China Automation Group Ltd EBITDA dropped on 162% in 2015 and EBITDA Margin dropped on 23.0 pp from 13.4% to -9.7%
24/03/2016 • About China Automation Group Ltd (
$569) • By InTwits
China Automation Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Automation Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -6.5%
- EBITDA Margin is declining: -9.7% in 2015 vs. 13.4% in 2014 vs. 21.9% in 2011
- EBITDA Margin is quite volatile: -9.7% in 2015, 13.4% in 2014, 14.0% in 2013, 16.6% in 2012, 21.9% in 2011
- China Automation Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's in pair with industry average of 11.4%.
- CAPEX is quite volatile: 170 in 2015, 80.7 in 2014, 83.0 in 2013, 81.1 in 2012, 74.8 in 2011
- The company has unprofitable business model: ROIC is at -6.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Automation Group Ltd ($569) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,981 | 2,211 | 2,309 | 1,919 | 1,641 | -14.5% |
| Gross Profit | 758 | 865 | 828 | 621 | 498 | -19.8% |
| SG&A | 371 | 474 | 487 | 364 | 367 | 1.0% |
| EBITDA | 435 | 367 | 323 | 256 | -159 | -161.9% |
| Net Income | 196 | 85 | 74 | 35 | -105 | -398.0% |
Balance Sheet
|
|---|
| Cash | 818 | 495 | 457 | 395 | 601 | 52.1% |
| Short Term Debt | 164 | 400 | 397 | 347 | 708 | 104.3% |
| Long Term Debt | 1,228 | 1,183 | 1,147 | 1,161 | 351 | -69.7% |
Cash flow
|
|---|
| Capex | 75 | 81 | 83 | 81 | 170 | 110.9% |
Ratios
|
|---|
| Revenue growth | 24.2% | 11.6% | 4.4% | -16.9% | -14.5% | |
| EBITDA growth | 4.6% | -15.6% | -11.9% | -20.7% | -161.9% | |
| Gross Margin | 38.2% | 39.1% | 35.9% | 32.4% | 30.3% | -2.0% |
| EBITDA Margin | 21.9% | 16.6% | 14.0% | 13.4% | -9.7% | -23.0% |
| Net Income Margin | 9.9% | 3.8% | 3.2% | 1.8% | -6.4% | -8.2% |
| SG&A, % of revenue | 18.7% | 21.4% | 21.1% | 19.0% | 22.4% | 3.4% |
| CAPEX, % of revenue | 3.8% | 3.7% | 3.6% | 4.2% | 10.4% | 6.2% |
| ROIC | 13.9% | 8.4% | 6.5% | 4.6% | -6.5% | -11.0% |
| ROE | 12.0% | 4.9% | 4.1% | 1.9% | -5.8% | -7.7% |
| Net Debt/EBITDA | 1.3x | 3.0x | 3.4x | 4.3x | | -4.3x |
Revenue and profitability
China Automation Group Ltd's Revenue dropped on 14.5% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 23.0 pp from 13.4% to -9.7% in 2015.
Gross Margin decreased on 2.0 pp from 32.4% to 30.3% in 2015. SG&A as a % of Revenue increased on 3.4 pp from 19.0% to 22.4% in 2015.
Net Income marign decreased on 8.2 pp from 1.8% to -6.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 10.4% in 2015. The company showed CAPEX/Revenue growth of 6.7 pp from 3.7% in 2012 to 10.4% in 2015. It's average CAPEX/Revenue for the last three years was 6.1%.
Return on investment
The company operates at negative ROIC (-6.48%) and ROE (-5.76%). ROIC dropped on 11.0 pp from 4.6% to -6.5% in 2015. ROE decreased on 7.7 pp from 1.9% to -5.8% in 2015.
Leverage (Debt)
Debt level is -93.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 4.3x from 4.3x to in 2015. Debt dropped on 29.7% in 2015 while cash jumped on 52.1% in 2015.
