China Technology Solar Power Holdings Ltd Net Income surged on 195% in 2015 and Revenue jumped on 52.1%
23/06/2015 • About China Technology Solar Power Holdings Ltd (
$8111) • By InTwits
China Technology Solar Power Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 30.7% in FY2015 vs. 16.3% in FY2014 vs. -66.3% in FY2011
- China Technology Solar Power Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 0.48 in FY2015, 0.78 in FY2014, 0.038 in FY2013, 1.7 in FY2012, 1.4 in FY2011
- The company has business model with low profitability: ROIC is at 9.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Technology Solar Power Holdings Ltd ($8111) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 31.9 | 31.9 | 52.3 | 74.5 | 113.3 | 52.1% |
| Gross Profit | 8.5 | 7.5 | 18.0 | 27.7 | 44.3 | 59.9% |
| SG&A | | | 17.1 | 15.9 | 14.3 | -10.2% |
| EBITDA | -21.1 | -25.6 | 5.4 | 12.2 | 34.8 | 186.2% |
| Net Income | -36.4 | -49.7 | 0.6 | 10.1 | 29.7 | 194.8% |
Balance Sheet
|
|---|
| Cash | 43.2 | 3.8 | 7.6 | 5.5 | 43.8 | 689.1% |
| Short Term Debt | 24.5 | 7.2 | 13.6 | 16.1 | 19.8 | 22.9% |
| Long Term Debt | 0.0 | 44.8 | 34.5 | 29.1 | 32.5 | 12.0% |
Cash flow
|
|---|
| Capex | 1.4 | 1.7 | 0.0 | 0.8 | 0.5 | -38.5% |
Ratios
|
|---|
| Revenue growth | 14.0% | 0.2% | 63.9% | 42.3% | 52.1% | |
| EBITDA growth | 2.2% | 21.3% | -121.2% | 123.8% | 186.2% | |
| Gross Margin | 26.5% | 23.6% | 34.4% | 37.2% | 39.1% | 1.9% |
| EBITDA Margin | -66.3% | -80.3% | 10.4% | 16.3% | 30.7% | 14.4% |
| Net Income Margin | -114.0% | -155.6% | 1.1% | 13.5% | 26.2% | 12.7% |
| SG&A, % of revenue | | | 32.8% | 21.4% | 12.6% | -8.8% |
| CAPEX, % of revenue | 4.3% | 5.2% | 0.1% | 1.0% | 0.4% | -0.6% |
| ROIC | -22.8% | -12.6% | 0.3% | 3.9% | 9.7% | 5.8% |
| ROE | -47.3% | -31.4% | 0.3% | 4.2% | 10.7% | 6.4% |
| Net Debt/EBITDA | | | 7.4x | 3.3x | 0.2x | -3.0x |
Revenue and profitability
The company's Revenue surged on 52.1% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.0 pp from -10.9% to -16.9% in 2015.
Gross Margin increased slightly on 1.9 pp from 37.2% to 39.1% in FY2015. SG&A as a % of Revenue decreased on 8.8 pp from 21.4% to 12.6% in FY2015.
Net Income marign surged on 12.7 pp from 13.5% to 26.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.42% in FY2015. The company's CAPEX/Revenue decreased on 4.8 pp from 5.2% in FY2012 to 0.42% in FY2015. It's average level of CAPEX/Revenue for the last three years was 0.51%.
Return on investment
The company operates at low ROIC (9.75%) and ROE (10.66%). ROIC increased on 5.8 pp from 3.9% to 9.7% in FY2015. ROE increased on 6.4 pp from 4.2% to 10.7% in FY2015.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA dropped on 3.0x from 3.3x to 0.2x in FY2015. Debt jumped on 15.9% in FY2015 while cash surged on 689% in FY2015.
