EVA Precision Industrial Holdings Ltd reports 29.1% CAPEX growth and 2.3% Revenue growth
24/03/2016 • About EVA Precision Industrial Holdings Ltd (
$838) • By InTwits
EVA Precision Industrial Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EVA Precision Industrial Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.0%. At the same time it's a lot of higher than industry average of 4.0%.
- CAPEX is quite volatile: 362 in FY2015, 549 in FY2014, 350 in FY2013, 249 in FY2012, 188 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
EVA Precision Industrial Holdings Ltd ($838) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,978 | 2,367 | 2,656 | 3,455 | 3,533 | 2.3% |
| Gross Profit | 489 | 511 | 640 | 905 | 935 | 3.3% |
| SG&A | | 302 | 432 | 404 | 670 | 65.7% |
| EBITDA | 332 | 247 | 263 | 577 | 527 | -8.6% |
| Net Income | 210 | 71 | 55 | 277 | 205 | -25.9% |
Balance Sheet
|
|---|
| Cash | 512 | 889 | 903 | 827 | 1,565 | 89.2% |
| Short Term Debt | 322 | 558 | 706 | 910 | 1,159 | 27.3% |
| Long Term Debt | 62 | 596 | 682 | 597 | 756 | 26.5% |
Cash flow
|
|---|
| Capex | 304 | 218 | 166 | 219 | 282 | 29.1% |
Ratios
|
|---|
| Revenue growth | 16.1% | 19.7% | 12.2% | 30.1% | 2.3% | |
| EBITDA growth | -24.7% | -25.7% | 6.8% | 118.8% | -8.6% | |
| Gross Margin | 24.7% | 21.6% | 24.1% | 26.2% | 26.5% | 0.3% |
| EBITDA Margin | 16.8% | 10.4% | 9.9% | 16.7% | 14.9% | -1.8% |
| Net Income Margin | 10.6% | 3.0% | 2.1% | 8.0% | 5.8% | -2.2% |
| SG&A, % of revenue | | 12.8% | 16.3% | 11.7% | 19.0% | 7.3% |
| CAPEX, % of revenue | 15.3% | 9.2% | 6.3% | 6.3% | 8.0% | 1.7% |
| ROIC | 10.5% | 3.3% | 1.9% | 9.1% | 6.4% | -2.7% |
| ROE | 11.6% | 3.5% | 2.7% | 12.5% | 8.3% | -4.2% |
| Net Debt/EBITDA | -0.4x | 1.1x | 1.8x | 1.2x | 0.7x | -0.5x |
Revenue and profitability
EVA Precision Industrial Holdings Ltd's Revenue increased on 2.3% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.0 pp from 31.7% to 26.8% in FY2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 7.3 pp from 11.7% to 19.0% in 2015.
Net Income marign decreased on 2.2 pp from 8.0% to 5.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 EVA Precision Industrial Holdings Ltd had CAPEX/Revenue of 8.0%. EVA Precision Industrial Holdings Ltd's CAPEX/Revenue decreased slightly on 1.2 pp from 9.2% in 2012 to 8.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 6.9%.The company invested a large share of EBITDA (53.6%) to CAPEX.
Return on investment
The company operates at low ROIC (6.40%) and ROE (8.30%). ROIC decreased on 2.7 pp from 9.1% to 6.4% in 2015. ROE decreased on 4.2 pp from 12.5% to 8.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is 3.6x. Net Debt / EBITDA dropped on 0.5x from 1.2x to 0.7x in 2015. Debt jumped on 27.0% in 2015 while cash jumped on 89.2% in 2015.
