China Suntien Green Energy Corp Ltd reports 194% CAPEX growth while 18.0% Revenue decline
24/03/2016 • About China Suntien Green Energy Corp Ltd (
$956) • By InTwits
China Suntien Green Energy Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Suntien Green Energy Corp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 66.6%. At the same time it's a lot of higher than industry average of 53.4%.
- CAPEX is quite volatile: 5,442 in 2015, 1,848 in 2014, 1,197 in 2013, 1,532 in 2012, 3,211 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.9%
- It operates with high leverage: Net Debt/EBITDA is 9.5x while industry average is 4.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Suntien Green Energy Corp Ltd ($956) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,170 | 3,702 | 4,661 | 5,149 | 4,224 | -18.0% |
| Gross Profit | 913 | 1,238 | 1,459 | 1,296 | 1,121 | -13.5% |
| SG&A | 153 | 195 | 240 | 256 | 273 | 6.6% |
| EBITDA | 1,242 | 1,513 | 1,746 | 1,644 | 1,341 | -18.4% |
| Net Income | 449 | 550 | 460 | 335 | 168 | -49.8% |
Balance Sheet
|
|---|
| Cash | 920 | 758 | 1,670 | 3,167 | 3,139 | -0.9% |
| Short Term Debt | 636 | 972 | 1,359 | 1,854 | 2,440 | 31.6% |
| Long Term Debt | 6,114 | 6,529 | 7,545 | 9,296 | 13,386 | 44.0% |
Cash flow
|
|---|
| Capex | 3,211 | 1,532 | 1,197 | 1,848 | 5,442 | 194.4% |
Ratios
|
|---|
| Revenue growth | 41.3% | 16.8% | 25.9% | 10.5% | -18.0% | |
| EBITDA growth | 41.9% | 21.7% | 15.5% | -5.9% | -18.4% | |
| Gross Margin | 28.8% | 33.5% | 31.3% | 25.2% | 26.5% | 1.4% |
| EBITDA Margin | 39.2% | 40.9% | 37.5% | 31.9% | 31.7% | -0.2% |
| Net Income Margin | 14.2% | 14.8% | 9.9% | 6.5% | 4.0% | -2.5% |
| SG&A, % of revenue | 4.8% | 5.3% | 5.1% | 5.0% | 6.5% | 1.5% |
| CAPEX, % of revenue | 101.3% | 41.4% | 25.7% | 35.9% | 128.8% | 92.9% |
| ROIC | 7.4% | 7.7% | 7.9% | 5.8% | 2.9% | -2.9% |
| ROE | 9.0% | 10.2% | 8.0% | 5.0% | 2.3% | -2.7% |
| Net Debt/EBITDA | 4.7x | 4.5x | 4.1x | 4.9x | 9.5x | 4.6x |
Revenue and profitability
China Suntien Green Energy Corp Ltd's Revenue dropped on 18.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.8 pp from 16.1% to 7.4% in 2015.
Gross Margin increased slightly on 1.4 pp from 25.2% to 26.5% in 2015. SG&A as a % of Revenue increased slightly on 1.5 pp from 5.0% to 6.5% in 2015.
Net Income marign decreased on 2.5 pp from 6.5% to 4.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Suntien Green Energy Corp Ltd had CAPEX/Revenue of 129%. China Suntien Green Energy Corp Ltd showed fast CAPEX/Revenue growth of 87.4 pp from 41.4% in 2012 to 129% in 2015. Average CAPEX/Revenue for the last three years was 63.5%.Battling declining revenue the company made large investments to CAPEX (406% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (2.88%) and ROE (2.28%). ROIC decreased on 2.9 pp from 5.8% to 2.9% in 2015. ROE decreased on 2.7 pp from 5.0% to 2.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 9.5x and Debt / EBITDA is 11.8x. Net Debt / EBITDA jumped on 4.6x from 4.9x to 9.5x in 2015. Debt surged on 41.9% in 2015 while cash decreased slightly on 0.91% in 2015.
