China High Precision Automation Group Ltd EBITDA dropped on 148% in 2015 and Revenue dropped on 29.6%
29/09/2015 • About China High Precision Automation Group Ltd (
$591) • By InTwits
China High Precision Automation Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China High Precision Automation Group Ltd is a company in decline: FY2015 revenue growth was -29.6%, 5 years revenue CAGR was -15.7%
- EBITDA Margin is declining: -5.2% in FY2015 vs. 7.6% in FY2014 vs. 42.3% in FY2011
- EBITDA Margin is quite volatile: -5.2% in FY2015, 7.6% in FY2014, 17.5% in FY2013, 36.5% in FY2012, 42.3% in FY2011
- China High Precision Automation Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.3%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: 1.7 in FY2015, 74.3 in FY2014, 47.0 in FY2013, 178 in FY2012, 297 in FY2011
- The company has unprofitable business model: ROIC is at -3.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China High Precision Automation Group Ltd ($591) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 900.6 | 868.1 | 516.5 | 403.8 | 284.3 | -29.6% |
| Gross Profit | 438.4 | 392.8 | 104.1 | 39.0 | 6.7 | -82.9% |
| SG&A | 76.2 | 101.3 | 70.2 | 64.7 | 72.4 | 11.8% |
| EBITDA | 381.1 | 316.9 | 90.4 | 30.6 | -14.8 | -148.4% |
| Net Income | 304.4 | 259.2 | 36.3 | -19.5 | -65.8 | 237.1% |
Balance Sheet
|
|---|
| Cash | 1,257.0 | 1,212.7 | 1,371.4 | 1,400.2 | 1,449.3 | 3.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 297.4 | 178.0 | 47.0 | 74.3 | 1.7 | -97.8% |
Ratios
|
|---|
| Revenue growth | 34.9% | -3.6% | -40.5% | -21.8% | -29.6% | |
| EBITDA growth | 36.2% | -16.8% | -71.5% | -66.2% | -148.4% | |
| Gross Margin | 48.7% | 45.2% | 20.1% | 9.7% | 2.3% | -7.3% |
| EBITDA Margin | 42.3% | 36.5% | 17.5% | 7.6% | -5.2% | -12.8% |
| Net Income Margin | 33.8% | 29.9% | 7.0% | -4.8% | -23.1% | -18.3% |
| SG&A, % of revenue | 8.5% | 11.7% | 13.6% | 16.0% | 25.5% | 9.4% |
| CAPEX, % of revenue | 33.0% | 20.5% | 9.1% | 18.4% | 0.6% | -17.8% |
| ROIC | 19.1% | 13.5% | 1.7% | -0.9% | -3.0% | -2.1% |
| ROE | 16.3% | 12.2% | 1.6% | -0.9% | -3.0% | -2.1% |
| Net Debt/EBITDA | -3.3x | -3.8x | -15.2x | -45.7x | | 45.7x |
Revenue and profitability
China High Precision Automation Group Ltd's Revenue dropped on 29.6% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 12.8 pp from 7.6% to -5.2% in FY2015.
Gross Margin decreased on 7.3 pp from 9.7% to 2.3% in FY2015. SG&A as a % of Revenue increased on 9.4 pp from 16.0% to 25.5% in FY2015.
Net Income marign dropped on 18.3 pp from -4.8% to -23.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 China High Precision Automation Group Ltd had CAPEX/Revenue of 0.59%. China High Precision Automation Group Ltd's CAPEX/Revenue dropped on 19.9 pp from 20.5% in FY2012 to 0.59% in FY2015. It's average CAPEX/Revenue for the last three years was 9.4%.
Return on investment
The company operates at negative ROIC (-3.04%) and ROE (-2.98%). ROIC decreased on 2.1 pp from -0.92% to -3.0% in FY2015. ROE decreased on 2.1 pp from -0.87% to -3.0% in FY2015.
Leverage (Debt)
The company has no debt. Cash increased on 3.5% in FY2015.
