Minth Group Ltd EBITDA jumped on 21.5% in 2015 and EBITDA Margin increased slightly on 1.4 pp from 23.1% to 24.5%
21/03/2016 • About Minth Group Ltd (
$425) • By InTwits
Minth Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Minth Group Ltd is a fast growth stock: 2015 revenue growth was 14.5%, 5 year revenue CAGR was 16.4% at 2015 ROIC 13.4%
- Minth Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.5%. At the same time it's a lot of higher than industry average of 8.4%.
- CAPEX is quite volatile: 1,180 in 2015, 1,249 in 2014, 886 in 2013, 642 in 2012, 478 in 2011
- The company has highly profitable business model: ROIC is at 13.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Minth Group Ltd ($425) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,889 | 4,330 | 5,510 | 6,684 | 7,654 | 14.5% |
| Gross Profit | 1,363 | 1,434 | 1,819 | 2,085 | 2,428 | 16.4% |
| SG&A | 441 | 477 | 632 | 770 | 817 | 6.0% |
| EBITDA | 1,006 | 1,107 | 1,336 | 1,543 | 1,874 | 21.5% |
| Net Income | 787 | 841 | 971 | 1,118 | 1,272 | 13.8% |
Balance Sheet
|
|---|
| Cash | 3,792 | 4,130 | 4,119 | 3,594 | 2,767 | -23.0% |
| Short Term Debt | 826 | 1,271 | 2,385 | 2,708 | 1,958 | -27.7% |
| Long Term Debt | 0 | 187 | 25 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 478 | 642 | 886 | 1,249 | 1,180 | -5.5% |
Ratios
|
|---|
| Revenue growth | 8.8% | 11.3% | 27.3% | 21.3% | 14.5% | |
| EBITDA growth | -0.4% | 10.0% | 20.7% | 15.5% | 21.5% | |
| Gross Margin | 35.0% | 33.1% | 33.0% | 31.2% | 31.7% | 0.5% |
| EBITDA Margin | 25.9% | 25.6% | 24.2% | 23.1% | 24.5% | 1.4% |
| Net Income Margin | 20.2% | 19.4% | 17.6% | 16.7% | 16.6% | -0.1% |
| SG&A, % of revenue | 11.3% | 11.0% | 11.5% | 11.5% | 10.7% | -0.9% |
| CAPEX, % of revenue | 12.3% | 14.8% | 16.1% | 18.7% | 15.4% | -3.3% |
| ROIC | 13.1% | 11.9% | 12.1% | 11.8% | 13.4% | 1.7% |
| ROE | 13.6% | 13.1% | 13.7% | 14.2% | 14.5% | 0.4% |
| Net Debt/EBITDA | -2.9x | -2.4x | -1.3x | -0.6x | -0.4x | 0.1x |
Revenue and profitability
The company's Revenue surged on 14.5% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.4 pp from 23.1% to 24.5% in 2015.
Gross Margin increased slightly on 0.52 pp from 31.2% to 31.7% in 2015. SG&A as a % of Revenue decreased slightly on 0.86 pp from 11.5% to 10.7% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Minth Group Ltd had CAPEX/Revenue of 15.4%. The company showed small growth in CAPEX/Revenue of 0.60 pp from 14.8% in 2012 to 15.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 16.7%.Minth Group Ltd invested a big chunk of EBITDA (63.0%) to CAPEX to secure its growth.
Return on investment
The company operates at good ROIC (13.43%) and ROE (14.55%). ROIC increased slightly on 1.7 pp from 11.8% to 13.4% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.4x and Debt / EBITDA is 1.0x. Net Debt / EBITDA jumped on 0.1x from -0.6x to -0.4x in 2015. Debt dropped on 27.7% in 2015 while cash dropped on 23.0% in 2015.
Management team
Shi Jian Hui is a the company's CEO. Shi Jian Hui has spent 13 years at the company. Minth Group Ltd's CFO Bao Jian Ya has spent 11 years at the company.
Appendix 1: Peers in Auto Parts&Equipment
Below we provide Minth Group 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% |
| Zhejiang Shibao Co Ltd ($1057) | 14.0% | -12.2% | 23.1% | 20.2% | |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 16.1% | -1.1% | 27.3% | 14.4% | |
| |
|---|
| Median (15 companies) | 13.6% | -8.3% | 11.4% | 2.7% | 5.5% |
|---|
| Minth Group Ltd ($425) | | 11.3% | 27.3% | 21.3% | 14.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 36.2% | 37.4% | 41.0% | 41.5% | 41.5% |
| 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% | 27.3% |
|---|
| Minth Group Ltd ($425) | 35.0% | 33.1% | 33.0% | 31.2% | 31.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 26.9% | 28.5% | 28.7% | 29.2% | 27.7% |
| 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% | 25.0% |
|---|
| Minth Group Ltd ($425) | 25.9% | 25.6% | 24.2% | 23.1% | 24.5% |
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% | |
| Fuyao Glass Industry Group Co Ltd ($3606) | 11.5% | 14.6% | 16.5% | 21.1% | 23.9% |
| 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) | 11.4% | 9.3% | 7.7% | 5.8% | 16.7% |
|---|
| Minth Group Ltd ($425) | 12.3% | 14.8% | 16.1% | 18.7% | 15.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.1% | 19.0% | 21.1% | 22.3% | 15.7% |
| 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% | |
| Xinyi Glass Holdings Ltd ($868) | 12.8% | 9.3% | 22.6% | 8.3% | 10.8% |
| |
|---|
| Median (16 companies) | 13.4% | 4.8% | 7.9% | 6.4% | 15.7% |
|---|
| Minth Group Ltd ($425) | 13.1% | 11.9% | 12.1% | 11.8% | 13.4% |
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) | 1.3x | 1.2x | 1.1x | 1.1x | 0.5x |
|---|
| Minth Group Ltd ($425) | -2.9x | -2.4x | -1.3x | -0.6x | -0.4x |
