Jiangxi Copper Co Ltd EBITDA jumped on 33.8% and EBITDA Margin showed almost no change
30/03/2017 • About Jiangxi Copper Co Ltd (
$358) • By InTwits
Jiangxi Copper Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 2.2% in 2016, 1.8% in 2015, 2.0% in 2014, 3.4% in 2013, 4.7% in 2012
- Jiangxi Copper Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's in pair with industry average of 4.2%.
- CAPEX is quite volatile: 7,708 in 2016, 6,427 in 2015, 11,432 in 2014, 5,292 in 2013, 3,588 in 2012
- The company has potentially unprofitable business model: ROIC is at 3.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jiangxi Copper Co Ltd ($358) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 158,006 | 175,292 | 198,264 | 185,228 | 201,728 | 8.9% |
| Gross Profit | 7,435 | 6,533 | 6,039 | 3,775 | 6,564 | 73.9% |
| SG&A | 1,802 | 2,306 | 2,293 | 2,556 | 2,254 | -11.8% |
| EBITDA | 7,431 | 5,918 | 4,054 | 3,344 | 4,475 | 33.8% |
| Net Income | 5,170 | 3,556 | 2,851 | 690 | 837 | 21.4% |
Balance Sheet
|
|---|
| Cash | 16,678 | 19,666 | 19,394 | 16,705 | 8,275 | -50.5% |
| Short Term Debt | 12,417 | 15,746 | 21,532 | 23,260 | 14,956 | -35.7% |
| Long Term Debt | 6,299 | 6,045 | 6,927 | 348 | 228 | -34.4% |
Cash flow
|
|---|
| Capex | 2,336 | 1,950 | 1,738 | 1,427 | 1,620 | 13.5% |
Ratios
|
|---|
| Revenue growth | 34.9% | 10.9% | 13.1% | -6.6% | 8.9% | |
| EBITDA growth | -15.2% | -20.4% | -31.5% | -17.5% | 33.8% | |
| Gross Margin | 4.7% | 3.7% | 3.0% | 2.0% | 3.3% | 1.2% |
| EBITDA Margin | 4.7% | 3.4% | 2.0% | 1.8% | 2.2% | 0.4% |
| Net Income Margin | 3.3% | 2.0% | 1.4% | 0.4% | 0.4% | 0.0% |
| SG&A, % of revenue | 1.1% | 1.3% | 1.2% | 1.4% | 1.1% | -0.3% |
| CAPEX, % of revenue | 1.5% | 1.1% | 0.9% | 0.8% | 0.8% | 0.0% |
| ROIC | 10.3% | 6.8% | 3.5% | 2.3% | 3.8% | 1.5% |
| ROE | 12.6% | 8.1% | 6.3% | 1.5% | 1.8% | 0.3% |
| Net Debt/EBITDA | 0.3x | 0.4x | 2.2x | 2.1x | 1.5x | -0.5x |
Jiangxi Copper Co Ltd ($358) key quoterly financial indicators
| mln. CNY | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 38,742 | 51,231 | 50,200 | 61,555 | | | | |
| Net Income | 201 | 272 | 515 | -204 | | | | |
Balance Sheet
|
|---|
| Cash | 19,263 | 13,453 | 15,338 | 8,275 | | | | |
| Short Term Debt | 29,440 | 27,230 | 18,777 | 20,663 | | | | |
| Long Term Debt | 420 | 233 | 169 | 228 | | | | |
Ratios
|
|---|
| Gross Margin | 2.1% | 2.6% | 2.4% | 5.0% | | | | |
| Net Income Margin | 0.5% | 0.5% | 1.0% | -0.3% | | | | |
Revenue and profitability
Jiangxi Copper Co Ltd's Revenue increased on 8.9%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.77 pp from 9.8% to 10.5% in 2016.
Gross Margin increased slightly on 1.2 pp from 2.0% to 3.3% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.80% in 2016. The company showed almost no change in CAPEX/Revenue from 2013 to 2016. It's average level of CAPEX/Revenue for the last three years was 0.82%.
