Trony Solar Holdings Co Ltd revenue increased on 5.5% in 2015 while EBITDA Margin decreased on 4.1 pp from -36.9% to -41.0%
19/09/2015 • About Trony Solar Holdings Co Ltd (
$2468) • By InTwits
Trony Solar Holdings Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Trony Solar Holdings Co Ltd doesn't have a profitable business model yet: FY2015 ROIC is -37.7%
- The company operates at negative EBITDA Margin: -41.0%
- Trony Solar Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.3%. At the same time it's in pair with industry average of 33.8%.
- CAPEX is quite volatile: 2.9 in FY2015, 1.2 in FY2014, 32.5 in FY2013, 9.0 in FY2012, 633 in FY2011
- The company has unprofitable business model: ROIC is at -37.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Trony Solar Holdings Co Ltd ($2468) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,962 | 142 | 94 | 110 | 116 | 5.5% |
| Gross Profit | 838 | 28 | 0 | 8 | -10 | -228.6% |
| SG&A | 92 | 75 | 199 | 77 | 65 | -15.7% |
| EBITDA | 808 | -75 | -81 | -41 | -47 | 17.1% |
| Net Income | 544 | -2,596 | -171 | -80 | -71 | -11.6% |
Balance Sheet
|
|---|
| Cash | 1,000 | 500 | 267 | 208 | 154 | -26.1% |
| Short Term Debt | 17 | 51 | 26 | 2 | 0 | -100.0% |
| Long Term Debt | 63 | 28 | 2 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 633 | 9 | 32 | 1 | 3 | 139.2% |
Ratios
|
|---|
| Revenue growth | 45.2% | -92.8% | -33.6% | 16.5% | 5.5% | |
| EBITDA growth | 22.0% | -109.3% | 8.4% | -50.2% | 17.1% | |
| Gross Margin | 42.7% | 19.6% | 0.3% | 7.3% | -8.9% | -16.3% |
| EBITDA Margin | 41.2% | -53.0% | -86.4% | -36.9% | -41.0% | -4.1% |
| Net Income Margin | 27.7% | -1,830.7% | -181.6% | -73.1% | -61.3% | 11.8% |
| SG&A, % of revenue | 4.7% | 53.1% | 211.0% | 70.3% | 56.1% | -14.1% |
| CAPEX, % of revenue | 32.3% | 6.4% | 34.5% | 1.1% | 2.5% | 1.4% |
| ROIC | 30.0% | -4.9% | -23.9% | -23.3% | -37.7% | -14.4% |
| ROE | 29.2% | -145.9% | -44.9% | -30.4% | -37.2% | -6.8% |
| Net Debt/EBITDA | -1.1x | | | | | 0.0x |
Revenue and profitability
The company's Revenue increased on 5.5% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 12.6 pp from -12.8% to -0.22% in FY2015.
Gross Margin dropped on 16.3 pp from 7.3% to -8.9% in FY2015. SG&A as a % of Revenue dropped on 14.1 pp from 70.3% to 56.1% in FY2015.
Net Income marign jumped on 11.8 pp from -73.1% to -61.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Trony Solar Holdings Co Ltd's CAPEX/Revenue was 2.5% in FY2015. The company's CAPEX/Revenue decreased on 3.9 pp from 6.4% in FY2012 to 2.5% in FY2015. Average CAPEX/Revenue for the last three years was 12.7%.
Return on investment
The company operates at negative ROIC (-37.72%) and ROE (-37.23%). ROIC dropped on 14.4 pp from -23.3% to -37.7% in FY2015. ROE decreased on 6.8 pp from -30.4% to -37.2% in FY2015.
