Pacific Plywood Hldg Ltd EBITDA jumped on 956% and EBITDA Margin surged on 32.9 pp from 34.7% to 67.6%
16/03/2017 • About Pacific Plywood Hldg Ltd (
$767) • By InTwits
Pacific Plywood Hldg Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 67.6% in FY2016, 34.7% in FY2015, 50.5% in FY2014, -19.8% in FY2013, 12.6% in FY2012
- The company has business model with low profitability: ROIC is at 9.0%
- It operates with high leverage: Net Debt/EBITDA is -0.9x while industry average is -8.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pacific Plywood Hldg Ltd ($767) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 34.7 | 29.7 | 65.2 | 102.5 | 555.4 | 441.9% |
| Gross Profit | 31.7 | 24.4 | 63.3 | 101.1 | 554.6 | 448.7% |
| SG&A | | | 32.6 | 82.8 | 162.5 | 96.4% |
| EBITDA | 4.4 | -5.9 | 32.9 | 35.6 | 375.7 | 956.3% |
| Net Income | 62.3 | 75.6 | -26.0 | -148.3 | 321.9 | |
Balance Sheet
|
|---|
| Cash | 44.5 | 248.8 | 67.7 | 197.1 | 348.4 | 76.8% |
| Short Term Debt | 10.0 | 65.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 3.3 | 0.0 | 0.1 | 0.7 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -34.9% | -14.5% | 119.5% | 57.3% | 441.9% | |
| EBITDA growth | -84.8% | -234.8% | -660.0% | 8.1% | 956.3% | |
| Gross Margin | 91.4% | 82.0% | 97.2% | 98.6% | 99.9% | 1.2% |
| EBITDA Margin | 12.6% | -19.8% | 50.5% | 34.7% | 67.6% | 32.9% |
| Net Income Margin | 179.4% | 254.6% | -39.9% | -144.7% | 58.0% | 202.6% |
| SG&A, % of revenue | | | 50.1% | 80.7% | 29.3% | -51.5% |
| CAPEX, % of revenue | 9.5% | 0.1% | 0.1% | 0.7% | | -0.7% |
| ROIC | 0.6% | -0.8% | 2.5% | 1.2% | 9.0% | 7.8% |
| ROE | 11.3% | 9.0% | -2.1% | -5.3% | 7.9% | 13.1% |
| Net Debt/EBITDA | -7.9x | | -2.1x | -5.5x | -0.9x | 4.6x |
Revenue and profitability
The company's Revenue surged on 442%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.4 pp from -22.6% to -15.2% in FY2016.
Gross Margin increased slightly on 1.2 pp from 98.6% to 99.9% in FY2016. SG&A as a % of Revenue dropped on 51.5 pp from 80.7% to 29.3% in FY2016.
Net Income marign surged on 203 pp from -145% to 58.0% in FY2016.
Return on investment
The company operates at low ROIC (8.96%) and ROE (7.86%). ROIC increased on 7.8 pp from 1.2% to 9.0% in FY2016. ROE jumped on 13.1 pp from -5.3% to 7.9% in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 76.8%.
