DaChan Food Asia Ltd EBITDA jumped on 48.0% in 2016 and EBITDA Margin increased slightly on 1.6 pp from 2.6% to 4.2%
23/03/2017 • About DaChan Food Asia Ltd (
$3999) • By InTwits
DaChan Food Asia Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- DaChan Food Asia Ltd is a company in decline: FY2016 revenue growth was -8.7%, 5 years revenue CAGR was -6.2%
- EBITDA Margin is quite volatile: 4.2% in FY2016, 2.6% in FY2015, 0.8% in FY2014, 1.5% in FY2013, 2.5% in FY2012
- The company has business model with low profitability: ROIC is at 7.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.4x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
DaChan Food Asia Ltd ($3999) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11,435 | 11,752 | 11,406 | 8,899 | 8,124 | -8.7% |
| Gross Profit | 728 | 695 | 647 | 708 | 755 | 6.5% |
| SG&A | 589 | 669 | 684 | 621 | 665 | 7.1% |
| EBITDA | 283 | 181 | 91 | 228 | 338 | 48.0% |
| Net Income | 72 | -9 | -108 | -154 | 54 | |
Balance Sheet
|
|---|
| Cash | 610 | 590 | 459 | 530 | 328 | -38.2% |
| Short Term Debt | 258 | 212 | 110 | 320 | 560 | 75.1% |
| Long Term Debt | 381 | 608 | 784 | 708 | 244 | -65.6% |
Cash flow
|
|---|
| Capex | 214 | 219 | 257 | 170 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 2.0% | 2.8% | -2.9% | -22.0% | -8.7% | |
| EBITDA growth | -31.5% | -36.1% | -49.9% | 151.6% | 48.0% | |
| Gross Margin | 6.4% | 5.9% | 5.7% | 8.0% | 9.3% | 1.3% |
| EBITDA Margin | 2.5% | 1.5% | 0.8% | 2.6% | 4.2% | 1.6% |
| Net Income Margin | 0.6% | -0.1% | -1.0% | -1.7% | 0.7% | 2.4% |
| SG&A, % of revenue | 5.2% | 5.7% | 6.0% | 7.0% | 8.2% | 1.2% |
| CAPEX, % of revenue | 1.9% | 1.9% | 2.3% | 1.9% | | -1.9% |
| ROIC | 6.3% | 2.0% | -1.0% | 2.9% | 7.3% | 4.4% |
| ROE | 4.2% | -0.5% | -6.6% | -10.0% | 3.7% | 13.7% |
| Net Debt/EBITDA | 0.1x | 1.3x | 4.8x | 2.2x | 1.4x | -0.8x |
Revenue and profitability
DaChan Food Asia Ltd's Revenue decreased on 8.7%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.6 pp from 2.6% to 4.2% in FY2016.
Gross Margin increased slightly on 1.3 pp from 8.0% to 9.3% in FY2016. SG&A as a % of Revenue increased slightly on 1.2 pp from 7.0% to 8.2% in FY2016.
Net Income marign increased on 2.4 pp from -1.7% to 0.66% in FY2016.
Return on investment
The company operates at low ROIC (7.30%) and ROE (3.66%). ROIC increased on 4.4 pp from 2.9% to 7.3% in FY2016. ROE jumped on 13.7 pp from -10.0% to 3.7% in FY2016.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 2.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from 2.2x to 1.4x in FY2016. Debt dropped on 21.8% while cash dropped on 38.2%.
Appendix 1: Peers in Food
Below you can find DaChan Food Asia Ltd benchmarking vs. other companies in Food 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 |
|---|
| 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% | 9.0% | 5.5% | -2.9% | -0.2% |
|---|
| DaChan Food Asia Ltd ($3999) | | 2.8% | -2.9% | -22.0% | -8.7% |
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) | 16.8% | 20.3% | 22.2% | 23.7% | 19.7% |
|---|
| DaChan Food Asia Ltd ($3999) | 6.4% | 5.9% | 5.7% | 8.0% | 9.3% |
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% |
| YuanShengTai Dairy Farm Ltd ($1431) | 40.3% | 48.4% | 47.1% | 35.4% | 36.5% |
| |
|---|
| Median (41 companies) | 8.1% | 7.1% | 7.9% | 8.5% | 4.9% |
|---|
| DaChan Food Asia Ltd ($3999) | 2.5% | 1.5% | 0.8% | 2.6% | 4.2% |
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% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 26.1% | 18.3% | 43.4% | 30.1% | |
| |
|---|
| Median (40 companies) | 5.9% | 5.6% | 5.1% | 4.9% | 0.7% |
|---|
| DaChan Food Asia Ltd ($3999) | 1.9% | 1.9% | 2.3% | 1.9% | |
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) | 8.4% | 7.3% | 7.4% | 5.6% | 6.0% |
|---|
| DaChan Food Asia Ltd ($3999) | 6.3% | 2.0% | -1.0% | 2.9% | 7.3% |
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 | 0.7x | 0.7x | 1.1x | 0.8x |
|---|
| DaChan Food Asia Ltd ($3999) | 0.1x | 1.3x | 4.8x | 2.2x | 1.4x |
