Anhui Conch Cement Co Ltd Net Income jumped on 13.1% in 2016 and Revenue increased on 8.4%
23/03/2017 • About Anhui Conch Cement Co Ltd (
$914) • By InTwits
Anhui Conch Cement Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Anhui Conch Cement Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.4%. At the same time it's a lot of higher than industry average of 6.6%.
- CAPEX is quite volatile: 2,099 in 2016, 6,541 in 2015, 9,475 in 2014, 5,123 in 2013, 2,227 in 2012
- The company has business model with average profitability: ROIC is at 11.2%
- It operates with high leverage: Net Debt/EBITDA is 0.0x while industry average is -9.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Anhui Conch Cement Co Ltd ($914) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 45,766 | 55,262 | 60,759 | 50,976 | 55,259 | 8.4% |
| Gross Profit | 12,502 | 17,987 | 20,198 | 13,709 | 17,489 | 27.6% |
| SG&A | 4,458 | 5,247 | 5,624 | 6,290 | 5,758 | -8.5% |
| EBITDA | 12,417 | 17,210 | 19,492 | 15,136 | 15,450 | 2.1% |
| Net Income | 6,331 | 9,389 | 10,981 | 7,539 | 8,530 | 13.1% |
Balance Sheet
|
|---|
| Cash | 8,111 | 6,519 | 12,512 | 4,285 | 15,300 | 257.0% |
| Short Term Debt | 2,716 | 2,935 | 2,329 | 8,445 | 4,538 | -46.3% |
| Long Term Debt | 21,080 | 19,207 | 17,587 | 10,740 | 11,443 | 6.5% |
Cash flow
|
|---|
| Capex | 6,719 | 6,778 | 6,718 | 5,051 | 4,981 | -1.4% |
Ratios
|
|---|
| Revenue growth | -5.9% | 20.7% | 9.9% | -16.1% | 8.4% | |
| EBITDA growth | -34.2% | 38.6% | 13.3% | -22.3% | 2.1% | |
| Gross Margin | 27.3% | 32.5% | 33.2% | 26.9% | 31.6% | 4.8% |
| EBITDA Margin | 27.1% | 31.1% | 32.1% | 29.7% | 28.0% | -1.7% |
| Net Income Margin | 13.8% | 17.0% | 18.1% | 14.8% | 15.4% | 0.6% |
| SG&A, % of revenue | 9.7% | 9.5% | 9.3% | 12.3% | 10.4% | -1.9% |
| CAPEX, % of revenue | 14.7% | 12.3% | 11.1% | 9.9% | 9.0% | -0.9% |
| ROIC | 12.7% | 17.5% | 18.4% | 11.7% | 11.2% | -0.5% |
| ROE | 13.6% | 18.0% | 18.1% | 11.1% | 11.6% | 0.5% |
| Net Debt/EBITDA | 1.3x | 0.9x | 0.4x | 1.0x | 0.0x | -0.9x |
Revenue and profitability
Anhui Conch Cement Co Ltd's Revenue increased on 8.4%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 8.2 pp from 11.9% to 20.1% in 2016.
Gross Margin increased on 4.8 pp from 26.9% to 31.6% in 2016. SG&A as a % of Revenue decreased slightly on 1.9 pp from 12.3% to 10.4% in 2016.
Net Income marign increased slightly on 0.65 pp from 14.8% to 15.4% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 9.0%. CAPEX/Revenue decreased on 3.3 pp from 12.3% in 2013 to 9.0% in 2016. It's average CAPEX/Revenue for the last three years was 10.0%.
Return on investment
The company operates at low ROIC (11.22%) and ROE (11.62%). ROIC showed almost no change in 2016. ROE increased slightly on 0.54 pp from 11.1% to 11.6% in 2016.
Leverage (Debt)
Debt level is 0.0x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 1.0x to 0.044x in 2016. Debt dropped on 16.7% while cash jumped on 257%.
Appendix 1: Peers in Building Materials
Below we provide Anhui Conch Cement Co 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 |
|---|
| Future Bright Mining Holdings Ltd ($2212) | | | | 294.4% | 14.5% |
| Pacific Plywood Hldg Ltd ($767) | | -14.5% | 119.5% | 57.3% | 441.9% |
| 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% | |
| |
|---|
| Median (26 companies) | -2.8% | 9.5% | 6.5% | -12.0% | 12.8% |
|---|
| Anhui Conch Cement Co Ltd ($914) | | 20.7% | 9.9% | -16.1% | 8.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 91.4% | 82.0% | 97.2% | 98.6% | 99.9% |
| Future Bright Mining Holdings Ltd ($2212) | | | 55.4% | 70.0% | |
| 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% | |
| |
|---|
| Median (26 companies) | 19.5% | 21.9% | 20.8% | 15.2% | 18.2% |
|---|
| Anhui Conch Cement Co Ltd ($914) | 27.3% | 32.5% | 33.2% | 26.9% | 31.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 12.6% | -19.8% | 50.5% | 34.7% | 67.6% |
| China Tianrui Group Cement Co Ltd ($1252) | 28.5% | 23.7% | 26.7% | 32.8% | |
| Future Bright Mining Holdings Ltd ($2212) | | | -411.3% | 30.0% | |
| 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% | |
| |
|---|
| Median (26 companies) | 14.3% | 14.5% | 15.3% | 13.8% | 1.4% |
|---|
| Anhui Conch Cement Co Ltd ($914) | 27.1% | 31.1% | 32.1% | 29.7% | 28.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Future Bright Mining Holdings Ltd ($2212) | | | 119.9% | 66.1% | |
| 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% | |
| |
|---|
| Median (26 companies) | 9.5% | 8.0% | 6.5% | 6.5% | 1.3% |
|---|
| Anhui Conch Cement Co Ltd ($914) | 14.7% | 12.3% | 11.1% | 9.9% | 9.0% |
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% |
| Hong Wei Asia Holdings Co Ltd ($8191) | 17.0% | 5.2% | 9.3% | 8.6% | |
| China Singyes Solar Technologies Holdings Ltd ($750) | 18.6% | 19.9% | 16.0% | 8.1% | |
| |
|---|
| Median (26 companies) | 5.0% | 5.2% | 4.0% | 1.2% | 2.3% |
|---|
| Anhui Conch Cement Co Ltd ($914) | 12.7% | 17.5% | 18.4% | 11.7% | 11.2% |
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 (16 companies) | 2.4x | 1.9x | 2.0x | 3.5x | 0.9x |
|---|
| Anhui Conch Cement Co Ltd ($914) | 1.3x | 0.9x | 0.4x | 1.0x | 0.0x |
