Brilliance China Automotive Holdings Ltd Net Income dropped on 35.3% in 2015 and Revenue dropped on 11.8%
24/03/2016 • About Brilliance China Automotive Holdings Ltd (
$1114) • By InTwits
Brilliance China Automotive Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Brilliance China Automotive Holdings Ltd is a company in decline: 2015 revenue growth was -11.8%, 5 years revenue CAGR was -11.5%
- The company operates at negative EBITDA Margin: -9.7%
- Brilliance China Automotive Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -1.3%0
- Brilliance China Automotive Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.9%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: 292 in 2015, 260 in 2014, 61.3 in 2013, 68.1 in 2012, 147 in 2011
- The company has unprofitable business model: ROIC is at -3.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.3x 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.
Brilliance China Automotive Holdings Ltd ($1114) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,443 | 5,916 | 6,103 | 5,515 | 4,863 | -11.8% |
| Gross Profit | 856 | 696 | 687 | 562 | 208 | -63.0% |
| SG&A | 744 | 869 | 1,004 | 980 | 933 | -4.8% |
| EBITDA | 313 | 14 | -53 | -175 | -470 | 168.7% |
| Net Income | 1,812 | 2,301 | 3,374 | 5,403 | 3,495 | -35.3% |
Balance Sheet
|
|---|
| Cash | 686 | 894 | 1,077 | 1,325 | 1,747 | 31.9% |
| Short Term Debt | 3,087 | 2,827 | 2,826 | 3,223 | 3,742 | 16.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 306 | 526 | 616 | 737 | 606 | -17.7% |
Ratios
|
|---|
| Revenue growth | -28.0% | -8.2% | 3.2% | -9.6% | -11.8% | |
| EBITDA growth | -50.7% | -95.5% | -481.0% | 227.5% | 168.7% | |
| Gross Margin | 13.3% | 11.8% | 11.2% | 10.2% | 4.3% | -5.9% |
| EBITDA Margin | 4.9% | 0.2% | -0.9% | -3.2% | -9.7% | -6.5% |
| Net Income Margin | 28.1% | 38.9% | 55.3% | 98.0% | 71.9% | -26.1% |
| SG&A, % of revenue | 11.6% | 14.7% | 16.4% | 17.8% | 19.2% | 1.4% |
| CAPEX, % of revenue | 4.8% | 8.9% | 10.1% | 13.4% | 12.5% | -0.9% |
| ROIC | 1.9% | -1.2% | -1.4% | -1.8% | -3.1% | -1.3% |
| ROE | 27.2% | 27.1% | 29.3% | 36.1% | 19.0% | -17.1% |
| Net Debt/EBITDA | 7.7x | 137.8x | | | | 0.0x |
Revenue and profitability
Brilliance China Automotive Holdings Ltd's Revenue dropped on 11.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 11.2% to 12.4% in 2015.
Gross Margin decreased on 5.9 pp from 10.2% to 4.3% in 2015. SG&A as a % of Revenue increased slightly on 1.4 pp from 17.8% to 19.2% in 2015.
Net Income marign dropped on 26.1 pp from 98.0% to 71.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 12.5% in 2015. Brilliance China Automotive Holdings Ltd's CAPEX/Revenue increased on 3.6 pp from 8.9% in 2012 to 12.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 12.0%.
Return on investment
The company operates at negative ROIC (-3.10%) and low but positive ROE (18.98%). ROIC decreased slightly on 1.3 pp from -1.8% to -3.1% in 2015. ROE dropped on 17.1 pp from 36.1% to 19.0% in 2015.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged on 16.1% in 2015 while cash jumped on 31.9% in 2015.
Management team
Qi Yumin is a the company's CEO. Qi Yumin has spent 12 years at the company. The company's CFO Qian Zuming has spent 10 years at the company.
