Byd Co Ltd reports 89.7% CAPEX growth and 40.2% Revenue growth
28/03/2016 • About Byd Co Ltd (
$1211) • By InTwits
Byd Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Byd Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.1%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: 4,413 in 2015, 2,326 in 2014, 5,764 in 2013, 5,773 in 2012, 7,515 in 2011
- The company has business model with low profitability: ROIC is at 8.5%
- It operates with high leverage: Net Debt/EBITDA is 2.9x while industry average is 0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Byd Co Ltd ($1211) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 46,312 | 44,381 | 51,660 | 55,366 | 77,612 | 40.2% |
| Gross Profit | 6,867 | 5,126 | 6,914 | 7,623 | 11,859 | 55.6% |
| SG&A | 3,802 | 3,366 | 3,293 | 4,365 | 5,519 | 26.4% |
| EBITDA | 5,215 | 4,518 | 4,942 | 6,665 | 11,044 | 65.7% |
| Net Income | 1,385 | 81 | 553 | 434 | 2,823 | 551.3% |
Balance Sheet
|
|---|
| Cash | 3,737 | 3,487 | 4,711 | 3,950 | 6,011 | 52.2% |
| Short Term Debt | 11,342 | 11,288 | 29,206 | 19,173 | 26,413 | 37.8% |
| Long Term Debt | 7,079 | 7,341 | 8,652 | 10,979 | 11,230 | 2.3% |
Cash flow
|
|---|
| Capex | 7,515 | 5,773 | 5,764 | 2,326 | 4,413 | 89.7% |
Ratios
|
|---|
| Revenue growth | -3.1% | -4.2% | 16.4% | 7.2% | 40.2% | |
| EBITDA growth | | -13.4% | 9.4% | 34.9% | 65.7% | |
| Gross Margin | 14.8% | 11.6% | 13.4% | 13.8% | 15.3% | 1.5% |
| EBITDA Margin | 11.3% | 10.2% | 9.6% | 12.0% | 14.2% | 2.2% |
| Net Income Margin | 3.0% | 0.2% | 1.1% | 0.8% | 3.6% | 2.9% |
| SG&A, % of revenue | 8.2% | 7.6% | 6.4% | 7.9% | 7.1% | -0.8% |
| CAPEX, % of revenue | 16.2% | 13.0% | 11.2% | 4.2% | 5.7% | 1.5% |
| ROIC | 6.1% | 2.7% | 2.5% | 3.9% | 8.5% | 4.6% |
| ROE | 7.0% | 0.4% | 2.6% | 1.8% | 10.4% | 8.5% |
| Net Debt/EBITDA | 2.8x | 3.4x | 6.7x | 3.9x | 2.9x | -1.1x |
Revenue and profitability
The company's Revenue jumped on 40.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 12.1 pp from 23.6% to 35.7% in 2015.
Gross Margin increased slightly on 1.5 pp from 13.8% to 15.3% in 2015. SG&A as a % of Revenue decreased slightly on 0.77 pp from 7.9% to 7.1% in 2015.
Net Income marign increased on 2.9 pp from 0.78% to 3.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Byd Co Ltd had CAPEX/Revenue of 5.7%. CAPEX/Revenue decreased on 7.3 pp from 13.0% in 2012 to 5.7% in 2015. For the last three years the average CAPEX/Revenue was 7.0%.
Return on investment
The company operates at low ROIC (8.50%) and ROE (10.37%). ROIC increased on 4.6 pp from 3.9% to 8.5% in 2015. ROE increased on 8.5 pp from 1.8% to 10.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.9x and Debt / EBITDA is 3.4x. Net Debt / EBITDA dropped on 1.1x from 3.9x to 2.9x in 2015. Debt jumped on 24.8% in 2015 while cash jumped on 52.2% in 2015.
