China Silver Group Ltd Net Income jumped on 2,872% and EBITDA Margin surged on 10.5 pp from 0.96% to 11.5%
16/03/2017 • About China Silver Group Ltd (
$815) • By InTwits
China Silver Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Silver Group Ltd is a fast growth stock: FY2016 revenue growth was 140%, 5 year revenue CAGR was 33.0% at FY2016 ROIC 21.7%
- EBITDA Margin is quite volatile: 11.5% in FY2016, 1.0% in FY2015, 19.6% in FY2014, 13.6% in FY2013, 17.3% in FY2012
- The company has highly profitable business model: ROIC is at 21.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Silver Group Ltd ($815) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,540 | 1,507 | 1,523 | 1,707 | 4,088 | 139.5% |
| Gross Profit | 279 | 222 | 343 | 175 | 627 | 258.8% |
| SG&A | 22 | 29 | 58 | 153 | 217 | 41.4% |
| EBITDA | 266 | 204 | 298 | 16 | 470 | 2,778.5% |
| Net Income | 158 | 131 | 248 | -11 | 304 | |
Balance Sheet
|
|---|
| Cash | 222 | 381 | 740 | 1,019 | 528 | -48.2% |
| Short Term Debt | 110 | 130 | 130 | 130 | 110 | -15.4% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 5 | 54 | 18 | 24 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 56.5% | -2.1% | 1.0% | 12.1% | 139.5% | |
| EBITDA growth | 53.8% | -23.1% | 45.9% | -94.5% | 2,778.5% | |
| Gross Margin | 18.1% | 14.7% | 22.6% | 10.2% | 15.3% | 5.1% |
| EBITDA Margin | 17.3% | 13.6% | 19.6% | 1.0% | 11.5% | 10.5% |
| Net Income Margin | 10.2% | 8.7% | 16.3% | -0.6% | 7.4% | 8.1% |
| SG&A, % of revenue | 1.4% | 1.9% | 3.8% | 9.0% | 5.3% | -3.7% |
| CAPEX, % of revenue | 0.3% | 3.6% | 1.2% | 1.4% | | -1.4% |
| ROIC | 57.6% | 31.6% | 35.8% | -0.2% | 21.7% | 21.9% |
| ROE | 49.2% | 28.3% | 38.5% | -1.0% | 17.2% | 18.2% |
| Net Debt/EBITDA | -0.4x | -1.2x | -2.0x | -54.4x | -0.9x | 53.5x |
Revenue and profitability
The company's Revenue jumped on 140%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 10.5 pp from 0.96% to 11.5% in FY2016.
Gross Margin increased on 5.1 pp from 10.2% to 15.3% in FY2016. SG&A as a % of Revenue decreased on 3.7 pp from 9.0% to 5.3% in FY2016.
Net Income marign increased on 8.1 pp from -0.64% to 7.4% in FY2016.
Return on investment
The company operates at high and attractive ROIC (21.69%) while ROE is a bit lower (17.20%). ROIC surged on 21.9 pp from -0.20% to 21.7% in FY2016. ROE jumped on 18.2 pp from -1.00% to 17.2% in FY2016.
Leverage (Debt)
Debt level is -0.9x Net Debt / EBITDA and 0.2x Debt / EBITDA. Net Debt / EBITDA surged on 53.5x from -54.4x to -0.9x in FY2016. Debt dropped on 15.4% while cash dropped on 48.2%.
