Shunfeng International Clean Energy Ltd reports 96.6% Net Income decline while 22.4% Revenue growth
23/03/2016 • About Shunfeng International Clean Energy Ltd (
$1165) • By InTwits
Shunfeng International Clean Energy 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: 26.3% in 2015, 40.5% in 2014, 9.5% in 2013, -11.8% in 2012, 5.9% in 2011
- Shunfeng International Clean Energy Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.3%. At the same time it's in pair with industry average of 17.7%.
- CAPEX is quite volatile: 268 in 2015, 111 in 2014, 285 in 2013, 267 in 2012, 928 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.0%
- It operates with high leverage: Net Debt/EBITDA is 5.7x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shunfeng International Clean Energy Ltd ($1165) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,972 | 1,059 | 1,530 | 5,746 | 7,032 | 22.4% |
| Gross Profit | 210 | 65 | 151 | 1,272 | 1,326 | 4.3% |
| SG&A | 60 | 66 | 110 | 639 | 982 | 53.6% |
| EBITDA | 116 | -125 | 146 | 2,329 | 1,851 | -20.5% |
| Net Income | 57 | -186 | -1,816 | 1,308 | 45 | -96.6% |
Balance Sheet
|
|---|
| Cash | 120 | 17 | 208 | 921 | 1,854 | 101.4% |
| Short Term Debt | 755 | 930 | 3,237 | 1,614 | 2,687 | 66.5% |
| Long Term Debt | 318 | 22 | 737 | 7,172 | 9,721 | 35.6% |
Cash flow
|
|---|
| Capex | 928 | 267 | 285 | 111 | 268 | 141.2% |
Ratios
|
|---|
| Revenue growth | 216.5% | -46.3% | 44.4% | 275.6% | 22.4% | |
| EBITDA growth | 2.6% | -207.4% | -217.1% | 1,497.9% | -20.5% | |
| Gross Margin | 10.7% | 6.1% | 9.9% | 22.1% | 18.9% | -3.3% |
| EBITDA Margin | 5.9% | -11.8% | 9.5% | 40.5% | 26.3% | -14.2% |
| Net Income Margin | 2.9% | -17.6% | -118.7% | 22.8% | 0.6% | -22.1% |
| SG&A, % of revenue | 3.0% | 6.3% | 7.2% | 11.1% | 14.0% | 2.8% |
| CAPEX, % of revenue | 47.1% | 25.2% | 18.6% | 1.9% | 3.8% | 1.9% |
| ROIC | 5.9% | -13.0% | 1.5% | 17.4% | 5.0% | -12.3% |
| ROE | 11.9% | -31.9% | -160.1% | 33.1% | 0.7% | -32.4% |
| Net Debt/EBITDA | 8.2x | | 25.8x | 3.4x | 5.7x | 2.3x |
Revenue and profitability
Shunfeng International Clean Energy Ltd's Revenue surged on 22.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.2 pp from -1.4% to -15.6% in 2015.
Gross Margin decreased on 3.3 pp from 22.1% to 18.9% in 2015. SG&A as a % of Revenue increased on 2.8 pp from 11.1% to 14.0% in 2015.
Net Income marign dropped on 22.1 pp from 22.8% to 0.64% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Shunfeng International Clean Energy Ltd had CAPEX/Revenue of 3.8%. The company showed big decline in CAPEX/Revenue of 21.4 pp from 25.2% in 2012 to 3.8% in 2015. Average CAPEX/Revenue for the last three years was 8.1%.
Return on investment
The company operates at low ROIC (5.03%) and ROE (0.70%). ROIC dropped on 12.3 pp from 17.4% to 5.0% in 2015. ROE dropped on 32.4 pp from 33.1% to 0.70% in 2015.
Leverage (Debt)
Debt level is 5.7x Net Debt / EBITDA and 6.7x Debt / EBITDA. Net Debt / EBITDA surged on 2.3x from 3.4x to 5.7x in 2015. Debt surged on 41.2% in 2015 while cash jumped on 101% in 2015.
