New Universe International Group Ltd Net Income dropped on 22.4% in 2015 while Revenue surged on 11.0%
18/03/2016 • About New Universe International Group Ltd (
$8068) • By InTwits
New Universe International Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- New Universe International Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 42.9%. At the same time it's a lot of higher than industry average of 21.9%.
- CAPEX is quite volatile: 93.7 in 2015, 114 in 2014, 31.7 in 2013, 26.6 in 2012, 115 in 2011
- The company has business model with low profitability: ROIC is at 8.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
New Universe International Group Ltd ($8068) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 111.3 | 162.1 | 190.7 | 253.5 | 281.4 | 11.0% |
| Gross Profit | 57.7 | 77.6 | 91.0 | 114.0 | 121.6 | 6.7% |
| SG&A | 28.4 | 32.7 | 36.2 | 45.5 | 48.3 | 6.1% |
| EBITDA | 46.7 | 65.2 | 72.0 | 99.6 | 103.0 | 3.4% |
| Net Income | 30.5 | 36.1 | 55.3 | 57.2 | 44.3 | -22.4% |
Balance Sheet
|
|---|
| Cash | 128.5 | 83.3 | 109.8 | 121.8 | 175.8 | 44.4% |
| Short Term Debt | 85.8 | 92.9 | 54.0 | 40.8 | 39.8 | -2.4% |
| Long Term Debt | 79.9 | 45.4 | 40.0 | 49.3 | 37.9 | -23.1% |
Cash flow
|
|---|
| Capex | 115.0 | 26.6 | 31.7 | 113.9 | 93.7 | -17.8% |
Ratios
|
|---|
| Revenue growth | -17.6% | 45.7% | 17.6% | 33.0% | 11.0% | |
| EBITDA growth | 124.1% | 39.6% | 10.5% | 38.3% | 3.4% | |
| Gross Margin | 51.9% | 47.9% | 47.7% | 45.0% | 43.2% | -1.7% |
| EBITDA Margin | 42.0% | 40.2% | 37.8% | 39.3% | 36.6% | -2.7% |
| Net Income Margin | 27.4% | 22.3% | 29.0% | 22.5% | 15.8% | -6.8% |
| SG&A, % of revenue | 25.5% | 20.2% | 19.0% | 18.0% | 17.2% | -0.8% |
| CAPEX, % of revenue | 103.4% | 16.4% | 16.6% | 44.9% | 33.3% | -11.6% |
| ROIC | 5.8% | 6.3% | 6.8% | 8.9% | 8.1% | -0.8% |
| ROE | 7.9% | 7.9% | 10.6% | 9.7% | 6.7% | -3.0% |
| Net Debt/EBITDA | 0.8x | 0.8x | -0.2x | -0.3x | -1.0x | -0.6x |
Revenue and profitability
The company's Revenue jumped on 11.0% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.7 pp from 39.3% to 36.6% in 2015.
Gross Margin decreased slightly on 1.7 pp from 45.0% to 43.2% in 2015. SG&A as a % of Revenue decreased slightly on 0.78 pp from 18.0% to 17.2% in 2015.
Net Income marign decreased on 6.8 pp from 22.5% to 15.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 33.3%. The company's CAPEX/Revenue jumped on 16.9 pp from 16.4% in 2012 to 33.3% in 2015. It's average CAPEX/Revenue for the last three years was 31.6%.The company invested a big chunk of EBITDA (90.9%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (8.09%) and ROE (6.73%). ROIC decreased slightly on 0.80 pp from 8.9% to 8.1% in 2015. ROE decreased on 3.0 pp from 9.7% to 6.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.0x and Debt / EBITDA is 0.8x. Net Debt / EBITDA dropped on 0.6x from -0.3x to -1.0x in 2015. Debt dropped on 13.7% in 2015 while cash jumped on 44.4% in 2015.
