Geely Automobile Holdings Ltd Net Income surged on 58.0% in 2015 while EBITDA Margin decreased slightly on 1.5 pp from 15.9% to 14.4%
22/03/2016 • About Geely Automobile Holdings Ltd (
$175) • By InTwits
Geely Automobile 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: 14.4% in 2015 vs. 15.9% in 2014 vs. 14.4% in 2011
- Geely Automobile Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's in pair with industry average of 6.0%.
- CAPEX is quite volatile: 3,788 in 2015, 5,909 in 2014, 2,640 in 2013, 2,115 in 2012, 5,386 in 2011
- The company has highly profitable business model: ROIC is at 15.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Geely Automobile Holdings Ltd ($175) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 20,965 | 24,628 | 28,708 | 21,738 | 30,138 | 38.6% |
| Gross Profit | 3,820 | 4,559 | 5,766 | 3,963 | 5,471 | 38.1% |
| SG&A | 2,322 | 2,802 | 3,387 | 3,023 | 3,744 | 23.8% |
| EBITDA | 3,022 | 3,584 | 4,526 | 3,462 | 4,346 | 25.5% |
| Net Income | 1,543 | 2,040 | 2,663 | 1,431 | 2,261 | 58.0% |
Balance Sheet
|
|---|
| Cash | 3,030 | 4,189 | 5,478 | 7,203 | 9,167 | 27.3% |
| Short Term Debt | 3,522 | 2,289 | 1,610 | 1,057 | 72 | -93.2% |
| Long Term Debt | 2,370 | 1,374 | 0 | 1,820 | 1,929 | 6.0% |
Cash flow
|
|---|
| Capex | 1,429 | 1,105 | 1,121 | 1,076 | 1,603 | 48.9% |
Ratios
|
|---|
| Revenue growth | 4.3% | 17.5% | 16.6% | -24.3% | 38.6% | |
| EBITDA growth | 15.1% | 18.6% | 26.3% | -23.5% | 25.5% | |
| Gross Margin | 18.2% | 18.5% | 20.1% | 18.2% | 18.2% | -0.1% |
| EBITDA Margin | 14.4% | 14.6% | 15.8% | 15.9% | 14.4% | -1.5% |
| Net Income Margin | 7.4% | 8.3% | 9.3% | 6.6% | 7.5% | 0.9% |
| SG&A, % of revenue | 11.1% | 11.4% | 11.8% | 13.9% | 12.4% | -1.5% |
| CAPEX, % of revenue | 6.8% | 4.5% | 3.9% | 5.0% | 5.3% | 0.4% |
| ROIC | 15.7% | 16.2% | 19.6% | 13.4% | 15.0% | 1.6% |
| ROE | 17.5% | 18.2% | 18.4% | 8.6% | 12.3% | 3.7% |
| Net Debt/EBITDA | 0.9x | -0.1x | -0.9x | -1.2x | -1.6x | -0.4x |
Revenue and profitability
Geely Automobile Holdings Ltd's Revenue jumped on 38.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 11.9 pp from 9.4% to -2.4% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue decreased slightly on 1.5 pp from 13.9% to 12.4% in 2015.
Net Income marign increased slightly on 0.92 pp from 6.6% to 7.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Geely Automobile Holdings Ltd had CAPEX/Revenue of 5.3%. CAPEX/Revenue increased slightly on 0.83 pp from 4.5% in 2012 to 5.3% in 2015. For the last three years the average CAPEX/Revenue was 4.7%.
Return on investment
The company operates at good ROIC (14.99%) and ROE (12.28%). ROIC increased slightly on 1.6 pp from 13.4% to 15.0% in 2015. ROE increased on 3.7 pp from 8.6% to 12.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.6x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped on 0.4x from -1.2x to -1.6x in 2015. Debt dropped on 30.5% in 2015 while cash jumped on 27.3% in 2015.
Management team
The company's CEO Gui Sheng Yue has spent 12 years at the company.
Appendix 1: Peers in Auto Manufacturers
Below you can find Geely Automobile Holdings Ltd benchmarking vs. other companies in Auto Manufacturers 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 |
|---|
| 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) | -1.4% | -4.2% | 9.0% | 7.9% | -4.4% |
|---|
| Geely Automobile Holdings Ltd ($175) | | 17.5% | 16.6% | -24.3% | 38.6% |
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% | |
| Sinotruk Hong Kong Ltd ($3808) | 15.6% | 14.9% | 16.7% | 16.9% | |
| Qingling Motors Co Ltd ($1122) | 12.4% | 12.3% | 15.2% | 15.1% | 18.7% |
| 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) | 13.3% | 11.7% | 12.6% | 13.0% | 15.2% |
|---|
| Geely Automobile Holdings Ltd ($175) | 18.2% | 18.5% | 20.1% | 18.2% | 18.2% |
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% | |
| Byd Co Ltd ($1211) | 11.3% | 10.2% | 9.6% | 12.0% | |
| Qingling Motors Co Ltd ($1122) | 8.8% | 10.3% | 12.8% | 11.4% | 12.2% |
| 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% | 8.0% |
|---|
| Geely Automobile Holdings Ltd ($175) | 14.4% | 14.6% | 15.8% | 15.9% | 14.4% |
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% | |
| Byd Co Ltd ($1211) | 16.2% | 13.0% | 11.2% | 4.2% | |
| Dongfeng Motor Group Co Ltd ($489) | 5.0% | 6.4% | 2.2% | 3.8% | |
| |
|---|
| Median (9 companies) | 4.8% | 6.4% | 2.5% | 3.8% | 1.6% |
|---|
| Geely Automobile Holdings Ltd ($175) | 6.8% | 4.5% | 3.9% | 5.0% | 5.3% |
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% | |
| 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% |
| Qingling Motors Co Ltd ($1122) | 5.5% | 4.5% | 5.7% | 5.1% | 5.8% |
| Sinotruk Hong Kong Ltd ($3808) | 5.7% | 2.5% | 3.5% | 3.9% | |
| |
|---|
| Median (9 companies) | 6.1% | 2.7% | 3.5% | 3.9% | 6.0% |
|---|
| Geely Automobile Holdings Ltd ($175) | 15.7% | 16.2% | 19.6% | 13.4% | 15.0% |
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 | 0.0x |
|---|
| Geely Automobile Holdings Ltd ($175) | 0.9x | -0.1x | -0.9x | -1.2x | -1.6x |