Appendix 1: Peers in Building Materials
Below we provide Pacific Plywood Hldg Ltd benchmarking against other companies in Building Materials 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 |
|---|
| Far East Global Group Ltd ($830) | | 9.5% | 18.6% | 30.5% | 20.6% |
| WLS Holdings Ltd/Hong Kong ($8021) | | 9.4% | -11.1% | 22.0% | 13.8% |
| China Wood Optimization Holding Ltd ($8099) | 68.7% | 77.9% | 6.5% | 18.9% | |
| Steed Oriental Holdings Co Ltd ($8277) | | -4.2% | 11.0% | 9.4% | -21.5% |
| Dongpeng Holdings Co Ltd ($3386) | 26.2% | 34.8% | 15.6% | 5.6% | |
| |
|---|
| Median (25 companies) | -4.2% | 9.7% | 6.5% | -14.4% | 9.5% |
|---|
| Pacific Plywood Hldg Ltd ($767) | | -14.5% | 119.5% | 57.3% | 441.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sustainable Forest Holdings Ltd ($723) | -2.4% | 12.1% | 19.7% | 55.2% | 83.9% |
| Dongpeng Holdings Co Ltd ($3386) | 35.6% | 37.1% | 38.5% | 39.1% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 37.2% | 36.9% | 37.0% | 36.4% | |
| Anhui Conch Cement Co Ltd ($914) | 27.3% | 32.5% | 33.2% | 26.9% | |
| China Lesso Group Holdings Ltd ($2128) | 24.3% | 25.0% | 25.6% | 25.8% | 26.6% |
| |
|---|
| Median (25 companies) | 19.5% | 21.9% | 20.7% | 15.0% | 16.8% |
|---|
| Pacific Plywood Hldg Ltd ($767) | 91.4% | 82.0% | 97.2% | 98.6% | 99.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Tianrui Group Cement Co Ltd ($1252) | 28.5% | 23.7% | 26.7% | 32.8% | |
| Anhui Conch Cement Co Ltd ($914) | 27.1% | 31.1% | 32.1% | 29.7% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 30.4% | 29.9% | 23.8% | 26.2% | |
| Dongpeng Holdings Co Ltd ($3386) | 14.3% | 21.5% | 22.6% | 24.4% | |
| West China Cement Ltd ($2233) | 30.0% | 28.5% | 25.5% | 23.5% | 35.1% |
| |
|---|
| Median (25 companies) | 15.8% | 16.6% | 16.5% | 13.6% | 1.0% |
|---|
| Pacific Plywood Hldg Ltd ($767) | 12.6% | -19.8% | 50.5% | 34.7% | 67.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Wood Optimization Holding Ltd ($8099) | 10.9% | 9.6% | 1.8% | 19.3% | |
| China Shanshui Cement Group Ltd ($691) | 18.9% | 21.1% | 12.1% | 14.3% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 0.6% | 0.5% | 4.1% | 14.2% | |
| China Glass Holdings Ltd ($3300) | 19.6% | 12.5% | 12.4% | 13.5% | |
| WLS Holdings Ltd/Hong Kong ($8021) | 6.0% | 6.6% | 7.9% | 11.5% | 1.5% |
| |
|---|
| Median (25 companies) | 9.8% | 9.1% | 7.5% | 6.6% | 1.3% |
|---|
| Pacific Plywood Hldg Ltd ($767) | 9.5% | 0.1% | 0.1% | 0.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 37.1% | 35.8% | 27.2% | 26.6% | |
| China Wood Optimization Holding Ltd ($8099) | 33.5% | 27.3% | 17.7% | 17.7% | |
| China Lesso Group Holdings Ltd ($2128) | 20.5% | 19.4% | 18.2% | 17.2% | 16.5% |
| Anhui Conch Cement Co Ltd ($914) | 12.7% | 17.5% | 18.4% | 11.7% | |
| Hong Wei Asia Holdings Co Ltd ($8191) | 17.0% | 5.2% | 9.3% | 8.6% | |
| |
|---|
| Median (25 companies) | 6.6% | 6.9% | 5.7% | 1.3% | 0.9% |
|---|
| Pacific Plywood Hldg Ltd ($767) | 0.6% | -0.8% | 2.5% | 1.2% | 9.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Tianrui Group Cement Co Ltd ($1252) | 4.2x | 5.1x | 5.2x | 7.9x | |
| BBMG Corp ($2009) | 4.6x | 5.0x | 6.1x | 6.6x | |
| Asia Cement China Holdings Corp ($743) | 3.2x | 2.7x | 2.8x | 5.1x | |
| West China Cement Ltd ($2233) | 3.3x | 2.9x | 3.6x | 4.2x | 1.5x |
| China Singyes Solar Technologies Holdings Ltd ($750) | 0.9x | 0.8x | 1.8x | 4.0x | |
| |
|---|
| Median (15 companies) | 2.4x | 1.1x | 2.0x | 3.6x | 1.5x |
|---|
| Pacific Plywood Hldg Ltd ($767) | -7.9x | | -2.1x | -5.5x | -0.9x |
