Fuyao Glass Industry Group Co Ltd reports 18.7% CAPEX growth and 5.0% Revenue growth
20/03/2016 • About Fuyao Glass Industry Group Co Ltd (
$3606) • By InTwits
Fuyao Glass Industry Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Fuyao Glass Industry Group Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.6%. At the same time it's a lot of higher than industry average of 8.6%.
- CAPEX is quite volatile: 3,245 in 2015, 2,734 in 2014, 1,887 in 2013, 1,500 in 2012, 1,110 in 2011
- The company has highly profitable business model: ROIC is at 15.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fuyao Glass Industry Group Co Ltd ($3606) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,633 | 10,247 | 11,415 | 12,928 | 13,573 | 5.0% |
| Gross Profit | 3,486 | 3,828 | 4,676 | 5,363 | 5,635 | 5.1% |
| SG&A | 1,279 | 1,450 | 1,691 | 1,909 | 2,308 | 20.9% |
| EBITDA | 2,596 | 2,916 | 3,272 | 3,774 | 3,762 | -0.3% |
| Net Income | 1,513 | 1,524 | 1,918 | 2,219 | 2,605 | 17.4% |
Balance Sheet
|
|---|
| Cash | 808 | 487 | 491 | 499 | 5,905 | 1,083.2% |
| Short Term Debt | 3,428 | 3,126 | 3,384 | 3,336 | 3,871 | 16.1% |
| Long Term Debt | 1,122 | 880 | 918 | 1,213 | 848 | -30.1% |
Cash flow
|
|---|
| Capex | 1,110 | 1,500 | 1,887 | 2,734 | 3,245 | 18.7% |
Ratios
|
|---|
| Revenue growth | 13.3% | 6.4% | 11.4% | 13.3% | 5.0% | |
| EBITDA growth | -5.4% | 12.3% | 12.2% | 15.3% | -0.3% | |
| Gross Margin | 36.2% | 37.4% | 41.0% | 41.5% | 41.5% | 0.0% |
| EBITDA Margin | 26.9% | 28.5% | 28.7% | 29.2% | 27.7% | -1.5% |
| Net Income Margin | 15.7% | 14.9% | 16.8% | 17.2% | 19.2% | 2.0% |
| SG&A, % of revenue | 13.3% | 14.2% | 14.8% | 14.8% | 17.0% | 2.2% |
| CAPEX, % of revenue | 11.5% | 14.6% | 16.5% | 21.1% | 23.9% | 2.8% |
| ROIC | 19.1% | 19.0% | 21.1% | 22.3% | 15.7% | -6.5% |
| ROE | 25.1% | 23.1% | 25.9% | 26.6% | 20.6% | -6.0% |
| Net Debt/EBITDA | 1.4x | 1.2x | 1.2x | 1.1x | -0.3x | -1.4x |
Revenue and profitability
The company's Revenue increased on 5.0% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 15.6 pp from 3.5% to 19.1% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 2.2 pp from 14.8% to 17.0% in 2015.
Net Income marign increased on 2.0 pp from 17.2% to 19.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 23.9% in 2015. CAPEX/Revenue increased on 9.3 pp from 14.6% in 2012 to 23.9% in 2015. It's average CAPEX/Revenue for the last three years was 20.5%.The company invested a large share of EBITDA (86.3%) to CAPEX.
Return on investment
The company operates at high and attractive ROE (20.64%) while ROIC is a bit lower (15.74%). ROIC decreased on 6.5 pp from 22.3% to 15.7% in 2015. ROE decreased on 6.0 pp from 26.6% to 20.6% in 2015.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 1.4x from 1.1x to -0.3x in 2015. Debt increased on 3.8% in 2015 while cash jumped on 1,083% in 2015.
