YuanShengTai Dairy Farm Ltd reports 234% Net Income decline in 2016 while 1.1 pp EBITDA Margin growth from 35.4% to 36.5%
22/03/2017 • About YuanShengTai Dairy Farm Ltd (
$1431) • By InTwits
YuanShengTai Dairy Farm 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 6.8%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
YuanShengTai Dairy Farm Ltd ($1431) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 689 | 881 | 1,163 | 1,033 | 1,029 | -0.3% |
| Gross Profit | 260 | 375 | 531 | 380 | 340 | -10.7% |
| SG&A | 36 | 54 | 70 | 101 | 87 | -13.4% |
| EBITDA | 278 | 427 | 548 | 365 | 376 | 2.9% |
| Net Income | 210 | 218 | 419 | 66 | -89 | -233.8% |
Balance Sheet
|
|---|
| Cash | 8 | 2,026 | 1,296 | 950 | 870 | -8.4% |
| Short Term Debt | 166 | 220 | 50 | 0 | 0 | |
| Long Term Debt | 298 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 180 | 161 | 505 | 310 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 363.2% | 27.8% | 32.0% | -11.2% | -0.3% | |
| EBITDA growth | 26.3% | 53.6% | 28.4% | -33.3% | 2.9% | |
| Gross Margin | 37.8% | 42.6% | 45.7% | 36.8% | 33.0% | -3.8% |
| EBITDA Margin | 40.3% | 48.4% | 47.1% | 35.4% | 36.5% | 1.1% |
| Net Income Margin | 30.4% | 24.7% | 36.0% | 6.4% | -8.6% | -15.0% |
| SG&A, % of revenue | 5.2% | 6.1% | 6.0% | 9.7% | 8.5% | -1.3% |
| CAPEX, % of revenue | 26.1% | 18.3% | 43.4% | 30.1% | | -30.1% |
| ROIC | 24.7% | 14.3% | 11.4% | 6.8% | 6.8% | 0.0% |
| ROE | 43.2% | 9.7% | 10.2% | 1.5% | -2.0% | -3.5% |
| Net Debt/EBITDA | 1.6x | -4.2x | -2.3x | -2.6x | -2.3x | 0.3x |
Revenue and profitability
YuanShengTai Dairy Farm Ltd's Revenue showed almost no change in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.1 pp from 35.4% to 36.5% in FY2016.
Gross Margin decreased on 3.8 pp from 36.8% to 33.0% in FY2016. SG&A as a % of Revenue decreased slightly on 1.3 pp from 9.7% to 8.5% in FY2016.
Net Income marign dropped on 15.0 pp from 6.4% to -8.6% in FY2016.
Return on investment
The company operates at low but positive ROIC (6.77%) and negative ROE (-2.02%). ROIC showed almost no change in FY2016. ROE decreased on 3.5 pp from 1.5% to -2.0% in FY2016.
Leverage (Debt)
The company has no debt. Cash decreased on 8.4%.