Appendix 1: Peers in Metal Fabricate/Hardware
Below you can find EVA Precision Industrial Holdings Ltd benchmarking vs. other companies in Metal Fabricate/Hardware 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 |
|---|
| Burwill Holdings Ltd ($24) | 25.4% | -35.5% | -9.2% | 39.2% | |
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 100.8% | 16.3% | -48.4% | 32.2% | |
| China Zhongwang Holdings Ltd ($1333) | | 31.0% | 6.0% | 11.6% | 1.3% |
| Lung Kee Bermuda Holdings ($255) | | -5.2% | -7.5% | 8.2% | -5.2% |
| Shougang Concord Century Holdings Ltd ($103) | | -4.9% | 10.0% | -3.8% | -17.2% |
| |
|---|
| Median (8 companies) | 65.7% | 2.8% | 8.0% | 2.2% | -4.0% |
|---|
| EVA Precision Industrial Holdings Ltd ($838) | | 19.7% | 12.2% | 30.1% | 2.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 21.6% | 24.2% | 26.8% | 28.0% | 32.9% |
| New Times Energy Corp Ltd ($166) | 1.0% | -2.7% | 0.8% | 22.6% | |
| Ka Shui International Holdings Ltd ($822) | 19.4% | 22.5% | 22.1% | 19.6% | |
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 15.1% | 17.0% | 15.4% | 11.6% | |
| Shougang Concord Century Holdings Ltd ($103) | 9.3% | 1.0% | 11.5% | 7.5% | 1.3% |
| |
|---|
| Median (7 companies) | 9.3% | 3.7% | 11.5% | 11.6% | 2.0% |
|---|
| EVA Precision Industrial Holdings Ltd ($838) | 24.7% | 21.6% | 24.1% | 26.2% | 26.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 22.0% | 22.3% | 24.3% | 24.2% | 29.1% |
| Ka Shui International Holdings Ltd ($822) | 12.6% | 14.3% | 9.5% | 12.0% | |
| Lung Kee Bermuda Holdings ($255) | 19.3% | 15.3% | 14.8% | 11.7% | 15.2% |
| Shougang Concord Century Holdings Ltd ($103) | 8.8% | -0.2% | 11.2% | 5.2% | -4.0% |
| Burwill Holdings Ltd ($24) | 0.6% | -0.8% | -0.6% | -0.4% | |
| |
|---|
| Median (8 companies) | 9.9% | 10.2% | 7.7% | 2.4% | 5.6% |
|---|
| EVA Precision Industrial Holdings Ltd ($838) | 16.8% | 10.4% | 9.9% | 16.7% | 14.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 25.1% | 56.3% | 41.6% | 54.8% | 63.1% |
| New Times Energy Corp Ltd ($166) | 9.0% | 11.4% | 1.7% | 52.1% | |
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 20.3% | 25.9% | 71.7% | 31.4% | |
| Ka Shui International Holdings Ltd ($822) | 5.0% | 9.3% | 7.4% | 11.1% | |
| Lung Kee Bermuda Holdings ($255) | 21.9% | 11.6% | 9.6% | 11.0% | 4.5% |
| |
|---|
| Median (8 companies) | 12.1% | 11.5% | 8.1% | 11.0% | 3.5% |
|---|
| EVA Precision Industrial Holdings Ltd ($838) | 15.3% | 9.2% | 6.3% | 6.3% | 8.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ka Shui International Holdings Ltd ($822) | 10.5% | 14.6% | 7.1% | 7.6% | |
| China Zhongwang Holdings Ltd ($1333) | 7.8% | 9.5% | 8.8% | 7.4% | 6.9% |
| Lung Kee Bermuda Holdings ($255) | 12.3% | 6.7% | 4.9% | 3.2% | 4.8% |
| Burwill Holdings Ltd ($24) | 0.8% | -1.8% | -1.5% | -1.6% | |
| Shougang Concord Century Holdings Ltd ($103) | 0.6% | -4.8% | 1.6% | -1.9% | -6.7% |
| |
|---|
| Median (8 companies) | 5.9% | 4.6% | 1.8% | -1.7% | -1.0% |
|---|
| EVA Precision Industrial Holdings Ltd ($838) | 10.5% | 3.3% | 1.9% | 9.1% | 6.4% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shougang Concord Century Holdings Ltd ($103) | 7.6x | | 6.2x | 13.2x | |
| China Zhongwang Holdings Ltd ($1333) | -0.8x | 1.3x | 2.6x | 4.1x | 6.2x |
| Ka Shui International Holdings Ltd ($822) | 0.7x | 0.9x | 1.3x | 1.7x | |
| Lung Kee Bermuda Holdings ($255) | -0.7x | -1.5x | -1.6x | -0.9x | -1.4x |
| |
|---|
| Median (4 companies) | 1.9x | 1.3x | 4.4x | 2.9x | 2.4x |
|---|
| EVA Precision Industrial Holdings Ltd ($838) | -0.4x | 1.1x | 1.8x | 1.2x | 0.7x |
