Haitian International Holdings Ltd Net Income increased on 4.5% in 2015 and EBITDA Margin increased slightly on 0.96 pp from 21.9% to 22.8%
09/03/2016 • About Haitian International Holdings Ltd (
$1882) • By InTwits
Haitian International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Haitian International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's a lot of higher than industry average of 3.6%.
- CAPEX is quite volatile: 463 in 2015, 479 in 2014, 487 in 2013, 266 in 2012, 149 in 2011
- The company has highly profitable business model: ROIC is at 16.3%
- It operates with high leverage: Net Debt/EBITDA is -0.4x while industry average is -2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Haitian International Holdings Ltd ($1882) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,028 | 6,336 | 7,201 | 7,560 | 7,336 | -3.0% |
| Gross Profit | 2,088 | 1,907 | 2,274 | 2,453 | 2,419 | -1.4% |
| SG&A | 812 | 796 | 929 | 1,044 | 1,027 | -1.6% |
| EBITDA | 1,438 | 1,249 | 1,490 | 1,652 | 1,674 | 1.3% |
| Net Income | 1,104 | 986 | 1,206 | 1,305 | 1,363 | 4.5% |
Balance Sheet
|
|---|
| Cash | 1,741 | 2,611 | 2,113 | 2,203 | 2,349 | 6.7% |
| Short Term Debt | 604 | 428 | 636 | 0 | 436 | |
| Long Term Debt | 0 | 0 | 0 | 1,226 | 1,270 | 3.6% |
Cash flow
|
|---|
| Capex | 149 | 266 | 487 | 479 | 463 | -3.3% |
Ratios
|
|---|
| Revenue growth | -0.4% | -9.8% | 13.7% | 5.0% | -3.0% | |
| EBITDA growth | 3.1% | -13.2% | 19.3% | 10.9% | 1.3% | |
| Gross Margin | 29.7% | 30.1% | 31.6% | 32.4% | 33.0% | 0.5% |
| EBITDA Margin | 20.5% | 19.7% | 20.7% | 21.9% | 22.8% | 1.0% |
| Net Income Margin | 15.7% | 15.6% | 16.8% | 17.3% | 18.6% | 1.3% |
| SG&A, % of revenue | 11.6% | 12.6% | 12.9% | 13.8% | 14.0% | 0.2% |
| CAPEX, % of revenue | 2.1% | 4.2% | 6.8% | 6.3% | 6.3% | -0.0% |
| ROIC | 26.8% | 19.8% | 21.2% | 19.4% | 16.3% | -3.1% |
| ROE | 25.3% | 19.7% | 21.0% | 19.7% | 18.1% | -1.6% |
| Net Debt/EBITDA | -0.8x | -1.7x | -1.0x | -0.6x | -0.4x | 0.2x |
Revenue and profitability
The company's Revenue decreased on 3.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.96 pp from 21.9% to 22.8% in 2015.
Gross Margin increased slightly on 0.53 pp from 32.4% to 33.0% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 1.3 pp from 17.3% to 18.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Haitian International Holdings Ltd's CAPEX/Revenue was 6.3% in 2015. The company showed CAPEX/Revenue growth of 2.1 pp from 4.2% in 2012 to 6.3% in 2015. It's average CAPEX/Revenue for the last three years was 6.5%.
Return on investment
The company operates at good ROIC (16.32%) and ROE (18.05%). ROIC decreased on 3.1 pp from 19.4% to 16.3% in 2015. ROE decreased slightly on 1.6 pp from 19.7% to 18.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.4x and Debt / EBITDA is 1.0x. Net Debt / EBITDA jumped on 0.2x from -0.6x to -0.4x in 2015. Debt jumped on 39.2% in 2015 while cash increased on 6.7% in 2015.
Management team
Zhang Jianming is a the company's CEO. Zhang Jianming has spent 18 years at the company. Lo Chi Chiu is a Haitian International Holdings Ltd's CFO. Lo Chi Chiu has spent 12 years at the company.
Appendix 1: Peers in Machinery-Diversified
Below you can find Haitian International Holdings Ltd benchmarking vs. other companies in Machinery-Diversified 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 |
|---|
| 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% | -3.4% | -4.7% | -0.7% | 6.4% |
|---|
| Haitian International Holdings Ltd ($1882) | | -9.8% | 13.7% | 5.0% | -3.0% |
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% | |
| 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% |
| Good Friend International Holdings Inc ($2398) | 23.3% | 20.1% | 22.9% | 26.5% | |
| |
|---|
| Median (22 companies) | 23.6% | 22.7% | 20.8% | 18.6% | 19.0% |
|---|
| Haitian International Holdings Ltd ($1882) | 29.7% | 30.1% | 31.6% | 32.4% | 33.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jingwei Textile Machinery ($350) | 18.5% | 24.0% | 26.9% | 28.0% | |
| 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% |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 12.9% | 12.9% | 6.5% | 12.3% | |
| |
|---|
| Median (22 companies) | 8.7% | 8.3% | 8.5% | 8.1% | 2.1% |
|---|
| Haitian International Holdings Ltd ($1882) | 20.5% | 19.7% | 20.7% | 21.9% | 22.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China High Precision Automation Group Ltd ($591) | 33.0% | 20.5% | 9.1% | 18.4% | 0.6% |
| 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% | |
| |
|---|
| Median (22 companies) | 6.2% | 4.2% | 3.4% | 3.8% | 1.3% |
|---|
| Haitian International Holdings Ltd ($1882) | 2.1% | 4.2% | 6.8% | 6.3% | 6.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Shanghai Electric Group Co Ltd ($2727) | 9.8% | 10.9% | 8.6% | 8.9% | |
| |
|---|
| Median (22 companies) | 9.8% | 6.8% | 3.6% | 2.6% | 1.4% |
|---|
| Haitian International Holdings Ltd ($1882) | 26.8% | 19.8% | 21.2% | 19.4% | 16.3% |
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 | -0.9x | 0.2x | -3.3x |
|---|
| Haitian International Holdings Ltd ($1882) | -0.8x | -1.7x | -1.0x | -0.6x | -0.4x |
