Xinyi Solar Holdings Ltd Net Income surged on 145% in 2015 and Revenue surged on 97.1%
15/03/2016 • About Xinyi Solar Holdings Ltd (
$968) • By InTwits
Xinyi Solar Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Xinyi Solar Holdings Ltd is a fast growth stock: 2015 revenue growth was 97.1%, 5 year revenue CAGR was 34.5% at 2015 ROIC 18.7%
- Xinyi Solar Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 56.1%. At the same time it's in pair with industry average of 50.9%.
- CAPEX is quite volatile: 3,583 in 2015, 2,381 in 2014, 240 in 2013, 348 in 2012, 879 in 2011
- The company has highly profitable business model: ROIC is at 18.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Xinyi Solar Holdings Ltd ($968) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,234 | 1,533 | 1,968 | 2,410 | 4,750 | 97.1% |
| Gross Profit | 443 | 264 | 592 | 761 | 1,710 | 124.8% |
| SG&A | 98 | 121 | 205 | 155 | 313 | 101.5% |
| EBITDA | 441 | 250 | 468 | 684 | 1,647 | 140.7% |
| Net Income | 321 | 120 | 304 | 493 | 1,206 | 144.6% |
Balance Sheet
|
|---|
| Cash | 32 | 54 | 279 | 543 | 2,869 | 428.6% |
| Short Term Debt | 0 | 0 | 0 | 143 | 474 | 231.9% |
| Long Term Debt | 0 | 0 | 0 | 1,157 | 3,116 | 169.3% |
Cash flow
|
|---|
| Capex | 879 | 348 | 240 | 2,381 | 3,583 | 50.5% |
Ratios
|
|---|
| Revenue growth | 14.5% | 24.3% | 28.3% | 22.5% | 97.1% | |
| EBITDA growth | -14.8% | -43.3% | 87.0% | 46.1% | 140.7% | |
| Gross Margin | 35.9% | 17.2% | 30.1% | 31.6% | 36.0% | 4.4% |
| EBITDA Margin | 35.8% | 16.3% | 23.8% | 28.4% | 34.7% | 6.3% |
| Net Income Margin | 26.0% | 7.8% | 15.4% | 20.5% | 25.4% | 4.9% |
| SG&A, % of revenue | 7.9% | 7.9% | 10.4% | 6.4% | 6.6% | 0.1% |
| CAPEX, % of revenue | 71.2% | 22.7% | 12.2% | 98.8% | 75.4% | -23.4% |
| ROIC | 33.6% | 13.8% | 21.6% | 16.9% | 18.7% | 1.8% |
| ROE | 28.6% | 12.1% | 18.0% | 17.6% | 26.6% | 9.1% |
| Net Debt/EBITDA | -0.1x | -0.2x | -0.6x | 1.1x | 0.4x | -0.7x |
Revenue and profitability
Xinyi Solar Holdings Ltd's Revenue jumped on 97.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 2.5% to 1.2% in 2015.
Gross Margin increased on 4.4 pp from 31.6% to 36.0% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 4.9 pp from 20.5% to 25.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 75.4% in 2015. Xinyi Solar Holdings Ltd's CAPEX/Revenue surged on 52.7 pp from 22.7% in 2012 to 75.4% in 2015. For the last three years the average CAPEX/Revenue was 62.1%.To fuel this fast growth Xinyi Solar Holdings Ltd made large investments to CAPEX (218% of EBITDA).
Return on investment
The company operates at high and attractive ROE (26.64%) while ROIC is a bit lower (18.68%). ROIC increased slightly on 1.8 pp from 16.9% to 18.7% in 2015. ROE increased on 9.1 pp from 17.6% to 26.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is 2.2x. Net Debt / EBITDA dropped on 0.7x from 1.1x to 0.4x in 2015. Debt surged on 176% in 2015 while cash surged on 429% in 2015.
Management team
Lee Yau-Ching is a the company's CEO. Lee Yau-Ching has spent 8 years at the company.
