Xinyi Glass Holdings Ltd reports 55.0% Net Income growth and 5.5% Revenue growth
15/03/2016 • About Xinyi Glass Holdings Ltd (
$868) • By InTwits
Xinyi Glass Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Xinyi Glass Holdings Ltd is a growth stock: 2015 revenue growth was 5.5%, 5 year revenue CAGR was 12.5% at 2015 ROIC 10.8%
- EBITDA Margin is quite volatile: 25.0% in 2015, 20.0% in 2014, 43.8% in 2013, 22.5% in 2012, 23.5% in 2011
- Xinyi Glass Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.1%. At the same time it's a lot of higher than industry average of 8.4%.
- CAPEX is quite volatile: 2,164 in 2015, 1,739 in 2014, 707 in 2013, 1,176 in 2012, 1,053 in 2011
- The company has business model with average profitability: ROIC is at 10.8%
- It operates with high leverage: Net Debt/EBITDA is 1.7x while industry average is 0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Xinyi Glass Holdings Ltd ($868) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,227 | 8,433 | 9,936 | 10,861 | 11,460 | 5.5% |
| Gross Profit | 2,354 | 2,227 | 3,137 | 2,733 | 3,133 | 14.6% |
| SG&A | 965 | 1,057 | 1,251 | 1,638 | 1,615 | -1.4% |
| EBITDA | 1,929 | 1,895 | 4,349 | 2,172 | 2,860 | 31.7% |
| Net Income | 1,265 | 1,188 | 3,522 | 1,364 | 2,113 | 55.0% |
Balance Sheet
|
|---|
| Cash | 713 | 703 | 1,042 | 831 | 1,298 | 56.2% |
| Short Term Debt | 1,446 | 1,770 | 2,116 | 2,609 | 2,740 | 5.0% |
| Long Term Debt | 3,214 | 2,496 | 3,024 | 3,483 | 3,514 | 0.9% |
Cash flow
|
|---|
| Capex | 3,067 | 1,435 | 2,874 | 1,715 | 1,914 | 11.6% |
Ratios
|
|---|
| Revenue growth | 29.3% | 2.5% | 17.8% | 9.3% | 5.5% | |
| EBITDA growth | -13.4% | -1.8% | 129.5% | -50.1% | 31.7% | |
| Gross Margin | 28.6% | 26.4% | 31.6% | 25.2% | 27.3% | 2.2% |
| EBITDA Margin | 23.5% | 22.5% | 43.8% | 20.0% | 25.0% | 5.0% |
| Net Income Margin | 15.4% | 14.1% | 35.4% | 12.6% | 18.4% | 5.9% |
| SG&A, % of revenue | 11.7% | 12.5% | 12.6% | 15.1% | 14.1% | -1.0% |
| CAPEX, % of revenue | 37.3% | 17.0% | 28.9% | 15.8% | 16.7% | 0.9% |
| ROIC | 12.8% | 9.3% | 22.6% | 8.3% | 10.8% | 2.4% |
| ROE | 16.8% | 12.9% | 31.8% | 11.1% | 16.9% | 5.8% |
| Net Debt/EBITDA | 2.0x | 1.9x | 0.9x | 2.4x | 1.7x | -0.7x |
Revenue and profitability
Xinyi Glass Holdings Ltd's Revenue increased on 5.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.0 pp from 24.7% to 26.7% in 2015.
Gross Margin increased on 2.2 pp from 25.2% to 27.3% in 2015. SG&A as a % of Revenue decreased slightly on 0.99 pp from 15.1% to 14.1% in 2015.
Net Income marign increased on 5.9 pp from 12.6% to 18.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 16.7%. Xinyi Glass Holdings Ltd showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 20.5%.Xinyi Glass Holdings Ltd maintained rich investment policy and has spent a big chunk of EBITDA (66.9%) to CAPEX.
Return on investment
The company operates at good ROE (16.87%) while ROIC is low (10.76%). ROIC increased on 2.4 pp from 8.3% to 10.8% in 2015. ROE increased on 5.8 pp from 11.1% to 16.9% in 2015.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.7x from 2.4x to 1.7x in 2015. Debt increased on 2.7% in 2015 while cash surged on 56.2% in 2015.
Management team
Xinyi Glass Holdings Ltd's CEO is Tung Ching Sai. Tung Ching Sai has 14 years tenure at the company. The company's CFO Lau Sik Yuen has spent 15 years at the company.