Appendix 1: Peers in Electronics
Below we provide China Automation Group Ltd benchmarking against other companies in Electronics 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 |
|---|
| China Netcom Technology Holdings Ltd ($8071) | | 11.6% | -23.0% | 104.1% | -72.7% |
| Q Technology Group Co Ltd ($1478) | | 125.0% | 121.2% | 53.2% | 1.9% |
| Technovator International Ltd ($1206) | | 27.4% | 34.1% | 35.9% | 19.0% |
| Tongda Group Holdings Ltd ($698) | | 8.3% | 6.4% | 32.1% | 26.8% |
| Advanced Card Systems Holdings Ltd ($8210) | | 36.9% | 20.8% | 26.7% | -4.8% |
| |
|---|
| Median (50 companies) | 7.1% | -1.0% | 3.6% | 7.2% | 0.9% |
|---|
| China Automation Group Ltd ($569) | | 11.6% | 4.4% | -16.9% | -14.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 51.4% | 54.0% | 58.1% | 49.5% | 49.6% |
| AAC Technologies Holdings Inc ($2018) | 44.0% | 44.2% | 42.7% | 41.4% | 41.5% |
| TeleEye Holdings Ltd ($8051) | 51.6% | 44.0% | 42.1% | 38.5% | 37.0% |
| Wasion Group Holdings Ltd ($3393) | 30.3% | 32.8% | 35.1% | 34.2% | 30.2% |
| Datronix Holdings Ltd ($889) | 41.3% | 32.9% | 32.0% | 34.1% | 34.6% |
| |
|---|
| Median (48 companies) | 13.4% | 13.6% | 13.8% | 13.9% | 16.6% |
|---|
| China Automation Group Ltd ($569) | 38.2% | 39.1% | 35.9% | 32.4% | 30.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.2% | 35.8% | 35.8% | 34.9% | 34.8% |
| Nanjing Sample Technology Co Ltd ($1708) | 31.5% | 26.8% | 21.1% | 22.3% | 15.7% |
| Wasion Group Holdings Ltd ($3393) | 18.9% | 18.8% | 21.2% | 22.0% | 19.3% |
| Technovator International Ltd ($1206) | 19.2% | 19.0% | 19.0% | 20.8% | 18.0% |
| Trigiant Group Ltd ($1300) | 17.0% | 17.6% | 18.2% | 18.5% | 16.2% |
| |
|---|
| Median (50 companies) | 9.0% | 6.5% | 6.0% | 4.6% | 6.7% |
|---|
| China Automation Group Ltd ($569) | 21.9% | 16.6% | 14.0% | 13.4% | -9.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AKM Industrial Co Ltd ($1639) | 7.4% | 5.0% | 17.4% | 25.2% | 18.0% |
| AAC Technologies Holdings Inc ($2018) | 25.9% | 18.7% | 8.7% | 19.6% | 18.4% |
| Irico Group Electronics Co Ltd ($438) | 92.0% | 39.9% | 30.4% | 17.4% | 25.8% |
| Tech Pro Technology Development Ltd ($3823) | 32.8% | 7.6% | 13.1% | 15.4% | 7.7% |
| Nanjing Sample Technology Co Ltd ($1708) | 3.7% | 23.9% | 15.5% | 12.0% | 2.7% |
| |
|---|
| Median (50 companies) | 3.3% | 3.9% | 3.0% | 3.7% | 2.9% |
|---|
| China Automation Group Ltd ($569) | 3.8% | 3.7% | 3.6% | 4.2% | 10.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 22.3% | 29.1% | 30.0% | 26.0% | 27.8% |
| Cowell e Holdings Inc ($1415) | | 12.5% | 27.1% | 24.4% | 25.8% |
| Advanced Card Systems Holdings Ltd ($8210) | 15.5% | 26.7% | 24.7% | 20.2% | 9.7% |
| Alltronics Holdings Ltd ($833) | 19.3% | 13.1% | 15.2% | 19.8% | |
| Q Technology Group Co Ltd ($1478) | | 46.8% | 36.4% | 18.0% | 8.6% |
| |
|---|
| Median (50 companies) | 5.4% | 4.3% | 3.5% | 3.0% | 2.8% |
|---|
| China Automation Group Ltd ($569) | 13.9% | 8.4% | 6.5% | 4.6% | -6.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| National Electronic Hldgs ($213) | 43.0x | 16.3x | 30.2x | 84.8x | 19.9x |
| Sino-Tech International Holdings Ltd ($724) | | | 15.7x | 24.7x | |
| Eyang Holdings Group Co Ltd ($117) | 4.2x | 3.3x | 3.7x | 17.9x | |
| SAS Dragon Hldg Ltd ($1184) | 2.8x | 7.1x | 2.0x | 6.4x | |
| Willas-Array Electronics Holdings Ltd ($854) | 2.8x | 2.2x | 2.6x | 5.7x | 5.4x |
| |
|---|
| Median (36 companies) | 0.6x | 1.0x | 1.1x | 0.8x | 0.1x |
|---|
| China Automation Group Ltd ($569) | 1.3x | 3.0x | 3.4x | 4.3x | |