Appendix 1: Peers in Auto Parts&Equipment
Below we provide Fuyao Glass Industry Group Co Ltd benchmarking against other companies in Auto Parts&Equipment 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 |
|---|
| Weichai Power Co Ltd ($2338) | -4.6% | -19.8% | 21.0% | 36.8% | |
| China Vehicle Components Technology Holdings Ltd ($1269) | 2.4% | -10.4% | 27.1% | 31.0% | |
| Nexteer Automotive Group Ltd ($1316) | | -3.6% | 10.1% | 24.8% | 12.8% |
| Minth Group Ltd ($425) | 8.8% | 11.3% | 27.3% | 21.3% | |
| Zhejiang Shibao Co Ltd ($1057) | 14.0% | -12.2% | 23.1% | 20.2% | |
| |
|---|
| Median (15 companies) | 11.2% | -8.3% | 17.8% | 2.7% | 9.2% |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | | 6.4% | 11.4% | 13.3% | 5.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Minth Group Ltd ($425) | 35.0% | 33.1% | 33.0% | 31.2% | |
| Zhejiang Shibao Co Ltd ($1057) | 34.9% | 30.3% | 26.0% | 26.4% | |
| Shuanghua Holdings Ltd ($1241) | 21.4% | 17.1% | 16.8% | 26.0% | |
| Xinyi Glass Holdings Ltd ($868) | 28.6% | 26.4% | 31.6% | 25.2% | 27.3% |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 25.1% | 20.9% | 23.6% | 24.0% | |
| |
|---|
| Median (15 companies) | 25.1% | 19.9% | 19.7% | 21.1% | 21.8% |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 36.2% | 37.4% | 41.0% | 41.5% | 41.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Minth Group Ltd ($425) | 25.9% | 25.6% | 24.2% | 23.1% | |
| Xinyi Glass Holdings Ltd ($868) | 23.5% | 22.5% | 43.8% | 20.0% | 25.0% |
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 20.7% | 17.2% | 16.0% | |
| Xinchen China Power Holdings Ltd ($1148) | 16.5% | 15.5% | 14.0% | 15.7% | |
| Zhejiang Shibao Co Ltd ($1057) | 25.8% | 19.8% | 14.0% | 14.5% | |
| |
|---|
| Median (15 companies) | 15.2% | 8.7% | 11.4% | 12.0% | 19.4% |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 26.9% | 28.5% | 28.7% | 29.2% | 27.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinchen China Power Holdings Ltd ($1148) | 2.5% | 1.2% | 0.8% | 21.9% | |
| Minth Group Ltd ($425) | 12.3% | 14.8% | 16.1% | 18.7% | |
| Xinyi Glass Holdings Ltd ($868) | 37.3% | 17.0% | 28.9% | 15.8% | 16.7% |
| Xiezhong International Holdings Ltd ($3663) | 15.4% | 22.9% | 24.9% | 12.0% | |
| Zhejiang Shibao Co Ltd ($1057) | 22.9% | 10.2% | 4.7% | 9.7% | |
| |
|---|
| Median (15 companies) | 11.8% | 9.3% | 7.7% | 5.8% | 10.8% |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 11.5% | 14.6% | 16.5% | 21.1% | 23.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nexteer Automotive Group Ltd ($1316) | | 14.0% | 18.2% | 17.7% | 21.2% |
| Xinchen China Power Holdings Ltd ($1148) | 31.7% | 22.4% | 14.7% | 12.5% | |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 13.4% | 2.4% | 9.2% | 12.5% | |
| Minth Group Ltd ($425) | 13.1% | 11.9% | 12.1% | 11.8% | |
| Xinyi Glass Holdings Ltd ($868) | 12.8% | 9.3% | 22.6% | 8.3% | 10.8% |
| |
|---|
| Median (16 companies) | 13.1% | 4.8% | 7.9% | 6.4% | 16.0% |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.1% | 19.0% | 21.1% | 22.3% | 15.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | 2.4x | 9.4x | 5.8x | 5.3x | |
| New Focus Auto Tech Holdings Ltd ($360) | 1.3x | | | 4.5x | |
| Xinyi Glass Holdings Ltd ($868) | 2.0x | 1.9x | 0.9x | 2.4x | 1.7x |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 2.2x | 7.9x | 2.8x | 2.2x | |
| Xiezhong International Holdings Ltd ($3663) | 0.7x | 0.6x | 1.2x | 1.2x | |
| |
|---|
| Median (13 companies) | 0.8x | 0.7x | 1.0x | 1.0x | 1.1x |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 1.4x | 1.2x | 1.2x | 1.1x | -0.3x |
