Semiconductor Manufacturing International Corp CAPEX jumped on 88.1% in 2015 and Revenue surged on 13.5%
18/02/2016 • About Semiconductor Manufacturing International Corp (
$981) • By InTwits
Semiconductor Manufacturing International Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Semiconductor Manufacturing International Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 43.5%. At the same time it's a lot of higher than industry average of 14.4%.
- CAPEX is quite volatile: 1,231 in 2015, 654 in 2014, 726 in 2013, 400 in 2012, 932 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Semiconductor Manufacturing International Corp ($981) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,319 | 1,702 | 2,069 | 1,970 | 2,236 | 13.5% |
| Gross Profit | 102 | 349 | 438 | 483 | 683 | 41.2% |
| SG&A | 90 | 139 | 174 | 178 | 255 | 43.5% |
| EBITDA | 355 | 583 | 734 | 680 | 746 | 9.7% |
| Net Income | -247 | 23 | 173 | 153 | 253 | 65.7% |
Balance Sheet
|
|---|
| Cash | 262 | 358 | 462 | 603 | 1,005 | 66.7% |
| Short Term Debt | 828 | 597 | 391 | 162 | 506 | 212.1% |
| Long Term Debt | 101 | 529 | 782 | 1,127 | 909 | -19.3% |
Cash flow
|
|---|
| Capex | 932 | 400 | 726 | 654 | 1,231 | 88.1% |
Ratios
|
|---|
| Revenue growth | -13.9% | 29.0% | 21.6% | -4.8% | 13.5% | |
| EBITDA growth | -46.6% | 64.5% | 25.8% | -7.4% | 9.7% | |
| Gross Margin | 7.7% | 20.5% | 21.2% | 24.5% | 30.5% | 6.0% |
| EBITDA Margin | 26.9% | 34.3% | 35.5% | 34.5% | 33.3% | -1.2% |
| Net Income Margin | -18.7% | 1.3% | 8.4% | 7.8% | 11.3% | 3.6% |
| SG&A, % of revenue | 6.8% | 8.2% | 8.4% | 9.0% | 11.4% | 2.4% |
| CAPEX, % of revenue | 70.6% | 23.5% | 35.1% | 33.2% | 55.0% | 21.8% |
| ROIC | -6.3% | 0.5% | 5.2% | 3.1% | 4.4% | 1.2% |
| ROE | -11.2% | 1.0% | 7.3% | 5.6% | 7.6% | 2.0% |
| Net Debt/EBITDA | 1.9x | 1.3x | 1.0x | 1.0x | 0.5x | -0.5x |
Revenue and profitability
The company's Revenue jumped on 13.5% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 34.6 pp from 48.3% to 13.7% in FY2015.
Gross Margin increased on 6.0 pp from 24.5% to 30.5% in 2015. SG&A as a % of Revenue increased on 2.4 pp from 9.0% to 11.4% in 2015.
Net Income marign increased on 3.6 pp from 7.8% to 11.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 55.0% in 2015. Semiconductor Manufacturing International Corp showed fast CAPEX/Revenue growth of 31.5 pp from 23.5% in 2012 to 55.0% in 2015. Average CAPEX/Revenue for the last three years was 41.1%.The company has spent a lot to CAPEX (165% of EBITDA) to secure its growth.
Return on investment
The company operates at low ROIC (4.35%) and ROE (7.59%). ROIC increased slightly on 1.2 pp from 3.1% to 4.4% in 2015. ROE increased slightly on 2.0 pp from 5.6% to 7.6% in 2015.
Leverage (Debt)
Debt level is 0.5x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 1.0x to 0.5x in 2015. Debt increased on 9.8% in 2015 while cash jumped on 66.7% in 2015.
Management team
The company's CEO Tzu-Yin Chiu has spent 7 years at the company. The company's CFO Gao Yonggang has spent 4 years at the company.
