Weiqiao Textile Co Net Income jumped on 218% in 2015 while Revenue dropped on 12.9%
18/03/2016 • About Weiqiao Textile Co (
$2698) • By InTwits
Weiqiao Textile Co reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Weiqiao Textile Co is a company in decline: 2015 revenue growth was -12.9%, 5 years revenue CAGR was -11.4%
- EBITDA Margin is expanding: 30.8% in 2015 vs. 21.4% in 2014 vs. 10.2% in 2011
- EBITDA Margin is quite volatile: 30.8% in 2015, 21.4% in 2014, 20.2% in 2013, 17.5% in 2012, 10.2% in 2011
- Weiqiao Textile Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's in pair with industry average of 19.0%.
- CAPEX is quite volatile: 374 in 2015, 756 in 2014, 149 in 2013, 226 in 2012, 599 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Weiqiao Textile Co ($2698) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 15,232 | 15,248 | 13,881 | 11,211 | 9,765 | -12.9% |
| Gross Profit | 278 | 1,037 | 1,206 | 743 | 558 | -24.8% |
| SG&A | | 459 | 488 | 457 | 460 | 0.8% |
| EBITDA | 1,558 | 2,671 | 2,807 | 2,396 | 3,005 | 25.4% |
| Net Income | 246 | 482 | 629 | 308 | 979 | 217.7% |
Balance Sheet
|
|---|
| Cash | 2,058 | 7,350 | 10,211 | 10,632 | 11,973 | 12.6% |
| Short Term Debt | 4,441 | 4,461 | 3,708 | 2,471 | 1,729 | -30.0% |
| Long Term Debt | 4,666 | 4,605 | 6,718 | 7,323 | 7,287 | -0.5% |
Cash flow
|
|---|
| Capex | 599 | 226 | 149 | 756 | 374 | -50.6% |
Ratios
|
|---|
| Revenue growth | -14.8% | 0.1% | -9.0% | -19.2% | -12.9% | |
| EBITDA growth | -61.1% | 71.5% | 5.1% | -14.7% | 25.4% | |
| Gross Margin | 1.8% | 6.8% | 8.7% | 6.6% | 5.7% | -0.9% |
| EBITDA Margin | 10.2% | 17.5% | 20.2% | 21.4% | 30.8% | 9.4% |
| Net Income Margin | 1.6% | 3.2% | 4.5% | 2.7% | 10.0% | 7.3% |
| SG&A, % of revenue | | 3.0% | 3.5% | 4.1% | 4.7% | 0.6% |
| CAPEX, % of revenue | 3.9% | 1.5% | 1.1% | 6.7% | 3.8% | -2.9% |
| ROIC | 0.7% | 5.3% | 5.7% | 4.0% | 6.8% | 2.8% |
| ROE | 1.6% | 3.1% | 4.0% | 1.9% | 5.9% | 4.0% |
| Net Debt/EBITDA | 4.5x | 0.6x | 0.1x | -0.3x | -1.0x | -0.6x |
Revenue and profitability
Weiqiao Textile Co's Revenue dropped on 12.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.4 pp from 21.4% to 30.8% in 2015.
Gross Margin decreased slightly on 0.91 pp from 6.6% to 5.7% in 2015. SG&A as a % of Revenue increased slightly on 0.64 pp from 4.1% to 4.7% in 2015.
Net Income marign increased on 7.3 pp from 2.7% to 10.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.8% in 2015. Weiqiao Textile Co's CAPEX/Revenue increased on 2.3 pp from 1.5% in 2012 to 3.8% in 2015. It's average level of CAPEX/Revenue for the last three years was 3.9%.
Return on investment
The company operates at low ROIC (6.76%) and ROE (5.91%). ROIC increased on 2.8 pp from 4.0% to 6.8% in 2015. ROE increased on 4.0 pp from 1.9% to 5.9% in 2015.
Leverage (Debt)
Debt level is -1.0x Net Debt / EBITDA and 3.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from -0.3x to -1.0x in 2015. Debt decreased on 7.9% in 2015 while cash jumped on 12.6% in 2015.