Appendix 1: Peers in Energy-Alternate Sources
Below we provide Xinyi Solar Holdings Ltd benchmarking against other companies in Energy-Alternate Sources 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 |
|---|
| United Photovoltaics Group Ltd ($686) | 221.6% | -74.0% | -83.5% | 1,168.8% | |
| HaiTian Hydropower International Ltd ($8261) | -28.2% | 26.6% | 8.5% | 114.0% | |
| Concord New Energy Group Ltd ($182) | -22.4% | 14.7% | 71.2% | 88.5% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 11.2% | 2.5% | 50.7% | 39.6% | |
| International Standard Resources Holdings Ltd ($91) | -21.2% | 3.6% | 159.6% | 33.5% | |
| |
|---|
| Median (9 companies) | 16.6% | 4.2% | 14.3% | 33.5% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | | 24.3% | 28.3% | 22.5% | 97.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Photovoltaics Group Ltd ($686) | 17.9% | -29.8% | 99.3% | 90.7% | |
| HaiTian Hydropower International Ltd ($8261) | 70.0% | 74.2% | 74.3% | 79.3% | |
| China Suntien Green Energy Corp Ltd ($956) | 28.8% | 33.5% | 31.3% | 25.2% | |
| China Renewable Energy Investment Ltd ($987) | 12.2% | 20.2% | 37.1% | 24.7% | |
| GCL-Poly Energy Holdings Ltd ($3800) | 33.2% | 7.8% | 11.9% | 23.1% | |
| |
|---|
| Median (6 companies) | 31.0% | 21.6% | 34.2% | 24.9% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | 35.9% | 17.2% | 30.1% | 31.6% | 36.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Photovoltaics Group Ltd ($686) | 13.0% | -42.6% | -230.5% | 92.9% | |
| HaiTian Hydropower International Ltd ($8261) | 86.2% | 61.9% | 75.9% | 80.2% | |
| China Renewable Energy Investment Ltd ($987) | 28.1% | 54.1% | 66.1% | 64.3% | |
| China Longyuan Power Group Corp Ltd ($916) | 48.8% | 56.3% | 54.4% | 63.5% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 58.5% | 57.7% | 50.4% | 41.8% | |
| |
|---|
| Median (9 companies) | 39.2% | 40.9% | 37.5% | 41.8% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | 35.8% | 16.3% | 23.8% | 28.4% | 34.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Renewable Energy Investment Ltd ($987) | 44.5% | 23.4% | 118.5% | 126.1% | |
| China Longyuan Power Group Corp Ltd ($916) | 83.1% | 79.5% | 54.9% | 100.2% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 90.6% | 98.0% | 110.8% | 65.4% | |
| Concord New Energy Group Ltd ($182) | 199.2% | 64.2% | 19.0% | 52.7% | |
| China Suntien Green Energy Corp Ltd ($956) | 101.3% | 41.4% | 25.7% | 35.9% | |
| |
|---|
| Median (9 companies) | 58.8% | 51.5% | 25.7% | 35.9% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | 71.2% | 22.7% | 12.2% | 98.8% | 75.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 9.5% | 6.4% | 7.5% | 7.5% | |
| GCL-Poly Energy Holdings Ltd ($3800) | 15.8% | 0.3% | 2.8% | 6.9% | |
| China Longyuan Power Group Corp Ltd ($916) | 7.0% | 6.9% | 6.3% | 6.3% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 7.0% | 5.8% | 6.8% | 6.3% | |
| China Suntien Green Energy Corp Ltd ($956) | 7.4% | 7.7% | 7.9% | 5.8% | |
| |
|---|
| Median (9 companies) | 7.0% | 3.1% | 4.1% | 5.8% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | 33.6% | 13.8% | 21.6% | 16.9% | 18.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 4.5x | 1.4x | 2.6x | 10.5x | |
| United Photovoltaics Group Ltd ($686) | 5.1x | | | 7.8x | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 5.0x | 6.7x | 6.3x | 6.7x | |
| China Renewable Energy Investment Ltd ($987) | 17.1x | 8.9x | 6.2x | 6.4x | |
| China Longyuan Power Group Corp Ltd ($916) | 5.9x | 5.5x | 5.3x | 5.8x | |
| |
|---|
| Median (8 companies) | 4.8x | 5.5x | 5.3x | 6.1x | |
|---|
| Xinyi Solar Holdings Ltd ($968) | -0.1x | -0.2x | -0.6x | 1.1x | 0.4x |