Appendix 1: Peers in Semiconductors
Below we provide Shunfeng International Clean Energy Ltd benchmarking against other companies in Semiconductors 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 |
|---|
| Phoenitron Holdings Ltd ($8066) | | -7.2% | 4.0% | 243.8% | 405.3% |
| Jun Yang Solar Power Investments Ltd ($397) | | -81.0% | 256.8% | 1.1% | 168.9% |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | | 15.5% | 16.0% | 3.3% | 23.2% |
| Solomon Systech International Ltd ($2878) | | 26.2% | -15.3% | 8.9% | 18.0% |
| Semiconductor Manufacturing International Corp ($981) | | 29.0% | 21.6% | -4.8% | 13.5% |
| |
|---|
| Median (17 companies) | -6.7% | -11.2% | 3.0% | 10.4% | -0.9% |
|---|
| Shunfeng International Clean Energy Ltd ($1165) | | -46.3% | 44.4% | 275.6% | 22.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heng Xin China Holdings Ltd ($8046) | 46.3% | 42.1% | 57.6% | 75.0% | 35.1% |
| China Jinhai International Group Ltd ($139) | -92.8% | | -7.8% | 73.3% | -69.1% |
| PacMOS Technologies Holdings Ltd ($1010) | 68.1% | 68.8% | 65.7% | 65.7% | 57.5% |
| Intel Corp ($4335) | 62.5% | 62.1% | 59.8% | 63.7% | 62.6% |
| Hanergy Thin Film Power Group Ltd ($566) | 62.8% | 71.4% | 80.3% | 57.3% | |
| |
|---|
| Median (22 companies) | 21.6% | 24.5% | 26.7% | 32.2% | 31.5% |
|---|
| Shunfeng International Clean Energy Ltd ($1165) | 10.7% | 6.1% | 9.9% | 22.1% | 18.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 13.4% | 9.1% | 37.2% | 88.0% | |
| Hanergy Thin Film Power Group Ltd ($566) | 46.0% | 66.0% | 73.9% | 43.7% | |
| Intel Corp ($4335) | 43.6% | 41.5% | 38.6% | 42.8% | 41.0% |
| Semiconductor Manufacturing International Corp ($981) | 26.9% | 34.3% | 35.5% | 34.5% | 33.3% |
| Hua Hong Semiconductor Ltd ($1347) | 41.9% | 38.5% | 29.7% | 31.5% | 30.0% |
| |
|---|
| Median (22 companies) | 12.5% | 9.3% | 6.1% | -0.9% | 8.0% |
|---|
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -11.8% | 9.5% | 40.5% | 26.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jun Yang Solar Power Investments Ltd ($397) | 390.5% | 671.1% | 25.9% | 78.9% | 104.2% |
| Han Tang International Holdings Ltd ($1187) | 1.8% | | | 55.2% | 0.3% |
| Semiconductor Manufacturing International Corp ($981) | 70.6% | 23.5% | 35.1% | 33.2% | 55.0% |
| Comtec Solar Systems Group Ltd ($712) | 22.2% | | 30.2% | 18.7% | |
| Intel Corp ($4335) | 19.9% | 20.7% | 20.3% | 18.1% | 13.2% |
| |
|---|
| Median (22 companies) | 8.6% | 4.4% | 4.1% | 7.0% | 6.3% |
|---|
| Shunfeng International Clean Energy Ltd ($1165) | 47.1% | 25.2% | 18.6% | 1.9% | 3.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ASM Pacific Technology Ltd ($522) | 52.1% | 12.3% | 9.2% | 21.9% | 13.7% |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 22.2% | 25.5% | 22.7% | 21.1% | 20.9% |
| Intel Corp ($4335) | 32.4% | 23.7% | 17.1% | 20.6% | 17.7% |
| Hanergy Thin Film Power Group Ltd ($566) | 9.3% | 14.1% | 15.1% | 19.3% | |
| Applied Materials Inc ($4336) | 25.6% | 4.0% | 4.6% | 15.9% | 15.2% |
| |
|---|
| Median (22 companies) | 1.7% | -0.8% | -0.4% | -0.5% | 0.8% |
|---|
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -13.0% | 1.5% | 17.4% | 5.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Solargiga Energy Holdings Ltd ($757) | 5.9x | | 13.8x | 4.4x | 9.0x |
| Semiconductor Manufacturing International Corp ($981) | 1.9x | 1.3x | 1.0x | 1.0x | 0.5x |
| Intel Corp ($4335) | 0.1x | 0.2x | 0.4x | 0.5x | 0.3x |
| ASM Pacific Technology Ltd ($522) | -0.4x | -0.5x | -0.8x | -0.1x | 0.2x |
| Applied Materials Inc ($4336) | -1.5x | 0.7x | 0.3x | -0.6x | -0.1x |
| |
|---|
| Median (9 companies) | -0.2x | 0.2x | 0.3x | -0.1x | -0.1x |
|---|
| Shunfeng International Clean Energy Ltd ($1165) | 8.2x | | 25.8x | 3.4x | 5.7x |
