Zhengzhou Coal Mining Machinery Group Co Ltd revenue decline decelerated to 20.5% in FY2016 vs. 26.3% a year earliner
27/03/2017 • About Zhengzhou Coal Mining Machinery Group Co Ltd (
$564) • By InTwits
Zhengzhou Coal Mining Machinery Group Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zhengzhou Coal Mining Machinery Group Co Ltd is a company in decline: FY2016 revenue growth was -20.5%, 5 years revenue CAGR was -14.9%
- EBITDA Margin is declining: in FY2016 vs. 1.2% in FY2015 vs. 19.0% in FY2012
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zhengzhou Coal Mining Machinery Group Co Ltd ($564) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10,213 | 8,055 | 6,124 | 4,511 | 3,587 | -20.5% |
| Gross Profit | 2,684 | 1,822 | 1,054 | 857 | | -100.0% |
| SG&A | 658 | 591 | 496 | 519 | | -100.0% |
| EBITDA | 1,942 | 1,122 | 296 | 52 | | -100.0% |
| Net Income | 1,589 | 867 | 205 | 42 | 62 | 46.9% |
Balance Sheet
|
|---|
| Cash | 4,479 | 2,656 | 2,368 | 2,011 | | -100.0% |
| Short Term Debt | 0 | 136 | 97 | 0 | | |
| Long Term Debt | 49 | 0 | 0 | 0 | | |
Cash flow
|
|---|
| Capex | 369 | 193 | 122 | 61 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 26.7% | -21.1% | -24.0% | -26.3% | -20.5% | |
| EBITDA growth | 35.2% | -42.2% | -73.6% | -82.4% | | |
| Gross Margin | 26.3% | 22.6% | 17.2% | 19.0% | | -19.0% |
| EBITDA Margin | 19.0% | 13.9% | 4.8% | 1.2% | 0.0% | -1.2% |
| Net Income Margin | 15.6% | 10.8% | 3.4% | 0.9% | 1.7% | 0.8% |
| SG&A, % of revenue | 6.4% | 7.3% | 8.1% | 11.5% | | -11.5% |
| CAPEX, % of revenue | 3.6% | 2.4% | 2.0% | 1.3% | | -1.3% |
| ROIC | 22.4% | 9.7% | 1.2% | -1.3% | | 1.3% |
| ROE | 21.1% | 9.3% | 2.2% | 0.4% | | -0.4% |
| Net Debt/EBITDA | -2.3x | -2.2x | -7.7x | -38.7x | | 38.7x |
Revenue and profitability
The company's Revenue dropped on 20.5%.
Net Income marign increased slightly on 0.79 pp from 0.94% to 1.7% in FY2016.
Appendix 1: Peers in Machinery-Diversified
Below we provide Zhengzhou Coal Mining Machinery Group Co Ltd benchmarking against other companies in Machinery-Diversified 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 |
|---|
| Shanghai Prime Machinery Co Ltd ($2345) | | -8.9% | 37.3% | 52.8% | 7.3% |
| North Asia Strategic Holdings Ltd ($8080) | | -29.1% | 23.7% | 42.6% | -3.9% |
| Huazhang Technology Holding Ltd ($1673) | | 9.5% | 22.9% | 23.5% | 3.3% |
| Sinoref Holdings Ltd ($1020) | -0.2% | -42.2% | 29.2% | 19.9% | |
| LK Technology Holdings Ltd ($558) | | -15.0% | 3.7% | 18.5% | -10.3% |
| |
|---|
| Median (20 companies) | -6.8% | -3.3% | 2.0% | -4.8% | -3.9% |
|---|
| Zhengzhou Coal Mining Machinery Group Co Ltd ($564) | | -21.1% | -24.0% | -26.3% | -20.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jingwei Textile Machinery ($350) | 49.1% | 51.7% | 54.9% | 65.5% | |
