Haike Chemical Group Ltd revenue dropped on 25.3% in 2015
31 May 2016 • About Haike Chemical Group Ltd (
$HAIK) • By InTwits
Haike Chemical Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Haike Chemical Group Ltd is a company in decline: 2015 revenue growth was -25.3%, 5 years revenue CAGR was -39.9%
- Haike Chemical Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 12.8 in 2015, 22.8 in 2014, 9.3 in 2013, 13.8 in 2012, 479 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Haike Chemical Group Ltd ($HAIK) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 13,618 | 959 | 982 | 973 | 728 | -25.3% |
| Gross Profit | 498 | 87 | 111 | 104 | 84 | -18.7% |
| SG&A | | | | 70 | 76 | 8.9% |
| EBITDA | 474 | 64 | 58 | | 35 | |
| Net Income | -7 | -282 | -710 | -327 | 4 | -101.2% |
Balance Sheet
|
|---|
| Cash | 210 | 286 | 125 | 39 | 35 | -10.1% |
| Short Term Debt | 3,239 | 6,007 | 393 | 703 | 80 | -88.6% |
| Long Term Debt | 614 | 480 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 479 | 14 | 9 | 23 | 13 | -43.7% |
Ratios
|
|---|
| Revenue growth | 46.5% | -93.0% | 2.4% | -0.8% | -25.3% | |
| EBITDA growth | 46.1% | -86.5% | -9.0% | | | |
| Gross Margin | 3.7% | 9.0% | 11.3% | 10.7% | 11.6% | 0.9% |
| EBITDA Margin | 3.5% | 6.7% | 5.9% | 0.0% | 4.8% | 4.8% |
| Net Income Margin | -0.1% | -29.4% | -72.3% | -33.6% | 0.6% | 34.1% |
| SG&A, % of revenue | | | | 7.2% | 10.4% | 3.3% |
| CAPEX, % of revenue | 3.5% | 1.4% | 1.0% | 2.3% | 1.8% | -0.6% |
| ROIC | 7.7% | 0.7% | 1.0% | 31.4% | 1.8% | -29.6% |
| ROE | -4.3% | | | | 3.8% | 3.8% |
| Net Debt/EBITDA | 7.7x | 97.2x | 4.6x | | 1.3x | 1.3x |
Revenue and profitability
The company's Revenue dropped on 25.3% in 2015.
Gross Margin increased slightly on 0.93 pp from 10.7% to 11.6% in 2015. SG&A as a % of Revenue increased on 3.3 pp from 7.2% to 10.4% in 2015.
Net Income marign surged on 34.1 pp from -33.6% to 0.56% in 2015.
Capital expenditures (CAPEX) and working capital investments
Haike Chemical Group Ltd's CAPEX/Revenue was 1.8% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 1.7%.
Return on investment
The company operates at low ROIC (1.80%) and ROE (3.83%). ROIC dropped on 29.6 pp from 31.4% to 1.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 2.3x. Net Debt / EBITDA jumped1.3x from to 1.3x in 2015. Debt dropped on 88.6% in 2015 while cash dropped on 10.1% in 2015.
Valuation
The company's trades at EV/EBITDA 1.4x and P/E 1.1x while industy averages are 10.5x and 26.1x. Haike Chemical Group Ltd's EV/(EBITDA-CAPEX) is 2.2x with the industry average at 4.7x.
