Zhejiang Shibao Co Ltd Net Income surged on 23.4% in 2015 and EBITDA Margin decreased slightly on 0.97 pp from 14.5% to 13.5%
24/03/2016 • About Zhejiang Shibao Co Ltd (
$1057) • By InTwits
Zhejiang Shibao Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zhejiang Shibao Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.0%. At the same time it's a lot of higher than industry average of 7.6%.
- CAPEX is quite volatile: 62.0 in 2015, 78.1 in 2014, 31.2 in 2013, 55.7 in 2012, 142 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zhejiang Shibao Co Ltd ($1057) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 620.8 | 545.0 | 671.1 | 806.8 | 832.9 | 3.2% |
| Gross Profit | 216.9 | 165.2 | 174.8 | 212.8 | 212.3 | -0.2% |
| SG&A | 90.4 | 95.2 | 129.0 | 153.1 | 161.9 | 5.7% |
| EBITDA | 160.1 | 107.7 | 93.7 | 117.2 | 112.9 | -3.7% |
| Net Income | 112.9 | 72.1 | 48.8 | 43.4 | 53.5 | 23.4% |
Balance Sheet
|
|---|
| Cash | 43.2 | 78.5 | 67.0 | 760.4 | 503.4 | -33.8% |
| Short Term Debt | 141.9 | 225.1 | 287.3 | 342.9 | 108.0 | -68.5% |
| Long Term Debt | 30.0 | 15.6 | 2.8 | 1.9 | 1.4 | -27.4% |
Cash flow
|
|---|
| Capex | 142.2 | 55.7 | 31.2 | 78.1 | 62.0 | -20.6% |
Ratios
|
|---|
| Revenue growth | 14.0% | -12.2% | 23.1% | 20.2% | 3.2% | |
| EBITDA growth | | -32.8% | -13.0% | 25.1% | -3.7% | |
| Gross Margin | 34.9% | 30.3% | 26.0% | 26.4% | 25.5% | -0.9% |
| EBITDA Margin | 25.8% | 19.8% | 14.0% | 14.5% | 13.5% | -1.0% |
| Net Income Margin | 18.2% | 13.2% | 7.3% | 5.4% | 6.4% | 1.1% |
| SG&A, % of revenue | 14.6% | 17.5% | 19.2% | 19.0% | 19.4% | 0.5% |
| CAPEX, % of revenue | 22.9% | 10.2% | 4.7% | 9.7% | 7.4% | -2.2% |
| ROIC | 17.0% | 7.9% | 4.3% | 4.0% | 2.8% | -1.2% |
| ROE | 18.9% | 10.6% | 6.7% | 4.0% | 3.7% | -0.3% |
| Net Debt/EBITDA | 0.8x | 1.5x | 2.4x | -3.5x | -3.5x | 0.1x |
Revenue and profitability
Zhejiang Shibao Co Ltd's Revenue increased on 3.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 24.3 pp from -5.7% to 18.6% in 2015.
Gross Margin decreased slightly on 0.89 pp from 26.4% to 25.5% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 1.1 pp from 5.4% to 6.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 7.4%. The company's CAPEX/Revenue decreased on 2.8 pp from 10.2% in 2012 to 7.4% in 2015. For the last three years the average CAPEX/Revenue was 7.3%.The company invested a large share of EBITDA (54.9%) to CAPEX.
Return on investment
The company operates at low ROIC (2.85%) and ROE (3.74%). ROIC decreased slightly on 1.2 pp from 4.0% to 2.8% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.5x and Debt / EBITDA is 1.0x. Net Debt / EBITDA increased on 0.1x from -3.5x to -3.5x in 2015. Debt dropped on 68.3% in 2015 while cash dropped on 33.8% in 2015.
