Chaowei Power Holdings Ltd EBITDA jumped on 97.7% in 2015 and EBITDA Margin increased on 2.6 pp from 2.9% to 5.4%
28/03/2016 • About Chaowei Power Holdings Ltd (
$951) • By InTwits
Chaowei Power Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 5.4% in 2015, 2.9% in 2014, 5.9% in 2013, 10.4% in 2012, 17.1% in 2011
- Chaowei Power Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.8%. At the same time it's in pair with industry average of 21.1%.
- CAPEX is quite volatile: 515 in 2015, 357 in 2014, 350 in 2013, 170 in 2012, 58.9 in 2011
- The company has business model with average profitability: ROIC is at 10.0%
- It operates with high leverage: Net Debt/EBITDA is 2.9x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chaowei Power Holdings Ltd ($951) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,932 | 9,559 | 14,973 | 18,187 | 18,870 | 3.8% |
| Gross Profit | 1,406 | 1,895 | 2,027 | 2,047 | 2,410 | 17.7% |
| SG&A | 459 | 736 | 1,003 | 1,433 | 1,387 | -3.2% |
| EBITDA | 843 | 992 | 878 | 520 | 1,028 | 97.7% |
| Net Income | 455 | 496 | 310 | -29 | 332 | -1,245.5% |
Balance Sheet
|
|---|
| Cash | 845 | 905 | 1,121 | 1,017 | 961 | -5.5% |
| Short Term Debt | 1,132 | 1,521 | 1,792 | 3,095 | 2,083 | -32.7% |
| Long Term Debt | 156 | 800 | 1,204 | 1,111 | 1,844 | 65.9% |
Cash flow
|
|---|
| Capex | 549 | 1,033 | 752 | 648 | 617 | -4.7% |
Ratios
|
|---|
| Revenue growth | 52.9% | 93.8% | 56.6% | 21.5% | 3.8% | |
| EBITDA growth | 92.3% | 17.7% | -11.5% | -40.8% | 97.7% | |
| Gross Margin | 28.5% | 19.8% | 13.5% | 11.3% | 12.8% | 1.5% |
| EBITDA Margin | 17.1% | 10.4% | 5.9% | 2.9% | 5.4% | 2.6% |
| Net Income Margin | 9.2% | 5.2% | 2.1% | -0.2% | 1.8% | 1.9% |
| SG&A, % of revenue | 9.3% | 7.7% | 6.7% | 7.9% | 7.3% | -0.5% |
| CAPEX, % of revenue | 11.1% | 10.8% | 5.0% | 3.6% | 3.3% | -0.3% |
| ROIC | 30.2% | 21.4% | 12.6% | 4.1% | 10.0% | 5.9% |
| ROE | 29.2% | 25.4% | 13.8% | -1.3% | 13.8% | 15.1% |
| Net Debt/EBITDA | 0.5x | 1.4x | 2.1x | 6.1x | 2.9x | -3.2x |
Revenue and profitability
The company's Revenue increased on 3.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.9 pp from 27.0% to 21.1% in 2015.
Gross Margin increased slightly on 1.5 pp from 11.3% to 12.8% in 2015. SG&A as a % of Revenue decreased slightly on 0.53 pp from 7.9% to 7.3% in 2015.
Net Income marign increased slightly on 1.9 pp from -0.16% to 1.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.3% in 2015. CAPEX/Revenue decreased on 7.5 pp from 10.8% in 2012 to 3.3% in 2015. Average CAPEX/Revenue for the last three years was 4.0%.Chaowei Power Holdings Ltd invested a large share of EBITDA (60.1%) to CAPEX.
Return on investment
The company operates at good ROE (13.85%) while ROIC is low (10.01%). ROIC increased on 5.9 pp from 4.1% to 10.0% in 2015. ROE surged on 15.1 pp from -1.3% to 13.8% in 2015.
