Beijing Jingcheng Machinery Electric Co Ltd revenue dropped on 40.3% in 2015 and EBITDA Margin dropped on 15.9 pp from -2.2% to -18.0%
17/03/2016 • About Beijing Jingcheng Machinery Electric Co Ltd (
$187) • By InTwits
Beijing Jingcheng Machinery Electric Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Beijing Jingcheng Machinery Electric Co Ltd doesn't have a profitable business model yet: 2015 ROIC is -17.8%
- The company operates at negative EBITDA Margin: -18.0%
- Beijing Jingcheng Machinery Electric Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -1.4%0
- Beijing Jingcheng Machinery Electric Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's in pair with industry average of 21.4%.
- CAPEX is quite volatile: 11.6 in 2015, 149 in 2014, 290 in 2013, 82.1 in 2012, 7.5 in 2011
- The company has unprofitable business model: ROIC is at -17.8%
- It operates with high leverage: Net Debt/EBITDA is 0.3x while industry average is -21.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beijing Jingcheng Machinery Electric Co Ltd ($187) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 798 | 3,036 | 2,819 | 1,785 | 1,066 | -40.3% |
| Gross Profit | 158 | 493 | 417 | 164 | 51 | -69.1% |
| SG&A | 169 | 525 | 440 | 286 | 238 | -16.7% |
| EBITDA | 15 | 23 | 64 | -39 | -192 | 393.5% |
| Net Income | 11 | -124 | -108 | 21 | -208 | -1,070.4% |
Balance Sheet
|
|---|
| Cash | 162 | 528 | 338 | 164 | 182 | 11.2% |
| Short Term Debt | 237 | 744 | 563 | 434 | 217 | -50.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 7 | 82 | 290 | 149 | 12 | -92.2% |
Ratios
|
|---|
| Revenue growth | -0.3% | 280.5% | -7.1% | -36.7% | -40.3% | |
| EBITDA growth | -117.0% | 55.1% | 176.4% | -160.4% | 393.5% | |
| Gross Margin | 19.8% | 16.2% | 14.8% | 9.2% | 4.7% | -4.4% |
| EBITDA Margin | 1.9% | 0.8% | 2.3% | -2.2% | -18.0% | -15.9% |
| Net Income Margin | 1.4% | -4.1% | -3.8% | 1.2% | -19.5% | -20.7% |
| SG&A, % of revenue | 21.2% | 17.3% | 15.6% | 16.0% | 22.3% | 6.3% |
| CAPEX, % of revenue | 0.9% | 2.7% | 10.3% | 8.4% | 1.1% | -7.3% |
| ROIC | -2.0% | -4.8% | -2.5% | -6.9% | -17.8% | -10.9% |
| ROE | 1.5% | -11.3% | -9.7% | 2.5% | -25.5% | -28.0% |
| Net Debt/EBITDA | 5.0x | 9.3x | 3.5x | | | 0.0x |
Revenue and profitability
Beijing Jingcheng Machinery Electric Co Ltd's Revenue dropped on 40.3% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 15.9 pp from -2.2% to -18.0% in 2015.
Gross Margin decreased on 4.4 pp from 9.2% to 4.7% in 2015. SG&A as a % of Revenue increased on 6.3 pp from 16.0% to 22.3% in 2015.
Net Income marign dropped on 20.7 pp from 1.2% to -19.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Beijing Jingcheng Machinery Electric Co Ltd's CAPEX/Revenue was 1.1% in 2015. Beijing Jingcheng Machinery Electric Co Ltd's CAPEX/Revenue decreased slightly on 1.6 pp from 2.7% in 2012 to 1.1% in 2015. Average CAPEX/Revenue for the last three years was 6.6%.
Return on investment
The company operates at negative ROIC (-17.80%) and ROE (-25.46%). ROIC dropped on 10.9 pp from -6.9% to -17.8% in 2015. ROE dropped on 28.0 pp from 2.5% to -25.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 50.0% in 2015 while cash jumped on 11.2% in 2015.
Appendix 1: Peers in Commercial Services
Below you can find Beijing Jingcheng Machinery Electric Co Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | 429.3% | -61.9% | -27.8% | 2,912.9% | |
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Goldpac Group Ltd ($3315) | | 52.3% | 64.4% | 36.8% | 10.8% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| |
|---|
| Median (59 companies) | 19.5% | 7.1% | 4.7% | 9.8% | 10.5% |
|---|
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | | 280.5% | -7.1% | -36.7% | -40.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 67.1% | 66.2% | 66.8% | 62.8% | 65.2% |
| |
|---|
| Median (55 companies) | 33.4% | 31.6% | 29.9% | 31.0% | 28.7% |
|---|
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | 19.8% | 16.2% | 14.8% | 9.2% | 4.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | |
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | 71.6% |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| Dragon Crown Group Holdings Ltd ($935) | 57.8% | 67.3% | 62.9% | 60.2% | |
| |
|---|
| Median (59 companies) | 16.8% | 16.1% | 13.5% | 11.1% | 4.7% |
|---|
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | 1.9% | 0.8% | 2.3% | -2.2% | -18.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | |
| |
|---|
| Median (58 companies) | 3.9% | 3.2% | 4.0% | 3.4% | 2.2% |
|---|
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | 0.9% | 2.7% | 10.3% | 8.4% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mega Expo Holdings Ltd ($1360) | | 270.5% | 481.1% | 54.4% | 10.1% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| PPS International Holdings Ltd ($8201) | | 101.6% | 35.6% | 23.8% | -13.7% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% |
| |
|---|
| Median (59 companies) | 5.2% | 6.0% | 4.9% | 3.2% | 4.0% |
|---|
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | -2.0% | -4.8% | -2.5% | -6.9% | -17.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | 0.8x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | 5.3x |
| |
|---|
| Median (39 companies) | -0.1x | -0.0x | -0.8x | -0.5x | -2.1x |
|---|
