China National Building Material Co Ltd Net Debt / EBITDA surged on 0.9x from 8.5x to 9.4x in 2016 and Revenue increased slightly on 1.3%
24/03/2017 • About China National Building Material Co Ltd (
$3323) • By InTwits
China National Building Material Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China National Building Material Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.8%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: 9,905 in 2016, 8,485 in 2015, 4,319 in 2014, 4,881 in 2013, 3,970 in 2012
- The company has potentially unprofitable business model: ROIC is at 4.6%
- It operates with high leverage: Net Debt/EBITDA is 9.4x while industry average is -10.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China National Building Material Co Ltd ($3323) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 87,218 | 117,688 | 122,011 | 100,292 | 101,547 | 1.3% |
| Gross Profit | 20,128 | 30,138 | 33,279 | 24,619 | 26,792 | 8.8% |
| SG&A | 9,243 | 14,924 | 16,696 | 16,415 | 17,739 | 8.1% |
| EBITDA | 20,415 | 25,344 | 28,609 | 22,050 | 20,602 | -6.6% |
| Net Income | 5,580 | 5,762 | 5,965 | 1,345 | 1,575 | 17.1% |
Balance Sheet
|
|---|
| Cash | 10,222 | 8,980 | 10,291 | 10,580 | 10,252 | -3.1% |
| Short Term Debt | 92,502 | 116,021 | 143,783 | 148,882 | 145,737 | -2.1% |
| Long Term Debt | 55,380 | 64,847 | 46,874 | 48,652 | 58,634 | 20.5% |
Cash flow
|
|---|
| Capex | 11,726 | 10,166 | 9,174 | 7,957 | 11,528 | 44.9% |
Ratios
|
|---|
| Revenue growth | 8.9% | 34.9% | 3.7% | -17.8% | 1.3% | |
| EBITDA growth | 0.1% | 24.1% | 12.9% | -22.9% | -6.6% | |
| Gross Margin | 23.1% | 25.6% | 27.3% | 24.5% | 26.4% | 1.8% |
| EBITDA Margin | 23.4% | 21.5% | 23.4% | 22.0% | 20.3% | -1.7% |
| Net Income Margin | 6.4% | 4.9% | 4.9% | 1.3% | 1.6% | 0.2% |
| SG&A, % of revenue | 10.6% | 12.7% | 13.7% | 16.4% | 17.5% | 1.1% |
| CAPEX, % of revenue | 13.4% | 8.6% | 7.5% | 7.9% | 11.4% | 3.4% |
| ROIC | 9.9% | 9.0% | 8.7% | 5.4% | 4.6% | -0.8% |
| ROE | 19.6% | 17.5% | 15.6% | 2.5% | 2.5% | 0.0% |
| Net Debt/EBITDA | 6.7x | 6.8x | 6.3x | 8.5x | 9.4x | 0.9x |
Revenue and profitability
China National Building Material Co Ltd's Revenue increased slightly on 1.3%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.0 pp from 15.0% to 9.0% in 2016.
Gross Margin increased slightly on 1.8 pp from 24.5% to 26.4% in 2016. SG&A as a % of Revenue increased slightly on 1.1 pp from 16.4% to 17.5% in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
China National Building Material Co Ltd's CAPEX/Revenue was 11.4% in 2016. China National Building Material Co Ltd showed CAPEX/Revenue growth of 2.7 pp from 8.6% in 2013 to 11.4% in 2016. For the last three years the average CAPEX/Revenue was 8.9%.China National Building Material Co Ltd maintained rich investment policy and has spent a big chunk of EBITDA (56.0%) to CAPEX.
Return on investment
The company operates at low ROIC (4.58%) and ROE (2.50%). ROIC decreased slightly on 0.79 pp from 5.4% to 4.6% in 2016. ROE showed almost no change in 2016.
Leverage (Debt)
Debt level is 9.4x Net Debt / EBITDA and 9.9x Debt / EBITDA. Net Debt / EBITDA surged on 0.9x from 8.5x to 9.4x in 2016. Debt increased on 3.5% while cash decreased on 3.1%.
Appendix 1: Peers in Building Materials
Below you can find China National Building Material Co Ltd benchmarking vs. other companies in Building Materials 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 |
|---|
| 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) | | 77.9% | 6.5% | 18.9% | -20.2% |
| |
|---|
| Median (27 companies) | -3.5% | 9.6% | 8.2% | -14.1% | 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 (27 companies) | 20.0% | 22.0% | 20.9% | 15.4% | 22.4% |
|---|
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% | |
| Anhui Conch Cement Co Ltd ($914) | 27.1% | 31.1% | 32.1% | 29.7% | 28.0% |
| Luks Group Vietnam Holdings Co Ltd ($366) | 30.4% | 29.9% | 23.8% | 26.2% | |
| |
|---|
| Median (27 companies) | 15.1% | 15.5% | 16.5% | 14.0% | 9.6% |
|---|
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 (27 companies) | 9.7% | 8.5% | 7.5% | 6.6% | 1.5% |
|---|
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% |
| Anhui Conch Cement Co Ltd ($914) | 12.7% | 17.5% | 18.4% | 11.7% | 11.2% |
| Hong Wei Asia Holdings Co Ltd ($8191) | 17.0% | 5.2% | 9.3% | 8.6% | |
| |
|---|
| Median (27 companies) | 5.8% | 6.0% | 4.8% | 1.2% | 4.0% |
|---|
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 (17 companies) | 2.3x | 1.1x | 1.9x | 3.3x | 0.3x |
|---|