Appendix 1: Peers in Machinery-Diversified
Below we provide China High Precision Automation Group Ltd benchmarking against other companies in Machinery-Diversified 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 |
|---|
| Sun East Technology Holdings Ltd ($365) | | -25.1% | -10.7% | 39.3% | 6.4% |
| Shanghai Prime Machinery Co Ltd ($2345) | 30.3% | 2.6% | -8.9% | 37.3% | |
| Sinoref Holdings Ltd ($1020) | 1.5% | -0.2% | -42.2% | 29.2% | |
| North Asia Strategic Holdings Ltd ($8080) | | -52.2% | -29.1% | 23.7% | 42.6% |
| Huazhang Technology Holding Ltd ($1673) | | 131.6% | 9.5% | 22.9% | 23.5% |
| |
|---|
| Median (22 companies) | 13.5% | -5.0% | -3.3% | 2.0% | 18.5% |
|---|
| China High Precision Automation Group Ltd ($591) | | -3.6% | -40.5% | -21.8% | -29.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jingwei Textile Machinery ($350) | 38.3% | 49.1% | 51.7% | 54.9% | |
| Renheng Enterprise Holdings Ltd ($3628) | 36.4% | 44.3% | 44.8% | 45.4% | |
| Haitian International Holdings Ltd ($1882) | 29.7% | 30.1% | 31.6% | 32.4% | |
| CHTC Fong's Industries Co Ltd ($641) | 26.5% | 24.4% | 30.0% | 32.3% | |
| Huazhang Technology Holding Ltd ($1673) | 29.0% | 28.0% | 28.5% | 27.9% | 24.7% |
| |
|---|
| Median (22 companies) | 23.6% | 22.7% | 22.1% | 19.4% | 21.0% |
|---|
| China High Precision Automation Group Ltd ($591) | 48.7% | 45.2% | 20.1% | 9.7% | 2.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jingwei Textile Machinery ($350) | 18.5% | 24.0% | 26.9% | 28.0% | |
| Haitian International Holdings Ltd ($1882) | 20.5% | 19.7% | 20.7% | 21.9% | |
| Renheng Enterprise Holdings Ltd ($3628) | 22.9% | 24.7% | 23.9% | 20.7% | |
| Good Friend International Holdings Inc ($2398) | 11.7% | 6.7% | 9.1% | 12.9% | |
| Huazhang Technology Holding Ltd ($1673) | 3.1% | 11.6% | 11.2% | 12.5% | 11.3% |
| |
|---|
| Median (22 companies) | 8.7% | 8.3% | 8.5% | 8.6% | 6.0% |
|---|
| China High Precision Automation Group Ltd ($591) | 42.3% | 36.5% | 17.5% | 7.6% | -5.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 14.9% | 20.5% | 20.3% | 11.6% | |
| LK Technology Holdings Ltd ($558) | 7.6% | 9.3% | 10.2% | 9.1% | 5.6% |
| First Tractor Co Ltd ($38) | 6.3% | 4.9% | 4.3% | 7.3% | |
| Greens Holdings Ltd ($1318) | 9.3% | 8.9% | 3.1% | 7.1% | |
| Honghua Group Ltd ($196) | 9.9% | 11.5% | 14.6% | 6.8% | |
| |
|---|
| Median (22 companies) | 5.7% | 4.2% | 3.4% | 3.8% | 2.4% |
|---|
| China High Precision Automation Group Ltd ($591) | 33.0% | 20.5% | 9.1% | 18.4% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Haitian International Holdings Ltd ($1882) | 26.8% | 19.8% | 21.2% | 19.4% | |
| Jingwei Textile Machinery ($350) | 23.3% | 19.4% | 20.9% | 17.4% | |
| Huazhang Technology Holding Ltd ($1673) | | 29.6% | 16.2% | 16.3% | 16.2% |
| Good Friend International Holdings Inc ($2398) | 20.0% | 6.5% | 8.7% | 12.1% | |
| China CNR Corp Ltd ($6199) | 11.1% | 7.9% | 9.3% | 10.6% | |
| |
|---|
| Median (22 companies) | 9.8% | 6.8% | 4.2% | 2.8% | 1.9% |
|---|
| China High Precision Automation Group Ltd ($591) | 19.1% | 13.5% | 1.7% | -0.9% | -3.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First Tractor Co Ltd ($38) | 1.1x | 0.5x | 2.5x | 9.2x | |
| Shanghai Prime Machinery Co Ltd ($2345) | -0.0x | -0.6x | 0.3x | 6.0x | |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 1.9x | 3.0x | 11.4x | 5.6x | |
| Honghua Group Ltd ($196) | 0.1x | 1.2x | 3.2x | 5.2x | |
| LK Technology Holdings Ltd ($558) | 0.9x | 2.5x | 5.1x | 4.9x | 4.6x |
| |
|---|
| Median (18 companies) | -0.4x | -0.7x | -0.4x | 0.2x | -0.5x |
|---|
| China High Precision Automation Group Ltd ($591) | -3.3x | -3.8x | -15.2x | -45.7x | |
