Yongsheng Advanced Materials Co Ltd reports 40.7% Net Income growth in 2016
23/03/2017 • About Yongsheng Advanced Materials Co Ltd (
$3608) • By InTwits
Yongsheng Advanced Materials Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 15.3x while industry average is 1.6x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yongsheng Advanced Materials Co Ltd ($3608) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,211 | 1,767 | 486 | 491 | 581 | 18.2% |
| Gross Profit | 109 | 129 | 121 | 141 | | -100.0% |
| SG&A | 47 | 58 | 52 | 66 | | -100.0% |
| EBITDA | 56 | 90 | 85 | 93 | | -100.0% |
| Net Income | 23 | 40 | 48 | 56 | 79 | 40.7% |
Balance Sheet
|
|---|
| Cash | 76 | 167 | 129 | 139 | | -100.0% |
| Short Term Debt | 382 | 197 | 3 | 0 | | |
| Long Term Debt | 47 | 25 | 0 | 0 | | |
Cash flow
|
|---|
| Capex | 6 | 6 | 16 | 30 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 8.5% | -20.1% | -72.5% | 1.0% | 18.2% | |
| EBITDA growth | -13.9% | 60.6% | -5.7% | 9.2% | | |
| Gross Margin | 4.9% | 7.3% | 24.9% | 28.8% | | -28.8% |
| EBITDA Margin | 2.5% | 5.1% | 17.5% | 18.9% | 0.0% | -18.9% |
| Net Income Margin | 1.0% | 2.3% | 9.8% | 11.4% | 13.6% | 2.2% |
| SG&A, % of revenue | 2.1% | 3.3% | 10.7% | 13.4% | | -13.4% |
| CAPEX, % of revenue | 0.3% | 0.4% | 3.2% | 6.1% | | -6.1% |
| ROIC | 6.2% | 13.2% | 15.4% | 19.6% | | -19.6% |
| ROE | 13.7% | 17.1% | 15.1% | 15.6% | | -15.6% |
| Net Debt/EBITDA | 6.3x | 0.6x | -1.5x | -1.5x | | 1.5x |
Revenue and profitability
Yongsheng Advanced Materials Co Ltd's Revenue surged on 18.2%.
Net Income marign increased on 2.2 pp from 11.4% to 13.6% in FY2016.
Appendix 1: Peers in Textiles
Below we provide Yongsheng Advanced Materials Co Ltd benchmarking against other companies in Textiles 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 |
|---|
| Ping Shan Tea Group Ltd ($364) | -25.9% | 63.7% | -45.7% | 71.6% | |
| China Weaving Materials Holdings Ltd ($3778) | -15.4% | -4.2% | -3.8% | 53.9% | |
| Easyknit Enterprises Holdings Ltd ($616) | 9.6% | 10.2% | 7.3% | 22.3% | |
| Kingdom Holding Co Ltd ($528) | | 6.0% | 20.0% | 12.2% | -16.5% |
| Kam Hing International Holdings Ltd ($2307) | 0.9% | -4.3% | 1.6% | 4.2% | |
| |
|---|
| Median (21 companies) | 0.5% | -4.2% | -3.8% | -6.1% | -0.4% |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | | -20.1% | -72.5% | 1.0% | 18.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Art Textile Technology International Co Ltd ($565) | 9.4% | 11.8% | 18.0% | 81.8% | 65.1% |
| TAI Ping Carpet International Ltd ($146) | 41.0% | 45.4% | 46.7% | 46.6% | |
| Texwinca Holdings Ltd ($321) | 29.6% | 30.9% | 33.3% | 34.1% | 34.0% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 31.1% | 32.5% | 32.5% | 28.3% | |
| Easyknit Enterprises Holdings Ltd ($616) | 22.3% | 26.3% | 29.6% | 25.9% | |
| |
|---|
| Median (20 companies) | 17.3% | 17.8% | 14.4% | 16.3% | 24.7% |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | 4.9% | 7.3% | 24.9% | 28.8% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Weiqiao Textile Co ($2698) | 17.5% | 20.2% | 21.4% | 30.8% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 28.1% | 28.7% | 30.2% | 23.4% | |
| Kingdom Holding Co Ltd ($528) | 26.3% | 25.3% | 24.8% | 23.0% | |
| Pacific Textiles Holdings Ltd ($1382) | 19.1% | 19.0% | 19.5% | 18.4% | 19.0% |
| Ping Shan Tea Group Ltd ($364) | 11.2% | | 39.3% | 18.1% | |
| |
|---|
| Median (20 companies) | 14.9% | 10.5% | 11.7% | 10.1% | 15.8% |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | 2.5% | 5.1% | 17.5% | 18.9% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Art Textile Technology International Co Ltd ($565) | 1.0% | 1.9% | 3.9% | 105.3% | 8.3% |
| Hua Lien International Holding Co Ltd ($969) | 19.7% | 40.5% | 79.6% | 58.1% | |
| Kam Hing International Holdings Ltd ($2307) | 10.6% | 10.5% | 7.6% | 8.3% | |
| TAI Ping Carpet International Ltd ($146) | 8.2% | 10.1% | 6.9% | 7.4% | |
| Wang Tai Holdings Ltd ($1400) | 34.1% | 18.8% | 7.5% | 7.3% | |
| |
|---|
| Median (20 companies) | 4.2% | 2.1% | 5.6% | 4.1% | 5.1% |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | 0.3% | 0.4% | 3.2% | 6.1% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 23.7% | 26.4% | 31.6% | 25.9% | 26.6% |
| Kingdom Holding Co Ltd ($528) | 13.8% | 12.7% | 13.8% | 12.7% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 22.3% | 20.1% | 17.6% | 11.0% | |
| Texwinca Holdings Ltd ($321) | 8.3% | 5.3% | 5.5% | 8.1% | 14.9% |
| Easyknit Enterprises Holdings Ltd ($616) | 22.2% | 21.3% | 16.1% | 7.7% | |
| |
|---|
| Median (21 companies) | 5.2% | 5.3% | 4.0% | 4.2% | 4.2% |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | 6.2% | 13.2% | 15.4% | 19.6% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Weaving Materials Holdings Ltd ($3778) | 3.6x | 3.0x | 5.3x | 5.5x | |
| Silverman Holdings Ltd ($1616) | 1.5x | 2.5x | 2.0x | 3.2x | |
| Wang Tai Holdings Ltd ($1400) | 3.2x | 1.9x | 1.8x | 2.7x | |
| Kam Hing International Holdings Ltd ($2307) | 2.5x | 2.5x | 2.8x | 2.6x | |
| Victory City International Holdings Ltd ($539) | 1.5x | 2.0x | 3.2x | 2.5x | 3.3x |
| |
|---|
| Median (14 companies) | 1.5x | 1.9x | 1.0x | 0.5x | 1.4x |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | 6.3x | 0.6x | -1.5x | -1.5x | |
