Eye on Hanergy Thin Film Power Group Ltd as a growth stock: its revenue grew 55.3% and EBITDA 52.8% annually over the last three years
06/04/2015 • About Hanergy Thin Film Power Group Ltd (
$566) • By InTwits
Hanergy Thin Film Power Group Ltd is an attractive growth stock in Semiconductors industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Hanergy Thin Film Power Group Ltd showed growth in the last financial year. Hanergy Thin Film Power Group Ltd's revenue surged on 193% in FY2014. At the same time Hanergy Thin Film Power Group Ltd well managed its profitability and also showed EBITDA growth of 73.3% for the same period.
In the last 3 years the company showed fast revenue growth of 55.3% from 2011 to 2014 annualy. EBITDA surged on 52.8% from 2011 to 2014 annualy.
Hanergy Thin Film Power Group Ltd ($566) financials for the last 5 years
| mln. HKD | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 3,019 | 2,565 | 2,756 | 3,284 | 9,615 |
|---|
| Revenue growth, % | | -15.1% | 7.5% | 19.1% | 192.8% |
|---|
| Gross margin, % | 66.4% | 62.8% | 71.4% | 80.3% | 57.3% |
|---|
| SG&A, % | 13.2% | 4.65% | 3.43% | 7.34% | 11.2% |
|---|
| EBITDA | 1,861 | 1,179 | 1,818 | 2,427 | 4,206 |
|---|
| EBITDA growth, % | | -36.6% | 54.1% | 33.5% | 73.3% |
|---|
| EBITDA margin, % | 61.6% | 46.0% | 66.0% | 73.9% | 43.7% |
|---|
| Net Income | 1,185 | 719 | 1,316 | 2,018 | 3,204 |
|---|
| Net Income margin, % | 39.2% | 28.0% | 47.7% | 61.5% | 33.3% |
|---|
| |
| CAPEX | 95 | 93 | 35 | 92 | 460 |
|---|
| CAPEX/Revenue, % | 3.16% | 3.64% | 1.29% | 2.79% | 4.79% |
|---|
| Debt | 2,072 | 729 | 790 | 1,120 | 1,400 |
|---|
| Cash | 891 | 285 | 708 | 1,368 | 3,057 |
|---|
| Net Debt/EBITDA | 0.6x | 0.4x | 0.0x | -0.1x | -0.4x |
|---|
| |
| ROIC, % | 17.5% | 9.3% | 14.1% | 15.1% | 19.3% |
|---|
| ROE, % | 16.7% | 7.7% | 11.9% | 14.6% | 17.6% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the longer period the company showed decline of 2.30 pp from 46% in 2011 to 43.7% in 2014.
We call Hanergy Thin Film Power Group Ltd an attractive growth stock as together with the growth it delivers high ROIC at 19.3%. During the last three years it surged - it was 9.34% in FY2011. For the last three years the average ROIC was 16.2%.
The company's Net Income margin dropped on 28.2 pp from 61.5% to 33.3% in 2014. In the longer period the company showed fast Net Income margin growth of 5.30 pp from 28% in 2011 to 33.3% in 2014.
Hanergy Thin Film Power Group Ltd operates at ROE of 17.6%. It's average ROE for the last three years was 14.7%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 4.79% in FY2014. The company showed fast CAPEX/Revenue growth of 1.14 pp from 3.64% in 2011 to 4.79% in 2014. It's average CAPEX/Revenue for the last three years was 2.95%.
Leverage (Debt)
Hanergy Thin Film Power Group Ltd has negative net debt at -0.4x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period the company's leverage dropped on 0.77x from 0.38x in 2011 to -0.39x in 2014.
