China Ludao Technology Co Ltd reports 82.6% Net Income decline while 4.8% Revenue growth
23/03/2016 • About China Ludao Technology Co Ltd (
$2023) • By InTwits
China Ludao Technology Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Ludao Technology Co Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.0%
- EBITDA Margin is quite volatile: 3.3% in 2015, 11.7% in 2014, 13.9% in 2013, 13.5% in 2012, 14.1% in 2011
- China Ludao Technology Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 17.6 in 2015, 23.9 in 2014, 8.9 in 2013, 4.7 in 2012, 5.6 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Ludao Technology Co Ltd ($2023) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 212.7 | 228.9 | 251.4 | 253.8 | 266.0 | 4.8% |
| Gross Profit | 49.4 | 55.3 | 62.5 | 64.7 | 65.7 | 1.6% |
| SG&A | 23.0 | 32.9 | 41.1 | 43.7 | 64.9 | 48.7% |
| EBITDA | 30.0 | 30.9 | 34.8 | 29.6 | 8.7 | -70.5% |
| Net Income | 22.5 | 23.8 | 24.0 | 20.5 | 3.6 | -82.6% |
Balance Sheet
|
|---|
| Cash | 4.3 | 36.3 | 54.3 | 26.8 | 120.8 | 350.5% |
| Short Term Debt | 72.7 | 67.0 | 70.9 | 88.9 | 58.6 | -34.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 5.6 | 4.7 | 8.9 | 23.9 | 17.6 | -26.3% |
Ratios
|
|---|
| Revenue growth | 39.7% | 7.6% | 9.8% | 1.0% | 4.8% | |
| EBITDA growth | 40.1% | 3.2% | 12.6% | -14.9% | -70.5% | |
| Gross Margin | 23.2% | 24.2% | 24.9% | 25.5% | 24.7% | -0.8% |
| EBITDA Margin | 14.1% | 13.5% | 13.9% | 11.7% | 3.3% | -8.4% |
| Net Income Margin | 10.6% | 10.4% | 9.6% | 8.1% | 1.3% | -6.7% |
| SG&A, % of revenue | 10.8% | 14.4% | 16.3% | 17.2% | 24.4% | 7.2% |
| CAPEX, % of revenue | 2.6% | 2.1% | 3.5% | 9.4% | 6.6% | -2.8% |
| ROIC | 22.3% | 18.2% | 14.9% | 9.1% | 1.0% | -8.1% |
| ROE | 37.7% | 29.0% | 17.4% | 10.6% | 1.4% | -9.3% |
| Net Debt/EBITDA | 2.3x | 1.0x | 0.5x | 2.1x | -7.1x | -9.2x |
Revenue and profitability
China Ludao Technology Co Ltd's Revenue increased on 4.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.4 pp from 16.2% to 9.8% in 2015.
Gross Margin decreased slightly on 0.78 pp from 25.5% to 24.7% in 2015. SG&A as a % of Revenue increased on 7.2 pp from 17.2% to 24.4% in 2015.
Net Income marign decreased on 6.7 pp from 8.1% to 1.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.6% in 2015. China Ludao Technology Co Ltd's CAPEX/Revenue increased on 4.6 pp from 2.1% in 2012 to 6.6% in 2015. Average CAPEX/Revenue for the last three years was 6.5%.The company maintained rich investment policy and has spent a lot to CAPEX (201% of EBITDA).
Return on investment
The company operates at low ROIC (1.01%) and ROE (1.39%). ROIC decreased on 8.1 pp from 9.1% to 1.0% in 2015. ROE decreased on 9.3 pp from 10.6% to 1.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -7.1x and Debt / EBITDA is 6.7x. Net Debt / EBITDA dropped on 9.2x from 2.1x to -7.1x in 2015. Debt dropped on 34.1% in 2015 while cash surged on 350% in 2015.
Appendix 1: Peers in Miscellaneous Manufactur
Below we provide China Ludao Technology Co Ltd benchmarking against other companies in Miscellaneous Manufactur 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 |
|---|
| CSR Corp Ltd ($1766) | 24.0% | 12.0% | 9.7% | 123.7% | |
| Sunny Optical Technology Group Co Ltd ($2382) | | 59.5% | 45.9% | 45.0% | 26.9% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 1.5% | 22.2% | 43.2% | |
| Time Watch Investments Ltd ($2033) | | 28.2% | 25.4% | 25.6% | 10.4% |
| China International Marine Containers Group Co Ltd ($2039) | 23.4% | -15.6% | 6.6% | 21.4% | |
| |
|---|
| Median (25 companies) | 18.6% | -7.1% | -0.7% | 8.2% | -8.5% |
|---|
| China Ludao Technology Co Ltd ($2023) | | 7.6% | 9.8% | 1.0% | 4.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | 68.1% |
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | 39.6% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | |
| Launch Tech Co Ltd ($2488) | 39.2% | 27.4% | 33.6% | 33.6% | |
| |
|---|
| Median (24 companies) | 20.6% | 19.7% | 19.7% | 23.4% | 21.7% |
|---|
| China Ludao Technology Co Ltd ($2023) | 23.2% | 24.2% | 24.9% | 25.5% | 24.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 42.8% | 30.4% | 31.3% | 38.4% | 37.6% |
| Man Sang International Ltd ($938) | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% |
| IPE Group Ltd ($929) | 24.9% | 25.6% | 22.5% | 29.5% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | |
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | 20.5% |
| |
|---|
| Median (25 companies) | 10.2% | 8.0% | 8.2% | 9.5% | 4.7% |
|---|
| China Ludao Technology Co Ltd ($2023) | 14.1% | 13.5% | 13.9% | 11.7% | 3.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | 22.8% |
| KEE Holdings Co Ltd ($2011) | 20.9% | 21.8% | 43.7% | 24.9% | |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | |
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | 47.6% |
| TK Group Holdings Ltd ($2283) | 8.9% | 13.3% | 8.1% | 13.7% | 7.6% |
| |
|---|
| Median (25 companies) | 5.2% | 4.9% | 4.3% | 4.2% | 3.4% |
|---|
| China Ludao Technology Co Ltd ($2023) | 2.6% | 2.1% | 3.5% | 9.4% | 6.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | 27.6% |
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | 27.9% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | 19.4% |
| CSR Corp Ltd ($1766) | 13.4% | 11.1% | 11.2% | 15.3% | |
| |
|---|
| Median (25 companies) | 6.4% | 4.2% | 3.6% | 3.9% | 1.4% |
|---|
| China Ludao Technology Co Ltd ($2023) | 22.3% | 18.2% | 14.9% | 9.1% | 1.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | 27.3x |
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | 4,203.6x |
| China International Marine Containers Group Co Ltd ($2039) | 2.8x | 4.0x | 4.7x | 5.8x | |
| VS International Group Ltd ($1002) | 8.6x | 5.1x | 6.5x | 4.4x | 3.3x |
| Launch Tech Co Ltd ($2488) | -0.4x | 7.6x | 2.4x | 3.9x | |
| |
|---|
| Median (21 companies) | -0.3x | -0.3x | -0.3x | -0.2x | 0.8x |
|---|
| China Ludao Technology Co Ltd ($2023) | 2.3x | 1.0x | 0.5x | 2.1x | -7.1x |
