Billion Industrial Holdings Ltd reports 56.2% Net Income growth and 0.93 pp EBITDA Margin growth from 11.1% to 12.0%
17/03/2017 • About Billion Industrial Holdings Ltd (
$2299) • By InTwits
Billion Industrial Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has potentially unprofitable business model: ROIC is at 5.8%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Billion Industrial Holdings Ltd ($2299) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,092 | 6,153 | 6,301 | 5,461 | 6,125 | 12.2% |
| Gross Profit | 1,108 | 727 | 586 | 591 | 712 | 20.5% |
| SG&A | 313 | 356 | 364 | 314 | 353 | 12.2% |
| EBITDA | 1,035 | 648 | 539 | 606 | 737 | 21.6% |
| Net Income | 750 | 358 | 204 | 202 | 315 | 56.2% |
Balance Sheet
|
|---|
| Cash | 644 | 220 | 882 | 519 | 315 | -39.2% |
| Short Term Debt | 1,119 | 1,973 | 3,065 | 2,640 | 1,592 | -39.7% |
| Long Term Debt | 21 | 18 | 17 | 16 | 16 | -4.3% |
Cash flow
|
|---|
| Capex | 1,422 | 790 | 269 | 449 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 0.6% | 1.0% | 2.4% | -13.3% | 12.2% | |
| EBITDA growth | -13.7% | -37.3% | -16.9% | 12.4% | 21.6% | |
| Gross Margin | 18.2% | 11.8% | 9.3% | 10.8% | 11.6% | 0.8% |
| EBITDA Margin | 17.0% | 10.5% | 8.5% | 11.1% | 12.0% | 0.9% |
| Net Income Margin | 12.3% | 5.8% | 3.2% | 3.7% | 5.1% | 1.5% |
| SG&A, % of revenue | 5.1% | 5.8% | 5.8% | 5.8% | 5.8% | 0.0% |
| CAPEX, % of revenue | 23.4% | 12.8% | 4.3% | 8.2% | | -8.2% |
| ROIC | 13.7% | 6.1% | 3.3% | 3.9% | 5.8% | 1.9% |
| ROE | 14.2% | 6.8% | 3.9% | 3.9% | 6.1% | 2.2% |
| Net Debt/EBITDA | 0.5x | 2.7x | 4.1x | 3.5x | 1.8x | -1.8x |
Revenue and profitability
Billion Industrial Holdings Ltd's Revenue surged on 12.2%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.93 pp from 11.1% to 12.0% in FY2016.
Gross Margin increased slightly on 0.81 pp from 10.8% to 11.6% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased slightly on 1.5 pp from 3.7% to 5.1% in FY2016.
Return on investment
The company operates at low ROIC (5.76%) and ROE (6.10%). ROIC increased slightly on 1.9 pp from 3.9% to 5.8% in FY2016. ROE increased on 2.2 pp from 3.9% to 6.1% in FY2016.
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA dropped on 1.8x from 3.5x to 1.8x in FY2016. Debt dropped on 39.5% while cash dropped on 39.2%.
