GCL New Energy Holdings Ltd CAPEX jumped on 11,251% in 2015 and Revenue jumped on 53.9%
23/03/2016 • About GCL New Energy Holdings Ltd (
$451) • By InTwits
GCL New Energy Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 33.0% in 2015 vs. 12.6% in 2014 vs. 12.1% in 2011
- EBITDA Margin is quite volatile: 33.0% in 2015, 12.6% in 2014, 11.1% in 2013, 10.8% in 2012, 12.1% in 2011
- GCL New Energy Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 85.7%. At the same time it's a lot of higher than industry average of 13.7%.
- CAPEX is quite volatile: 9,751 in 2015, 85.9 in 2014, 72.0 in 2013, 84.4 in 2012, 148 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.2%
- It operates with high leverage: Net Debt/EBITDA is 17.4x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
GCL New Energy Holdings Ltd ($451) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,332 | 1,528 | 1,424 | 1,580 | 2,431 | 53.9% |
| Gross Profit | 136 | 112 | 58 | 129 | 645 | 398.5% |
| SG&A | 93 | 110 | 107 | 129 | 464 | 259.2% |
| EBITDA | 161 | 164 | 158 | 200 | 802 | 301.7% |
| Net Income | 7 | -39 | -175 | -182 | -19 | -89.6% |
Balance Sheet
|
|---|
| Cash | 31 | 30 | 47 | 46 | 2,347 | 4,975.6% |
| Short Term Debt | 290 | 274 | 301 | 323 | 6,575 | 1,935.5% |
| Long Term Debt | 181 | 227 | 157 | 70 | 9,764 | 13,755.2% |
Cash flow
|
|---|
| Capex | 148 | 84 | 72 | 86 | 9,751 | 11,250.7% |
Ratios
|
|---|
| Revenue growth | 47.7% | 14.7% | -6.8% | 10.9% | 53.9% | |
| EBITDA growth | 28.8% | 2.1% | -4.0% | 26.7% | 301.7% | |
| Gross Margin | 10.2% | 7.3% | 4.1% | 8.2% | 26.5% | 18.3% |
| EBITDA Margin | 12.1% | 10.8% | 11.1% | 12.6% | 33.0% | 20.4% |
| Net Income Margin | 0.5% | -2.6% | -12.3% | -11.5% | -0.8% | 10.7% |
| SG&A, % of revenue | 7.0% | 7.2% | 7.5% | 8.2% | 19.1% | 10.9% |
| CAPEX, % of revenue | 11.1% | 5.5% | 5.1% | 5.4% | 401.2% | 395.7% |
| ROIC | 5.2% | 4.1% | 3.0% | 7.9% | 3.2% | -4.8% |
| ROE | 1.6% | -7.9% | -37.6% | -52.2% | -1.1% | 51.0% |
| Net Debt/EBITDA | 2.7x | 2.9x | 2.6x | 1.7x | 17.4x | 15.7x |
Revenue and profitability
The company's Revenue jumped on 53.9% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 20.4 pp from 12.6% to 33.0% in 2015.
Gross Margin jumped on 18.3 pp from 8.2% to 26.5% in 2015. SG&A as a % of Revenue jumped on 10.9 pp from 8.2% to 19.1% in 2015.
Net Income marign jumped on 10.7 pp from -11.5% to -0.77% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 401% in 2015. CAPEX/Revenue surged on 396 pp from 5.5% in 2012 to 401% in 2015. For the last three years the average CAPEX/Revenue was 137%.To fuel this fast growth the company made large investments to CAPEX (1,215% of EBITDA).
Return on investment
The company operates at low but positive ROIC (3.18%) and negative ROE (-1.15%). ROIC decreased on 4.8 pp from 7.9% to 3.2% in 2015. ROE jumped on 51.0 pp from -52.2% to -1.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 17.4x and Debt / EBITDA is 20.4x. Net Debt / EBITDA surged on 15.7x from 1.7x to 17.4x in 2015. Debt jumped on 4,052% in 2015 while cash jumped on 4,976% in 2015.