Appendix 1: Peers in Auto Parts&Equipment
Below you can find Zhejiang Shibao Co Ltd benchmarking vs. other companies in Auto Parts&Equipment 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 |
|---|
| Weichai Power Co Ltd ($2338) | -4.6% | -19.8% | 21.0% | 36.8% | |
| China Vehicle Components Technology Holdings Ltd ($1269) | 2.4% | -10.4% | 27.1% | 31.0% | |
| Nexteer Automotive Group Ltd ($1316) | | -3.6% | 10.1% | 24.8% | 12.8% |
| Minth Group Ltd ($425) | | 11.3% | 27.3% | 21.3% | 14.5% |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 16.1% | -1.1% | 27.3% | 14.4% | |
| |
|---|
| Median (16 companies) | 8.0% | -5.6% | 10.7% | 2.6% | 5.5% |
|---|
| Zhejiang Shibao Co Ltd ($1057) | | -12.2% | 23.1% | 20.2% | 3.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 36.2% | 37.4% | 41.0% | 41.5% | 41.5% |
| Minth Group Ltd ($425) | 35.0% | 33.1% | 33.0% | 31.2% | 31.7% |
| ZMFY Automobile Glass Services Ltd ($8135) | | 33.2% | 35.8% | 27.4% | 18.5% |
| Shuanghua Holdings Ltd ($1241) | 21.4% | 17.1% | 16.8% | 26.0% | |
| Xinyi Glass Holdings Ltd ($868) | 28.6% | 26.4% | 31.6% | 25.2% | 27.3% |
| |
|---|
| Median (16 companies) | 25.1% | 20.1% | 20.0% | 21.2% | 19.1% |
|---|
| Zhejiang Shibao Co Ltd ($1057) | 34.9% | 30.3% | 26.0% | 26.4% | 25.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 26.9% | 28.5% | 28.7% | 29.2% | 27.7% |
| Minth Group Ltd ($425) | 25.9% | 25.6% | 24.2% | 23.1% | 24.5% |
| Xinyi Glass Holdings Ltd ($868) | 23.5% | 22.5% | 43.8% | 20.0% | 25.0% |
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 20.7% | 17.2% | 16.0% | |
| Xinchen China Power Holdings Ltd ($1148) | 16.5% | 15.5% | 14.0% | 15.7% | 12.7% |
| |
|---|
| Median (16 companies) | 15.2% | 9.3% | 11.4% | 11.5% | 13.7% |
|---|
| Zhejiang Shibao Co Ltd ($1057) | 25.8% | 19.8% | 14.0% | 14.5% | 13.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinchen China Power Holdings Ltd ($1148) | 2.5% | 1.2% | 0.8% | 21.9% | 8.3% |
| Fuyao Glass Industry Group Co Ltd ($3606) | 11.5% | 14.6% | 16.5% | 21.1% | 23.9% |
| Minth Group Ltd ($425) | 12.3% | 14.8% | 16.1% | 18.7% | 15.4% |
| Xinyi Glass Holdings Ltd ($868) | 37.3% | 17.0% | 28.9% | 15.8% | 16.7% |
| Xiezhong International Holdings Ltd ($3663) | 15.4% | 22.9% | 24.9% | 12.0% | |
| |
|---|
| Median (16 companies) | 11.4% | 8.5% | 8.5% | 5.4% | 8.3% |
|---|
| Zhejiang Shibao Co Ltd ($1057) | 22.9% | 10.2% | 4.7% | 9.7% | 7.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.1% | 19.0% | 21.1% | 22.3% | 15.7% |
| Nexteer Automotive Group Ltd ($1316) | | 14.0% | 18.2% | 17.7% | 21.2% |
| Xinchen China Power Holdings Ltd ($1148) | 31.7% | 22.4% | 14.7% | 12.5% | 8.6% |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 13.4% | 2.4% | 9.2% | 12.5% | |
| Minth Group Ltd ($425) | 13.1% | 11.9% | 12.1% | 11.8% | 13.4% |
| |
|---|
| Median (17 companies) | 13.1% | 6.3% | 8.9% | 6.9% | 10.8% |
|---|
| Zhejiang Shibao Co Ltd ($1057) | 17.0% | 7.9% | 4.3% | 4.0% | 2.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | 2.4x | 9.4x | 5.8x | 5.3x | |
| New Focus Auto Tech Holdings Ltd ($360) | 1.3x | | | 4.5x | |
| Xinyi Glass Holdings Ltd ($868) | 2.0x | 1.9x | 0.9x | 2.4x | 1.7x |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 2.2x | 7.9x | 2.8x | 2.2x | |
| Xiezhong International Holdings Ltd ($3663) | 0.7x | 0.6x | 1.2x | 1.2x | |
| |
|---|
| Median (13 companies) | 1.3x | 0.6x | 0.9x | 1.1x | 0.1x |
|---|
| Zhejiang Shibao Co Ltd ($1057) | 0.8x | 1.5x | 2.4x | -3.5x | -3.5x |
