Xinchen China Power Holdings Ltd CAPEX dropped on 53.3% in 2015 while Revenue surged on 23.3%
23/03/2016 • About Xinchen China Power Holdings Ltd (
$1148) • By InTwits
Xinchen China Power Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Xinchen China Power Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.9%. At the same time it's in pair with industry average of 7.7%.
- CAPEX is quite volatile: 271 in 2015, 580 in 2014, 20.1 in 2013, 32.1 in 2012, 58.6 in 2011
- The company has business model with low profitability: ROIC is at 8.6%
- It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Xinchen China Power Holdings Ltd ($1148) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,308 | 2,573 | 2,586 | 2,652 | 3,269 | 23.3% |
| Gross Profit | 477 | 518 | 511 | 530 | 510 | -3.8% |
| SG&A | 105 | 129 | 155 | 182 | 208 | 14.0% |
| EBITDA | 380 | 400 | 363 | 415 | 417 | 0.4% |
| Net Income | 260 | 290 | 271 | 272 | 225 | -17.3% |
Balance Sheet
|
|---|
| Cash | 328 | 665 | 1,166 | 354 | 288 | -18.6% |
| Short Term Debt | 197 | 617 | 343 | 221 | 351 | 59.0% |
| Long Term Debt | 4 | 0 | 0 | 367 | 738 | 101.0% |
Cash flow
|
|---|
| Capex | 59 | 32 | 20 | 580 | 271 | -53.3% |
Ratios
|
|---|
| Revenue growth | 18.6% | 11.5% | 0.5% | 2.6% | 23.3% | |
| EBITDA growth | 78.3% | 5.1% | -9.2% | 14.4% | 0.4% | |
| Gross Margin | 20.7% | 20.1% | 19.7% | 20.0% | 15.6% | -4.4% |
| EBITDA Margin | 16.5% | 15.5% | 14.0% | 15.7% | 12.7% | -2.9% |
| Net Income Margin | 11.3% | 11.3% | 10.5% | 10.2% | 6.9% | -3.4% |
| SG&A, % of revenue | 4.5% | 5.0% | 6.0% | 6.9% | 6.4% | -0.5% |
| CAPEX, % of revenue | 2.5% | 1.2% | 0.8% | 21.9% | 8.3% | -13.6% |
| ROIC | 31.7% | 22.4% | 14.7% | 12.5% | 8.6% | -3.9% |
| ROE | 31.0% | 24.6% | 15.5% | 11.7% | 8.7% | -3.0% |
| Net Debt/EBITDA | -0.3x | -0.1x | -2.3x | 0.6x | 1.9x | 1.4x |
Revenue and profitability
Xinchen China Power Holdings Ltd's Revenue jumped on 23.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.56 pp from 21.0% to 21.5% in 2015.
Gross Margin decreased on 4.4 pp from 20.0% to 15.6% in 2015. SG&A as a % of Revenue decreased slightly on 0.51 pp from 6.9% to 6.4% in 2015.
Net Income marign decreased on 3.4 pp from 10.2% to 6.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.3% in 2015. The company showed CAPEX/Revenue growth of 7.0 pp from 1.2% in 2012 to 8.3% in 2015. Average CAPEX/Revenue for the last three years was 10.3%.The company invested a big chunk of EBITDA (65.0%) to CAPEX to secure its growth.
Return on investment
The company operates at low ROIC (8.61%) and ROE (8.74%). ROIC decreased on 3.9 pp from 12.5% to 8.6% in 2015. ROE decreased on 3.0 pp from 11.7% to 8.7% in 2015.
Leverage (Debt)
Debt level is 1.9x Net Debt / EBITDA and 2.6x Debt / EBITDA. Net Debt / EBITDA jumped on 1.4x from 0.6x to 1.9x in 2015. Debt surged on 85.2% in 2015 while cash dropped on 18.6% in 2015.
