Xinyi Solar Holdings Ltd is a powerful growth stock
22/03/2016 • About Xinyi Solar Holdings Ltd (
$968) • By InTwits
Xinyi Solar Holdings Ltd is an attractive growth stock in Energy-Alternate Sources industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Xinyi Solar Holdings Ltd showed growth in the last financial year. The company's revenue surged on 97.1% in FY2015. EBITDA also increased considerably: 141% for the same period.
In the longer period Xinyi Solar Holdings Ltd showed fast revenue growth of 45.8% from 2012 to 2015 annualy. EBITDA surged on 87.4% from 2012 to 2015 annualy.
Xinyi Solar Holdings Ltd ($968) financials for the last 5 years
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 1,234 | 1,533 | 1,968 | 2,410 | 4,750 |
|---|
| Revenue growth, % | | 24.3% | 28.3% | 22.5% | 97.1% |
|---|
| Gross margin, % | 35.9% | 17.2% | 30.1% | 31.6% | 36.0% |
|---|
| SG&A, % | 7.91% | 7.92% | 10.4% | 6.44% | 6.58% |
|---|
| EBITDA | 441 | 250 | 468 | 684 | 1,647 |
|---|
| EBITDA growth, % | | -43.3% | 87.0% | 46.1% | 140.7% |
|---|
| EBITDA margin, % | 35.8% | 16.3% | 23.8% | 28.4% | 34.7% |
|---|
| Net Income | 321 | 120 | 304 | 493 | 1,206 |
|---|
| Net Income margin, % | 26.0% | 7.82% | 15.4% | 20.5% | 25.4% |
|---|
| |
| CAPEX | 879 | 348 | 240 | 2,381 | 3,583 |
|---|
| CAPEX/Revenue, % | 71.2% | 22.7% | 12.2% | 98.8% | 75.4% |
|---|
| Debt | 0 | 0 | 0 | 1,300 | 3,590 |
|---|
| Cash | 32 | 54 | 279 | 543 | 2,869 |
|---|
| Net Debt/EBITDA | -0.1x | -0.2x | -0.6x | 1.1x | 0.4x |
|---|
| |
| ROIC, % | 33.6% | 13.8% | 21.6% | 16.9% | 18.7% |
|---|
| ROE, % | 28.6% | 12.1% | 18.0% | 17.6% | 26.6% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. EBITDA margin surged on 6.30 pp from 28.4% to 34.7% in 2015. In the longer period Xinyi Solar Holdings Ltd showed fast EBITDA margin growth of 18.4 pp from 16.3% in 2012 to 34.7% in 2015.
We call Xinyi Solar Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 18.7%. Three years ago it was a bit lower at 13.8%. For the last three years the average ROIC was 19.1%.
The company showed fast Net Income margin growth of 4.90 pp from 20.5% to 25.4% in 2015. In the longer period Net Income margin surged on 17.6 pp from 7.80% in 2012 to 25.4% in 2015.
Xinyi Solar Holdings Ltd operates at ROE of 26.6%. For the last three years the average ROE was 20.7%.
Capital expenditures (CAPEX)
To fuel this fast growth Xinyi Solar Holdings Ltd had to invest in CAPEX.In FY2015 Xinyi Solar Holdings Ltd had CAPEX/Revenue of 75.4%. The company showed fast CAPEX/Revenue growth of 52.7 pp from 22.7% in 2012 to 75.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 62.1%.
Leverage (Debt)
The company has low debt level at 0.4x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period Xinyi Solar Holdings Ltd showed fast leverage growth of 0.65x from -0.22x in 2012 to 0.44x in 2015.
Valuation vs. comparable companies
The market closed today at 11.7x EV/EBITDA for Xinyi Solar Holdings Ltd which is 61% lower than 30.1x Energy-Alternate Sources peer group avearge calculated on the basis of 12 companies. At the end of trading day today Xinyi Solar Holdings Ltd traded at 15.4x P/E which is 2.82% lower than 15.9x Energy-Alternate Sources peer group avearge calculated on the basis of 4 companies.
Management team
Xinyi Solar Holdings Ltd is headed by Lee Yau-Ching as a CEO.