Appendix 1: Peers in Semiconductors
Below you can find Semiconductor Manufacturing International Corp benchmarking vs. other companies in Semiconductors 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 |
|---|
| Honbridge Holdings Ltd ($8137) | 3,428.4% | -76.4% | -97.5% | 608.9% | |
| Shunfeng International Clean Energy Ltd ($1165) | 216.5% | -46.3% | 44.4% | 275.6% | |
| Phoenitron Holdings Ltd ($8066) | -8.8% | -7.2% | 4.0% | 243.8% | |
| Hanergy Thin Film Power Group Ltd ($566) | -15.1% | 7.5% | 19.1% | 192.8% | |
| China Jinhai International Group Ltd ($139) | | | | 140.3% | -81.9% |
| |
|---|
| Median (20 companies) | -0.5% | -15.7% | 3.6% | 11.1% | -16.9% |
|---|
| Semiconductor Manufacturing International Corp ($981) | | 29.0% | 21.6% | -4.8% | 13.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heng Xin China Holdings Ltd ($8046) | 46.3% | 42.1% | 57.6% | 75.0% | |
| China Jinhai International Group Ltd ($139) | -92.8% | | -7.8% | 73.3% | -69.1% |
| PacMOS Technologies Holdings Ltd ($1010) | 68.1% | 68.8% | 65.7% | 65.7% | |
| Intel Corp ($4335) | 62.5% | 62.1% | 59.8% | 63.7% | 62.6% |
| Hanergy Thin Film Power Group Ltd ($566) | 62.8% | 71.4% | 80.3% | 57.3% | |
| |
|---|
| Median (21 companies) | 18.6% | 26.1% | 28.0% | 34.6% | 19.3% |
|---|
| Semiconductor Manufacturing International Corp ($981) | 7.7% | 20.5% | 21.2% | 24.5% | 30.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 13.4% | 9.1% | 37.2% | 88.0% | |
| Hanergy Thin Film Power Group Ltd ($566) | 46.0% | 66.0% | 73.9% | 43.7% | |
| Intel Corp ($4335) | 43.6% | 41.5% | 38.6% | 42.8% | 41.0% |
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -11.8% | 9.5% | 40.5% | |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 22.4% | 26.5% | 23.9% | 25.4% | |
| |
|---|
| Median (21 companies) | 10.2% | 5.7% | 5.9% | -3.4% | 7.7% |
|---|
| Semiconductor Manufacturing International Corp ($981) | 26.9% | 34.3% | 35.5% | 34.5% | 33.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jun Yang Solar Power Investments Ltd ($397) | 390.5% | 671.1% | 25.9% | 78.9% | |
| Han Tang International Holdings Ltd ($1187) | 1.8% | | | 55.2% | |
| Comtec Solar Systems Group Ltd ($712) | 22.2% | | 30.2% | 18.7% | |
| Intel Corp ($4335) | 19.9% | 20.7% | 20.3% | 18.1% | 13.2% |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 8.3% | 4.7% | 11.0% | 14.2% | |
| |
|---|
| Median (21 companies) | 8.3% | 4.3% | 4.0% | 4.8% | 7.7% |
|---|
| Semiconductor Manufacturing International Corp ($981) | 70.6% | 23.5% | 35.1% | 33.2% | 55.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ASM Pacific Technology Ltd ($522) | 52.1% | 12.3% | 9.2% | 21.9% | |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 22.2% | 25.5% | 22.7% | 21.1% | |
| Intel Corp ($4335) | 32.4% | 23.7% | 17.1% | 20.6% | 17.7% |
| Hanergy Thin Film Power Group Ltd ($566) | 9.3% | 14.1% | 15.1% | 19.3% | |
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -13.0% | 1.5% | 17.4% | |
| |
|---|
| Median (21 companies) | 2.7% | -2.3% | -0.7% | -1.3% | 0.8% |
|---|
| Semiconductor Manufacturing International Corp ($981) | -6.3% | 0.5% | 5.2% | 3.1% | 4.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 4.0x | 16.4x | 6.9x | 4.9x | |
| Solargiga Energy Holdings Ltd ($757) | 5.9x | | 13.8x | 4.4x | |
| Shunfeng International Clean Energy Ltd ($1165) | 8.2x | | 25.8x | 3.4x | |
| Phoenitron Holdings Ltd ($8066) | -1.2x | -0.8x | | 3.2x | |
| Intel Corp ($4335) | 0.1x | 0.2x | 0.4x | 0.5x | 0.3x |
| |
|---|
| Median (10 companies) | -0.4x | 0.0x | 0.4x | 0.2x | 0.1x |
|---|
| Semiconductor Manufacturing International Corp ($981) | 1.9x | 1.3x | 1.0x | 1.0x | 0.5x |