Appendix 1: Peers in Auto Parts&Equipment
Below you can find Xinchen China Power Holdings Ltd benchmarking vs. other companies in Auto Parts&Equipment 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 |
|---|
| Weichai Power Co Ltd ($2338) | -4.6% | -19.8% | 21.0% | 36.8% | |
| China Vehicle Components Technology Holdings Ltd ($1269) | 2.4% | -10.4% | 27.1% | 31.0% | |
| Nexteer Automotive Group Ltd ($1316) | | -3.6% | 10.1% | 24.8% | 12.8% |
| Minth Group Ltd ($425) | | 11.3% | 27.3% | 21.3% | 14.5% |
| Zhejiang Shibao Co Ltd ($1057) | 14.0% | -12.2% | 23.1% | 20.2% | |
| |
|---|
| Median (16 companies) | 13.6% | -8.3% | 14.6% | 6.0% | 5.3% |
|---|
| Xinchen China Power Holdings Ltd ($1148) | | 11.5% | 0.5% | 2.6% | 23.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 36.2% | 37.4% | 41.0% | 41.5% | 41.5% |
| Minth Group Ltd ($425) | 35.0% | 33.1% | 33.0% | 31.2% | 31.7% |
| ZMFY Automobile Glass Services Ltd ($8135) | | 33.2% | 35.8% | 27.4% | 18.5% |
| Zhejiang Shibao Co Ltd ($1057) | 34.9% | 30.3% | 26.0% | 26.4% | |
| Shuanghua Holdings Ltd ($1241) | 21.4% | 17.1% | 16.8% | 26.0% | |
| |
|---|
| Median (16 companies) | 26.0% | 20.8% | 20.6% | 22.3% | 23.2% |
|---|
| Xinchen China Power Holdings Ltd ($1148) | 20.7% | 20.1% | 19.7% | 20.0% | 15.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 26.9% | 28.5% | 28.7% | 29.2% | 27.7% |
| Minth Group Ltd ($425) | 25.9% | 25.6% | 24.2% | 23.1% | 24.5% |
| Xinyi Glass Holdings Ltd ($868) | 23.5% | 22.5% | 43.8% | 20.0% | 25.0% |
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 20.7% | 17.2% | 16.0% | |
| Zhejiang Shibao Co Ltd ($1057) | 25.8% | 19.8% | 14.0% | 14.5% | |
| |
|---|
| Median (16 companies) | 15.2% | 9.3% | 11.4% | 11.5% | 19.1% |
|---|
| Xinchen China Power Holdings Ltd ($1148) | 16.5% | 15.5% | 14.0% | 15.7% | 12.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 11.5% | 14.6% | 16.5% | 21.1% | 23.9% |
| Minth Group Ltd ($425) | 12.3% | 14.8% | 16.1% | 18.7% | 15.4% |
| Xinyi Glass Holdings Ltd ($868) | 37.3% | 17.0% | 28.9% | 15.8% | 16.7% |
| Xiezhong International Holdings Ltd ($3663) | 15.4% | 22.9% | 24.9% | 12.0% | |
| Zhejiang Shibao Co Ltd ($1057) | 22.9% | 10.2% | 4.7% | 9.7% | |
| |
|---|
| Median (16 companies) | 11.9% | 10.2% | 8.5% | 5.4% | 11.5% |
|---|
| Xinchen China Power Holdings Ltd ($1148) | 2.5% | 1.2% | 0.8% | 21.9% | 8.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.1% | 19.0% | 21.1% | 22.3% | 15.7% |
| Nexteer Automotive Group Ltd ($1316) | | 14.0% | 18.2% | 17.7% | 21.2% |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 13.4% | 2.4% | 9.2% | 12.5% | |
| Minth Group Ltd ($425) | 13.1% | 11.9% | 12.1% | 11.8% | 13.4% |
| Xinyi Glass Holdings Ltd ($868) | 12.8% | 9.3% | 22.6% | 8.3% | 10.8% |
| |
|---|
| Median (17 companies) | 13.1% | 6.3% | 8.5% | 5.8% | 12.1% |
|---|
| Xinchen China Power Holdings Ltd ($1148) | 31.7% | 22.4% | 14.7% | 12.5% | 8.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | 2.4x | 9.4x | 5.8x | 5.3x | |
| New Focus Auto Tech Holdings Ltd ($360) | 1.3x | | | 4.5x | |
| Xinyi Glass Holdings Ltd ($868) | 2.0x | 1.9x | 0.9x | 2.4x | 1.7x |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 2.2x | 7.9x | 2.8x | 2.2x | |
| Xiezhong International Holdings Ltd ($3663) | 0.7x | 0.6x | 1.2x | 1.2x | |
| |
|---|
| Median (13 companies) | 1.3x | 0.9x | 1.1x | 1.1x | -0.3x |
|---|
| Xinchen China Power Holdings Ltd ($1148) | -0.3x | -0.1x | -2.3x | 0.6x | 1.9x |
