China Yongda Automobiles Services Holdings Ltd Debt dropped on 25.6% in 2015 while Revenue increased on 8.3%
20/03/2016 • About China Yongda Automobiles Services Holdings Ltd (
$3669) • By InTwits
China Yongda Automobiles Services Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 4.6% in 2015 vs. 4.2% in 2014 vs. 5.1% in 2011
- China Yongda Automobiles Services Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 3.3%.
- CAPEX is quite volatile: 385 in 2015, 667 in 2014, 774 in 2013, 1,195 in 2012, 1,862 in 2011
- The company has business model with low profitability: ROIC is at 9.5%
- It operates with high leverage: Net Debt/EBITDA is 3.4x while industry average is -0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Yongda Automobiles Services Holdings Ltd ($3669) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 20,304 | 21,712 | 26,097 | 32,938 | 35,658 | 8.3% |
| Gross Profit | 1,600 | 1,771 | 2,267 | 2,679 | 3,027 | 13.0% |
| SG&A | | 1,113 | 1,437 | 1,935 | 2,234 | 15.4% |
| EBITDA | 1,030 | 1,054 | 1,259 | 1,383 | 1,642 | 18.7% |
| Net Income | 505 | 470 | 588 | 501 | 524 | 4.7% |
Balance Sheet
|
|---|
| Cash | 1,080 | 1,895 | 1,418 | 1,874 | 1,532 | -18.3% |
| Short Term Debt | 4,489 | 5,312 | 6,176 | 7,222 | 5,857 | -18.9% |
| Long Term Debt | 21 | 157 | 1,201 | 2,236 | 1,180 | -47.2% |
Cash flow
|
|---|
| Capex | 586 | 858 | 1,016 | 1,086 | 1,437 | 32.3% |
Ratios
|
|---|
| Revenue growth | 35.2% | 6.9% | 20.2% | 26.2% | 8.3% | |
| EBITDA growth | 38.8% | 2.4% | 19.4% | 9.8% | 18.7% | |
| Gross Margin | 7.9% | 8.2% | 8.7% | 8.1% | 8.5% | 0.4% |
| EBITDA Margin | 5.1% | 4.9% | 4.8% | 4.2% | 4.6% | 0.4% |
| Net Income Margin | 2.5% | 2.2% | 2.3% | 1.5% | 1.5% | -0.1% |
| SG&A, % of revenue | | 5.1% | 5.5% | 5.9% | 6.3% | 0.4% |
| CAPEX, % of revenue | 2.9% | 4.0% | 3.9% | 3.3% | 4.0% | 0.7% |
| ROIC | 18.1% | 11.5% | 10.3% | 8.4% | 9.5% | 1.2% |
| ROE | 37.5% | 20.3% | 18.1% | 13.8% | 13.0% | -0.8% |
| Net Debt/EBITDA | 3.3x | 3.4x | 4.7x | 5.5x | 3.4x | -2.1x |
Revenue and profitability
The company's Revenue increased on 8.3% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Yongda Automobiles Services Holdings Ltd had CAPEX/Revenue of 4.0%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 3.7%.China Yongda Automobiles Services Holdings Ltd maintained rich investment policy and has spent a big chunk of EBITDA (87.5%) to CAPEX.
Return on investment
The company operates at good ROE (12.98%) while ROIC is low (9.55%). ROIC increased slightly on 1.2 pp from 8.4% to 9.5% in 2015. ROE decreased slightly on 0.81 pp from 13.8% to 13.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.4x and Debt / EBITDA is 4.3x. Net Debt / EBITDA dropped on 2.1x from 5.5x to 3.4x in 2015. Debt dropped on 25.6% in 2015 while cash dropped on 18.3% in 2015.