Peers in Semiconductors
Below you can find Hanergy Thin Film Power Group Ltd benchmarking vs. other companies in Semiconductors 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Honbridge Holdings Ltd ($8137) | | 3,428.4% | -76.4% | -97.5% | 608.9% |
| Shunfeng International Clean Energy Ltd ($1165) | | 216.5% | -46.3% | 44.4% | 275.6% |
| Phoenitron Holdings Ltd ($8066) | | -8.8% | -7.2% | 4.0% | 243.8% |
| China Jinhai International Group Ltd ($139) | | -40.5% | | | 140.3% |
| Solargiga Energy Holdings Ltd ($757) | | 38.8% | -61.3% | 115.7% | 33.2% |
| |
|---|
| Median (18 companies) | | 3.6% | -15.7% | 3.6% | 11.1% |
|---|
| Hanergy Thin Film Power Group Ltd ($566) | | -15.1% | 7.5% | 19.1% | 192.8% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Heng Xin China Holdings Ltd ($8046) | 40.3% | 46.3% | 42.1% | 57.6% | 75.0% |
| China Jinhai International Group Ltd ($139) | 51.2% | -92.8% | | -7.8% | 73.3% |
| PacMOS Technologies Holdings Ltd ($1010) | 65.2% | 68.1% | 68.8% | 65.7% | 65.7% |
| Intel Corp ($4335) | 65.3% | 62.5% | 62.1% | 59.8% | 63.7% |
| Jun Yang Solar Power Investments Ltd ($397) | | -2.4% | 87.3% | 79.3% | 53.8% |
| |
|---|
| Median (19 companies) | 31.3% | 18.6% | 22.8% | 26.5% | 34.6% |
|---|
| Hanergy Thin Film Power Group Ltd ($566) | 66.4% | 62.8% | 71.4% | 80.3% | 57.3% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 16.3% | 13.4% | 9.1% | 37.2% | 88.0% |
| Intel Corp ($4335) | 46.4% | 43.6% | 41.5% | 38.6% | 42.8% |
| Shunfeng International Clean Energy Ltd ($1165) | 18.2% | 5.9% | -11.8% | 9.5% | 40.5% |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 30.6% | 22.4% | 26.5% | 23.9% | 25.4% |
| Applied Materials Inc ($4336) | 17.7% | 25.1% | 9.6% | 11.2% | 20.9% |
| |
|---|
| Median (19 companies) | 18.2% | 10.2% | 5.7% | 5.9% | -3.4% |
|---|
| Hanergy Thin Film Power Group Ltd ($566) | 61.6% | 46.0% | 66.0% | 73.9% | 43.7% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Jun Yang Solar Power Investments Ltd ($397) | 14,411.5% | 390.5% | 671.1% | 25.9% | 78.9% |
| Han Tang International Holdings Ltd ($1187) | 2.5% | 1.8% | | | 55.2% |
| Comtec Solar Systems Group Ltd ($712) | 0.7% | 22.2% | | 30.2% | 18.7% |
| Intel Corp ($4335) | 11.9% | 19.9% | 20.7% | 20.3% | 18.1% |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 7.2% | 8.3% | 4.7% | 11.0% | 14.2% |
| |
|---|
| Median (19 companies) | 4.9% | 8.3% | 4.6% | 7.6% | 6.6% |
|---|
| Hanergy Thin Film Power Group Ltd ($566) | 3.2% | 3.6% | 1.3% | 2.8% | 4.8% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| ASM Pacific Technology Ltd ($522) | 69.6% | 52.1% | 12.3% | 9.2% | 21.9% |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 30.0% | 22.2% | 25.5% | 22.7% | 21.1% |
| Intel Corp ($4335) | 32.3% | 32.4% | 23.7% | 17.1% | 20.6% |
| Shunfeng International Clean Energy Ltd ($1165) | 23.8% | 5.9% | -13.0% | 1.5% | 17.4% |
| Applied Materials Inc ($4336) | 18.4% | 25.6% | 4.0% | 4.6% | 15.9% |
| |
|---|
| Median (19 companies) | 15.8% | 2.7% | -2.3% | -1.0% | -2.1% |
|---|
| Hanergy Thin Film Power Group Ltd ($566) | 17.5% | 9.3% | 14.1% | 15.1% | 19.3% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Shunfeng International Clean Energy Ltd ($1165) | 2.1x | 8.2x | | 25.8x | 3.4x |
| Solargiga Energy Holdings Ltd ($757) | 1.3x | 5.9x | | 13.8x | 4.4x |
| Han Tang International Holdings Ltd ($1187) | 12.8x | | | 11.3x | |
| China Ruifeng Renewable Energy Ltd ($527) | 2.4x | 4.0x | 16.4x | 6.9x | 4.9x |
| Heng Xin China Holdings Ltd ($8046) | 0.6x | -0.0x | 0.3x | 2.4x | |
| |
|---|
| Median (12 companies) | -0.3x | -0.4x | -0.1x | 0.8x | 0.5x |
|---|
| Hanergy Thin Film Power Group Ltd ($566) | 0.6x | 0.4x | 0.0x | -0.1x | -0.4x |