| Renheng Enterprise Holdings Ltd ($3628) | 44.3% | 44.8% | 45.4% | 48.9% | |
| Haitian International Holdings Ltd ($1882) | 30.1% | 31.6% | 32.4% | 33.0% | 34.4% |
| CHTC Fong's Industries Co Ltd ($641) | 24.4% | 30.0% | 32.3% | 31.2% | |
| Good Friend International Holdings Inc ($2398) | 20.1% | 22.9% | 26.5% | 27.1% | |
| |
|---|
| Median (20 companies) | 24.1% | 22.2% | 20.2% | 21.0% | 19.4% |
|---|
| Zhengzhou Coal Mining Machinery Group Co Ltd ($564) | 26.3% | 22.6% | 17.2% | 19.0% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jingwei Textile Machinery ($350) | 24.0% | 26.9% | 28.0% | 28.5% | |
| Haitian International Holdings Ltd ($1882) | 19.7% | 20.7% | 21.9% | 22.8% | 24.4% |
| Renheng Enterprise Holdings Ltd ($3628) | 24.7% | 23.9% | 20.7% | 17.3% | |
| Huazhang Technology Holding Ltd ($1673) | 11.6% | 11.2% | 12.5% | 11.3% | 10.8% |
| Good Friend International Holdings Inc ($2398) | 6.7% | 9.1% | 12.9% | 9.9% | |
| |
|---|
| Median (20 companies) | 9.3% | 8.6% | 8.6% | 5.7% | 2.5% |
|---|
| Zhengzhou Coal Mining Machinery Group Co Ltd ($564) | 19.0% | 13.9% | 4.8% | 1.2% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | 2.3% | 10.1% | 7.8% | 31.9% | |
| Honghua Group Ltd ($196) | 11.5% | 14.6% | 6.8% | 27.3% | |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 20.5% | 20.3% | 11.6% | 15.6% | |
| Shenji Group Kunming Machine Tool Co Ltd ($300) | 9.5% | 6.7% | 5.0% | 8.3% | |
| Haitian International Holdings Ltd ($1882) | 4.2% | 6.8% | 6.3% | 6.3% | |
| |
|---|
| Median (20 companies) | 4.2% | 4.3% | 4.6% | 2.9% | 0.9% |
|---|
| Zhengzhou Coal Mining Machinery Group Co Ltd ($564) | 3.6% | 2.4% | 2.0% | 1.3% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Haitian International Holdings Ltd ($1882) | 19.8% | 21.2% | 19.4% | 16.3% | 16.6% |
| Huazhang Technology Holding Ltd ($1673) | 29.6% | 16.2% | 16.3% | 16.2% | 12.8% |
| Jingwei Textile Machinery ($350) | 19.4% | 20.9% | 17.4% | 14.9% | |
| Good Friend International Holdings Inc ($2398) | 6.5% | 8.7% | 12.1% | 5.9% | |
| Shanghai Prime Machinery Co Ltd ($2345) | 2.5% | 2.8% | 2.5% | 5.8% | |
| |
|---|
| Median (20 companies) | 6.8% | 3.6% | 2.8% | 1.7% | 1.6% |
|---|
| Zhengzhou Coal Mining Machinery Group Co Ltd ($564) | 22.4% | 9.7% | 1.2% | -1.3% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 3.0x | 11.4x | 5.6x | 129.4x | |
| Honghua Group Ltd ($196) | 1.2x | 3.2x | 5.2x | 14.2x | |
| First Tractor Co Ltd ($38) | 0.5x | 2.5x | 9.2x | 6.3x | |
| LK Technology Holdings Ltd ($558) | 2.5x | 5.1x | 4.9x | 4.6x | 5.7x |
| Cosmos Machinery Enterprises Ltd ($118) | 2.2x | 1.7x | 2.1x | 3.9x | |
| |
|---|
| Median (15 companies) | -0.6x | 0.2x | 0.2x | 3.1x | 2.0x |
|---|
| Zhengzhou Coal Mining Machinery Group Co Ltd ($564) | -2.3x | -2.2x | -7.7x | -38.7x | |