Appendix 1: Peers in Textiles
Below you can find Weiqiao Textile Co benchmarking vs. other companies in Textiles 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 |
|---|
| Victory City International Holdings Ltd ($539) | | -5.2% | 6.5% | 31.5% | -4.4% |
| Guangdong Tannery Ltd ($1058) | 12.7% | 6.1% | -4.5% | 29.0% | |
| Kingdom Holding Co Ltd ($528) | | 1.1% | 6.0% | 20.0% | 12.2% |
| Pacific Textiles Holdings Ltd ($1382) | | -10.6% | 3.6% | 11.6% | -7.0% |
| Kam Hing International Holdings Ltd ($2307) | 24.4% | 0.9% | -4.3% | 1.6% | |
| |
|---|
| Median (19 companies) | 18.9% | -5.2% | -4.3% | -8.6% | -4.4% |
|---|
| Weiqiao Textile Co ($2698) | | 0.1% | -9.0% | -19.2% | -12.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TAI Ping Carpet International Ltd ($146) | 40.4% | 41.0% | 45.4% | 46.7% | 46.6% |
| Ping Shan Tea Group Ltd ($364) | 15.3% | 11.2% | 20.8% | 42.9% | |
| Texwinca Holdings Ltd ($321) | 33.7% | 29.6% | 30.9% | 33.3% | 34.1% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 30.3% | 31.1% | 32.5% | 32.5% | |
| Kingdom Holding Co Ltd ($528) | 32.1% | 29.1% | 27.2% | 26.8% | 25.8% |
| |
|---|
| Median (19 companies) | 18.0% | 17.1% | 16.6% | 14.4% | 22.2% |
|---|
| Weiqiao Textile Co ($2698) | 1.8% | 6.8% | 8.7% | 6.6% | 5.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ping Shan Tea Group Ltd ($364) | 14.9% | 11.2% | | 39.3% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 26.2% | 28.1% | 28.7% | 30.2% | |
| Kingdom Holding Co Ltd ($528) | 29.3% | 26.3% | 25.3% | 24.8% | 23.0% |
| Pacific Textiles Holdings Ltd ($1382) | 19.5% | 19.1% | 19.0% | 19.5% | 18.4% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 3.2% | 2.5% | 5.1% | 17.5% | |
| |
|---|
| Median (19 companies) | 14.5% | 9.4% | 8.8% | 11.7% | 10.1% |
|---|
| Weiqiao Textile Co ($2698) | 10.2% | 17.5% | 20.2% | 21.4% | 30.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hua Lien International Holding Co Ltd ($969) | 0.0% | 19.7% | 40.5% | 79.6% | |
| Ping Shan Tea Group Ltd ($364) | 18.1% | 32.0% | | 14.0% | |
| Kingdom Holding Co Ltd ($528) | 6.2% | 8.4% | 18.8% | 10.9% | 5.6% |
| Victory City International Holdings Ltd ($539) | 2.3% | 4.2% | 10.1% | 8.6% | 6.8% |
| Silverman Holdings Ltd ($1616) | 8.7% | 6.5% | 18.0% | 8.4% | |
| |
|---|
| Median (19 companies) | 2.6% | 4.2% | 2.1% | 3.9% | 5.8% |
|---|
| Weiqiao Textile Co ($2698) | 3.9% | 1.5% | 1.1% | 6.7% | 3.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 28.8% | 23.7% | 26.4% | 31.6% | 25.9% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 24.2% | 22.3% | 20.1% | 17.6% | |
| Yongsheng Advanced Materials Co Ltd ($3608) | 7.9% | 6.2% | 13.2% | 15.4% | |
| Kingdom Holding Co Ltd ($528) | 16.3% | 13.8% | 12.7% | 13.8% | 12.7% |
| TAI Ping Carpet International Ltd ($146) | | | 2.6% | 5.7% | 5.5% |
| |
|---|
| Median (19 companies) | 7.7% | 5.0% | 3.8% | 3.5% | 5.3% |
|---|
| Weiqiao Textile Co ($2698) | 0.7% | 5.3% | 5.7% | 4.0% | 6.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangdong Tannery Ltd ($1058) | 8.9x | 6.5x | 5.8x | 11.6x | |
| Sijia Group Co ($1863) | -0.1x | 1.6x | 5.3x | 6.4x | |
| China Weaving Materials Holdings Ltd ($3778) | 1.3x | 3.6x | 3.0x | 5.3x | |
| Co-Prosperity Holdings Ltd ($707) | 8.3x | 34.8x | | 4.5x | |
| Victory City International Holdings Ltd ($539) | 1.8x | 1.5x | 2.0x | 3.2x | 2.5x |
| |
|---|
| Median (17 companies) | 1.3x | 1.5x | 2.0x | 1.0x | 0.5x |
|---|
| Weiqiao Textile Co ($2698) | 4.5x | 0.6x | 0.1x | -0.3x | -1.0x |