Leverage (Debt)
The company paid down all the debt in FY2015. Cash dropped on 26.1% in FY2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Trony Solar Holdings Co Ltd benchmarking against other companies in Electrical Compo&Equip 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 |
|---|
| Enterprise Development Holdings Ltd ($1808) | 225.9% | 2.5% | 37.3% | 83.9% | |
| FDG Electric Vehicles Ltd ($729) | | -23.1% | -7.0% | 54.0% | 270.8% |
| Boer Power Holdings Ltd ($1685) | 11.4% | 20.4% | 10.9% | 51.3% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | -27.0% | -12.0% | 8.7% | 44.1% | |
| CEC International Holdings Ltd ($759) | | 23.9% | 60.8% | 43.0% | 32.3% |
| |
|---|
| Median (31 companies) | 11.5% | -2.9% | 8.7% | 15.0% | 32.3% |
|---|
| Trony Solar Holdings Co Ltd ($2468) | | -92.8% | -33.6% | 16.5% | 5.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 37.1% | 36.8% | 36.0% | 35.3% | |
| China Titans Energy Technology Group Co Ltd ($2188) | 45.4% | 41.4% | 27.3% | 33.7% | |
| Sun King Power Electronics Group ($580) | 16.2% | 25.4% | 30.0% | 30.8% | |
| CEC International Holdings Ltd ($759) | 18.5% | 23.6% | 27.9% | 29.9% | 31.8% |
| Johnson Electric Holdings Ltd ($179) | 27.5% | 27.3% | 28.0% | 29.5% | 29.6% |
| |
|---|
| Median (30 companies) | 20.4% | 18.6% | 17.7% | 16.4% | 29.6% |
|---|
| Trony Solar Holdings Co Ltd ($2468) | 42.7% | 19.6% | 0.3% | 7.3% | -8.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shougang Concord Technology Holdings ($521) | 22.7% | 12.3% | 28.1% | 31.9% | |
| Boer Power Holdings Ltd ($1685) | 28.1% | 26.3% | 27.8% | 28.5% | |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 21.0% | 20.2% | 19.2% | 20.8% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 9.2% | 5.7% | 7.4% | 16.9% | |
| Johnson Electric Holdings Ltd ($179) | 14.9% | 14.2% | 14.5% | 15.5% | 15.4% |
| |
|---|
| Median (32 companies) | 10.5% | 8.0% | 7.2% | 4.7% | 4.7% |
|---|
| Trony Solar Holdings Co Ltd ($2468) | 41.2% | -53.0% | -86.4% | -36.9% | -41.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Applied Development Holdings Ltd ($519) | 46.4% | 79.7% | | 1,285.3% | |
| FDG Electric Vehicles Ltd ($729) | 177.5% | 374.3% | 82.3% | 71.1% | 417.0% |
| Sun King Power Electronics Group ($580) | 9.2% | 16.5% | 7.7% | 15.5% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.7% | 23.1% | 50.7% | 13.5% | |
| Coslight Technology International Group Co Ltd ($1043) | 11.0% | 9.3% | 11.4% | 11.5% | |
| |
|---|
| Median (32 companies) | 9.3% | 5.8% | 4.9% | 3.8% | 6.9% |
|---|
| Trony Solar Holdings Co Ltd ($2468) | 32.3% | 6.4% | 34.5% | 1.1% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 18.2% | 18.0% | 17.0% | 21.2% | |
| Jiangnan Group Ltd ($1366) | 17.0% | 14.9% | 14.1% | 13.5% | |
| Johnson Electric Holdings Ltd ($179) | 13.1% | 11.7% | 11.6% | 12.7% | 11.2% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 5.1% | 1.8% | 3.0% | 10.4% | |
| Hengxin Technology Ltd ($1085) | 13.9% | 8.1% | 9.3% | 9.0% | |
| |
|---|
| Median (32 companies) | 5.4% | 2.8% | 3.0% | 1.7% | 3.5% |
|---|
| Trony Solar Holdings Co Ltd ($2468) | 30.0% | -4.9% | -23.9% | -23.3% | -37.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tianneng Power International Ltd ($819) | 0.7x | 1.8x | 4.0x | 162.7x | |
| Coslight Technology International Group Co Ltd ($1043) | 11.2x | 51.9x | 8.7x | 54.7x | |
| China Titans Energy Technology Group Co Ltd ($2188) | 0.2x | 1.5x | | 16.9x | |
| Shougang Concord Technology Holdings ($521) | 12.7x | 16.3x | 4.9x | 13.8x | |
| Sun King Power Electronics Group ($580) | | 1.7x | 1.4x | 10.0x | |
| |
|---|
| Median (25 companies) | 0.4x | 1.5x | 0.6x | 2.3x | 1.7x |
|---|