Appendix 1: Peers in Oil & Gas Producers
Below we provide Haike Chemical Group Ltd benchmarking against other companies in Oil & Gas Producers 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cadogan Petroleum ($CAD) | | -46.1% | 0.3% | 764.9% | 131.2% |
| Eland Oil & Gas ($ELA) | | | | | 54.8% |
| Zoltav Resources Inc ($ZOL) | | | | | 40.6% |
| Novatek OAO ($NVTK) | | 19.8% | 41.3% | 20.0% | 32.9% |
| AO Tatneft ($ATAD) | | | 2.5% | 4.7% | 16.0% |
| |
|---|
| Median (34 companies) | -11.6% | 17.1% | 4.3% | 0.5% | -18.6% |
|---|
| Haike Chemical Group Ltd ($HAIK) | | -93.0% | 2.4% | -0.8% | -25.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bankers Petroleum Ltd ($BNK) | 77.9% | 77.5% | 81.1% | 80.8% | 72.2% |
| Serica Energy ($SQZ) | 5.4% | | | | 67.0% |
| Oil & Gas Development Co ($OGDC) | 66.0% | 69.9% | 70.9% | 68.5% | 62.7% |
| Caza Oil & Gas Inc ($CAZA) | 3.0% | 0.1% | 30.5% | 40.8% | 44.8% |
| Ithaca Energy Inc ($IAE) | 26.3% | 22.5% | 23.4% | -2.9% | 39.5% |
| |
|---|
| Median (19 companies) | 17.5% | 18.3% | 21.7% | 17.4% | 11.3% |
|---|
| Haike Chemical Group Ltd ($HAIK) | 3.7% | 9.0% | 11.3% | 10.7% | 11.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Eastern Energy Corp ($GEEC) | 48.7% | 61.2% | 64.1% | 70.4% | 66.5% |
| Oil & Gas Development Co ($OGDC) | 67.6% | 73.7% | 65.9% | 69.3% | 62.4% |
| Serica Energy ($SQZ) | 39.9% | | | | 61.3% |
| Caza Oil & Gas Inc ($CAZA) | -79.5% | -50.7% | -3.0% | 47.7% | 49.8% |
| Bg Group ($BG.) | 52.4% | 46.6% | 34.3% | 5.4% | 39.0% |
| |
|---|
| Median (35 companies) | 11.8% | 17.2% | 20.6% | 15.9% | 11.5% |
|---|
| Haike Chemical Group Ltd ($HAIK) | 3.5% | 6.7% | 5.9% | | 4.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| President Energy ($PPC) | 142.6% | 51.5% | 24.6% | 10.4% | 142.7% |
| Ruspetro ($RPO) | 83.5% | 139.8% | 55.2% | 77.2% | 80.3% |
| Parkmead Group(The) ($PMG) | 2.9% | 6.4% | 85.4% | 39.8% | 67.4% |
| Bankers Petroleum Ltd ($BNK) | 88.0% | 64.1% | 50.0% | 58.7% | 47.3% |
| Volga Gas ($VGAS) | 2.7% | | | 14.0% | 45.5% |
| |
|---|
| Median (35 companies) | 14.6% | 17.7% | 24.6% | 16.5% | 16.6% |
|---|
| Haike Chemical Group Ltd ($HAIK) | 3.5% | 1.4% | 1.0% | 2.3% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | 28.2% | 13.6% | 5.8% | 5.3% | 25.4% |
| Oil & Gas Development Co ($OGDC) | 41.2% | 46.7% | 40.4% | 39.7% | 24.3% |
| AO Tatneft ($ATAD) | | 19.2% | 19.1% | 17.8% | 19.7% |
| Novatek OAO ($NVTK) | 47.4% | 21.7% | 29.0% | 21.2% | 19.4% |
| Serica Energy ($SQZ) | -5.7% | -6.2% | -5.1% | -5.5% | 19.4% |
| |
|---|
| Median (35 companies) | 5.4% | 5.8% | 6.4% | 5.2% | 0.8% |
|---|
| Haike Chemical Group Ltd ($HAIK) | 7.7% | 0.7% | 1.0% | 31.4% | 1.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($JUB) | | 77.9x | 38.8x | 44.6x | 192.7x |
| Ruspetro ($RPO) | | 369.1x | 34.8x | 27.9x | 116.8x |
| Iofina ($IOF) | | -5,718.9x | | | 32.8x |
| Edge Resources Inc ($EDG) | | | | 8.0x | 7.6x |
| BP ($BP.A) | 0.7x | 1.1x | 0.6x | 1.3x | 4.0x |
| |
|---|
| Median (26 companies) | 0.5x | 0.4x | 0.7x | 1.3x | 1.7x |
|---|
| Haike Chemical Group Ltd ($HAIK) | 7.7x | 97.2x | 4.6x | | 1.3x |
