China National Building Material Co Ltd EBITDA jumped on 28.8% and EBITDA Margin increased slightly on 0.50 pp from 20.3% to 20.8%
23/03/2018 • About China National Building Material Co Ltd (
$3323) • By InTwits
China National Building Material Co Ltd reported 2017 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 8.5%. At the same time it's a lot of higher than industry average of 6.1%.
- CAPEX is quite volatile: 12,154 in 2017, 9,905 in 2016, 8,485 in 2015, 4,319 in 2014, 4,881 in 2013
- The company has potentially unprofitable business model: ROIC is at 6.6%
- It operates with high leverage: Net Debt/EBITDA is 7.0x while industry average is -12.6x
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 | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 117,688 | 122,011 | 100,292 | 101,547 | 127,626 | 25.7% |
| Gross Profit | 30,138 | 33,279 | 24,619 | 26,792 | 35,245 | 31.6% |
| SG&A | 14,924 | 16,696 | 16,415 | 17,739 | 20,179 | 13.8% |
| EBITDA | 25,344 | 28,609 | 22,050 | 20,602 | 26,533 | 28.8% |
| Net Income | 5,762 | 5,965 | 1,345 | 1,575 | 3,877 | 146.1% |
Balance Sheet
|
|---|
| Cash | 8,980 | 10,291 | 10,580 | 10,252 | 9,355 | -8.7% |
| Short Term Debt | 116,021 | 143,783 | 148,882 | 145,737 | 139,500 | -4.3% |
| Long Term Debt | 64,847 | 46,874 | 48,652 | 58,634 | 54,960 | -6.3% |
Cash flow
|
|---|
| Capex | 10,166 | 9,174 | 7,957 | 11,528 | 8,917 | -22.7% |
Ratios
|
|---|
| Revenue growth | 34.9% | 3.7% | -17.8% | 1.3% | 25.7% | |
| EBITDA growth | 24.1% | 12.9% | -22.9% | -6.6% | 28.8% | |
| Gross Margin | 25.6% | 27.3% | 24.5% | 26.4% | 27.6% | 1.2% |
| EBITDA Margin | 21.5% | 23.4% | 22.0% | 20.3% | 20.8% | 0.5% |
| Net Income Margin | 4.9% | 4.9% | 1.3% | 1.6% | 3.0% | 1.5% |
| SG&A, % of revenue | 12.7% | 13.7% | 16.4% | 17.5% | 15.8% | -1.7% |
| CAPEX, % of revenue | 8.6% | 7.5% | 7.9% | 11.4% | 7.0% | -4.4% |
| ROIC | 9.0% | 8.7% | 5.4% | 4.6% | 6.6% | 2.0% |
| ROE | 17.5% | 15.6% | 2.5% | 2.5% | 7.4% | 4.9% |
| Net Debt/EBITDA | 6.8x | 6.3x | 8.5x | 9.4x | 7.0x | -2.4x |
Revenue and profitability
China National Building Material Co Ltd's Revenue jumped on 25.7%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.62 pp from 20.4% to 21.0% in 2017.
Gross Margin increased slightly on 1.2 pp from 26.4% to 27.6% in 2017. SG&A as a % of Revenue decreased slightly on 1.7 pp from 17.5% to 15.8% in 2017.
Net Income marign increased slightly on 1.5 pp from 1.6% to 3.0% in 2017.
Capital expenditures (CAPEX) and working capital investments
In 2017 the company had CAPEX/Revenue of 7.0%. CAPEX/Revenue decreased slightly on 0.53 pp from 7.5% in 2014 to 7.0% in 2017. It's average level of CAPEX/Revenue for the last three years was 8.8%.
Return on investment
The company operates at low ROIC (6.56%) and ROE (7.41%). ROIC increased slightly on 2.0 pp from 4.6% to 6.6% in 2017. ROE increased on 4.9 pp from 2.5% to 7.4% in 2017.
Leverage (Debt)
Debt level is 7.0x Net Debt / EBITDA and 7.3x Debt / EBITDA. Net Debt / EBITDA dropped on 2.4x from 9.4x to 7.0x in 2017. Debt decreased on 4.8% while cash decreased on 8.7%.
