Wuling Motors Holdings Ltd reports 24.8% EBITDA growth and almost no change in EBITDA Margin of 3.8%
24/03/2016 • About Wuling Motors Holdings Ltd (
$305) • By InTwits
Wuling Motors Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 3.8% in 2015 vs. 3.4% in 2014 vs. 2.5% in 2011
- Wuling Motors Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 8.6%.
- CAPEX is quite volatile: 2,094 in 2015, 634 in 2014, 41.9 in 2013, 38.4 in 2012, 66.0 in 2011
- The company has business model with average profitability: ROIC is at 11.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wuling Motors Holdings Ltd ($305) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,909 | 11,856 | 12,037 | 12,139 | 13,451 | 10.8% |
| Gross Profit | 972 | 1,235 | 1,259 | 1,374 | 1,521 | 10.7% |
| SG&A | | 722 | 763 | 831 | 932 | 12.1% |
| EBITDA | 271 | 315 | 350 | 408 | 510 | 24.8% |
| Net Income | 70 | 40 | 51 | 49 | 82 | 66.3% |
Balance Sheet
|
|---|
| Cash | 850 | 483 | 313 | 202 | 1,175 | 482.6% |
| Short Term Debt | 1,413 | 953 | 904 | 536 | 885 | 64.9% |
| Long Term Debt | 184 | 166 | 80 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 239 | 190 | 223 | 204 | 110 | -46.1% |
Ratios
|
|---|
| Revenue growth | -1.4% | 8.7% | 1.5% | 0.8% | 10.8% | |
| EBITDA growth | -18.5% | 16.4% | 11.0% | 16.7% | 24.8% | |
| Gross Margin | 8.9% | 10.4% | 10.5% | 11.3% | 11.3% | -0.0% |
| EBITDA Margin | 2.5% | 2.7% | 2.9% | 3.4% | 3.8% | 0.4% |
| Net Income Margin | 0.6% | 0.3% | 0.4% | 0.4% | 0.6% | 0.2% |
| SG&A, % of revenue | | 6.1% | 6.3% | 6.8% | 6.9% | 0.1% |
| CAPEX, % of revenue | 2.2% | 1.6% | 1.8% | 1.7% | 0.8% | -0.9% |
| ROIC | 6.2% | 7.2% | 7.7% | 10.0% | 11.8% | 1.9% |
| ROE | 17.7% | 7.8% | 9.0% | 7.2% | 9.0% | 1.8% |
| Net Debt/EBITDA | 2.8x | 2.0x | 1.9x | 0.8x | -0.6x | -1.4x |
Revenue and profitability
The company's Revenue surged on 10.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 15.6 pp from 3.5% to 19.1% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.82% in 2015. Wuling Motors Holdings Ltd's CAPEX/Revenue decreased slightly on 0.79 pp from 1.6% in 2012 to 0.82% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at low ROIC (11.81%) and ROE (8.96%). ROIC increased slightly on 1.9 pp from 10.0% to 11.8% in 2015. ROE increased slightly on 1.8 pp from 7.2% to 9.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 1.7x. Net Debt / EBITDA dropped on 1.4x from 0.8x to -0.6x in 2015. Debt jumped on 64.9% in 2015 while cash jumped on 483% in 2015.
Appendix 1: Peers in Auto Manufacturers
Below you can find Wuling Motors Holdings Ltd benchmarking vs. other companies in Auto Manufacturers 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 |
|---|
| 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% | -4.2% | 16.4% | 7.9% | -3.6% |
|---|
| Wuling Motors Holdings Ltd ($305) | | 8.7% | 1.5% | 0.8% | 10.8% |
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% | 11.8% | 13.4% | 13.8% | 18.2% |
|---|
| Wuling Motors Holdings Ltd ($305) | 8.9% | 10.4% | 10.5% | 11.3% | 11.3% |
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% |
|---|
| Wuling Motors Holdings Ltd ($305) | 2.5% | 2.7% | 2.9% | 3.4% | 3.8% |
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% | |
| Brilliance China Automotive Holdings Ltd ($1114) | 4.8% | 8.9% | 10.1% | 13.4% | 12.5% |
| 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% | |
| |
|---|
| Median (9 companies) | 5.0% | 6.4% | 3.9% | 4.2% | 5.3% |
|---|
| Wuling Motors Holdings Ltd ($305) | 2.2% | 1.6% | 1.8% | 1.7% | 0.8% |
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% |
| 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% |
| Sinotruk Hong Kong Ltd ($3808) | 5.7% | 2.5% | 3.5% | 3.9% | |
| |
|---|
| Median (9 companies) | 6.1% | 2.7% | 3.5% | 3.9% | 6.2% |
|---|
| Wuling Motors Holdings Ltd ($305) | 6.2% | 7.2% | 7.7% | 10.0% | 11.8% |
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 | |
| Sinotruk Hong Kong Ltd ($3808) | 2.7x | 3.8x | 2.6x | 0.3x | |
| |
|---|
| Median (8 companies) | 1.2x | 1.5x | 1.2x | 1.3x | -0.7x |
|---|
| Wuling Motors Holdings Ltd ($305) | 2.8x | 2.0x | 1.9x | 0.8x | -0.6x |
