | 27.2% | 30.8% | 29.8% | 30.0% | 28.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KuangChi Science Ltd ($439) | | 3.2% | 0.5% | 65.6% | |
| PNG Resources Holdings Ltd ($221) | 133.1% | 35.6% | 53.0% | 44.8% | 31.1% |
| Changgang Dunxin Enterprise Co Ltd ($2229) | 2.1% | 15.8% | 2.0% | 36.7% | |
| China Agroforestry Low-Carbon Holdings Ltd ($1069) | 0.2% | 11.5% | 26.7% | 26.3% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 14.4% | 18.8% | 16.3% | 18.5% | 10.9% |
| |
|---|
| Median (12 companies) | 14.4% | 9.9% | 5.9% | 5.6% | 8.3% |
|---|
| Youyuan International Holdings Ltd ($2268) | 28.4% | 14.8% | 8.4% | 14.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| PNG Resources Holdings Ltd ($221) | -1.2% | 5.8% | 8.3% | 19.9% | 8.1% |
| Changgang Dunxin Enterprise Co Ltd ($2229) | 41.0% | 32.5% | 23.3% | 10.4% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 6.8% | 5.1% | 5.5% | 7.6% | |
| Nine Dragons Paper Holdings Ltd ($2689) | 6.5% | 6.1% | 5.9% | 5.3% | 7.7% |
| Shandong Chenming Paper Holdings Ltd ($1812) | 1.9% | 3.3% | 3.0% | 4.5% | 5.4% |
| |
|---|
| Median (13 companies) | 0.2% | 2.0% | -0.5% | 2.6% | 6.6% |
|---|
| Youyuan International Holdings Ltd ($2268) | 12.6% | 12.9% | 10.4% | 10.6% | 9.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Greenheart Group Ltd ($94) | | 7.1x | 26.8x | 53.0x | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 10.4x | 9.0x | 10.9x | 12.4x | 8.8x |
| Samson Paper Holdings Ltd ($731) | 8.3x | 13.0x | 9.3x | 8.9x | 11.3x |
| Nine Dragons Paper Holdings Ltd ($2689) | 4.9x | 5.7x | 5.1x | 4.7x | 3.3x |
| China Sunshine Paper Holdings Co Ltd ($2002) | 5.9x | 6.9x | 6.0x | 4.1x | |
| |
|---|
| Median (9 companies) | 4.2x | 4.8x | 5.6x | 4.1x | 6.0x |
|---|
| Youyuan International Holdings Ltd ($2268) | 1.5x | 2.1x | 1.5x | 1.4x | 2.4x |