Appendix 1: Peers in Electronics
Below you can find GCL New Energy Holdings Ltd benchmarking vs. other companies in Electronics 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 |
|---|
| China Netcom Technology Holdings Ltd ($8071) | -22.0% | 11.6% | -23.0% | 104.1% | |
| Technovator International Ltd ($1206) | | 27.4% | 34.1% | 35.9% | 19.0% |
| Tongda Group Holdings Ltd ($698) | | 8.3% | 6.4% | 32.1% | 26.8% |
| Advanced Card Systems Holdings Ltd ($8210) | | 36.9% | 20.8% | 26.7% | -4.8% |
| Alltronics Holdings Ltd ($833) | 33.9% | -1.6% | -1.6% | 23.4% | |
| |
|---|
| Median (49 companies) | 6.9% | -1.6% | 4.0% | 3.8% | 0.4% |
|---|
| GCL New Energy Holdings Ltd ($451) | | 14.7% | -6.8% | 10.9% | 53.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 51.4% | 54.0% | 58.1% | 49.5% | 49.6% |
| AAC Technologies Holdings Inc ($2018) | 44.0% | 44.2% | 42.7% | 41.4% | 41.5% |
| TeleEye Holdings Ltd ($8051) | 51.6% | 44.0% | 42.1% | 38.5% | 37.0% |
| Wasion Group Holdings Ltd ($3393) | 30.3% | 32.8% | 35.1% | 34.2% | 30.2% |
| Datronix Holdings Ltd ($889) | 41.3% | 32.9% | 32.0% | 34.1% | 34.6% |
| |
|---|
| Median (47 companies) | 13.6% | 14.6% | 13.8% | 14.0% | 16.8% |
|---|
| GCL New Energy Holdings Ltd ($451) | 10.2% | 7.3% | 4.1% | 8.2% | 26.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.2% | 35.8% | 35.8% | 34.9% | 34.8% |
| Nanjing Sample Technology Co Ltd ($1708) | 31.5% | 26.8% | 21.1% | 22.3% | 15.7% |
| Wasion Group Holdings Ltd ($3393) | 18.9% | 18.8% | 21.2% | 22.0% | 19.3% |
| Technovator International Ltd ($1206) | 19.2% | 19.0% | 19.0% | 20.8% | 18.0% |
| Trigiant Group Ltd ($1300) | 17.0% | 17.6% | 18.2% | 18.5% | 16.2% |
| |
|---|
| Median (49 companies) | 8.8% | 5.7% | 4.4% | 4.0% | 7.4% |
|---|
| GCL New Energy Holdings Ltd ($451) | 12.1% | 10.8% | 11.1% | 12.6% | 33.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AKM Industrial Co Ltd ($1639) | 7.4% | 5.0% | 17.4% | 25.2% | 18.0% |
| AAC Technologies Holdings Inc ($2018) | 25.9% | 18.7% | 8.7% | 19.6% | 18.4% |
| Irico Group Electronics Co Ltd ($438) | 92.0% | 39.9% | 30.4% | 17.4% | 25.8% |
| Tech Pro Technology Development Ltd ($3823) | 32.8% | 7.6% | 13.1% | 15.4% | |
| Nanjing Sample Technology Co Ltd ($1708) | 3.7% | 23.9% | 15.5% | 12.0% | 2.7% |
| |
|---|
| Median (49 companies) | 3.2% | 3.7% | 2.9% | 3.3% | 2.9% |
|---|
| GCL New Energy Holdings Ltd ($451) | 11.1% | 5.5% | 5.1% | 5.4% | 401.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 22.3% | 29.1% | 30.0% | 26.0% | 27.8% |
| Cowell e Holdings Inc ($1415) | | 12.5% | 27.1% | 24.4% | 25.8% |
| Advanced Card Systems Holdings Ltd ($8210) | 15.5% | 26.7% | 24.7% | 20.2% | 9.7% |
| Alltronics Holdings Ltd ($833) | 19.3% | 13.1% | 15.2% | 19.8% | |
| Tongda Group Holdings Ltd ($698) | 14.3% | 15.2% | 13.5% | 16.5% | 16.3% |
| |
|---|
| Median (49 companies) | 5.9% | 4.5% | 3.5% | 2.9% | 3.7% |
|---|
| GCL New Energy Holdings Ltd ($451) | 5.2% | 4.1% | 3.0% | 7.9% | 3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| National Electronic Hldgs ($213) | 43.0x | 16.3x | 30.2x | 84.8x | 19.9x |
| Sino-Tech International Holdings Ltd ($724) | | | 15.7x | 24.7x | |
| Eyang Holdings Group Co Ltd ($117) | 4.2x | 3.3x | 3.7x | 17.9x | |
| SAS Dragon Hldg Ltd ($1184) | 2.8x | 7.1x | 2.0x | 6.4x | |
| Willas-Array Electronics Holdings Ltd ($854) | 2.8x | 2.2x | 2.6x | 5.7x | 5.4x |
| |
|---|
| Median (35 companies) | 0.7x | 1.0x | 1.1x | 0.8x | 0.1x |
|---|
| GCL New Energy Holdings Ltd ($451) | 2.7x | 2.9x | 2.6x | 1.7x | 17.4x |
