GCL-Poly Energy Holdings Ltd CAPEX jumped on 83.9% in 2015 and Revenue increased slightly on 1.1%
23/03/2016 • About GCL-Poly Energy Holdings Ltd (
$3800) • By InTwits
GCL-Poly 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 quite volatile: 35.8% in 2015, 31.3% in 2014, 20.1% in 2013, 13.3% in 2012, 35.6% in 2011
- GCL-Poly Energy Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 31.7%. At the same time it's in pair with industry average of 45.0%.
- CAPEX is quite volatile: 9,311 in 2015, 5,063 in 2014, 2,758 in 2013, 3,611 in 2012, 12,444 in 2011
- The company has business model with low profitability: ROIC is at 7.2%
- It operates with high leverage: Net Debt/EBITDA is 5.0x while industry average is 4.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
GCL-Poly Energy Holdings Ltd ($3800) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 21,177 | 18,179 | 20,236 | 21,523 | 21,766 | 1.1% |
| Gross Profit | 7,030 | 1,423 | 2,409 | 4,975 | 5,776 | 16.1% |
| SG&A | 1,458 | 1,623 | 1,449 | 1,505 | 1,660 | 10.3% |
| EBITDA | 7,533 | 2,426 | 4,065 | 6,732 | 7,794 | 15.8% |
| Net Income | 3,549 | -2,860 | -527 | 1,549 | 2,425 | 56.6% |
Balance Sheet
|
|---|
| Cash | 5,583 | 3,616 | 4,815 | 4,362 | 10,260 | 135.2% |
| Short Term Debt | 10,357 | 17,905 | 24,641 | 25,592 | 28,823 | 12.6% |
| Long Term Debt | 16,871 | 13,467 | 11,287 | 14,826 | 20,310 | 37.0% |
Cash flow
|
|---|
| Capex | 12,444 | 3,611 | 2,758 | 5,063 | 9,311 | 83.9% |
Ratios
|
|---|
| Revenue growth | 31.6% | -14.2% | 11.3% | 6.4% | 1.1% | |
| EBITDA growth | 13.4% | -67.8% | 67.6% | 65.6% | 15.8% | |
| Gross Margin | 33.2% | 7.8% | 11.9% | 23.1% | 26.5% | 3.4% |
| EBITDA Margin | 35.6% | 13.3% | 20.1% | 31.3% | 35.8% | 4.5% |
| Net Income Margin | 16.8% | -15.7% | -2.6% | 7.2% | 11.1% | 3.9% |
| SG&A, % of revenue | 6.9% | 8.9% | 7.2% | 7.0% | 7.6% | 0.6% |
| CAPEX, % of revenue | 58.8% | 19.9% | 13.6% | 23.5% | 42.8% | 19.3% |
| ROIC | 15.8% | 0.3% | 2.8% | 6.9% | 7.2% | 0.3% |
| ROE | 23.3% | -19.1% | -4.1% | 11.4% | 16.0% | 4.6% |
| Net Debt/EBITDA | 2.9x | 11.4x | 7.7x | 5.4x | 5.0x | -0.4x |
Revenue and profitability
GCL-Poly Energy Holdings Ltd's Revenue increased slightly on 1.1% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.0 pp from 7.9% to 10.9% in 2015.
Gross Margin increased on 3.4 pp from 23.1% to 26.5% in 2015. SG&A as a % of Revenue increased slightly on 0.63 pp from 7.0% to 7.6% in 2015.
Net Income marign increased on 3.9 pp from 7.2% to 11.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
GCL-Poly Energy Holdings Ltd's CAPEX/Revenue was 42.8% in 2015. The company showed fast CAPEX/Revenue growth of 22.9 pp from 19.9% in 2012 to 42.8% in 2015. It's average CAPEX/Revenue for the last three years was 26.6%.The company maintained rich investment policy and has spent a lot to CAPEX (119% of EBITDA).
Return on investment
The company operates at good ROE (15.97%) while ROIC is low (7.18%). ROIC showed almost no change in 2015. ROE increased on 4.6 pp from 11.4% to 16.0% in 2015.
Leverage (Debt)
Debt level is 5.0x Net Debt / EBITDA and 6.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 5.4x to 5.0x in 2015. Debt surged on 21.6% in 2015 while cash jumped on 135% in 2015.
