Asia Cement Corp reports 48.1% Net Income decline and 14.7% Revenue decline
31 Mar 2016 • About Asia Cement Corp (
$ASCD) • By InTwits
Asia Cement Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asia Cement Corp doesn't have a profitable business model yet: 2015 ROIC is 1.5%
- Asia Cement Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.5%. At the same time it's in pair with industry average of 6.0%.
- CAPEX is quite volatile: 3,480 in 2015, 4,167 in 2014, 8,523 in 2013, 3,821 in 2012, 2,721 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.5%
- It operates with high leverage: Net Debt/EBITDA is 8.6x while industry average is 2.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asia Cement Corp ($ASCD) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 68,827 | 63,793 | 70,173 | 77,683 | 66,287 | -14.7% |
| Gross Profit | 11,353 | 6,141 | 9,043 | 11,130 | 7,059 | -36.6% |
| SG&A | 2,467 | 2,034 | 2,370 | 2,881 | 3,019 | 4.8% |
| EBITDA | 13,882 | 8,621 | 11,445 | 14,190 | 9,780 | -31.1% |
| Net Income | 10,016 | 5,082 | 10,517 | 9,362 | 4,860 | -48.1% |
Balance Sheet
|
|---|
| Cash | 17,933 | 8,309 | 19,185 | 12,740 | 11,024 | -13.5% |
| Short Term Debt | 17,882 | 32,767 | 59,022 | 62,231 | 54,842 | -11.9% |
| Long Term Debt | 59,320 | 42,908 | 39,699 | 47,138 | 40,165 | -14.8% |
Cash flow
|
|---|
| Capex | 2,721 | 3,821 | 8,523 | 4,167 | 3,480 | -16.5% |
Ratios
|
|---|
| Revenue growth | 27.9% | -7.3% | 10.0% | 10.7% | -14.7% | |
| EBITDA growth | 58.7% | -37.9% | 32.8% | 24.0% | -31.1% | |
| Gross Margin | 16.5% | 9.6% | 12.9% | 14.3% | 10.6% | -3.7% |
| EBITDA Margin | 20.2% | 13.5% | 16.3% | 18.3% | 14.8% | -3.5% |
| Net Income Margin | 14.6% | 8.0% | 15.0% | 12.1% | 7.3% | -4.7% |
| SG&A, % of revenue | 3.6% | 3.2% | 3.4% | 3.7% | 4.6% | 0.8% |
| CAPEX, % of revenue | 4.0% | 6.0% | 12.1% | 5.4% | 5.2% | -0.1% |
| ROIC | 5.2% | 2.3% | 3.0% | 3.1% | 1.5% | -1.6% |
| ROE | 12.1% | 5.9% | 9.5% | 6.8% | 3.5% | -3.3% |
| Net Debt/EBITDA | 4.3x | 7.8x | 6.9x | 6.8x | 8.6x | 1.8x |
Revenue and profitability
Asia Cement Corp's Revenue dropped on 14.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.5 pp from 18.3% to 14.8% in 2015.
Gross Margin decreased on 3.7 pp from 14.3% to 10.6% in 2015. SG&A as a % of Revenue increased slightly on 0.85 pp from 3.7% to 4.6% in 2015.
Net Income marign decreased on 4.7 pp from 12.1% to 7.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 5.2% in 2015. CAPEX/Revenue decreased slightly on 0.74 pp from 6.0% in 2012 to 5.2% in 2015. It's average CAPEX/Revenue for the last three years was 7.6%.
Return on investment
The company operates at low ROIC (1.51%) and ROE (3.50%). ROIC decreased slightly on 1.6 pp from 3.1% to 1.5% in 2015. ROE decreased on 3.3 pp from 6.8% to 3.5% in 2015.
Leverage (Debt)
Debt level is 8.6x Net Debt / EBITDA and 9.7x Debt / EBITDA. Net Debt / EBITDA surged on 1.8x from 6.8x to 8.6x in 2015. Debt dropped on 13.1% in 2015 while cash dropped on 13.5% in 2015.