Leverage (Debt)
Debt level is 2.9x Net Debt / EBITDA and 3.8x Debt / EBITDA. Net Debt / EBITDA dropped on 3.2x from 6.1x to 2.9x in 2015. Debt decreased on 6.6% in 2015 while cash decreased on 5.5% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below you can find Chaowei Power Holdings Ltd benchmarking vs. other companies in Electrical Compo&Equip 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 |
|---|
| Enterprise Development Holdings Ltd ($1808) | 225.9% | 2.5% | 37.3% | 83.9% | |
| FDG Electric Vehicles Ltd ($729) | | -23.1% | -7.0% | 54.0% | 270.8% |
| Boer Power Holdings Ltd ($1685) | 11.4% | 20.4% | 10.9% | 51.3% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | -27.0% | -12.0% | 8.7% | 44.1% | |
| CEC International Holdings Ltd ($759) | | 23.9% | 60.8% | 43.0% | 32.3% |
| |
|---|
| Median (32 companies) | 13.4% | -6.0% | 8.5% | 15.5% | 6.0% |
|---|
| Chaowei Power Holdings Ltd ($951) | | 93.8% | 56.6% | 21.5% | 3.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 37.1% | 36.8% | 36.0% | 35.3% | |
| China Titans Energy Technology Group Co Ltd ($2188) | 45.4% | 41.4% | 27.3% | 33.7% | 36.6% |
| Sun King Power Electronics Group ($580) | 16.2% | 25.4% | 30.0% | 30.8% | 34.1% |
| CEC International Holdings Ltd ($759) | 18.5% | 23.6% | 27.9% | 29.9% | 31.8% |
| Johnson Electric Holdings Ltd ($179) | 27.5% | 27.3% | 28.0% | 29.5% | 29.6% |
| |
|---|
| Median (31 companies) | 20.4% | 18.8% | 17.9% | 16.6% | 19.0% |
|---|
| Chaowei Power Holdings Ltd ($951) | 28.5% | 19.8% | 13.5% | 11.3% | 12.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shougang Concord Technology Holdings ($521) | 22.7% | 12.3% | 28.1% | 31.9% | |
| Boer Power Holdings Ltd ($1685) | 28.1% | 26.3% | 27.8% | 28.5% | |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 21.0% | 20.2% | 19.2% | 20.8% | 26.3% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 9.2% | 5.7% | 7.4% | 16.9% | |
| Johnson Electric Holdings Ltd ($179) | 14.9% | 14.2% | 14.5% | 15.5% | 15.4% |
| |
|---|
| Median (33 companies) | 10.7% | 7.8% | 7.3% | 5.5% | 4.7% |
|---|
| Chaowei Power Holdings Ltd ($951) | 17.1% | 10.4% | 5.9% | 2.9% | 5.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Applied Development Holdings Ltd ($519) | 46.4% | 79.7% | | 1,285.3% | 89.8% |
| FDG Electric Vehicles Ltd ($729) | 177.5% | 374.3% | 82.3% | 71.1% | 417.0% |
| Sun King Power Electronics Group ($580) | 9.2% | 16.5% | 7.7% | 15.5% | 1.6% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.7% | 23.1% | 50.7% | 13.5% | |
| Coslight Technology International Group Co Ltd ($1043) | 11.0% | 9.3% | 11.4% | 11.5% | |
| |
|---|
| Median (33 companies) | 9.2% | 6.4% | 5.3% | 4.0% | 3.2% |
|---|
| Chaowei Power Holdings Ltd ($951) | 11.1% | 10.8% | 5.0% | 3.6% | 3.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 18.2% | 18.0% | 17.0% | 21.2% | |
| Jiangnan Group Ltd ($1366) | 17.0% | 14.9% | 14.1% | 13.5% | |
| Johnson Electric Holdings Ltd ($179) | 13.1% | 11.7% | 11.6% | 12.7% | 11.2% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 5.1% | 1.8% | 3.0% | 10.4% | |
| Wai Chi Holdings Co Ltd ($1305) | | | 10.4% | 9.8% | -0.3% |
| |
|---|
| Median (33 companies) | 5.4% | 2.7% | 3.0% | 0.7% | 2.0% |
|---|
| Chaowei Power Holdings Ltd ($951) | 30.2% | 21.4% | 12.6% | 4.1% | 10.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tianneng Power International Ltd ($819) | 0.7x | 1.8x | 4.0x | 162.7x | 0.6x |
| Coslight Technology International Group Co Ltd ($1043) | 11.2x | 51.9x | 8.7x | 54.7x | |
| China Titans Energy Technology Group Co Ltd ($2188) | 0.2x | 1.5x | | 16.9x | 2.4x |
| Shougang Concord Technology Holdings ($521) | 12.7x | 16.3x | 4.9x | 13.8x | |
| Sun King Power Electronics Group ($580) | | 1.7x | 1.4x | 10.0x | 2.2x |
| |
|---|
| Median (25 companies) | 0.3x | 1.6x | 0.6x | 2.0x | -0.0x |
|---|
| Chaowei Power Holdings Ltd ($951) | 0.5x | 1.4x | 2.1x | 6.1x | 2.9x |
