Zibao Metals Recycling Hldgs Ltd EBITDA jumped on 94.9% and EBITDA Margin showed almost no change
18 Sep 2018 • About Zibao Metals Recycling Hldgs Ltd (
$ZBO) • By InTwits
Zibao Metals Recycling Hldgs Ltd reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Zibao Metals Recycling Hldgs Ltd is a growth stock: FY2018 revenue growth was 6.0%, 5 year revenue CAGR was 14.5% at FY2018 ROIC 2.7%
- EBITDA Margin is quite volatile: 0.4% in FY2018, 0.2% in FY2017, 0.3% in FY2016, 2.7% in FY2015, 1.7% in FY2014
- Zibao Metals Recycling Hldgs Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.0%.
- The company has potentially unprofitable business model: ROIC is 2.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Zibao Metals Recycling Hldgs Ltd's Revenue increased on 6.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 23.8 pp from -6.7% to 17.0% in FY2018.
Gross Margin showed almost no change in FY2018. Gross Margin declined at -1.1 pp per annum in FY2014-FY2018. SG&A as a % of Revenue showed almost no change in FY2018. SG&A as a % of Revenue declined at -0.63 pp per annum in FY2014-FY2018.
Net Income margin showed almost no change in FY2018.
Return on investment
The company operates at low ROIC (2.7%) and ROE (2.6%). ROIC increased slightly on 1.6 pp from 1.1% to 2.7% in FY2018. ROE increased slightly on 0.99 pp from 1.6% to 2.6% in FY2018. During FY2014-FY2018 ROIC bottomed in FY2016 at 0.88% and was growing since that time. During FY2014-FY2018 ROE bottomed in FY2016 at 0.94% and was growing since that time.
Leverage (Debt)
The company has no debt. Cash jumped on 853%.
Financial and operational results
FY ended 31 Mar 2018
Zibao Metals Recycling Hldgs Ltd ($ZBO) key annual financial indicators| mln. HKD | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 443.6 | 403.8 | 497.0 | 808.9 | 857.1 | 6.0% |
| Gross Profit | 22.7 | 17.6 | 8.4 | 8.1 | 9.3 | 14.8% |
| SG&A | 15.1 | 8.6 | 8.6 | 7.3 | 7.5 | 2.0% |
| EBITDA | 7.6 | 11.0 | 1.7 | 1.8 | 3.5 | 94.9% |
| Net Income | 5.9 | 7.7 | 0.6 | 1.0 | 1.7 | 64.5% |
Balance Sheet
|
|---|
| Cash | 6.0 | 1.1 | 5.3 | 1.3 | 12.3 | 853.0% |
| Short Term Debt | 0.0 | 3.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.0 | 0.0 | 0.1 | 0.0 | 0.0 | -100.0% |
Ratios
|
|---|
| Revenue growth | 1.7% | -9.0% | 23.1% | 62.8% | 6.0% | |
| EBITDA growth | -53.1% | 43.6% | -84.8% | 7.1% | 94.9% | |
|
|---|
| Gross Margin | 5.1% | 4.4% | 1.7% | 1.0% | 1.1% | 0.1% |
| EBITDA Margin | 1.7% | 2.7% | 0.3% | 0.2% | 0.4% | 0.2% |
| SG&A, % of revenue | 3.4% | 2.1% | 1.7% | 0.9% | 0.9% | -0.0% |
| Net Income Margin | 1.3% | 1.9% | 0.1% | 0.1% | 0.2% | 0.1% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | |
|
|---|
| ROIC | 55.8% | 26.6% | 0.9% | 1.1% | 2.7% | 1.6% |
| ROE | 71.5% | 20.5% | 0.9% | 1.6% | 2.6% | 1.0% |
| Net Debt/EBITDA | -0.8x | 0.2x | -3.2x | -0.7x | -3.5x | -2.8x |
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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ezz Steel ($AEZD) | -8.9% | -14.2% | 39.3% | 80.0% | |
