China First Chemical Holdings Ltd reports 19.0 pp EBITDA Margin decline from 19.0% to in 2016 in 2016
24/03/2017 • About China First Chemical Holdings Ltd (
$2121) • By InTwits
China First Chemical Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is declining: in FY2016 vs. 19.0% in FY2015 vs. 26.6% in FY2012.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China First Chemical Holdings Ltd ($2121) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,620 | 1,510 | 1,238 | 2,136 | 2,249 | 5.3% |
| Gross Profit | 465 | 467 | 371 | 395 | | -100.0% |
| SG&A | 105 | 108 | 104 | 151 | | -100.0% |
| EBITDA | 431 | 453 | 366 | 406 | | -100.0% |
| Net Income | 250 | 250 | 171 | 129 | 123 | -4.9% |
Balance Sheet
|
|---|
| Cash | 779 | 784 | 725 | 471 | | -100.0% |
| Short Term Debt | 559 | 451 | 616 | 1,026 | | -100.0% |
| Long Term Debt | 91 | 68 | 347 | 383 | | -100.0% |
Cash flow
|
|---|
| Capex | 339 | 214 | 217 | 384 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 6.2% | -6.8% | -18.0% | 72.5% | 5.3% | |
| EBITDA growth | -4.7% | 5.0% | -19.2% | 11.0% | | |
| Gross Margin | 28.7% | 30.9% | 29.9% | 18.5% | | -18.5% |
| EBITDA Margin | 26.6% | 30.0% | 29.6% | 19.0% | 0.0% | -19.0% |
| Net Income Margin | 15.4% | 16.6% | 13.8% | 6.0% | 5.5% | -0.6% |
| SG&A, % of revenue | 6.5% | 7.2% | 8.4% | 7.1% | | -7.1% |
| CAPEX, % of revenue | 20.9% | 14.2% | 17.5% | 18.0% | | -18.0% |
| ROIC | 16.6% | 15.3% | 9.9% | 7.5% | | -7.5% |
| ROE | 16.4% | 14.3% | 8.8% | 6.3% | | -6.3% |
| Net Debt/EBITDA | -0.3x | -0.6x | 0.7x | 2.3x | | -2.3x |
Revenue and profitability
China First Chemical Holdings Ltd's Revenue increased on 5.3%.
Net Income marign decreased slightly on 0.59 pp from 6.0% to 5.5% in FY2016.
Appendix 1: Peers in Chemicals
Below we provide China First Chemical Holdings Ltd benchmarking against other companies in Chemicals 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 |
|---|
| Bestway International Holdings Ltd ($718) | | -62.1% | 330.3% | 238.4% | 14,591.4% |
| Strong Petrochemical Holdings Ltd ($852) | | 87.9% | -60.8% | 42.3% | -26.0% |
| 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) | -0.6% | 9.4% | 2.3% | -4.7% | 5.1% |
|---|
| China First Chemical Holdings Ltd ($2121) | | -6.8% | -18.0% | 72.5% | 5.3% |
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) | 19.5% | 18.5% | 17.7% | 20.5% | 18.9% |
|---|
| China First Chemical Holdings Ltd ($2121) | 28.7% | 30.9% | 29.9% | 18.5% | |
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) | 13.2% | 12.7% | 11.1% | 11.8% | 11.5% |
|---|
| China First Chemical Holdings Ltd ($2121) | 26.6% | 30.0% | 29.6% | 19.0% | |
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) | 7.2% | 8.7% | 5.6% | 7.2% | 2.4% |
|---|
| China First Chemical Holdings Ltd ($2121) | 20.9% | 14.2% | 17.5% | 18.0% | |
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) | 6.9% | 8.1% | 5.9% | 4.9% | 6.6% |
|---|
| China First Chemical Holdings Ltd ($2121) | 16.6% | 15.3% | 9.9% | 7.5% | |
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) | 1.9x | 2.5x | 1.5x | 1.7x | 0.7x |
|---|
| China First Chemical Holdings Ltd ($2121) | -0.3x | -0.6x | 0.7x | 2.3x | |
