Sun King Power Electronics Group reports 969% EBITDA growth and 51.2% Revenue growth
22/03/2016 • About Sun King Power Electronics Group (
$580) • By InTwits
Sun King Power Electronics Group reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 15.8% in 2015, 2.2% in 2014, 13.8% in 2013, 8.4% in 2012, -3.1% in 2011
- Sun King Power Electronics Group has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.1%. At the same time it's in pair with industry average of 10.8%.
- CAPEX is quite volatile: 12.4 in 2015, 80.3 in 2014, 57.2 in 2013, 94.8 in 2012, 55.9 in 2011
- The company has business model with low profitability: ROIC is at 7.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sun King Power Electronics Group ($580) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 610.3 | 573.5 | 739.9 | 517.3 | 782.0 | 51.2% |
| Gross Profit | 99.1 | 145.8 | 222.2 | 159.1 | 266.9 | 67.8% |
| SG&A | | 119.7 | 134.2 | 142.8 | 138.7 | -2.9% |
| EBITDA | -18.8 | 48.1 | 102.1 | 11.6 | 123.7 | 968.8% |
| Net Income | -59.4 | 0.4 | 42.9 | -32.1 | 62.3 | -293.8% |
Balance Sheet
|
|---|
| Cash | 184.5 | 186.7 | 153.9 | 113.6 | 128.0 | 12.7% |
| Short Term Debt | 227.1 | 268.4 | 299.0 | 229.0 | 394.6 | 72.3% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 55.9 | 94.8 | 57.2 | 80.3 | 12.4 | -84.6% |
Ratios
|
|---|
| Revenue growth | 42.6% | -6.0% | 29.0% | -30.1% | 51.2% | |
| EBITDA growth | -127.7% | -356.3% | 112.4% | -88.7% | 968.8% | |
| Gross Margin | 16.2% | 25.4% | 30.0% | 30.8% | 34.1% | 3.4% |
| EBITDA Margin | -3.1% | 8.4% | 13.8% | 2.2% | 15.8% | 13.6% |
| Net Income Margin | -9.7% | 0.1% | 5.8% | -6.2% | 8.0% | 14.2% |
| SG&A, % of revenue | | 20.9% | 18.1% | 27.6% | 17.7% | -9.9% |
| CAPEX, % of revenue | 9.2% | 16.5% | 7.7% | 15.5% | 1.6% | -13.9% |
| ROIC | -3.9% | 2.7% | 7.0% | -0.9% | 7.9% | 8.8% |
| ROE | -7.4% | 0.1% | 5.3% | -4.0% | 7.5% | 11.4% |
| Net Debt/EBITDA | | 1.7x | 1.4x | 10.0x | 2.2x | -7.8x |
Revenue and profitability
Sun King Power Electronics Group's Revenue jumped on 51.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.1 pp from 51.1% to 56.2% in 2015.
Gross Margin increased on 3.4 pp from 30.8% to 34.1% in 2015. SG&A as a % of Revenue decreased on 9.9 pp from 27.6% to 17.7% in 2015.
Net Income marign surged on 14.2 pp from -6.2% to 8.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Sun King Power Electronics Group's CAPEX/Revenue was 1.6% in 2015. The company showed big decline in CAPEX/Revenue of 14.9 pp from 16.5% in 2012 to 1.6% in 2015. It's average CAPEX/Revenue for the last three years was 8.3%.
Return on investment
The company operates at low ROIC (7.91%) and ROE (7.46%). ROIC increased on 8.8 pp from -0.87% to 7.9% in 2015. ROE surged on 11.4 pp from -4.0% to 7.5% in 2015.