| Magnitogorsk Iron & Steel Works ($MMK) | | -26.6% | -3.6% | 34.0% | |
| Norsk Hydro Asa ($NHY) | 20.1% | 12.6% | -6.5% | 33.3% | |
| Severstal PJSC ($SVST) | -12.1% | -22.9% | -7.5% | 32.7% | |
| Novolipetsk Iron And Steel Corp ($NLMK) | -4.7% | -23.0% | -4.6% | 31.8% | |
| |
|---|
| Median (13 companies) | 5.2% | -14.2% | -4.6% | 29.5% | 22.4% |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | | -9.0% | 23.1% | 62.8% | 6.0% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 52.2% | 55.7% | 49.9% | 49.7% | |
| Severstal PJSC ($SVST) | 34.4% | 40.4% | 39.6% | 39.7% | |
| Base Resources Ltd ($BSE) | 11.8% | 21.2% | 21.0% | 35.9% | 39.7% |
| Novolipetsk Iron And Steel Corp ($NLMK) | 28.3% | 31.4% | 33.6% | 32.5% | |
| Magnitogorsk Iron & Steel Works ($MMK) | 21.9% | 30.6% | 32.2% | 30.2% | |
| |
|---|
| Median (11 companies) | 19.5% | 20.5% | 21.0% | 27.9% | 39.7% |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | 5.1% | 4.4% | 1.7% | 1.0% | 1.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Base Resources Ltd ($BSE) | -2.0% | 37.7% | 35.8% | 50.9% | 54.9% |
| Mmc Norilsk Nickel ($MNOD) | 46.8% | 47.0% | 46.5% | 41.2% | |
| Severstal PJSC ($SVST) | 26.4% | 32.4% | 31.2% | 32.6% | |
| First Quantum Minerals ($FQM) | 39.9% | 17.8% | 36.1% | 32.5% | |
| Magnitogorsk Iron & Steel Works ($MMK) | 19.5% | 28.3% | 34.5% | 26.5% | |
| |
|---|
| Median (13 companies) | 13.0% | 17.3% | 20.7% | 24.0% | 54.9% |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | 1.7% | 2.7% | 0.3% | 0.2% | 0.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| First Quantum Minerals ($FQM) | 81.7% | 72.5% | 56.0% | 60.9% | |
| Aluminium Bahrain Bsc ($ALBH) | 6.2% | 6.3% | 16.1% | 54.2% | |
| Mmc Norilsk Nickel ($MNOD) | 10.8% | 19.0% | 20.2% | 21.2% | |
| Magnitogorsk Iron & Steel Works ($MMK) | 6.3% | 6.0% | 8.2% | 8.8% | |
| Severstal PJSC ($SVST) | 8.4% | 6.4% | 8.4% | 7.1% | |
| |
|---|
| Median (13 companies) | 6.4% | 6.3% | 6.7% | 6.3% | 55.8% |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Severstal PJSC ($SVST) | 17.7% | 30.3% | 29.7% | 38.8% | |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 25.6% | 24.4% | 24.3% | 31.0% | |
| Magnitogorsk Iron & Steel Works ($MMK) | 9.1% | 18.1% | 26.7% | 24.4% | |
| Mmc Norilsk Nickel ($MNOD) | 34.1% | 31.7% | 28.7% | 23.8% | |
| Novolipetsk Iron And Steel Corp ($NLMK) | 12.0% | 15.7% | 17.5% | 22.3% | |
| |
|---|
| Median (14 companies) | 5.9% | 5.4% | 5.5% | 10.1% | 17.1% |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | 55.8% | 26.6% | 0.9% | 1.1% | 2.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| First Quantum Minerals ($FQM) | 4.0x | 10.5x | 4.5x | 5.2x | |
| OAO TMK ($TMKS) | 3.8x | 4.3x | 5.2x | 4.8x | |
| Ezz Steel ($AEZD) | 19.4x | 13.3x | 7.8x | 4.5x | |
| Aluminium Bahrain Bsc ($ALBH) | 0.4x | -0.2x | -0.1x | 2.5x | |
| Posco ($PIDD) | 3.7x | 3.6x | 3.4x | 2.3x | |
| |
|---|
| Median (13 companies) | 1.2x | 1.1x | 0.9x | 1.4x | 0.5x |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | -0.8x | 0.2x | -3.2x | -0.7x | -3.5x |
