Strong Petrochemical Holdings Ltd revenue started to decline in FY2016: dropped 26.0% vs. 42.3% growth a year earliner
23/03/2017 • About Strong Petrochemical Holdings Ltd (
$852) • By InTwits
Strong Petrochemical Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is relatively stable: in FY2016 vs. 0.9% in FY2015 vs. 0.9% in FY2012.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Strong Petrochemical Holdings Ltd ($852) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11,112 | 20,876 | 8,181 | 11,642 | 8,617 | -26.0% |
| Gross Profit | 206 | 669 | 108 | 405 | | -100.0% |
| SG&A | 140 | 336 | 278 | 273 | | -100.0% |
| EBITDA | 97 | 345 | -138 | 100 | | -100.0% |
| Net Income | -109 | 373 | -355 | 33 | 172 | 420.7% |
Balance Sheet
|
|---|
| Cash | 156 | 345 | 267 | 242 | | -100.0% |
| Short Term Debt | 852 | 1,685 | 1,644 | 579 | | -100.0% |
| Long Term Debt | 0 | 48 | 90 | 54 | | -100.0% |
Cash flow
|
|---|
| Capex | 58 | 179 | 71 | 42 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 40.8% | 87.9% | -60.8% | 42.3% | -26.0% | |
| EBITDA growth | -63.2% | 257.4% | -140.0% | -172.3% | | |
| Gross Margin | 1.9% | 3.2% | 1.3% | 3.5% | | -3.5% |
| EBITDA Margin | 0.9% | 1.7% | -1.7% | 0.9% | 0.0% | -0.9% |
| Net Income Margin | -1.0% | 1.8% | -4.3% | 0.3% | 2.0% | 1.7% |
| SG&A, % of revenue | 1.3% | 1.6% | 3.4% | 2.3% | | -2.3% |
| CAPEX, % of revenue | 0.5% | 0.9% | 0.9% | 0.4% | | -0.4% |
| ROIC | 4.4% | 14.0% | -5.4% | 2.7% | | -2.7% |
| ROE | -13.8% | 35.0% | -28.9% | 3.0% | | -3.0% |
| Net Debt/EBITDA | 7.2x | 4.0x | | 3.9x | | -3.9x |
Revenue and profitability
Strong Petrochemical Holdings Ltd's Revenue dropped on 26.0%.
Net Income marign increased slightly on 1.7 pp from 0.28% to 2.0% in FY2016.
Appendix 1: Peers in Chemicals
Below you can find Strong Petrochemical Holdings 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% | |
| Ko Yo Chemical Group Ltd ($827) | -5.6% | -0.6% | 2.3% | 40.8% | |
| China Sanjiang Fine Chemicals Co Ltd ($2198) | | 63.5% | -7.7% | 36.6% | 33.8% |
| Century Sunshine Group Holdings Ltd ($509) | 68.7% | 32.0% | 26.4% | 21.4% | |
| |
|---|
| Median (32 companies) | 2.0% | 9.2% | 2.3% | -4.7% | 6.9% |
|---|
| Strong Petrochemical Holdings Ltd ($852) | | 87.9% | -60.8% | 42.3% | -26.0% |
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% | 19.2% | 20.5% | 17.8% |
|---|
| Strong Petrochemical Holdings Ltd ($852) | 1.9% | 3.2% | 1.3% | 3.5% | |
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% | 14.5% | 13.8% | 13.4% | 11.0% |
|---|
| Strong Petrochemical Holdings Ltd ($852) | 0.9% | 1.7% | -1.7% | 0.9% | |
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) | 9.6% | 9.2% | 5.9% | 8.2% | 2.4% |
|---|
| Strong Petrochemical Holdings Ltd ($852) | 0.5% | 0.9% | 0.9% | 0.4% | |
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) | 7.3% | 8.1% | 5.9% | 5.2% | 5.8% |
|---|
| Strong Petrochemical Holdings Ltd ($852) | 4.4% | 14.0% | -5.4% | 2.7% | |
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 | 2.1x | 1.4x | 1.7x | 0.3x |
|---|
| Strong Petrochemical Holdings Ltd ($852) | 7.2x | 4.0x | | 3.9x | |