Appendix 1: Peers in Auto Manufacturers
Below we provide Brilliance China Automotive Holdings Ltd benchmarking against other companies in Auto Manufacturers 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 |
|---|
| Dongfeng Motor Group Co Ltd ($489) | 7.4% | -95.4% | 511.9% | 123.0% | |
| Guangzhou Automobile Group Co Ltd ($2238) | 25.6% | 18.0% | 45.2% | 18.9% | |
| Great Wall Motor Co Ltd ($2333) | | 43.1% | 31.7% | 10.2% | 21.3% |
| Dah Chong Hong Holdings Ltd ($1828) | | 4.1% | -12.0% | 10.0% | -3.6% |
| Sinotruk Hong Kong Ltd ($3808) | -7.7% | -23.8% | 9.0% | 7.9% | |
| |
|---|
| Median (9 companies) | 2.2% | 4.1% | 16.4% | 7.9% | 10.8% |
|---|
| Brilliance China Automotive Holdings Ltd ($1114) | | -8.2% | 3.2% | -9.6% | -11.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Wall Motor Co Ltd ($2333) | 22.2% | 24.1% | 25.9% | 25.0% | 22.3% |
| Geely Automobile Holdings Ltd ($175) | 18.2% | 18.5% | 20.1% | 18.2% | 18.2% |
| Sinotruk Hong Kong Ltd ($3808) | 15.6% | 14.9% | 16.7% | 16.9% | |
| Qingling Motors Co Ltd ($1122) | 12.4% | 12.3% | 15.2% | 15.1% | 18.7% |
| Byd Co Ltd ($1211) | 14.8% | 11.6% | 13.4% | 13.8% | |
| |
|---|
| Median (9 companies) | 14.8% | 11.7% | 13.4% | 13.8% | 18.2% |
|---|
| Brilliance China Automotive Holdings Ltd ($1114) | 13.3% | 11.8% | 11.2% | 10.2% | 4.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Wall Motor Co Ltd ($2333) | 16.1% | 18.0% | 19.5% | 17.8% | 15.5% |
| Geely Automobile Holdings Ltd ($175) | 14.4% | 14.6% | 15.8% | 15.9% | 14.4% |
| Byd Co Ltd ($1211) | 11.3% | 10.2% | 9.6% | 12.0% | |
| Qingling Motors Co Ltd ($1122) | 8.8% | 10.3% | 12.8% | 11.4% | 12.2% |
| Sinotruk Hong Kong Ltd ($3808) | 8.0% | 6.6% | 7.4% | 7.8% | |
| |
|---|
| Median (9 companies) | 8.8% | 6.6% | 7.4% | 7.8% | 12.2% |
|---|
| Brilliance China Automotive Holdings Ltd ($1114) | 4.9% | 0.2% | -0.9% | -3.2% | -9.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangzhou Automobile Group Co Ltd ($2238) | 20.4% | 22.7% | 10.1% | 15.7% | |
| Great Wall Motor Co Ltd ($2333) | 12.9% | 10.7% | 13.0% | 12.0% | 8.0% |
| Geely Automobile Holdings Ltd ($175) | 6.8% | 4.5% | 3.9% | 5.0% | 5.3% |
| Byd Co Ltd ($1211) | 16.2% | 13.0% | 11.2% | 4.2% | |
| Dongfeng Motor Group Co Ltd ($489) | 5.0% | 6.4% | 2.2% | 3.8% | |
| |
|---|
| Median (9 companies) | 5.0% | 4.5% | 2.5% | 3.8% | 1.8% |
|---|
| Brilliance China Automotive Holdings Ltd ($1114) | 4.8% | 8.9% | 10.1% | 13.4% | 12.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Wall Motor Co Ltd ($2333) | 22.9% | 27.7% | 32.2% | 25.5% | 22.5% |
| Geely Automobile Holdings Ltd ($175) | 15.7% | 16.2% | 19.6% | 13.4% | 15.0% |
| Wuling Motors Holdings Ltd ($305) | 6.2% | 7.2% | 7.7% | 10.0% | 11.8% |
| Dah Chong Hong Holdings Ltd ($1828) | 14.2% | 11.4% | 8.5% | 7.7% | 6.2% |
| Qingling Motors Co Ltd ($1122) | 5.5% | 4.5% | 5.7% | 5.1% | 5.8% |
| |
|---|
| Median (9 companies) | 6.2% | 4.5% | 5.7% | 5.1% | 11.8% |
|---|
| Brilliance China Automotive Holdings Ltd ($1114) | 1.9% | -1.2% | -1.4% | -1.8% | -3.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangzhou Automobile Group Co Ltd ($2238) | | | | 13.2x | |
| Byd Co Ltd ($1211) | 2.8x | 3.4x | 6.7x | 3.9x | |
| Dah Chong Hong Holdings Ltd ($1828) | 1.5x | 1.5x | 2.8x | 3.8x | 3.3x |
| Dongfeng Motor Group Co Ltd ($489) | -1.5x | | | 2.3x | |
| Wuling Motors Holdings Ltd ($305) | 2.8x | 2.0x | 1.9x | 0.8x | -0.6x |
| |
|---|
| Median (9 companies) | 1.2x | 1.5x | 1.9x | 0.8x | -0.6x |
|---|