Appendix 1: Peers in Software
Below we provide China Technology Solar Power Holdings Ltd benchmarking against other companies in Software 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 |
|---|
| Pizu Group Holdings Ltd ($8053) | -55.1% | 40.3% | -42.9% | 1,742.9% | |
| China City Railway Transportation Technology Holdings Co Ltd ($1522) | 194.6% | 164.0% | 33.6% | 100.5% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | -16.7% | 393.7% | -6.6% | 92.2% | |
| Epicurean and Co Ltd ($8213) | | 177.0% | 185.7% | 62.6% | 22.0% |
| China Bio Cassava Holdings Ltd ($8129) | -15.0% | -14.2% | 38.8% | 55.1% | |
| |
|---|
| Median (30 companies) | 18.5% | 10.6% | 11.1% | 20.9% | 25.2% |
|---|
| China Technology Solar Power Holdings Ltd ($8111) | | 0.2% | 63.9% | 42.3% | 52.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.2% | 90.4% | 97.4% | 98.4% | |
| NetDragon Websoft Inc ($777) | 90.1% | 93.4% | 90.8% | 89.3% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | 19.4% | 6.5% | 45.3% | 84.8% | |
| Kingdee International Software Group Co Ltd ($268) | 70.1% | 65.0% | 75.3% | 82.5% | |
| Kingsoft Corp Ltd ($3888) | 85.5% | 86.8% | 86.3% | 82.4% | |
| |
|---|
| Median (29 companies) | 43.5% | 40.0% | 38.6% | 33.0% | 41.5% |
|---|
| China Technology Solar Power Holdings Ltd ($8111) | 26.5% | 23.6% | 34.4% | 37.2% | 39.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sinosoft Technology Group Ltd ($1297) | 55.5% | 62.6% | 54.9% | 57.2% | |
| International Entertainment Corp ($1009) | 235.1% | 50.8% | 64.0% | 54.9% | 62.0% |
| Microsoft Corp ($4338) | 42.8% | 33.5% | 39.2% | 38.0% | |
| Kingdee International Software Group Co Ltd ($268) | 19.5% | 7.8% | 33.2% | 37.2% | |
| TravelSky Technology Ltd ($696) | 43.3% | 38.1% | 35.8% | 31.9% | |
| |
|---|
| Median (30 companies) | 10.3% | 7.8% | 10.9% | 5.4% | 5.7% |
|---|
| China Technology Solar Power Holdings Ltd ($8111) | -66.3% | -80.3% | 10.4% | 16.3% | 30.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NetDragon Websoft Inc ($777) | 13.3% | 21.1% | 34.6% | 54.6% | |
| China Eco-Farming Ltd ($8166) | 0.3% | 0.6% | 0.7% | 18.1% | |
| TravelSky Technology Ltd ($696) | 5.8% | 8.9% | 21.7% | 18.1% | |
| Kingsoft Corp Ltd ($3888) | 6.8% | 4.3% | 3.8% | 14.3% | |
| Sing Lee Software Group Ltd ($8076) | 19.4% | 3.3% | 0.2% | 14.0% | |
| |
|---|
| Median (29 companies) | 2.4% | 1.4% | 2.8% | 3.6% | 2.1% |
|---|
| China Technology Solar Power Holdings Ltd ($8111) | 4.3% | 5.2% | 0.1% | 1.0% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Microsoft Corp ($4338) | 43.4% | 28.6% | 30.3% | 26.2% | |
| Sinosoft Technology Group Ltd ($1297) | 31.6% | 34.0% | 21.9% | 20.2% | |
| Boyaa Interactive International Ltd ($434) | 100.4% | 75.3% | 21.3% | 20.0% | |
| ITE Holdings Ltd ($8092) | -19.6% | -15.0% | 10.6% | 16.8% | 19.8% |
| TravelSky Technology Ltd ($696) | 16.2% | 15.0% | 13.8% | 12.5% | |
| |
|---|
| Median (30 companies) | 4.9% | 1.4% | 4.7% | -2.4% | 0.0% |
|---|
| China Technology Solar Power Holdings Ltd ($8111) | -22.8% | -12.6% | 0.3% | 3.9% | 9.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pizu Group Holdings Ltd ($8053) | | | | 346.1x | |
| Epicurean and Co Ltd ($8213) | 2.9x | 2.3x | 4.7x | 12.3x | 12.0x |
| Sing Lee Software Group Ltd ($8076) | | | | 6.2x | |
| Chinasoft International Ltd ($354) | -1.3x | -0.7x | 0.7x | 1.5x | |
| Kingdee International Software Group Co Ltd ($268) | -0.1x | 5.0x | 1.1x | 0.5x | |
| |
|---|
| Median (18 companies) | -0.9x | -0.7x | -1.4x | -1.0x | -2.8x |
|---|
| China Technology Solar Power Holdings Ltd ($8111) | | | 7.4x | 3.3x | 0.2x |