Appendix 1: Peers in Auto Parts&Equipment
Below we provide Xinyi Glass Holdings Ltd benchmarking against other companies in Auto Parts&Equipment 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 |
|---|
| Weichai Power Co Ltd ($2338) | -4.6% | -19.8% | 21.0% | 36.8% | |
| China Vehicle Components Technology Holdings Ltd ($1269) | 2.4% | -10.4% | 27.1% | 31.0% | |
| Nexteer Automotive Group Ltd ($1316) | | -3.6% | 10.1% | 24.8% | 12.8% |
| Minth Group Ltd ($425) | 8.8% | 11.3% | 27.3% | 21.3% | |
| Zhejiang Shibao Co Ltd ($1057) | 14.0% | -12.2% | 23.1% | 20.2% | |
| |
|---|
| Median (15 companies) | 13.3% | -8.3% | 11.4% | 2.7% | 12.8% |
|---|
| Xinyi Glass Holdings Ltd ($868) | | 2.5% | 17.8% | 9.3% | 5.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 36.2% | 37.4% | 41.0% | 41.5% | |
| Minth Group Ltd ($425) | 35.0% | 33.1% | 33.0% | 31.2% | |
| Zhejiang Shibao Co Ltd ($1057) | 34.9% | 30.3% | 26.0% | 26.4% | |
| Shuanghua Holdings Ltd ($1241) | 21.4% | 17.1% | 16.8% | 26.0% | |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 25.1% | 20.9% | 23.6% | 24.0% | |
| |
|---|
| Median (15 companies) | 25.1% | 19.9% | 19.7% | 21.1% | 16.2% |
|---|
| Xinyi Glass Holdings Ltd ($868) | 28.6% | 26.4% | 31.6% | 25.2% | 27.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 26.9% | 28.5% | 28.7% | 29.2% | |
| Minth Group Ltd ($425) | 25.9% | 25.6% | 24.2% | 23.1% | |
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 20.7% | 17.2% | 16.0% | |
| Xinchen China Power Holdings Ltd ($1148) | 16.5% | 15.5% | 14.0% | 15.7% | |
| Zhejiang Shibao Co Ltd ($1057) | 25.8% | 19.8% | 14.0% | 14.5% | |
| |
|---|
| Median (15 companies) | 15.2% | 8.7% | 11.4% | 12.0% | 13.7% |
|---|
| Xinyi Glass Holdings Ltd ($868) | 23.5% | 22.5% | 43.8% | 20.0% | 25.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinchen China Power Holdings Ltd ($1148) | 2.5% | 1.2% | 0.8% | 21.9% | |
| Fuyao Glass Industry Group Co Ltd ($3606) | 11.5% | 14.6% | 16.5% | 21.1% | |
| Minth Group Ltd ($425) | 12.3% | 14.8% | 16.1% | 18.7% | |
| Xiezhong International Holdings Ltd ($3663) | 15.4% | 22.9% | 24.9% | 12.0% | |
| Zhejiang Shibao Co Ltd ($1057) | 22.9% | 10.2% | 4.7% | 9.7% | |
| |
|---|
| Median (15 companies) | 11.4% | 9.3% | 7.7% | 5.8% | 4.9% |
|---|
| Xinyi Glass Holdings Ltd ($868) | 37.3% | 17.0% | 28.9% | 15.8% | 16.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.1% | 19.0% | 21.1% | 22.3% | |
| Nexteer Automotive Group Ltd ($1316) | | 14.0% | 18.2% | 17.7% | 21.2% |
| Xinchen China Power Holdings Ltd ($1148) | 31.7% | 22.4% | 14.7% | 12.5% | |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 13.4% | 2.4% | 9.2% | 12.5% | |
| Minth Group Ltd ($425) | 13.1% | 11.9% | 12.1% | 11.8% | |
| |
|---|
| Median (16 companies) | 13.4% | 4.8% | 7.9% | 6.4% | 21.2% |
|---|
| Xinyi Glass Holdings Ltd ($868) | 12.8% | 9.3% | 22.6% | 8.3% | 10.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | 2.4x | 9.4x | 5.8x | 5.3x | |
| New Focus Auto Tech Holdings Ltd ($360) | 1.3x | | | 4.5x | |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 2.2x | 7.9x | 2.8x | 2.2x | |
| Xiezhong International Holdings Ltd ($3663) | 0.7x | 0.6x | 1.2x | 1.2x | |
| Weichai Power Co Ltd ($2338) | -0.2x | 0.7x | 0.6x | 1.1x | |
| |
|---|
| Median (13 companies) | 0.8x | 0.7x | 1.1x | 1.0x | 0.5x |
|---|
| Xinyi Glass Holdings Ltd ($868) | 2.0x | 1.9x | 0.9x | 2.4x | 1.7x |