Appendix 1: Peers in Environmental Control
Below we provide New Universe International Group Ltd benchmarking against other companies in Environmental Control 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 |
|---|
| China Environmental Technology Holdings Ltd ($646) | -58.7% | 138.4% | -89.9% | 509.7% | |
| Capital Environment Holdings Ltd ($3989) | | -12.6% | 1,503.8% | 241.2% | -13.0% |
| CT Environmental Group Ltd ($1363) | 21.9% | -18.7% | 23.1% | 112.9% | |
| Asia Energy Logistics Group Ltd ($351) | | | | 92.2% | |
| Green Energy Group Ltd ($979) | 57.8% | -75.7% | 92.3% | 43.5% | |
| |
|---|
| Median (21 companies) | 21.9% | -2.2% | 7.5% | 12.5% | 2.3% |
|---|
| New Universe International Group Ltd ($8068) | | 45.7% | 17.6% | 33.0% | 11.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EverChina International Holdings Co Ltd ($202) | 40.2% | 51.8% | 53.4% | 95.3% | 95.4% |
| China Environmental Resources Group Ltd ($1130) | 12.3% | 17.2% | 11.3% | 73.7% | 34.1% |
| CT Environmental Group Ltd ($1363) | 57.7% | 65.8% | 63.1% | 56.4% | |
| ELL Environmental Holdings Ltd ($1395) | 76.4% | 77.9% | 75.8% | 56.3% | 34.7% |
| China Everbright International Ltd ($257) | 41.3% | 49.4% | 44.7% | 46.7% | 45.8% |
| |
|---|
| Median (20 companies) | 34.1% | 30.2% | 30.3% | 30.9% | 34.7% |
|---|
| New Universe International Group Ltd ($8068) | 51.9% | 47.9% | 47.7% | 45.0% | 43.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CT Environmental Group Ltd ($1363) | 52.2% | 63.6% | 62.8% | 58.7% | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 55.9% | 57.5% | 56.6% | 57.8% | |
| China Everbright International Ltd ($257) | 37.3% | 44.6% | 40.7% | 43.6% | 44.1% |
| China Water Affairs Group Ltd ($855) | 38.8% | 38.2% | 38.1% | 37.1% | 40.3% |
| Sound Global Ltd ($967) | 25.5% | 24.2% | 23.8% | 24.0% | |
| |
|---|
| Median (20 companies) | 8.3% | 4.6% | 2.0% | -1.7% | 13.8% |
|---|
| New Universe International Group Ltd ($8068) | 42.0% | 40.2% | 37.8% | 39.3% | 36.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CT Environmental Group Ltd ($1363) | 31.8% | 65.0% | 27.1% | 51.4% | |
| Green Energy Group Ltd ($979) | 7.5% | 169.0% | 270.8% | 41.9% | |
| Integrated Waste Solutions Group Holdings Ltd ($923) | 25.4% | 13.2% | 10.6% | 41.7% | 88.1% |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 42.2% | 43.1% | 46.5% | 38.6% | |
| China Water Affairs Group Ltd ($855) | 31.4% | 40.5% | 39.1% | 30.1% | 28.4% |
| |
|---|
| Median (21 companies) | 9.2% | 12.6% | 10.6% | 8.4% | 3.2% |
|---|
| New Universe International Group Ltd ($8068) | 103.4% | 16.4% | 16.6% | 44.9% | 33.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CT Environmental Group Ltd ($1363) | 34.4% | 25.9% | 20.5% | 20.8% | |
| Sound Global Ltd ($967) | 15.0% | 12.8% | 11.5% | 10.8% | |
| China Everbright International Ltd ($257) | 11.1% | 10.4% | 11.2% | 10.5% | 10.8% |
| Dongjiang Environmental Co Ltd ($895) | 17.0% | 14.3% | 7.4% | 9.4% | |
| Dynagreen Environmental Protection Group Co Ltd ($1330) | | 11.4% | 9.0% | 8.5% | 8.6% |
| |
|---|
| Median (21 companies) | 2.3% | -1.0% | 1.0% | -1.4% | 2.9% |
|---|
| New Universe International Group Ltd ($8068) | 5.8% | 6.3% | 6.8% | 8.9% | 8.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Water Affairs Group Ltd ($855) | 2.8x | 2.6x | 2.7x | 3.2x | 3.4x |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 4.1x | 4.2x | 3.1x | 2.9x | |
| Sound Global Ltd ($967) | -0.7x | -0.1x | 0.3x | 1.9x | |
| CT Environmental Group Ltd ($1363) | 1.8x | 2.4x | 0.5x | 1.9x | |
| China Everbright International Ltd ($257) | 2.8x | 2.1x | 0.5x | 1.5x | 2.6x |
| |
|---|
| Median (10 companies) | 1.0x | 2.3x | 0.3x | 1.2x | 1.1x |
|---|
| New Universe International Group Ltd ($8068) | 0.8x | 0.8x | -0.2x | -0.3x | -1.0x |
