Qingling Motors Co Ltd reports 7.9% Net Income growth and 0.85 pp EBITDA Margin growth from 11.4% to 12.2%
20/03/2016 • About Qingling Motors Co Ltd (
$1122) • By InTwits
Qingling Motors Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Qingling Motors Co Ltd is a company in decline: 2015 revenue growth was -5.1%, 5 years revenue CAGR was -2.1%
- Qingling Motors Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 6.5%.
- CAPEX is quite volatile: 97.8 in 2015, 48.6 in 2014, 60.7 in 2013, 152 in 2012, 165 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Qingling Motors Co Ltd ($1122) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,149 | 6,146 | 5,783 | 5,800 | 5,504 | -5.1% |
| Gross Profit | 1,008 | 754 | 877 | 874 | 1,028 | 17.6% |
| SG&A | 743 | 550 | 549 | 485 | 590 | 21.7% |
| EBITDA | 721 | 634 | 740 | 659 | 673 | 2.0% |
| Net Income | 354 | 291 | 372 | 445 | 480 | 7.9% |
Balance Sheet
|
|---|
| Cash | 849 | 1,043 | 1,207 | 1,134 | 2,183 | 92.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 165 | 152 | 61 | 49 | 98 | 101.2% |
Ratios
|
|---|
| Revenue growth | 33.4% | -24.6% | -5.9% | 0.3% | -5.1% | |
| EBITDA growth | 6.4% | -12.1% | 16.8% | -10.9% | 2.0% | |
| Gross Margin | 12.4% | 12.3% | 15.2% | 15.1% | 18.7% | 3.6% |
| EBITDA Margin | 8.8% | 10.3% | 12.8% | 11.4% | 12.2% | 0.9% |
| Net Income Margin | 4.3% | 4.7% | 6.4% | 7.7% | 8.7% | 1.1% |
| SG&A, % of revenue | 9.1% | 8.9% | 9.5% | 8.4% | 10.7% | 2.4% |
| CAPEX, % of revenue | 2.0% | 2.5% | 1.0% | 0.8% | 1.8% | 0.9% |
| ROIC | 5.5% | 4.5% | 5.7% | 5.1% | 5.8% | 0.8% |
| ROE | 4.9% | 4.0% | 5.1% | 6.0% | 6.4% | 0.4% |
| Net Debt/EBITDA | -1.2x | -1.6x | -1.6x | -1.7x | -3.2x | -1.5x |
Revenue and profitability
The company's Revenue decreased on 5.1% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.85 pp from 11.4% to 12.2% in 2015.
Gross Margin increased on 3.6 pp from 15.1% to 18.7% in 2015. SG&A as a % of Revenue increased on 2.4 pp from 8.4% to 10.7% in 2015.
Net Income marign increased slightly on 1.1 pp from 7.7% to 8.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
Qingling Motors Co Ltd's CAPEX/Revenue was 1.8% in 2015. Qingling Motors Co Ltd's CAPEX/Revenue decreased slightly on 0.70 pp from 2.5% in 2012 to 1.8% in 2015. Average CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at low ROIC (5.82%) and ROE (6.37%). ROIC increased slightly on 0.76 pp from 5.1% to 5.8% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 92.5% in 2015.