Peers in Energy-Alternate Sources
Below you can find Xinyi Solar Holdings Ltd benchmarking vs. other companies in Energy-Alternate Sources 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| United Photovoltaics Group Ltd ($686) | 221.6% | -74.0% | -83.5% | 1,168.8% | |
| HaiTian Hydropower International Ltd ($8261) | -28.2% | 26.6% | 8.5% | 114.0% | |
| Concord New Energy Group Ltd ($182) | -22.4% | 14.7% | 71.2% | 88.5% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 11.2% | 2.5% | 50.7% | 39.6% | |
| International Standard Resources Holdings Ltd ($91) | -21.2% | 3.6% | 159.6% | 33.5% | |
| |
|---|
| Median (9 companies) | 16.6% | 4.2% | 14.3% | 33.5% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | | 24.3% | 28.3% | 22.5% | 97.1% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| United Photovoltaics Group Ltd ($686) | 17.9% | -29.8% | 99.3% | 90.7% | |
| HaiTian Hydropower International Ltd ($8261) | 70.0% | 74.2% | 74.3% | 79.3% | |
| China Suntien Green Energy Corp Ltd ($956) | 28.8% | 33.5% | 31.3% | 25.2% | |
| China Renewable Energy Investment Ltd ($987) | 12.2% | 20.2% | 37.1% | 24.7% | |
| GCL-Poly Energy Holdings Ltd ($3800) | 33.2% | 7.8% | 11.9% | 23.1% | |
| |
|---|
| Median (6 companies) | 31.0% | 21.6% | 34.2% | 24.9% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | 35.9% | 17.2% | 30.1% | 31.6% | 36.0% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| United Photovoltaics Group Ltd ($686) | 13.0% | -42.6% | -230.5% | 92.9% | |
| HaiTian Hydropower International Ltd ($8261) | 86.2% | 61.9% | 75.9% | 80.2% | |
| China Renewable Energy Investment Ltd ($987) | 28.1% | 54.1% | 66.1% | 64.3% | |
| China Longyuan Power Group Corp Ltd ($916) | 48.8% | 56.3% | 54.4% | 63.5% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 58.5% | 57.7% | 50.4% | 41.8% | |
| |
|---|
| Median (9 companies) | 39.2% | 40.9% | 37.5% | 41.8% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | 35.8% | 16.3% | 23.8% | 28.4% | 34.7% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China Renewable Energy Investment Ltd ($987) | 44.5% | 23.4% | 118.5% | 126.1% | |
| China Longyuan Power Group Corp Ltd ($916) | 83.1% | 79.5% | 54.9% | 100.2% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 90.6% | 98.0% | 110.8% | 65.4% | |
| Concord New Energy Group Ltd ($182) | 199.2% | 64.2% | 19.0% | 52.7% | |
| China Suntien Green Energy Corp Ltd ($956) | 101.3% | 41.4% | 25.7% | 35.9% | |
| |
|---|
| Median (9 companies) | 58.8% | 51.5% | 25.7% | 35.9% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | 71.2% | 22.7% | 12.2% | 98.8% | 75.4% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 9.5% | 6.4% | 7.5% | 7.5% | |
| GCL-Poly Energy Holdings Ltd ($3800) | 15.8% | 0.3% | 2.8% | 6.9% | |
| China Longyuan Power Group Corp Ltd ($916) | 7.0% | 6.9% | 6.3% | 6.3% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 7.0% | 5.8% | 6.8% | 6.3% | |
| China Suntien Green Energy Corp Ltd ($956) | 7.4% | 7.7% | 7.9% | 5.8% | |
| |
|---|
| Median (9 companies) | 7.0% | 3.1% | 4.1% | 5.8% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | 33.6% | 13.8% | 21.6% | 16.9% | 18.7% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 4.5x | 1.4x | 2.6x | 10.5x | |
| United Photovoltaics Group Ltd ($686) | 5.1x | | | 7.8x | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 5.0x | 6.7x | 6.3x | 6.7x | |
| China Renewable Energy Investment Ltd ($987) | 17.1x | 8.9x | 6.2x | 6.4x | |
| China Longyuan Power Group Corp Ltd ($916) | 5.9x | 5.5x | 5.3x | 5.8x | |
| |
|---|
| Median (8 companies) | 4.8x | 5.5x | 5.3x | 6.1x | |
|---|
| Xinyi Solar Holdings Ltd ($968) | -0.1x | -0.2x | -0.6x | 1.1x | 0.4x |