Appendix 1: Peers in Energy-Alternate Sources
Below you can find China Suntien Green Energy Corp Ltd benchmarking vs. other companies in Energy-Alternate Sources 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 |
|---|
| United Photovoltaics Group Ltd ($686) | 221.6% | -74.0% | -83.5% | 1,168.8% | |
| HaiTian Hydropower International Ltd ($8261) | | 26.6% | 8.5% | 114.0% | 220.2% |
| Canvest Environment Protection Group Co Ltd ($1381) | | 150.6% | 0.8% | 103.5% | 49.2% |
| Concord New Energy Group Ltd ($182) | -22.4% | 14.7% | 71.2% | 88.5% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 11.2% | 2.5% | 50.7% | 39.6% | |
| |
|---|
| Median (10 companies) | 11.2% | 7.5% | 12.8% | 36.5% | 36.6% |
|---|
| China Suntien Green Energy Corp Ltd ($956) | | 16.8% | 25.9% | 10.5% | -18.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 70.0% | 74.2% | 74.3% | 79.3% | 64.6% |
| Canvest Environment Protection Group Co Ltd ($1381) | 61.5% | 53.4% | 51.9% | 43.1% | 37.1% |
| Xinyi Solar Holdings Ltd ($968) | 35.9% | 17.2% | 30.1% | 31.6% | 36.0% |
| China Renewable Energy Investment Ltd ($987) | 12.2% | 20.2% | 37.1% | 24.7% | 33.3% |
| GCL-Poly Energy Holdings Ltd ($3800) | 33.2% | 7.8% | 11.9% | 23.1% | 26.5% |
| |
|---|
| Median (6 companies) | 35.9% | 20.2% | 37.1% | 31.6% | 34.7% |
|---|
| China Suntien Green Energy Corp Ltd ($956) | 28.8% | 33.5% | 31.3% | 25.2% | 26.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Photovoltaics Group Ltd ($686) | 13.0% | -42.6% | -230.5% | 92.9% | |
| HaiTian Hydropower International Ltd ($8261) | 86.2% | 61.9% | 75.9% | 80.2% | 69.0% |
| China Renewable Energy Investment Ltd ($987) | 28.1% | 54.1% | 66.1% | 64.3% | 74.3% |
| China Longyuan Power Group Corp Ltd ($916) | 48.8% | 56.3% | 54.4% | 63.5% | 64.5% |
| Canvest Environment Protection Group Co Ltd ($1381) | 71.0% | 59.3% | 56.6% | 50.3% | 41.8% |
| |
|---|
| Median (10 companies) | 38.9% | 38.5% | 37.1% | 46.1% | 41.8% |
|---|
| China Suntien Green Energy Corp Ltd ($956) | 39.2% | 40.9% | 37.5% | 31.9% | 31.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Renewable Energy Investment Ltd ($987) | 44.5% | 23.4% | 118.5% | 126.1% | 32.4% |
| China Longyuan Power Group Corp Ltd ($916) | 83.1% | 79.5% | 54.9% | 100.2% | 77.7% |
| Xinyi Solar Holdings Ltd ($968) | 71.2% | 22.7% | 12.2% | 98.8% | 75.4% |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 90.6% | 98.0% | 110.8% | 65.4% | |
| Concord New Energy Group Ltd ($182) | 199.2% | 64.2% | 19.0% | 52.7% | |
| |
|---|
| Median (10 companies) | 65.0% | 37.4% | 16.3% | 39.7% | 42.8% |
|---|
| China Suntien Green Energy Corp Ltd ($956) | 101.3% | 41.4% | 25.7% | 35.9% | 128.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinyi Solar Holdings Ltd ($968) | 33.6% | 13.8% | 21.6% | 16.9% | 18.7% |
| Canvest Environment Protection Group Co Ltd ($1381) | | 27.0% | 18.1% | 12.4% | 10.0% |
| HaiTian Hydropower International Ltd ($8261) | 9.5% | 6.4% | 7.5% | 7.5% | 11.9% |
| GCL-Poly Energy Holdings Ltd ($3800) | 15.8% | 0.3% | 2.8% | 6.9% | 7.2% |
| China Longyuan Power Group Corp Ltd ($916) | 7.0% | 6.9% | 6.3% | 6.3% | 6.2% |
| |
|---|
| Median (10 companies) | 7.0% | 4.4% | 5.2% | 6.3% | 7.2% |
|---|
| China Suntien Green Energy Corp Ltd ($956) | 7.4% | 7.7% | 7.9% | 5.8% | 2.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 4.5x | 1.4x | 2.6x | 10.5x | 2.4x |
| United Photovoltaics Group Ltd ($686) | 5.1x | | | 7.8x | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 5.0x | 6.7x | 6.3x | 6.7x | |
| China Renewable Energy Investment Ltd ($987) | 17.1x | 8.9x | 6.2x | 6.4x | 3.8x |
| China Longyuan Power Group Corp Ltd ($916) | 5.9x | 5.5x | 5.3x | 5.8x | 5.7x |
| |
|---|
| Median (9 companies) | 4.5x | 4.6x | 4.0x | 5.8x | 3.1x |
|---|
| China Suntien Green Energy Corp Ltd ($956) | 4.7x | 4.5x | 4.1x | 4.9x | 9.5x |
