Zibao Metals Recycling Hldgs Ltd reports 84.8% EBITDA decline while 23.1% Revenue growth
21 Sep 2016 • About Zibao Metals Recycling Hldgs Ltd (
$ZBO) • By InTwits
Zibao Metals Recycling Hldgs Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zibao Metals Recycling Hldgs Ltd doesn't have a profitable business model yet: FY2016 ROIC is 0.9%
- EBITDA Margin is quite volatile: 0.3% in FY2016, 2.7% in FY2015, 1.7% in FY2014, 3.7% in FY2013, 4.0% in FY2012
- Zibao Metals Recycling Hldgs Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.0%.
- The company has potentially unprofitable business model: ROIC is at 0.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zibao Metals Recycling Hldgs Ltd ($ZBO) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 403.4 | 436.3 | 443.6 | 403.8 | 497.0 | 23.1% |
| Gross Profit | 20.4 | 20.8 | 22.7 | 17.6 | 8.4 | -52.1% |
| SG&A | | | 15.1 | 8.6 | 8.6 | -0.5% |
| EBITDA | 16.3 | 16.3 | 7.6 | 11.0 | 1.7 | -84.8% |
| Net Income | 11.9 | 14.1 | 5.9 | 7.7 | 0.6 | -92.1% |
Balance Sheet
|
|---|
| Cash | 5.0 | 5.2 | 6.0 | 1.1 | 5.3 | 379.1% |
| Short Term Debt | 27.1 | 0.6 | 0.0 | 3.0 | 0.0 | -100.0% |
| Long Term Debt | 10.0 | 10.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.3 | 0.1 | 0.0 | 0.0 | 0.1 | |
Ratios
|
|---|
| Revenue growth | 196.8% | 8.2% | 1.7% | -9.0% | 23.1% | |
| EBITDA growth | 292.4% | 0.1% | -53.1% | 43.6% | -84.8% | |
| Gross Margin | 5.1% | 4.8% | 5.1% | 4.4% | 1.7% | -2.7% |
| EBITDA Margin | 4.0% | 3.7% | 1.7% | 2.7% | 0.3% | -2.4% |
| Net Income Margin | 2.9% | 3.2% | 1.3% | 1.9% | 0.1% | -1.8% |
| SG&A, % of revenue | | | 3.4% | 2.1% | 1.7% | -0.4% |
| CAPEX, % of revenue | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| ROIC | 41.7% | 56.6% | 55.8% | 26.6% | 0.9% | -25.7% |
| ROE | 435.1% | 298.1% | 71.5% | 20.5% | 0.9% | -19.6% |
| Net Debt/EBITDA | 2.0x | 0.3x | -0.8x | 0.2x | -3.2x | -3.3x |
Revenue and profitability
Zibao Metals Recycling Hldgs Ltd's Revenue surged on 23.1% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 24.4% to 27.7% in FY2016.
Gross Margin decreased on 2.7 pp from 4.4% to 1.7% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased slightly on 1.8 pp from 1.9% to 0.12% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.019% in FY2016. Zibao Metals Recycling Hldgs Ltd's CAPEX/Revenue showed almost no change from FY2013 to FY2016.
Return on investment
The company operates at low ROIC (0.88%) and ROE (0.94%). ROIC dropped on 25.7 pp from 26.6% to 0.88% in FY2016. ROE dropped on 19.6 pp from 20.5% to 0.94% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash jumped on 379% in FY2016.
Appendix 1: Peers in Industrial Metals & Mining
Below we provide Zibao Metals Recycling Hldgs Ltd benchmarking against other companies in Industrial Metals & 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 |
|---|
| Base Resources Ltd ($BSE) | | | | 399.7% | 16.2% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 2.4% | -0.1% | 26.4% | 45.5% | |
| Norsk Hydro Asa ($NHY) | -10.2% | 1.1% | 20.1% | 12.6% | |
| Afarak Group ($AFRK) | -19.2% | 5.4% | 27.4% | 8.7% | |
| Vimetco Nv ($VICO) | -13.4% | -6.5% | -12.8% | -5.3% | |
| |
|---|
| Median (15 companies) | -9.0% | -1.4% | 1.5% | -14.2% | 16.2% |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | | 8.2% | 1.7% | -9.0% | 23.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 49.1% | 43.4% | 52.2% | 55.7% | |
| Severstal PJSC ($SVST) | 23.5% | 29.9% | 34.4% | 40.4% | |
| Novolipetsk Iron And Steel Corp ($NLMK) | 23.8% | 19.4% | 28.3% | 31.4% | |
| Magnitogorsk Iron & Steel Works ($MMK) | 15.5% | 14.9% | 21.9% | 30.6% | |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 17.7% | 15.1% | 28.6% | 24.8% | |
| |
|---|
| Median (13 companies) | 16.6% | 15.1% | 19.5% | 20.5% | 21.0% |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | 5.1% | 4.8% | 5.1% | 4.4% | 1.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 38.6% | 29.2% | 46.8% | 47.0% | |
| Base Resources Ltd ($BSE) | | | -1.8% | 37.7% | 35.8% |
| Severstal PJSC ($SVST) | 14.9% | 19.3% | 26.4% | 32.4% | |
| Magnitogorsk Iron & Steel Works ($MMK) | 13.1% | 14.0% | 19.5% | 28.3% | |
| Novolipetsk Iron And Steel Corp ($NLMK) | 15.6% | 13.8% | 21.8% | 24.3% | |
| |
|---|
| Median (15 companies) | 13.3% | 13.8% | 13.0% | 17.3% | 35.8% |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | 4.0% | 3.7% | 1.7% | 2.7% | 0.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| First Quantum Minerals ($FQM) | 46.5% | 73.2% | 81.7% | 72.5% | |
| Mmc Norilsk Nickel ($MNOD) | 22.3% | 17.1% | 10.8% | 19.0% | |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 7.0% | 7.9% | 9.9% | 8.1% | |
| Novolipetsk Iron And Steel Corp ($NLMK) | 12.0% | 6.9% | 5.4% | 7.7% | |
| Ezz Steel ($AEZD) | 2.3% | 3.9% | 6.4% | 6.8% | |
| |
|---|
| Median (15 companies) | 7.0% | 7.7% | 6.4% | 6.3% | 2.9% |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 21.8% | 14.2% | 34.1% | 31.7% | |
| Severstal PJSC ($SVST) | 10.3% | 9.6% | 17.7% | 30.3% | |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 6.2% | -2.7% | 25.6% | 24.4% | |
| Magnitogorsk Iron & Steel Works ($MMK) | 1.8% | 1.4% | 9.1% | 18.1% | |
| Novolipetsk Iron And Steel Corp ($NLMK) | 7.2% | 4.1% | 12.0% | 15.7% | |
| |
|---|
| Median (15 companies) | 5.4% | 4.1% | 7.4% | 5.6% | 2.7% |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | 41.7% | 56.6% | 55.8% | 26.6% | 0.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vimetco Nv ($VICO) | 7.7x | | 10.9x | 14.6x | |
| Ezz Steel ($AEZD) | 4.8x | 3.6x | 19.4x | 13.3x | |
| First Quantum Minerals ($FQM) | 0.0x | 2.5x | 4.0x | 10.5x | |
| Base Resources Ltd ($BSE) | | | | 4.4x | 3.7x |
| OAO TMK ($TMKS) | 3.6x | 3.9x | 3.8x | 4.3x | |
| |
|---|
| Median (14 companies) | 1.9x | 2.1x | 1.2x | 1.1x | 3.7x |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | 2.0x | 0.3x | -0.8x | 0.2x | -3.2x |
