United Pacific Industries Ltd EBITDA dropped on 486% in 2015 and Revenue dropped on 52.7%
30/11/2015 • About United Pacific Industries Ltd (
$176) • By InTwits
United Pacific Industries Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- United Pacific Industries Ltd is a company in decline: FY2015 revenue growth was -52.7%, 5 years revenue CAGR was -34.8%
- EBITDA Margin is quite volatile: -18.2% in FY2015, 2.2% in FY2014, 8.1% in FY2013, 6.7% in FY2012, 6.0% in FY2011
- United Pacific Industries Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 7.2%.
- CAPEX is quite volatile: 1.1 in FY2015, 6.7 in FY2014, 7.8 in FY2013, 8.1 in FY2012, 14.9 in FY2011
- The company has unprofitable business model: ROIC is at -5.4%
- It operates with high leverage: Net Debt/EBITDA is 83.1x while industry average is 11.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
United Pacific Industries Ltd ($176) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,277 | 1,469 | 226 | 286 | 135 | -52.7% |
| Gross Profit | 371 | 438 | 31 | 41 | 10 | -76.4% |
| SG&A | | | 35 | 50 | 36 | -27.2% |
| EBITDA | 77 | 98 | 18 | 6 | -25 | -486.0% |
| Net Income | 38 | 61 | 53 | -179 | -10 | -94.3% |
Balance Sheet
|
|---|
| Cash | 137 | 151 | 188 | 287 | 300 | 4.6% |
| Short Term Debt | 86 | 65 | 69 | 6 | 0 | -100.0% |
| Long Term Debt | 20 | 12 | 5 | 73 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 15 | 8 | 8 | 7 | 1 | -84.0% |
Ratios
|
|---|
| Revenue growth | 11.5% | 15.0% | -84.6% | 26.5% | -52.7% | |
| EBITDA growth | -6.4% | 27.0% | -81.3% | -65.0% | -486.0% | |
| Gross Margin | 29.0% | 29.8% | 13.8% | 14.5% | 7.2% | -7.3% |
| EBITDA Margin | 6.0% | 6.7% | 8.1% | 2.2% | -18.2% | -20.4% |
| Net Income Margin | 3.0% | 4.1% | 23.6% | -62.4% | -7.6% | 54.9% |
| SG&A, % of revenue | | | 15.5% | 17.4% | 26.8% | 9.4% |
| CAPEX, % of revenue | 1.2% | 0.5% | 3.4% | 2.4% | 0.8% | -1.6% |
| ROIC | 11.7% | 16.7% | -0.5% | -1.1% | -5.4% | -4.3% |
| ROE | 9.8% | 15.1% | 12.5% | -40.8% | -2.4% | 38.4% |
| Net Debt/EBITDA | -0.4x | -0.8x | -6.2x | -32.6x | | 32.6x |
Revenue and profitability
The company's Revenue dropped on 52.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.61 pp from 14.4% to 15.0% in 2015.
Gross Margin decreased on 7.3 pp from 14.5% to 7.2% in FY2015. SG&A as a % of Revenue increased on 9.4 pp from 17.4% to 26.8% in FY2015.
Net Income marign surged on 54.9 pp from -62.4% to -7.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.80%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at negative ROIC (-5.36%) and ROE (-2.38%). ROIC decreased on 4.3 pp from -1.1% to -5.4% in FY2015. ROE jumped on 38.4 pp from -40.8% to -2.4% in FY2015.
Leverage (Debt)
The company paid down all the debt in FY2015. Cash increased on 4.6% in FY2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide United Pacific Industries 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) | 13.4% | -6.3% | 8.7% | 15.0% | 18.9% |
|---|
| United Pacific Industries Ltd ($176) | | 15.0% | -84.6% | 26.5% | -52.7% |
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) | 20.4% | 18.6% | 17.7% | 16.4% | 23.2% |
|---|
| United Pacific Industries Ltd ($176) | 29.0% | 29.8% | 13.8% | 14.5% | 7.2% |
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% | 6.8% | 4.7% | -25.6% |
|---|
| United Pacific Industries Ltd ($176) | 6.0% | 6.7% | 8.1% | 2.2% | -18.2% |
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% | 6.5% | 5.0% | 3.8% | 6.3% |
|---|
| United Pacific Industries Ltd ($176) | 1.2% | 0.5% | 3.4% | 2.4% | 0.8% |
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% | 2.7% | 3.0% | 1.7% | -5.0% |
|---|
| United Pacific Industries Ltd ($176) | 11.7% | 16.7% | -0.5% | -1.1% | -5.4% |
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 (24 companies) | 0.4x | 1.5x | 1.4x | 2.5x | 1.7x |
|---|
| United Pacific Industries Ltd ($176) | -0.4x | -0.8x | -6.2x | -32.6x | |