Appendix 1: Peers in Mining
Below you can find China Silver Group Ltd benchmarking vs. other companies in Mining 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 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 89.7% | -95.8% | 2,361.6% | 1,178.3% |
| Real Gold Mining Ltd ($246) | -44.0% | -68.0% | -26.2% | 106.2% | |
| REX Global Entertainment Holdings Ltd ($164) | | 81.6% | -15.5% | 96.4% | 30.4% |
| Hengxing Gold Holding Co Ltd ($2303) | | | 3,467.3% | 78.0% | |
| Zijin Mining Group Co Ltd ($2899) | 21.6% | 2.5% | 18.1% | 26.9% | |
| |
|---|
| Median (47 companies) | 6.7% | 0.6% | -5.9% | -20.8% | 3.8% |
|---|
| China Silver Group Ltd ($815) | | -2.1% | 1.0% | 12.1% | 139.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino Prosper Group Holdings Ltd ($766) | 2.5% | 5.1% | 39.6% | 93.0% | 87.4% |
| REX Global Entertainment Holdings Ltd ($164) | -15.8% | -7.8% | -0.8% | 88.6% | 87.3% |
| China Billion Resources Ltd ($274) | 71.4% | 47.2% | 73.4% | 79.7% | |
| Sun International Resources Ltd ($8029) | 83.2% | 73.1% | 64.8% | 69.4% | 58.8% |
| Grand T G Gold Holdings Ltd ($8299) | | | | 57.3% | 59.0% |
| |
|---|
| Median (49 companies) | 14.4% | 13.8% | 15.4% | 16.7% | 29.7% |
|---|
| China Silver Group Ltd ($815) | 18.1% | 14.7% | 22.6% | 10.2% | 15.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| G-Resources Group Ltd ($1051) | | 54.5% | 53.4% | 58.3% | |
| Grand T G Gold Holdings Ltd ($8299) | | | | 53.7% | 58.9% |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 70.0% | 64.6% | 59.6% | 51.3% | |
| Timeless Software Ltd ($8028) | -113.1% | 24.7% | -13.7% | 46.1% | 28.0% |
| Hengxing Gold Holding Co Ltd ($2303) | | -766.2% | 24.5% | 43.9% | |
| |
|---|
| Median (49 companies) | 4.9% | 7.8% | 5.2% | 5.1% | 5.0% |
|---|
| China Silver Group Ltd ($815) | 17.3% | 13.6% | 19.6% | 1.0% | 11.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mongolia Energy Corp Ltd ($276) | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% | 20.9% |
| Kaz Minerals ($847) | 36.6% | 136.5% | 168.8% | 168.7% | 41.9% |
| Chinalco Mining Corp International ($3668) | | | | 115.6% | |
| China Dynamics Holdings Ltd ($476) | 1.8% | 0.0% | 1.0% | 113.8% | 5.7% |
| MMG Ltd ($1208) | 25.7% | 22.6% | 41.9% | 100.4% | 31.0% |
| |
|---|
| Median (48 companies) | 17.7% | 17.9% | 16.5% | 12.5% | 7.5% |
|---|
| China Silver Group Ltd ($815) | 0.3% | 3.6% | 1.2% | 1.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CGN Mining Co Ltd ($1164) | 2.6% | 3.3% | 7.9% | 16.7% | |
| United Co RUSAL PLC ($486) | 0.3% | -9.0% | 6.3% | 12.3% | |
| Xingfa Aluminium Holdings Ltd ($98) | 7.6% | 8.8% | 11.7% | 11.8% | |
| Timeless Software Ltd ($8028) | -29.1% | 7.3% | -4.6% | 11.6% | 3.9% |
| China Hongqiao Group Ltd ($1378) | 24.8% | 17.0% | 14.1% | 10.6% | |
| |
|---|
| Median (50 companies) | 0.9% | 2.3% | -0.1% | -1.1% | 1.9% |
|---|
| China Silver Group Ltd ($815) | 57.6% | 31.6% | 35.8% | -0.2% | 21.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 9.2x | 9.7x | 9.2x | 31.5x | |
| Chinalco Mining Corp International ($3668) | | | | 25.0x | |
| MMG Ltd ($1208) | 2.1x | 2.0x | 10.2x | 20.2x | 10.4x |
| Kaz Minerals ($847) | 2.4x | 2.9x | 5.5x | 18.7x | 8.8x |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 1.5x | 4.1x | 6.4x | 13.5x | |
| |
|---|
| Median (29 companies) | 2.0x | 1.9x | 4.6x | 4.1x | 4.9x |
|---|
| China Silver Group Ltd ($815) | -0.4x | -1.2x | -2.0x | -54.4x | -0.9x |
