China Titans Energy Technology Group Co Ltd EBITDA jumped on 812% in 2015 and Revenue increased on 9.7%
28/03/2016 • About China Titans Energy Technology Group Co Ltd (
$2188) • By InTwits
China Titans Energy Technology Group Co 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: 16.5% in 2015, 2.0% in 2014, -11.9% in 2013, 10.8% in 2012, 21.1% in 2011
- China Titans Energy Technology Group Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.6%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 10.8 in 2015, 3.0 in 2014, 8.7 in 2013, 15.9 in 2012, 25.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.7%
- It operates with high leverage: Net Debt/EBITDA is 2.4x 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.
China Titans Energy Technology Group Co Ltd ($2188) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 268.7 | 238.7 | 175.9 | 178.5 | 195.9 | 9.7% |
| Gross Profit | 122.0 | 98.9 | 48.0 | 60.1 | 71.8 | 19.5% |
| SG&A | | 93.1 | 90.8 | 77.7 | 94.1 | 21.2% |
| EBITDA | 56.6 | 25.8 | -21.0 | 3.5 | 32.3 | 811.7% |
| Net Income | 33.9 | 11.8 | -33.8 | -43.8 | -26.1 | -40.5% |
Balance Sheet
|
|---|
| Cash | 62.8 | 58.3 | 56.3 | 36.3 | 58.6 | 61.4% |
| Short Term Debt | 75.5 | 95.9 | 113.2 | 96.1 | 137.0 | 42.6% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 25.2 | 15.9 | 8.7 | 3.0 | 10.8 | 265.5% |
Ratios
|
|---|
| Revenue growth | -6.5% | -11.2% | -26.3% | 1.5% | 9.7% | |
| EBITDA growth | -36.4% | -54.4% | -181.4% | -116.9% | 811.7% | |
| Gross Margin | 45.4% | 41.4% | 27.3% | 33.7% | 36.6% | 3.0% |
| EBITDA Margin | 21.1% | 10.8% | -11.9% | 2.0% | 16.5% | 14.5% |
| Net Income Margin | 12.6% | 4.9% | -19.2% | -24.6% | -13.3% | 11.2% |
| SG&A, % of revenue | | 39.0% | 51.6% | 43.5% | 48.1% | 4.6% |
| CAPEX, % of revenue | 9.4% | 6.7% | 4.9% | 1.7% | 5.5% | 3.9% |
| ROIC | 9.1% | 3.2% | -4.6% | -0.8% | 3.7% | 4.5% |
| ROE | 7.4% | 2.5% | -7.3% | -10.2% | -5.9% | 4.3% |
| Net Debt/EBITDA | 0.2x | 1.5x | | 16.9x | 2.4x | -14.4x |
Revenue and profitability
China Titans Energy Technology Group Co Ltd's Revenue increased on 9.7% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 14.5 pp from 2.0% to 16.5% in 2015.
Gross Margin increased on 3.0 pp from 33.7% to 36.6% in 2015. SG&A as a % of Revenue increased on 4.6 pp from 43.5% to 48.1% in 2015.
Net Income marign jumped on 11.2 pp from -24.6% to -13.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Titans Energy Technology Group Co Ltd's CAPEX/Revenue was 5.5% in 2015. CAPEX/Revenue decreased slightly on 1.2 pp from 6.7% in 2012 to 5.5% in 2015. For the last three years the average CAPEX/Revenue was 4.0%.
Return on investment
The company operates at low but positive ROIC (3.67%) and negative ROE (-5.95%). ROIC increased on 4.5 pp from -0.84% to 3.7% in 2015. ROE increased on 4.3 pp from -10.2% to -5.9% in 2015.
Leverage (Debt)
Debt level is 2.4x Net Debt / EBITDA and 4.2x Debt / EBITDA. Net Debt / EBITDA dropped on 14.4x from 16.9x to 2.4x in 2015. Debt surged on 42.6% in 2015 while cash jumped on 61.4% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide China Titans Energy Technology Group Co Ltd benchmarking against other companies in Electrical Compo&Equip 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 |
|---|
| 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% | 0.2% | 8.9% | 16.2% | 5.5% |
|---|
| China Titans Energy Technology Group Co Ltd ($2188) | | -11.2% | -26.3% | 1.5% | 9.7% |
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% | |
| 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% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 16.1% | 14.2% | 20.1% | 26.0% | |
| |
|---|
| Median (31 companies) | 20.4% | 18.8% | 17.4% | 16.2% | 18.1% |
|---|
| China Titans Energy Technology Group Co Ltd ($2188) | 45.4% | 41.4% | 27.3% | 33.7% | 36.6% |
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% |
|---|
| China Titans Energy Technology Group Co Ltd ($2188) | 21.1% | 10.8% | -11.9% | 2.0% | 16.5% |
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% | 5.4% | 4.0% | 3.2% |
|---|
| China Titans Energy Technology Group Co Ltd ($2188) | 9.4% | 6.7% | 4.9% | 1.7% | 5.5% |
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% | 2.8% | 2.0% |
|---|
| China Titans Energy Technology Group Co Ltd ($2188) | 9.1% | 3.2% | -4.6% | -0.8% | 3.7% |
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 | |
| 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 |
| Guodian Technology & Environment Group Corp Ltd ($1296) | 5.4x | 6.3x | 7.6x | 6.8x | |
| |
|---|
| Median (25 companies) | 0.5x | 1.6x | 1.4x | 2.0x | -0.0x |
|---|
| China Titans Energy Technology Group Co Ltd ($2188) | 0.2x | 1.5x | | 16.9x | 2.4x |
