Fufeng Group Ltd Net Income jumped on 112% in 2016 and Revenue increased on 5.1%
21/03/2017 • About Fufeng Group Ltd (
$546) • By InTwits
Fufeng Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has highly profitable business model: ROIC is at 15.5%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fufeng Group Ltd ($546) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11,112 | 11,367 | 11,298 | 11,226 | 11,803 | 5.1% |
| Gross Profit | 1,637 | 2,099 | 2,167 | 1,802 | 2,406 | 33.5% |
| SG&A | 844 | 1,023 | 1,024 | 1,086 | 1,210 | 11.4% |
| EBITDA | 1,268 | 1,645 | 1,825 | 1,771 | 2,364 | 33.5% |
| Net Income | 427 | 506 | 626 | 516 | 1,093 | 111.6% |
Balance Sheet
|
|---|
| Cash | 481 | 806 | 797 | 741 | 1,422 | 91.8% |
| Short Term Debt | 2,408 | 1,168 | 813 | 1,846 | 1,177 | -36.2% |
| Long Term Debt | 2,045 | 3,309 | 3,702 | 1,992 | 1,923 | -3.5% |
Cash flow
|
|---|
| Capex | 1,816 | 1,367 | 2,522 | 913 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 32.3% | 2.3% | -0.6% | -0.6% | 5.1% | |
| EBITDA growth | 6.9% | 29.7% | 10.9% | -2.9% | 33.5% | |
| Gross Margin | 14.7% | 18.5% | 19.2% | 16.1% | 20.4% | 4.3% |
| EBITDA Margin | 11.4% | 14.5% | 16.2% | 15.8% | 20.0% | 4.3% |
| Net Income Margin | 3.8% | 4.5% | 5.5% | 4.6% | 9.3% | 4.7% |
| SG&A, % of revenue | 7.6% | 9.0% | 9.1% | 9.7% | 10.3% | 0.6% |
| CAPEX, % of revenue | 16.3% | 12.0% | 22.3% | 8.1% | | -8.1% |
| ROIC | 9.6% | 10.8% | 11.6% | 10.3% | 15.5% | 5.2% |
| ROE | 11.8% | 11.8% | 12.3% | 9.2% | 17.3% | 8.1% |
| Net Debt/EBITDA | 3.1x | 2.2x | 2.0x | 1.7x | 0.7x | -1.0x |
Revenue and profitability
The company's Revenue increased on 5.1%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.4 pp from 82.1% to 73.7% in 2016.
Gross Margin increased on 4.3 pp from 16.1% to 20.4% in FY2016. SG&A as a % of Revenue increased slightly on 0.58 pp from 9.7% to 10.3% in FY2016.
Net Income marign increased on 4.7 pp from 4.6% to 9.3% in FY2016.
Return on investment
The company operates at good ROIC (15.55%) and ROE (17.31%). ROIC increased on 5.2 pp from 10.3% to 15.5% in FY2016. ROE increased on 8.1 pp from 9.2% to 17.3% in FY2016.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 1.0x from 1.7x to 0.7x in FY2016. Debt dropped on 19.2% while cash surged on 91.8%.
Management team
Zhao Qiang is a the company's CEO. Zhao Qiang has spent 2 years at the company. Chan Yick Kei "Terry" is a The company's CFO. Chan Yick Kei "Terry" has spent 3 years at the company.
Appendix 1: Peers in Chemicals
Below you can find Fufeng Group Ltd benchmarking vs. other companies in Chemicals 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 |
|---|
| 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 (32 companies) | 2.7% | 9.4% | 2.3% | -4.7% | 4.1% |
|---|
| Fufeng Group Ltd ($546) | | 2.3% | -0.6% | -0.6% | 5.1% |
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% |
| Zhejiang Changan Renheng Technology Co Ltd ($8139) | 50.4% | 50.1% | 46.9% | 49.9% | |
| 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% | |
| |
|---|
| Median (32 companies) | 22.0% | 18.8% | 17.7% | 20.5% | 16.6% |
|---|
| Fufeng Group Ltd ($546) | 14.7% | 18.5% | 19.2% | 16.1% | 20.4% |
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 (32 companies) | 15.8% | 12.7% | 11.1% | 11.8% | 10.9% |
|---|
| Fufeng Group Ltd ($546) | 11.4% | 14.5% | 16.2% | 15.8% | 20.0% |
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% | |
| Zhejiang Changan Renheng Technology Co Ltd ($8139) | 13.6% | 21.1% | 13.5% | 29.7% | |
| |
|---|
| Median (32 companies) | 7.2% | 8.7% | 5.6% | 7.3% | 2.4% |
|---|
| Fufeng Group Ltd ($546) | 16.3% | 12.0% | 22.3% | 8.1% | |
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 (32 companies) | 6.9% | 8.1% | 5.9% | 4.9% | 5.1% |
|---|
| Fufeng Group Ltd ($546) | 9.6% | 10.8% | 11.6% | 10.3% | 15.5% |
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 (27 companies) | 1.2x | 2.4x | 1.4x | 2.3x | -0.1x |
|---|
| Fufeng Group Ltd ($546) | 3.1x | 2.2x | 2.0x | 1.7x | 0.7x |