Leverage (Debt)
Debt level is 2.2x Net Debt / EBITDA and 3.2x Debt / EBITDA. Net Debt / EBITDA dropped on 7.8x from 10.0x to 2.2x in 2015. Debt jumped on 72.3% in 2015 while cash surged on 12.7% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Sun King Power Electronics Group benchmarking against other companies in Electrical Compo&Equip 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 |
|---|
| Enterprise Development Holdings Ltd ($1808) | 225.9% | 2.5% | 37.3% | 83.9% | |
| FDG Electric Vehicles Ltd ($729) | | -23.1% | -7.0% | 54.0% | 270.8% |
| Boer Power Holdings Ltd ($1685) | 11.4% | 20.4% | 10.9% | 51.3% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | -27.0% | -12.0% | 8.7% | 44.1% | |
| CEC International Holdings Ltd ($759) | | 23.9% | 60.8% | 43.0% | 32.3% |
| |
|---|
| Median (31 companies) | 13.4% | -3.2% | 8.3% | 16.1% | 5.8% |
|---|
| Sun King Power Electronics Group ($580) | | -6.0% | 29.0% | -30.1% | 51.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 37.1% | 36.8% | 36.0% | 35.3% | |
| China Titans Energy Technology Group Co Ltd ($2188) | 45.4% | 41.4% | 27.3% | 33.7% | |
| CEC International Holdings Ltd ($759) | 18.5% | 23.6% | 27.9% | 29.9% | 31.8% |
| Johnson Electric Holdings Ltd ($179) | 27.5% | 27.3% | 28.0% | 29.5% | 29.6% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 16.1% | 14.2% | 20.1% | 26.0% | |
| |
|---|
| Median (30 companies) | 20.6% | 18.6% | 16.7% | 15.9% | 19.5% |
|---|
| Sun King Power Electronics Group ($580) | 16.2% | 25.4% | 30.0% | 30.8% | 34.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shougang Concord Technology Holdings ($521) | 22.7% | 12.3% | 28.1% | 31.9% | |
| Boer Power Holdings Ltd ($1685) | 28.1% | 26.3% | 27.8% | 28.5% | |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 21.0% | 20.2% | 19.2% | 20.8% | 26.3% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 9.2% | 5.7% | 7.4% | 16.9% | |
| Johnson Electric Holdings Ltd ($179) | 14.9% | 14.2% | 14.5% | 15.5% | 15.4% |
| |
|---|
| Median (32 companies) | 10.8% | 7.3% | 6.8% | 4.7% | 5.6% |
|---|
| Sun King Power Electronics Group ($580) | -3.1% | 8.4% | 13.8% | 2.2% | 15.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Applied Development Holdings Ltd ($519) | 46.4% | 79.7% | | 1,285.3% | 89.8% |
| FDG Electric Vehicles Ltd ($729) | 177.5% | 374.3% | 82.3% | 71.1% | 417.0% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.7% | 23.1% | 50.7% | 13.5% | |
| Coslight Technology International Group Co Ltd ($1043) | 11.0% | 9.3% | 11.4% | 11.5% | |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 16.8% | 26.0% | 16.3% | 8.5% | 2.6% |
| |
|---|
| Median (32 companies) | 10.0% | 5.7% | 4.9% | 3.6% | 3.3% |
|---|
| Sun King Power Electronics Group ($580) | 9.2% | 16.5% | 7.7% | 15.5% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 18.2% | 18.0% | 17.0% | 21.2% | |
| Jiangnan Group Ltd ($1366) | 17.0% | 14.9% | 14.1% | 13.5% | |
| Johnson Electric Holdings Ltd ($179) | 13.1% | 11.7% | 11.6% | 12.7% | 11.2% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 5.1% | 1.8% | 3.0% | 10.4% | |
| Hengxin Technology Ltd ($1085) | 13.9% | 8.1% | 9.3% | 9.0% | 10.2% |
| |
|---|
| Median (32 companies) | 6.2% | 2.8% | 2.9% | 1.7% | 2.3% |
|---|
| Sun King Power Electronics Group ($580) | -3.9% | 2.7% | 7.0% | -0.9% | 7.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tianneng Power International Ltd ($819) | 0.7x | 1.8x | 4.0x | 162.7x | 0.6x |
| Coslight Technology International Group Co Ltd ($1043) | 11.2x | 51.9x | 8.7x | 54.7x | |
| China Titans Energy Technology Group Co Ltd ($2188) | 0.2x | 1.5x | | 16.9x | |
| Shougang Concord Technology Holdings ($521) | 12.7x | 16.3x | 4.9x | 13.8x | |
| Guodian Technology & Environment Group Corp Ltd ($1296) | 5.4x | 6.3x | 7.6x | 6.8x | |
| |
|---|
| Median (24 companies) | 0.3x | 1.5x | -0.2x | 1.5x | -0.7x |
|---|
| Sun King Power Electronics Group ($580) | | 1.7x | 1.4x | 10.0x | 2.2x |