Appendix 1: Peers in Chemicals
Below we provide Billion Industrial Holdings Ltd benchmarking against other companies in Chemicals 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 |
|---|
| Bestway International Holdings Ltd ($718) | | -62.1% | 330.3% | 238.4% | 14,591.4% |
| China First Chemical Holdings Ltd ($2121) | 6.2% | -6.8% | -18.0% | 72.5% | |
| Strong Petrochemical Holdings Ltd ($852) | 40.8% | 87.9% | -60.8% | 42.3% | |
| Ko Yo Chemical Group Ltd ($827) | -5.6% | -0.6% | 2.3% | 40.8% | |
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 16.0% | 63.5% | -7.7% | 36.6% | |
| |
|---|
| Median (31 companies) | 2.7% | 9.7% | 1.8% | -1.2% | -1.6% |
|---|
| Billion Industrial Holdings Ltd ($2299) | | 1.0% | 2.4% | -13.3% | 12.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huabao International Holdings Ltd ($336) | 70.5% | 69.1% | 70.8% | 69.9% | 68.9% |
| China Flavors & Fragrances Co Ltd ($3318) | 46.8% | 48.6% | 47.8% | 48.9% | |
| Bestway International Holdings Ltd ($718) | 5.1% | 4.6% | 8.6% | 40.4% | 7.1% |
| Bracell Ltd ($1768) | 30.5% | 37.3% | 37.3% | 38.4% | |
| Shaanxi Northwest New Technology Industry Co Ltd ($8258) | 28.7% | 30.9% | 30.0% | 37.9% | |
| |
|---|
| Median (31 companies) | 20.8% | 18.7% | 18.4% | 18.8% | 17.8% |
|---|
| Billion Industrial Holdings Ltd ($2299) | 18.2% | 11.8% | 9.3% | 10.8% | 11.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huabao International Holdings Ltd ($336) | 63.8% | 59.1% | 60.0% | 58.3% | 51.2% |
| Bracell Ltd ($1768) | 22.3% | 30.8% | 38.2% | 35.9% | |
| Yingde Gases Group Co Ltd ($2168) | 29.4% | 29.8% | 32.3% | 33.4% | |
| Tiande Chemical Holdings Ltd ($609) | 25.5% | 27.3% | 25.1% | 27.8% | |
| Century Sunshine Group Holdings Ltd ($509) | 24.2% | 28.1% | 27.6% | 26.1% | |
| |
|---|
| Median (31 companies) | 12.3% | 13.6% | 12.5% | 12.5% | 10.8% |
|---|
| Billion Industrial Holdings Ltd ($2299) | 17.0% | 10.5% | 8.5% | 11.1% | 12.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Landing International Development Ltd ($582) | 7.2% | 29.6% | 419.5% | 247.4% | |
| China Zenith Chemical Group Ltd ($362) | 147.3% | 55.7% | 67.4% | 152.2% | 191.4% |
| Smartac Group China Holdings Ltd ($395) | 14.0% | 4.7% | 49.3% | 52.4% | |
| China Flavors & Fragrances Co Ltd ($3318) | 15.8% | 20.1% | 42.4% | 35.8% | |
| Ko Yo Chemical Group Ltd ($827) | 45.2% | 43.2% | 20.7% | 27.5% | |
| |
|---|
| Median (31 companies) | 6.8% | 8.5% | 5.8% | 6.3% | 2.4% |
|---|
| Billion Industrial Holdings Ltd ($2299) | 23.4% | 12.8% | 4.3% | 8.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huabao International Holdings Ltd ($336) | 28.7% | 25.2% | 26.2% | 23.3% | 17.1% |
| Tiande Chemical Holdings Ltd ($609) | 26.2% | 29.4% | 20.7% | 20.6% | |
| Sinopec Shanghai Petrochemical Co Ltd ($338) | -6.9% | 8.1% | -2.4% | 16.5% | 26.3% |
| Century Sunshine Group Holdings Ltd ($509) | 11.3% | 15.9% | 16.4% | 13.3% | |
| Infinity Chemical Holdings Co Ltd ($640) | 11.1% | 10.2% | 8.8% | 12.7% | 7.4% |
| |
|---|
| Median (31 companies) | 6.9% | 8.3% | 5.9% | 5.4% | 4.4% |
|---|
| Billion Industrial Holdings Ltd ($2299) | 13.7% | 6.1% | 3.3% | 3.9% | 5.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ko Yo Chemical Group Ltd ($827) | 8.8x | 22.0x | | 141.5x | |
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 2.2x | 4.6x | 18.1x | 13.5x | |
| Sinofert Holdings Ltd ($297) | 2.9x | 32.4x | 5.0x | 8.4x | |
| Ngai Hing Hong Co Ltd ($1047) | 11.7x | 5.3x | 5.4x | 5.3x | 7.1x |
| China XLX Fertiliser Ltd ($1866) | 2.6x | 5.1x | 5.8x | 5.1x | |
| |
|---|
| Median (26 companies) | 1.6x | 2.0x | 1.3x | 1.7x | -0.3x |
|---|
| Billion Industrial Holdings Ltd ($2299) | 0.5x | 2.7x | 4.1x | 3.5x | 1.8x |