Appendix 1: Peers in Food
Below we provide YuanShengTai Dairy Farm Ltd benchmarking against other companies in Food 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 |
|---|
| Imperial Pacific International Holdings Ltd ($1076) | -27.6% | -18.5% | 2.7% | 70.3% | |
| China Shengmu Organic Milk Ltd ($1432) | | 63.2% | 86.4% | 45.4% | 11.8% |
| Chinese Food and Beverage Group ($8272) | 207.7% | 149.2% | 26.8% | 31.6% | |
| Huisheng International Holdings Ltd ($1340) | -2.4% | 5.6% | 8.7% | 25.9% | |
| Jiashili Group Ltd ($1285) | 14.9% | 15.1% | 12.3% | 19.8% | |
| |
|---|
| Median (42 companies) | 10.2% | 8.4% | 5.1% | -2.9% | -0.0% |
|---|
| YuanShengTai Dairy Farm Ltd ($1431) | | 27.8% | 32.0% | -11.2% | -0.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hung Fook Tong Group Holdings Ltd ($1446) | 60.7% | 60.0% | 58.7% | 60.7% | |
| Honworld Group Ltd ($2226) | 57.2% | 59.0% | 57.8% | 56.4% | |
| Yashili International Holdings Ltd ($1230) | 53.7% | 53.5% | 51.2% | 50.8% | |
| Natural Dairy NZ Holdings Ltd ($462) | -13.7% | 27.5% | 48.8% | 49.6% | |
| China Shengmu Organic Milk Ltd ($1432) | 33.4% | 42.9% | 50.2% | 47.7% | 48.3% |
| |
|---|
| Median (41 companies) | 16.5% | 20.0% | 20.1% | 22.8% | 19.6% |
|---|
| YuanShengTai Dairy Farm Ltd ($1431) | 37.8% | 42.6% | 45.7% | 36.8% | 33.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shenguan Holdings Group Ltd ($829) | 58.7% | 59.2% | 54.5% | 43.6% | |
| Honworld Group Ltd ($2226) | 44.4% | 42.1% | 42.0% | 42.9% | |
| China Shengmu Organic Milk Ltd ($1432) | 31.5% | 38.3% | 47.1% | 41.9% | 35.7% |
| China Huishan Dairy Holdings Co Ltd ($6863) | 45.1% | 47.9% | 47.1% | 37.2% | 36.0% |
| Want Want China Holdings Ltd ($151) | 23.8% | 25.8% | 23.8% | 25.2% | 28.9% |
| |
|---|
| Median (41 companies) | 8.0% | 6.8% | 7.7% | 8.0% | 4.9% |
|---|
| YuanShengTai Dairy Farm Ltd ($1431) | 40.3% | 48.4% | 47.1% | 35.4% | 36.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Huishan Dairy Holdings Co Ltd ($6863) | 98.2% | 29.8% | 132.0% | 109.8% | 37.5% |
| Imperial Pacific International Holdings Ltd ($1076) | 0.0% | 0.0% | 15.6% | 88.5% | |
| China Modern Dairy Holdings Ltd ($1117) | 50.6% | | 18.7% | 42.4% | |
| Labixiaoxin Snacks Group Ltd ($1262) | 13.3% | 10.3% | 14.6% | 32.0% | |
| China Kangda Food Co Ltd ($834) | 5.1% | 5.4% | 4.3% | 24.1% | |
| |
|---|
| Median (40 companies) | 5.1% | 5.3% | 5.1% | 4.3% | 0.7% |
|---|
| YuanShengTai Dairy Farm Ltd ($1431) | 26.1% | 18.3% | 43.4% | 30.1% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Major Holdings Ltd ($8209) | | 23.1% | 13.8% | 22.3% | 7.8% |
| Jiashili Group Ltd ($1285) | 45.6% | 51.8% | 27.8% | 22.2% | |
| Want Want China Holdings Ltd ($151) | 27.9% | 29.4% | 22.8% | 21.8% | 22.2% |
| China Shengmu Organic Milk Ltd ($1432) | 16.4% | 19.6% | 22.5% | 17.3% | 12.7% |
| Honworld Group Ltd ($2226) | 50.4% | 44.5% | 23.6% | 16.5% | |
| |
|---|
| Median (43 companies) | 7.8% | 7.0% | 7.2% | 5.6% | 4.3% |
|---|
| YuanShengTai Dairy Farm Ltd ($1431) | 24.7% | 14.3% | 11.4% | 6.8% | 6.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ausnutria Dairy Corp Ltd ($1717) | -1.4x | 0.8x | 1.7x | 27.9x | |
| Beijing Jingkelong Co Ltd ($814) | 5.0x | 4.8x | 5.3x | 9.3x | |
| First Pacific Co Ltd/Hong Kong ($142) | 1.8x | 3.8x | 4.5x | 5.6x | |
| China Kangda Food Co Ltd ($834) | 2.8x | 2.5x | 2.3x | 5.4x | |
| China Modern Dairy Holdings Ltd ($1117) | 3.7x | 5.2x | 4.1x | 5.3x | |
| |
|---|
| Median (32 companies) | -0.3x | 0.8x | 0.8x | 1.2x | 0.9x |
|---|
| YuanShengTai Dairy Farm Ltd ($1431) | 1.6x | -4.2x | -2.3x | -2.6x | -2.3x |