Appendix 1: Peers in Auto Manufacturers
Below we provide Byd Co Ltd benchmarking against other companies in Auto Manufacturers 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 |
|---|
| BAIC Motor Corp Ltd ($1958) | | 83.7% | 263.2% | 341.0% | 49.2% |
| Geely Automobile Holdings Ltd ($175) | | 17.5% | 16.6% | -24.3% | 38.6% |
| Guangzhou Automobile Group Co Ltd ($2238) | | 18.0% | 45.2% | 18.9% | 31.4% |
| Great Wall Motor Co Ltd ($2333) | | 43.1% | 31.7% | 10.2% | 21.3% |
| Wuling Motors Holdings Ltd ($305) | | 8.7% | 1.5% | 0.8% | 10.8% |
| |
|---|
| Median (8 companies) | -0.2% | 6.4% | 12.8% | 8.9% | 16.0% |
|---|
| Byd Co Ltd ($1211) | | -4.2% | 16.4% | 7.2% | 40.2% |
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% |
| Qingling Motors Co Ltd ($1122) | 12.4% | 12.3% | 15.2% | 15.1% | 18.7% |
| BAIC Motor Corp Ltd ($1958) | 1.4% | -4.8% | 3.2% | 15.9% | 18.2% |
| Geely Automobile Holdings Ltd ($175) | 18.2% | 18.5% | 20.1% | 18.2% | 18.2% |
| Guangzhou Automobile Group Co Ltd ($2238) | 3.9% | 5.3% | 10.6% | 11.4% | 11.7% |
| |
|---|
| Median (8 companies) | 12.8% | 11.7% | 12.0% | 14.0% | 14.9% |
|---|
| Byd Co Ltd ($1211) | 14.8% | 11.6% | 13.4% | 13.8% | 15.3% |
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% |
| Qingling Motors Co Ltd ($1122) | 8.8% | 10.3% | 12.8% | 11.4% | 12.2% |
| BAIC Motor Corp Ltd ($1958) | -27.8% | 9.6% | -13.2% | 5.4% | 9.7% |
| Guangzhou Automobile Group Co Ltd ($2238) | -0.3% | -5.9% | -1.5% | 1.4% | 4.8% |
| |
|---|
| Median (8 companies) | 6.4% | 5.6% | 3.8% | 4.8% | 7.3% |
|---|
| Byd Co Ltd ($1211) | 11.3% | 10.2% | 9.6% | 12.0% | 14.2% |
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% | 14.7% |
| Brilliance China Automotive Holdings Ltd ($1114) | 4.8% | 8.9% | 10.1% | 13.4% | 12.5% |
| BAIC Motor Corp Ltd ($1958) | 172.9% | 132.8% | 45.0% | 16.1% | 11.0% |
| 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% |
| |
|---|
| Median (8 companies) | 4.9% | 5.4% | 3.2% | 4.4% | 6.7% |
|---|
| Byd Co Ltd ($1211) | 16.2% | 13.0% | 11.2% | 4.2% | 5.7% |
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% |
| Wuling Motors Holdings Ltd ($305) | 6.2% | 7.2% | 7.7% | 10.0% | 11.8% |
| Dah Chong Hong Holdings Ltd ($1828) | 14.2% | 11.4% | 8.5% | 7.7% | 6.2% |
| BAIC Motor Corp Ltd ($1958) | | 0.6% | -6.2% | 1.1% | 6.0% |
| |
|---|
| Median (8 companies) | 6.2% | 3.5% | 4.6% | 4.5% | 6.1% |
|---|
| Byd Co Ltd ($1211) | 6.1% | 2.7% | 2.5% | 3.9% | 8.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dah Chong Hong Holdings Ltd ($1828) | 1.5x | 1.5x | 2.8x | 3.8x | 3.3x |
| BAIC Motor Corp Ltd ($1958) | | 26.0x | | 2.6x | 0.8x |
| Great Wall Motor Co Ltd ($2333) | -0.5x | -0.2x | -0.1x | 0.1x | 0.3x |
| Guangzhou Automobile Group Co Ltd ($2238) | | | | 13.2x | 0.3x |
| Wuling Motors Holdings Ltd ($305) | 2.8x | 2.0x | 1.9x | 0.8x | -0.6x |
| |
|---|
| Median (7 companies) | 1.2x | 1.8x | 0.9x | 0.8x | 0.3x |
|---|
| Byd Co Ltd ($1211) | 2.8x | 3.4x | 6.7x | 3.9x | 2.9x |
