Solargiga Energy Holdings Ltd Net Debt / EBITDA surged on 4.5x from 4.4x to 9.0x in 2015 and Revenue increased slightly on 1.2%
23/03/2016 • About Solargiga Energy Holdings Ltd (
$757) • By InTwits
Solargiga Energy Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Solargiga Energy Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.8%
- EBITDA Margin is quite volatile: 8.0% in 2015, 12.6% in 2014, 6.1% in 2013, -31.1% in 2012, 10.2% in 2011
- Solargiga Energy Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.4%. At the same time it's in pair with industry average of 20.5%.
- CAPEX is quite volatile: 121 in 2015, 188 in 2014, 0 in 2013, 0 in 2012, 675 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.8%
- It operates with high leverage: Net Debt/EBITDA is 9.0x 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.
Solargiga Energy Holdings Ltd ($757) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,575 | 997 | 2,150 | 2,865 | 2,900 | 1.2% |
| Gross Profit | 254 | -291 | 150 | 364 | 243 | -33.4% |
| SG&A | 301 | 272 | 249 | 243 | 231 | -4.8% |
| EBITDA | 261 | -310 | 132 | 362 | 232 | -35.9% |
| Net Income | 54 | -1,277 | -136 | -64 | 16 | -124.5% |
Balance Sheet
|
|---|
| Cash | 560 | 134 | 214 | 195 | 194 | -0.7% |
| Short Term Debt | 958 | 1,255 | 1,444 | 1,420 | 1,932 | 36.0% |
| Long Term Debt | 1,146 | 786 | 592 | 386 | 348 | -9.8% |
Cash flow
|
|---|
| Capex | 675 | 0 | 0 | 188 | 121 | -35.8% |
Ratios
|
|---|
| Revenue growth | 38.8% | -61.3% | 115.7% | 33.2% | 1.2% | |
| EBITDA growth | -26.0% | -218.8% | -142.4% | 175.2% | -35.9% | |
| Gross Margin | 9.9% | -29.2% | 7.0% | 12.7% | 8.4% | -4.3% |
| EBITDA Margin | 10.2% | -31.1% | 6.1% | 12.6% | 8.0% | -4.6% |
| Net Income Margin | 2.1% | -128.1% | -6.3% | -2.2% | 0.5% | 2.8% |
| SG&A, % of revenue | 11.7% | 27.3% | 11.6% | 8.5% | 8.0% | -0.5% |
| CAPEX, % of revenue | 26.2% | 0.0% | 0.0% | 6.6% | 4.2% | -2.4% |
| ROIC | 2.7% | -13.7% | -1.2% | 5.1% | 0.8% | -4.3% |
| ROE | 2.8% | -78.8% | -12.5% | -5.7% | 1.4% | 7.1% |
| Net Debt/EBITDA | 5.9x | | 13.8x | 4.4x | 9.0x | 4.5x |
Revenue and profitability
Solargiga Energy Holdings Ltd's Revenue increased slightly on 1.2% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.66 pp from 4.4% to 5.1% in 2015.
Gross Margin decreased on 4.3 pp from 12.7% to 8.4% in 2015. SG&A as a % of Revenue decreased slightly on 0.50 pp from 8.5% to 8.0% in 2015.
Net Income marign increased on 2.8 pp from -2.2% to 0.54% in 2015.
Capital expenditures (CAPEX) and working capital investments
Solargiga Energy Holdings Ltd's CAPEX/Revenue was 4.2% in 2015. Solargiga Energy Holdings Ltd's CAPEX/Revenue increased4.2 pp from 0% in 2012 to 4.2% in 2015.Solargiga Energy Holdings Ltd invested a large share of EBITDA (52.0%) to CAPEX.
Return on investment
The company operates at low ROIC (0.83%) and ROE (1.44%). ROIC decreased on 4.3 pp from 5.1% to 0.83% in 2015. ROE increased on 7.1 pp from -5.7% to 1.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 9.0x and Debt / EBITDA is 9.8x. Net Debt / EBITDA surged on 4.5x from 4.4x to 9.0x in 2015. Debt jumped on 26.2% in 2015 while cash decreased slightly on 0.67% in 2015.
Management team
Solargiga Energy Holdings Ltd's CEO is Tan Wenhua. Tan Wenhua has 3 years tenure at the company.
Appendix 1: Peers in Semiconductors
Below we provide Solargiga Energy Holdings 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% |
| Shunfeng International Clean Energy Ltd ($1165) | | -46.3% | 44.4% | 275.6% | 22.4% |
| Solomon Systech International Ltd ($2878) | | 26.2% | -15.3% | 8.9% | 18.0% |
| |
|---|
| Median (17 companies) | -6.7% | -11.2% | 3.0% | 10.4% | -0.9% |
|---|
| Solargiga Energy Holdings Ltd ($757) | | -61.3% | 115.7% | 33.2% | 1.2% |
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% |
|---|
| Solargiga Energy Holdings Ltd ($757) | 9.9% | -29.2% | 7.0% | 12.7% | 8.4% |
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% |
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -11.8% | 9.5% | 40.5% | 26.3% |
| Semiconductor Manufacturing International Corp ($981) | 26.9% | 34.3% | 35.5% | 34.5% | 33.3% |
| |
|---|
| Median (22 companies) | 12.5% | 9.3% | 9.5% | -0.9% | 10.3% |
|---|
| Solargiga Energy Holdings Ltd ($757) | 10.2% | -31.1% | 6.1% | 12.6% | 8.0% |
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% | 4.7% | 5.5% | 6.1% | 6.3% |
|---|
| Solargiga Energy Holdings Ltd ($757) | 26.2% | 0.0% | 0.0% | 6.6% | 4.2% |
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% | |
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -13.0% | 1.5% | 17.4% | 5.0% |
| |
|---|
| Median (22 companies) | 1.7% | -0.8% | 0.6% | -0.5% | 0.9% |
|---|
| Solargiga Energy Holdings Ltd ($757) | 2.7% | -13.7% | -1.2% | 5.1% | 0.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shunfeng International Clean Energy Ltd ($1165) | 8.2x | | 25.8x | 3.4x | 5.7x |
| 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 |
|---|
| Solargiga Energy Holdings Ltd ($757) | 5.9x | | 13.8x | 4.4x | 9.0x |