Appendix 1: Peers in Auto Manufacturers
Below we provide Qingling Motors Co Ltd benchmarking against other companies in Auto Manufacturers 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 |
|---|
| Dongfeng Motor Group Co Ltd ($489) | 7.4% | -95.4% | 511.9% | 123.0% | |
| Guangzhou Automobile Group Co Ltd ($2238) | 25.6% | 18.0% | 45.2% | 18.9% | |
| Great Wall Motor Co Ltd ($2333) | 30.9% | 43.1% | 31.7% | 10.2% | |
| Dah Chong Hong Holdings Ltd ($1828) | | 4.1% | -12.0% | 10.0% | -3.6% |
| Sinotruk Hong Kong Ltd ($3808) | -7.7% | -23.8% | 9.0% | 7.9% | |
| |
|---|
| Median (9 companies) | 1.5% | 4.1% | 16.4% | 7.9% | -3.6% |
|---|
| Qingling Motors Co Ltd ($1122) | | -24.6% | -5.9% | 0.3% | -5.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Wall Motor Co Ltd ($2333) | 22.2% | 24.1% | 25.9% | 25.0% | |
| Geely Automobile Holdings Ltd ($175) | 18.2% | 18.5% | 20.1% | 18.2% | |
| Sinotruk Hong Kong Ltd ($3808) | 15.6% | 14.9% | 16.7% | 16.9% | |
| Byd Co Ltd ($1211) | 14.8% | 11.6% | 13.4% | 13.8% | |
| Dongfeng Motor Group Co Ltd ($489) | 20.1% | 5.8% | 12.6% | 13.0% | |
| |
|---|
| Median (9 companies) | 14.8% | 11.7% | 12.6% | 13.0% | 11.7% |
|---|
| Qingling Motors Co Ltd ($1122) | 12.4% | 12.3% | 15.2% | 15.1% | 18.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Wall Motor Co Ltd ($2333) | 16.1% | 18.0% | 19.5% | 17.8% | |
| Geely Automobile Holdings Ltd ($175) | 14.4% | 14.6% | 15.8% | 15.9% | |
| Byd Co Ltd ($1211) | 11.3% | 10.2% | 9.6% | 12.0% | |
| Sinotruk Hong Kong Ltd ($3808) | 8.0% | 6.6% | 7.4% | 7.8% | |
| Dah Chong Hong Holdings Ltd ($1828) | 4.8% | 4.7% | 4.6% | 4.2% | 3.8% |
| |
|---|
| Median (9 companies) | 8.0% | 4.7% | 4.6% | 4.2% | 3.8% |
|---|
| Qingling Motors Co Ltd ($1122) | 8.8% | 10.3% | 12.8% | 11.4% | 12.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangzhou Automobile Group Co Ltd ($2238) | 20.4% | 22.7% | 10.1% | 15.7% | |
| Brilliance China Automotive Holdings Ltd ($1114) | 4.8% | 8.9% | 10.1% | 13.4% | |
| Great Wall Motor Co Ltd ($2333) | 12.9% | 10.7% | 13.0% | 12.0% | |
| Geely Automobile Holdings Ltd ($175) | 6.8% | 4.5% | 3.9% | 5.0% | |
| Byd Co Ltd ($1211) | 16.2% | 13.0% | 11.2% | 4.2% | |
| |
|---|
| Median (9 companies) | 5.0% | 6.4% | 3.9% | 4.2% | 1.5% |
|---|
| Qingling Motors Co Ltd ($1122) | 2.0% | 2.5% | 1.0% | 0.8% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Wall Motor Co Ltd ($2333) | 22.9% | 27.7% | 32.2% | 25.5% | |
| Geely Automobile Holdings Ltd ($175) | 15.7% | 16.2% | 19.6% | 13.4% | |
| Wuling Motors Holdings Ltd ($305) | 6.2% | 7.2% | 7.7% | 10.0% | |
| Dah Chong Hong Holdings Ltd ($1828) | 14.2% | 11.4% | 8.5% | 7.7% | 6.2% |
| Sinotruk Hong Kong Ltd ($3808) | 5.7% | 2.5% | 3.5% | 3.9% | |
| |
|---|
| Median (9 companies) | 6.2% | 2.7% | 3.5% | 3.9% | 6.2% |
|---|
| Qingling Motors Co Ltd ($1122) | 5.5% | 4.5% | 5.7% | 5.1% | 5.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangzhou Automobile Group Co Ltd ($2238) | | | | 13.2x | |
| Byd Co Ltd ($1211) | 2.8x | 3.4x | 6.7x | 3.9x | |
| Dah Chong Hong Holdings Ltd ($1828) | 1.5x | 1.5x | 2.8x | 3.8x | 3.3x |
| Dongfeng Motor Group Co Ltd ($489) | -1.5x | | | 2.3x | |
| Wuling Motors Holdings Ltd ($305) | 2.8x | 2.0x | 1.9x | 0.8x | |
| |
|---|
| Median (8 companies) | 2.1x | 2.0x | 2.2x | 1.6x | 3.3x |
|---|
| Qingling Motors Co Ltd ($1122) | -1.2x | -1.6x | -1.6x | -1.7x | -3.2x |