Return on investment
The company operates at low ROIC (3.77%) and ROE (1.81%). ROIC increased slightly on 1.5 pp from 2.3% to 3.8% in 2016. ROE showed almost no change in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.5x and Debt / EBITDA is 3.4x. Net Debt / EBITDA dropped on 0.5x from 2.1x to 1.5x in 2016. Debt dropped on 35.7% while cash dropped on 50.5%.
Appendix 1: Peers in Mining
Below we provide Jiangxi Copper Co Ltd benchmarking against other companies in Mining 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 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 89.7% | -95.8% | 2,361.6% | 1,178.3% |
| Real Gold Mining Ltd ($246) | -44.0% | -68.0% | -26.2% | 106.2% | |
| REX Global Entertainment Holdings Ltd ($164) | | 81.6% | -15.5% | 96.4% | 30.4% |
| Hengxing Gold Holding Co Ltd ($2303) | | | 3,467.3% | 78.0% | 157.6% |
| Zijin Mining Group Co Ltd ($2899) | | 2.5% | 18.1% | 26.9% | 6.1% |
| |
|---|
| Median (49 companies) | 6.4% | 0.6% | -5.1% | -20.8% | 6.1% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino Prosper Group Holdings Ltd ($766) | 2.5% | 5.1% | 39.6% | 93.0% | 87.4% |
| REX Global Entertainment Holdings Ltd ($164) | -15.8% | -7.8% | -0.8% | 88.6% | 87.3% |
| China Billion Resources Ltd ($274) | 71.4% | 47.2% | 73.4% | 79.7% | |
| Sun International Resources Ltd ($8029) | 83.2% | 73.1% | 64.8% | 69.4% | 58.8% |
| Grand T G Gold Holdings Ltd ($8299) | | | | 57.3% | 59.0% |
| |
|---|
| Median (50 companies) | 15.2% | 14.0% | 15.4% | 15.5% | 24.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| G-Resources Group Ltd ($1051) | | 54.5% | 53.4% | 58.3% | |
| Grand T G Gold Holdings Ltd ($8299) | | | | 53.7% | 58.9% |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 70.0% | 64.6% | 59.6% | 51.3% | |
| Timeless Software Ltd ($8028) | -113.1% | 24.7% | -13.7% | 46.1% | 28.0% |
| Hengxing Gold Holding Co Ltd ($2303) | | -766.2% | 24.5% | 43.9% | |
| |
|---|
| Median (51 companies) | 4.9% | 7.8% | 5.2% | 5.1% | 11.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mongolia Energy Corp Ltd ($276) | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% | 20.9% |
| Kaz Minerals ($847) | 36.6% | 136.5% | 168.8% | 168.7% | 41.9% |
| Chinalco Mining Corp International ($3668) | | | | 115.6% | |
| China Dynamics Holdings Ltd ($476) | 1.8% | 0.0% | 1.0% | 113.8% | 5.7% |
| MMG Ltd ($1208) | 25.7% | 22.6% | 41.9% | 100.4% | 31.0% |
| |
|---|
| Median (50 companies) | 17.2% | 16.8% | 15.8% | 12.1% | 7.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CGN Mining Co Ltd ($1164) | 2.6% | 3.3% | 7.9% | 16.7% | |
| United Co RUSAL PLC ($486) | 0.3% | -9.0% | 6.3% | 12.3% | 9.0% |
| Xingfa Aluminium Holdings Ltd ($98) | 7.6% | 8.8% | 11.7% | 11.8% | |
| Timeless Software Ltd ($8028) | -29.1% | 7.3% | -4.6% | 11.6% | 3.9% |
| China Hongqiao Group Ltd ($1378) | 24.8% | 17.0% | 14.1% | 10.6% | |
| |
|---|
| Median (52 companies) | 1.5% | 2.7% | 0.8% | -1.1% | 1.9% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 9.2x | 9.7x | 9.2x | 31.5x | |
| Chinalco Mining Corp International ($3668) | | | | 25.0x | |
| MMG Ltd ($1208) | 2.1x | 2.0x | 10.2x | 20.2x | 10.4x |
| Kaz Minerals ($847) | 2.4x | 2.9x | 5.5x | 18.7x | 8.8x |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 1.5x | 4.1x | 6.4x | 13.5x | |
| |
|---|
| Median (30 companies) | 2.0x | 1.9x | 4.4x | 3.8x | 4.4x |
|---|