Appendix 1: Peers in Building Materials
Below we provide China National Building Material Co Ltd benchmarking against other companies in Building Materials 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 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Pacific Plywood Hldg Ltd ($767) | -14.5% | 119.5% | 57.3% | 441.9% | |
| Sustainable Forest Holdings Ltd ($723) | -33.8% | -16.5% | -89.7% | 71.6% | |
| Allied Cement Holdings Ltd ($1312) | -0.2% | 4.2% | -36.5% | 36.0% | |
| Far East Global Group Ltd ($830) | 9.5% | 18.6% | 30.5% | 20.6% | |
| Future Bright Mining Holdings Ltd ($2212) | | | 294.4% | 14.5% | |
| |
|---|
| Median (16 companies) | 9.6% | 8.2% | -14.1% | 7.3% | |
|---|
Top companies by Gross margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 82.0% | 97.2% | 98.6% | 99.9% | |
| Sustainable Forest Holdings Ltd ($723) | 12.1% | 19.7% | 55.2% | 83.9% | |
| Anhui Conch Cement Co Ltd ($914) | 32.5% | 33.2% | 26.9% | 31.6% | |
| China Resources Cement Holdings Ltd ($1313) | 28.5% | 31.3% | 24.0% | 27.4% | |
| China Lesso Group Holdings Ltd ($2128) | 25.0% | 25.6% | 25.8% | 26.6% | |
| |
|---|
| Median (10 companies) | 22.0% | 20.9% | 15.4% | 22.4% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Pacific Plywood Hldg Ltd ($767) | -19.8% | 50.5% | 34.7% | 67.6% | |
| West China Cement Ltd ($2233) | 28.5% | 25.5% | 23.5% | 35.1% | |
| Anhui Conch Cement Co Ltd ($914) | 31.1% | 32.1% | 29.7% | 28.0% | |
| China Resources Cement Holdings Ltd ($1313) | 21.2% | 25.3% | 17.5% | 20.5% | |
| China Lesso Group Holdings Ltd ($2128) | 16.6% | 16.5% | 17.6% | 17.9% | |
| |
|---|
| Median (10 companies) | 15.5% | 16.5% | 14.0% | 9.6% | |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Anhui Conch Cement Co Ltd ($914) | 12.3% | 11.1% | 9.9% | 9.0% | |
| Prosperity International Holdings HK Ltd ($803) | 0.2% | 1.0% | 0.4% | 2.2% | |
| WLS Holdings Ltd/Hong Kong ($8021) | 6.6% | 7.9% | 11.5% | 1.5% | |
| Steed Oriental Holdings Co Ltd ($8277) | 2.4% | 7.5% | 0.5% | 1.1% | |
| Sustainable Forest Holdings Ltd ($723) | 3.5% | 0.0% | 0.1% | 0.4% | |
| |
|---|
| Median (5 companies) | 8.5% | 7.5% | 6.6% | 1.5% | |
|---|
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| China Lesso Group Holdings Ltd ($2128) | 19.4% | 18.2% | 17.2% | 16.5% | |
| Anhui Conch Cement Co Ltd ($914) | 17.5% | 18.4% | 11.7% | 11.2% | |
| Pacific Plywood Hldg Ltd ($767) | -0.8% | 2.5% | 1.2% | 9.0% | |
| China Resources Cement Holdings Ltd ($1313) | 9.6% | 13.0% | 5.5% | 7.3% | |
| West China Cement Ltd ($2233) | 6.9% | 4.0% | 1.3% | 5.6% | |
| |
|---|
| Median (16 companies) | 6.0% | 4.8% | 1.2% | 4.0% | |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Far East Global Group Ltd ($830) | | | 4.0x | 3.7x | |
| China Resources Cement Holdings Ltd ($1313) | 2.8x | 2.0x | 3.6x | 2.8x | |
| West China Cement Ltd ($2233) | 2.9x | 3.6x | 4.2x | 1.5x | |
| China Lesso Group Holdings Ltd ($2128) | 0.2x | -0.0x | -0.2x | 0.3x | |
| Anhui Conch Cement Co Ltd ($914) | 0.9x | 0.4x | 1.0x | 0.0x | |
| |
|---|
| Median (7 companies) | 1.1x | 1.9x | 3.3x | 0.3x | |
|---|
