Solartech International Hldgs Ltd revenue decreased on 2.7% in 2015 and EBITDA Margin decreased on 4.3 pp from -5.8% to -10.1%
29/09/2015 • About Solartech International Hldgs Ltd (
$1166) • By InTwits
Solartech International Hldgs Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Solartech International Hldgs Ltd doesn't have a profitable business model yet: FY2015 ROIC is -5.9%
- The company operates at negative EBITDA Margin: -10.1%
- Solartech International Hldgs Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -8.3% for the sames years0
- Solartech International Hldgs Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's in pair with industry average of 10.8%.
- CAPEX is quite volatile: 30.8 in FY2015, 35.5 in FY2014, 15.9 in FY2013, 84.6 in FY2012, 11.9 in FY2011
- The company has unprofitable business model: ROIC is at -5.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Solartech International Hldgs Ltd ($1166) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 707.5 | 612.9 | 601.6 | 804.3 | 782.2 | -2.7% |
| Gross Profit | 31.0 | 7.5 | 14.2 | 18.9 | 35.7 | 89.2% |
| SG&A | | | 93.6 | 101.0 | 132.1 | 30.8% |
| EBITDA | -44.2 | -65.5 | -56.6 | -46.6 | -79.1 | 69.6% |
| Net Income | 358.2 | -106.1 | -415.1 | -37.7 | -370.3 | 882.0% |
Balance Sheet
|
|---|
| Cash | 181.4 | 191.7 | 142.3 | 268.5 | 162.5 | -39.5% |
| Short Term Debt | 156.2 | 249.0 | 257.3 | 232.7 | 67.7 | -70.9% |
| Long Term Debt | 0.3 | 0.3 | 0.1 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 11.9 | 84.6 | 15.9 | 35.5 | 30.8 | -13.2% |
Ratios
|
|---|
| Revenue growth | -6.5% | -13.4% | -1.8% | 33.7% | -2.7% | |
| EBITDA growth | 533.6% | 48.2% | -13.6% | -17.7% | 69.6% | |
| Gross Margin | 4.4% | 1.2% | 2.4% | 2.3% | 4.6% | 2.2% |
| EBITDA Margin | -6.2% | -10.7% | -9.4% | -5.8% | -10.1% | -4.3% |
| Net Income Margin | 50.6% | -17.3% | -69.0% | -4.7% | -47.3% | -42.7% |
| SG&A, % of revenue | | | 15.6% | 12.6% | 16.9% | 4.3% |
| CAPEX, % of revenue | 1.7% | 13.8% | 2.6% | 4.4% | 3.9% | -0.5% |
| ROIC | -3.9% | -4.7% | -4.3% | -4.2% | -5.9% | -1.7% |
| ROE | 26.2% | -5.7% | -24.5% | -2.4% | -23.1% | -20.7% |
Revenue and profitability
The company's Revenue decreased on 2.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.1 pp from 51.1% to 56.2% in 2015.
Gross Margin increased on 2.2 pp from 2.3% to 4.6% in FY2015. SG&A as a % of Revenue increased on 4.3 pp from 12.6% to 16.9% in FY2015.
Net Income marign dropped on 42.7 pp from -4.7% to -47.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Solartech International Hldgs Ltd's CAPEX/Revenue was 3.9% in FY2015. Solartech International Hldgs Ltd showed decline in CAPEX/Revenue of 9.9 pp from 13.8% in FY2012 to 3.9% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.7%.
Return on investment
The company operates at negative ROIC (-5.90%) and ROE (-23.11%). ROIC decreased slightly on 1.7 pp from -4.2% to -5.9% in FY2015. ROE dropped on 20.7 pp from -2.4% to -23.1% in FY2015.
Leverage (Debt)
Debt level is -0.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt dropped on 70.9% in FY2015 while cash dropped on 39.5% in FY2015.
Appendix 1: Peers in Electrical Compo&Equip
Below you can find Solartech International Hldgs Ltd benchmarking vs. other companies in Electrical Compo&Equip 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, %
| 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) | 13.4% | -2.9% | 8.7% | 15.0% | 32.3% |
|---|
| Solartech International Hldgs Ltd ($1166) | | -13.4% | -1.8% | 33.7% | -2.7% |
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) | 20.6% | 19.2% | 17.7% | 16.4% | 26.4% |
|---|
| Solartech International Hldgs Ltd ($1166) | 4.4% | 1.2% | 2.4% | 2.3% | 4.6% |
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) | 10.8% | 8.0% | 7.2% | 4.7% | -41.0% |
|---|
| Solartech International Hldgs Ltd ($1166) | -6.2% | -10.7% | -9.4% | -5.8% | -10.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Applied Development Holdings Ltd ($519) | 46.4% | 79.7% | | 1,285.3% | 89.8% |
| 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) | 10.0% | 5.7% | 5.0% | 3.6% | 6.9% |
|---|
| Solartech International Hldgs Ltd ($1166) | 1.7% | 13.8% | 2.6% | 4.4% | 3.9% |
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) | 6.2% | 2.8% | 3.0% | 1.7% | -4.0% |
|---|
| Solartech International Hldgs Ltd ($1166) | -3.9% | -4.7% | -4.3% | -4.2% | -5.9% |
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) | 0.3x | 1.5x | 0.6x | 2.3x | 1.7x |
|---|
