China Vehicle Components Technology Holdings Ltd reports 63.9% CAPEX growth and 30.9% Revenue growth
28/03/2016 • About China Vehicle Components Technology Holdings Ltd (
$1269) • By InTwits
China Vehicle Components Technology Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Vehicle Components Technology Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.6%
- EBITDA Margin is quite volatile: 4.4% in 2015, 10.9% in 2014, 12.3% in 2013, 8.1% in 2012, 20.5% in 2011
- China Vehicle Components Technology Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.2%. At the same time it's a lot of higher than industry average of 7.7%.
- CAPEX is quite volatile: 64.2 in 2015, 57.2 in 2014, 66.6 in 2013, 32.4 in 2012, 19.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.6%
- It operates with high leverage: Net Debt/EBITDA is 2.0x while industry average is -0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Vehicle Components Technology Holdings Ltd ($1269) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 557 | 499 | 634 | 831 | 1,088 | 30.9% |
| Gross Profit | 121 | 98 | 133 | 174 | 225 | 29.6% |
| SG&A | 57 | 62 | 82 | 95 | 166 | 74.3% |
| EBITDA | 114 | 41 | 78 | 90 | 47 | -47.4% |
| Net Income | 57 | 7 | 39 | 3 | -23 | -985.1% |
Balance Sheet
|
|---|
| Cash | 123 | 26 | 52 | 87 | 403 | 364.4% |
| Short Term Debt | 235 | 333 | 370 | 421 | 437 | 3.6% |
| Long Term Debt | 156 | 74 | 135 | 148 | 62 | -57.8% |
Cash flow
|
|---|
| Capex | 75 | 95 | 77 | 41 | 68 | 63.9% |
Ratios
|
|---|
| Revenue growth | 2.4% | -10.4% | 27.1% | 31.0% | 30.9% | |
| EBITDA growth | 54.5% | -64.6% | 91.6% | 16.0% | -47.4% | |
| Gross Margin | 21.7% | 19.7% | 20.9% | 20.9% | 20.7% | -0.2% |
| EBITDA Margin | 20.5% | 8.1% | 12.3% | 10.9% | 4.4% | -6.5% |
| Net Income Margin | 10.2% | 1.5% | 6.2% | 0.3% | -2.1% | -2.4% |
| SG&A, % of revenue | 10.2% | 12.4% | 12.9% | 11.5% | 15.2% | 3.8% |
| CAPEX, % of revenue | 13.5% | 19.1% | 12.1% | 5.0% | 6.2% | 1.3% |
| ROIC | 18.2% | 3.3% | 7.3% | 6.9% | 1.6% | -5.3% |
| ROE | 33.4% | 2.7% | 11.8% | 0.7% | -4.4% | -5.1% |
| Net Debt/EBITDA | 2.4x | 9.4x | 5.8x | 5.3x | 2.0x | -3.3x |
Revenue and profitability
The company's Revenue jumped on 30.9% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 6.5 pp from 10.9% to 4.4% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 3.8 pp from 11.5% to 15.2% in 2015.
Net Income marign decreased on 2.4 pp from 0.31% to -2.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 6.2%. China Vehicle Components Technology Holdings Ltd's CAPEX/Revenue dropped on 12.8 pp from 19.1% in 2012 to 6.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 7.8%.The company has spent a lot to CAPEX (143% of EBITDA) to fuel its growth.
Return on investment
The company operates at low but positive ROIC (1.59%) and negative ROE (-4.45%). ROIC decreased on 5.3 pp from 6.9% to 1.6% in 2015. ROE decreased on 5.1 pp from 0.66% to -4.4% in 2015.
Leverage (Debt)
Debt level is 2.0x Net Debt / EBITDA and 10.5x Debt / EBITDA. Net Debt / EBITDA dropped on 3.3x from 5.3x to 2.0x in 2015. Debt dropped on 12.3% in 2015 while cash surged on 364% in 2015.
Appendix 1: Peers in Auto Parts&Equipment
Below you can find China Vehicle Components Technology Holdings 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% | |
| 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% |
| Zhejiang Shibao Co Ltd ($1057) | | -12.2% | 23.1% | 20.2% | 3.2% |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 16.1% | -1.1% | 27.3% | 14.4% | |
| |
|---|
| Median (16 companies) | 13.6% | -5.6% | 10.7% | 2.6% | 5.3% |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | | -10.4% | 27.1% | 31.0% | 30.9% |
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% |
| Zhejiang Shibao Co Ltd ($1057) | 34.9% | 30.3% | 26.0% | 26.4% | 25.5% |
| Shuanghua Holdings Ltd ($1241) | 21.4% | 17.1% | 16.8% | 26.0% | |
| |
|---|
| Median (16 companies) | 26.0% | 20.8% | 20.0% | 22.3% | 22.3% |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | 21.7% | 19.7% | 20.9% | 20.9% | 20.7% |
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% | 9.4% | 11.4% | 12.4% | 13.6% |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | 20.5% | 8.1% | 12.3% | 10.9% | 4.4% |
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% | 6.2% | 6.1% | 7.9% |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | 13.5% | 19.1% | 12.1% | 5.0% | 6.2% |
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% | 7.6% | 8.9% | 5.8% | 9.7% |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | 18.2% | 3.3% | 7.3% | 6.9% | 1.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 | |
| Weichai Power Co Ltd ($2338) | -0.2x | 0.7x | 0.6x | 1.1x | |
| |
|---|
| Median (13 companies) | 0.8x | 0.6x | 0.9x | 1.0x | -0.3x |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | 2.4x | 9.4x | 5.8x | 5.3x | 2.0x |