Appendix 1: Peers in Construction & Materials
Below you can find Asia Cement Corp benchmarking vs. other companies in Construction & 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kingspan Group ($KGP) | | 5.3% | 9.1% | 6.4% | 46.7% |
| Accsys Technologies ($AXS) | | 9.5% | 25.5% | 78.0% | 37.5% |
| Billington Hldgs ($BILN) | | -34.0% | 8.4% | 14.5% | 25.8% |
| Crh ($CRH) | | | -0.3% | 4.9% | 25.0% |
| Clarke(T.) ($CTO) | | 5.5% | 12.0% | -4.2% | 16.6% |
| |
|---|
| Median (22 companies) | 30.2% | 3.6% | 5.5% | 8.8% | 1.7% |
|---|
| Asia Cement Corp ($ASCD) | | -7.3% | 10.0% | 10.7% | -14.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 37.8% | 46.5% | 24.5% | 21.7% | 51.7% |
| Swp Group ($SWP) | 39.2% | 43.0% | 48.1% | 39.2% | 49.7% |
| Heath(Samuel)& Sons ($HSM) | 49.2% | 49.5% | 47.3% | 48.6% | 47.6% |
| James Halstead ($JHD) | | 41.2% | 41.6% | 41.0% | 41.7% |
| Michelmersh Brick Hldgs ($MBH) | 29.9% | 35.3% | 28.4% | 31.1% | 38.2% |
| |
|---|
| Median (20 companies) | 25.6% | 25.4% | 25.2% | 27.0% | 29.7% |
|---|
| Asia Cement Corp ($ASCD) | 16.5% | 9.6% | 12.9% | 14.3% | 10.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucky Cement Ltd ($LKCS) | 25.0% | 31.5% | 26.8% | 24.4% | 26.5% |
| James Halstead ($JHD) | | 20.2% | 19.8% | 20.1% | 20.9% |
| Michelmersh Brick Hldgs ($MBH) | 11.8% | 10.6% | 7.9% | 14.1% | 20.3% |
| LSR Group OJSC ($LSRG) | 19.8% | 20.2% | 19.5% | 22.9% | 19.3% |
| Swp Group ($SWP) | 7.4% | 8.7% | 7.4% | 9.7% | 14.6% |
| |
|---|
| Median (22 companies) | 7.9% | 8.5% | 7.3% | 9.5% | 9.6% |
|---|
| Asia Cement Corp ($ASCD) | 20.2% | 13.5% | 16.3% | 18.3% | 14.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 15.9% | 74.2% | 5.4% | 12.8% | 54.9% |
| Lucky Cement Ltd ($LKCS) | 7.3% | 3.2% | 5.2% | 6.9% | 12.0% |
| Billington Hldgs ($BILN) | 3.6% | 1.0% | 1.1% | 2.9% | 10.8% |
| Low & Bonar ($BD46) | | 3.5% | 2.8% | 4.6% | 9.1% |
| Superglass Hldgs ($SPGH) | 6.4% | 12.9% | 14.2% | 3.4% | 7.9% |
| |
|---|
| Median (22 companies) | 2.1% | 2.1% | 2.4% | 2.4% | 2.6% |
|---|
| Asia Cement Corp ($ASCD) | 4.0% | 6.0% | 12.1% | 5.4% | 5.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| James Halstead ($JHD) | | 49.3% | 46.2% | 46.7% | 45.3% |
| Alumasc Group ($ALU) | 12.6% | 6.5% | 17.5% | 22.6% | 36.0% |
| Heath(Samuel)& Sons ($HSM) | 8.1% | 9.7% | 8.7% | 19.7% | 32.0% |
| Aukett Swanke Group ($AUK) | -41.2% | 2.7% | 11.4% | 27.3% | 31.6% |
| Lucky Cement Ltd ($LKCS) | 13.5% | 23.8% | 22.9% | 20.3% | 20.0% |
| |
|---|
| Median (22 companies) | 5.7% | 4.8% | 7.5% | 7.4% | 8.3% |
|---|
| Asia Cement Corp ($ASCD) | 5.2% | 2.3% | 3.0% | 3.1% | 1.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Crh ($CRH) | | 2.0x | 3.6x | 1.6x | 3.1x |
| Low & Bonar ($BD46) | | 2.7x | 2.1x | 2.1x | 2.4x |
| Saint-Gobain(Compagnie De) ($COD) | 1.8x | 2.1x | 2.0x | 2.1x | 1.4x |
| Kingspan Group ($KGP) | 1.4x | 1.2x | 0.6x | 0.8x | 1.1x |
| Swp Group ($SWP) | 2.2x | 1.8x | 2.2x | 1.0x | 0.9x |
| |
|---|
| Median (18 companies) | 1.2x | 1.4x | 0.6x | 0.4x | -0.2x |
|---|
| Asia Cement Corp ($ASCD) | 4.3x | 7.8x | 6.9x | 6.8x | 8.6x |