Appendix 1: Peers in Energy-Alternate Sources
Below we provide GCL-Poly Energy Holdings Ltd benchmarking against other companies in Energy-Alternate Sources 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 |
|---|
| United Photovoltaics Group Ltd ($686) | 221.6% | -74.0% | -83.5% | 1,168.8% | |
| HaiTian Hydropower International Ltd ($8261) | | 26.6% | 8.5% | 114.0% | 220.2% |
| Canvest Environment Protection Group Co Ltd ($1381) | | 150.6% | 0.8% | 103.5% | 49.2% |
| 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% | |
| |
|---|
| Median (10 companies) | 26.3% | 12.7% | 20.1% | 36.5% | 42.9% |
|---|
| GCL-Poly Energy Holdings Ltd ($3800) | | -14.2% | 11.3% | 6.4% | 1.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | 64.6% |
| Canvest Environment Protection Group Co Ltd ($1381) | 61.5% | 53.4% | 51.9% | 43.1% | 37.1% |
| Xinyi Solar Holdings Ltd ($968) | 35.9% | 17.2% | 30.1% | 31.6% | 36.0% |
| China Suntien Green Energy Corp Ltd ($956) | 28.8% | 33.5% | 31.3% | 25.2% | |
| |
|---|
| Median (7 companies) | 35.9% | 22.9% | 37.1% | 31.6% | 36.0% |
|---|
| GCL-Poly Energy Holdings Ltd ($3800) | 33.2% | 7.8% | 11.9% | 23.1% | 26.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | 69.0% |
| China Renewable Energy Investment Ltd ($987) | 28.1% | 54.1% | 66.1% | 64.3% | 74.3% |
| China Longyuan Power Group Corp Ltd ($916) | 48.8% | 56.3% | 54.4% | 63.5% | 64.5% |
| Canvest Environment Protection Group Co Ltd ($1381) | 71.0% | 59.3% | 56.6% | 50.3% | 41.8% |
| |
|---|
| Median (10 companies) | 40.6% | 47.5% | 43.9% | 46.1% | 53.2% |
|---|
| GCL-Poly Energy Holdings Ltd ($3800) | 35.6% | 13.3% | 20.1% | 31.3% | 35.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Renewable Energy Investment Ltd ($987) | 44.5% | 23.4% | 118.5% | 126.1% | 32.4% |
| China Longyuan Power Group Corp Ltd ($916) | 83.1% | 79.5% | 54.9% | 100.2% | 77.7% |
| Xinyi Solar Holdings Ltd ($968) | 71.2% | 22.7% | 12.2% | 98.8% | 75.4% |
| 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% | |
| |
|---|
| Median (10 companies) | 75.1% | 46.5% | 22.3% | 44.3% | 50.9% |
|---|
| GCL-Poly Energy Holdings Ltd ($3800) | 58.8% | 19.9% | 13.6% | 23.5% | 42.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinyi Solar Holdings Ltd ($968) | 33.6% | 13.8% | 21.6% | 16.9% | 18.7% |
| Canvest Environment Protection Group Co Ltd ($1381) | | 27.0% | 18.1% | 12.4% | 10.0% |
| HaiTian Hydropower International Ltd ($8261) | 9.5% | 6.4% | 7.5% | 7.5% | 11.9% |
| China Longyuan Power Group Corp Ltd ($916) | 7.0% | 6.9% | 6.3% | 6.3% | 6.2% |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 7.0% | 5.8% | 6.8% | 6.3% | |
| |
|---|
| Median (10 companies) | 7.0% | 6.1% | 6.5% | 6.0% | 8.1% |
|---|
| GCL-Poly Energy Holdings Ltd ($3800) | 15.8% | 0.3% | 2.8% | 6.9% | 7.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 4.5x | 1.4x | 2.6x | 10.5x | 2.4x |
| 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 | 3.8x |
| China Longyuan Power Group Corp Ltd ($916) | 5.9x | 5.5x | 5.3x | 5.8x | 5.7x |
| |
|---|
| Median (9 companies) | 4.7x | 4.1x | 3.4x | 5.8x | 2.4x |
|---|
| GCL-Poly Energy Holdings Ltd ($3800) | 2.9x | 11.4x | 7.7x | 5.4x | 5.0x |
