Northeast Electric Development Co Ltd EBITDA dropped on 26.2% in 2015 and Revenue dropped on 23.3%
19/02/2016 • About Northeast Electric Development Co Ltd (
$42) • By InTwits
Northeast Electric Development Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Northeast Electric Development Co Ltd is a company in decline: 2015 revenue growth was -23.3%, 5 years revenue CAGR was -15.4%
- EBITDA Margin is quite volatile: 9.3% in 2015, 9.6% in 2014, 8.3% in 2013, 9.0% in 2012, 0.1% in 2011
- Northeast Electric Development Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's a lot of higher than industry average of 0.7%.
- CAPEX is quite volatile: 2.8 in 2015, 10.8 in 2014, 11.2 in 2013, 3.7 in 2012, 1.5 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Northeast Electric Development Co Ltd ($42) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 248.7 | 215.4 | 194.6 | 196.2 | 150.6 | -23.3% |
| Gross Profit | 56.6 | 59.2 | 56.1 | 47.1 | 39.4 | -16.4% |
| SG&A | 80.4 | 48.9 | 45.0 | 44.1 | 40.0 | -9.2% |
| EBITDA | 0.2 | 19.4 | 16.2 | 18.9 | 14.0 | -26.2% |
| Net Income | -33.4 | 11.1 | 9.9 | 6.2 | 4.9 | -20.0% |
Balance Sheet
|
|---|
| Cash | 42.1 | 81.3 | 108.0 | 124.2 | 123.4 | -0.6% |
| Short Term Debt | 8.0 | 8.0 | 8.0 | 9.0 | 29.5 | 227.9% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.5 | 3.7 | 11.2 | 10.8 | 2.8 | -74.3% |
Ratios
|
|---|
| Revenue growth | -28.6% | -13.4% | -9.7% | 0.8% | -23.3% | |
| EBITDA growth | -95.6% | 7,842.8% | -16.6% | 16.9% | -26.2% | |
| Gross Margin | 22.8% | 27.5% | 28.8% | 24.0% | 26.1% | 2.2% |
| EBITDA Margin | 0.1% | 9.0% | 8.3% | 9.6% | 9.3% | -0.4% |
| Net Income Margin | -13.4% | 5.2% | 5.1% | 3.1% | 3.3% | 0.1% |
| SG&A, % of revenue | 32.4% | 22.7% | 23.1% | 22.4% | 26.6% | 4.1% |
| CAPEX, % of revenue | 0.6% | 1.7% | 5.7% | 5.5% | 1.8% | -3.7% |
| ROIC | -2.2% | 2.8% | 2.0% | 2.8% | 2.0% | -0.7% |
| ROE | -11.4% | 4.1% | 3.6% | 2.2% | 1.7% | -0.5% |
| Net Debt/EBITDA | -139.7x | -3.8x | -6.2x | -6.1x | -6.7x | -0.6x |
Revenue and profitability
The company's Revenue dropped on 23.3% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin increased on 2.2 pp from 24.0% to 26.1% in 2015. SG&A as a % of Revenue increased on 4.1 pp from 22.4% to 26.6% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.8% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 4.4%.
Return on investment
The company operates at low ROIC (2.05%) and ROE (1.69%). ROIC decreased slightly on 0.75 pp from 2.8% to 2.0% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is -6.7x Net Debt / EBITDA and 2.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from -6.1x to -6.7x in 2015. Debt surged on 228% in 2015 while cash decreased slightly on 0.65% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Northeast Electric Development 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) | 13.4% | -2.9% | 8.7% | 16.1% | 5.5% |
|---|
| Northeast Electric Development Co Ltd ($42) | | -13.4% | -9.7% | 0.8% | -23.3% |
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% | 16.7% | 15.9% | 15.2% |
|---|
| Northeast Electric Development Co Ltd ($42) | 22.8% | 27.5% | 28.8% | 24.0% | 26.1% |
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% | 7.3% | 6.8% | 3.3% | -18.2% |
|---|
| Northeast Electric Development Co Ltd ($42) | 0.1% | 9.0% | 8.3% | 9.6% | 9.3% |
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% | 4.9% | 3.6% | 5.6% |
|---|
| Northeast Electric Development Co Ltd ($42) | 0.6% | 1.7% | 5.7% | 5.5% | 1.8% |
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) | 6.2% | 2.7% | 3.0% | 0.6% | -5.4% |
|---|
| Northeast Electric Development Co Ltd ($42) | -2.2% | 2.8% | 2.0% | 2.8% | 2.0% |
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 |
|---|
| Northeast Electric Development Co Ltd ($42) | -139.7x | -3.8x | -6.2x | -6.1x | -6.7x |