Appendix 1: Peers in Retail
Below you can find China Yongda Automobiles Services Holdings Ltd benchmarking vs. other companies in Retail 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 |
|---|
| China Household Holdings Ltd ($692) | -87.0% | -32.8% | 5,357.9% | 76.2% | |
| Ming Fung Jewellery Group Ltd ($860) | | 3.3% | -14.9% | 54.3% | -70.8% |
| Merry Garden Holdings Ltd ($1237) | 53.9% | 37.1% | 12.8% | 47.6% | |
| Luk Fook Holdings International Ltd ($590) | | 47.2% | 12.6% | 43.3% | -17.1% |
| NewOcean Energy Holdings Ltd ($342) | | 23.1% | 15.9% | 36.0% | -21.0% |
| |
|---|
| Median (112 companies) | 25.6% | 10.7% | 6.0% | 3.1% | -1.0% |
|---|
| China Yongda Automobiles Services Holdings Ltd ($3669) | | 6.9% | 20.2% | 26.2% | 8.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Culture Landmark Investment Ltd ($674) | 77.5% | 91.1% | 99.4% | 99.5% | |
| Modern Beauty Salon Holdings Ltd ($919) | 97.3% | 97.4% | 95.9% | 96.8% | 96.7% |
| Vongroup Ltd ($318) | | | | 95.1% | 99.1% |
| Nanjing Sinolife United Co Ltd ($3332) | 80.6% | 86.5% | 89.3% | 90.9% | |
| Embry Holdings Ltd ($1388) | 82.3% | 81.2% | 80.4% | 82.3% | |
| |
|---|
| Median (101 companies) | 40.0% | 37.7% | 38.0% | 35.6% | 41.3% |
|---|
| China Yongda Automobiles Services Holdings Ltd ($3669) | 7.9% | 8.2% | 8.7% | 8.1% | 8.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Maoye International Holdings Ltd ($848) | 45.5% | 47.4% | 46.3% | 73.2% | 39.6% |
| China Dongxiang Group Co Ltd ($3818) | 5.6% | 6.0% | 5.6% | 58.3% | |
| Nanjing Sinolife United Co Ltd ($3332) | 47.8% | 51.6% | 56.9% | 54.4% | |
| Lifestyle International Holdings Ltd ($1212) | 49.6% | 47.5% | 47.0% | 44.7% | 43.4% |
| Golden Eagle Retail Group Ltd ($3308) | 52.1% | 48.5% | 47.3% | 42.8% | |
| |
|---|
| Median (111 companies) | 13.2% | 9.9% | 7.3% | 8.8% | 7.7% |
|---|
| China Yongda Automobiles Services Holdings Ltd ($3669) | 5.1% | 4.9% | 4.8% | 4.2% | 4.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intime Retail Group Co Ltd ($1833) | 58.4% | 28.3% | 55.4% | 37.0% | |
| Future Bright Holdings Ltd ($703) | 6.2% | 2.6% | 3.7% | 36.8% | 24.9% |
| Sage International Group Ltd ($8082) | 20.4% | 236.6% | 28.2% | 35.4% | |
| Maoye International Holdings Ltd ($848) | 30.9% | 32.8% | 24.1% | 31.5% | 17.7% |
| Tsui Wah Holdings Ltd ($1314) | 5.2% | 8.3% | 9.3% | 30.5% | 10.6% |
| |
|---|
| Median (112 companies) | 3.9% | 4.0% | 3.6% | 3.5% | 2.7% |
|---|
| China Yongda Automobiles Services Holdings Ltd ($3669) | 2.9% | 4.0% | 3.9% | 3.3% | 4.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 48.1% | 50.7% | -4.6% | 81.3% | 71.8% |
| Starbucks Corp ($4337) | 36.4% | 36.4% | -6.0% | 52.8% | 51.4% |
| Sa Sa International Holdings Ltd ($178) | 45.7% | 53.5% | 52.7% | 49.0% | 39.8% |
| Coach Inc ($6388) | 82.0% | 82.3% | 68.7% | 45.0% | 20.8% |
| Nanjing Sinolife United Co Ltd ($3332) | 57.4% | 67.3% | 68.1% | 32.2% | |
| |
|---|
| Median (112 companies) | 16.6% | 12.3% | 8.2% | 8.4% | 6.0% |
|---|
| China Yongda Automobiles Services Holdings Ltd ($3669) | 18.1% | 11.5% | 10.3% | 8.4% | 9.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sparkle Roll Group Ltd ($970) | -0.8x | 0.6x | 4.0x | 9.3x | 23.5x |
| Zhongsheng Group Holdings Ltd ($881) | 2.2x | 4.6x | 4.5x | 5.3x | |
| NewOcean Energy Holdings Ltd ($342) | 35.2x | 6.2x | 6.1x | 5.3x | 2.6x |
| Century Ginwa Retail Holdings Ltd ($162) | 6.5x | 2.0x | 2.5x | 4.8x | 7.3x |
| China ZhengTong Auto Services Holdings Ltd ($1728) | 6.5x | 3.9x | 3.7x | 4.7x | |
| |
|---|
| Median (87 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
| China Yongda Automobiles Services Holdings Ltd ($3669) | 3.3x | 3.4x | 4.7x | 5.5x | 3.4x |
