Jingwei Textile Machinery Net Income dropped on 16.2% in 2015 while Revenue increased slightly on 1.1%
28/03/2016 • About Jingwei Textile Machinery (
$350) • By InTwits
Jingwei Textile Machinery reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jingwei Textile Machinery has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's in pair with industry average of 3.6%.
- CAPEX is quite volatile: 128 in 2015, 128 in 2014, 161 in 2013, 366 in 2012, 544 in 2011
- The company has highly profitable business model: ROIC is at 14.9%
- It operates with high leverage: Net Debt/EBITDA is -0.9x while industry average is -2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jingwei Textile Machinery ($350) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,202 | 8,632 | 10,479 | 9,946 | 10,057 | 1.1% |
| Gross Profit | 3,907 | 4,240 | 5,416 | 5,460 | 6,587 | 20.6% |
| SG&A | 2,266 | 2,520 | 2,968 | 3,006 | 3,659 | 21.8% |
| EBITDA | 1,890 | 2,069 | 2,815 | 2,785 | 2,868 | 3.0% |
| Net Income | 491 | 437 | 597 | 546 | 458 | -16.2% |
Balance Sheet
|
|---|
| Cash | 3,808 | 6,480 | 9,314 | 4,994 | 8,641 | 73.0% |
| Short Term Debt | 2,409 | 1,927 | 2,582 | 2,732 | 3,443 | 26.0% |
| Long Term Debt | 118 | 1,225 | 1,201 | 1,400 | 2,649 | 89.1% |
Cash flow
|
|---|
| Capex | 544 | 366 | 161 | 128 | 128 | -0.4% |
Ratios
|
|---|
| Revenue growth | 46.0% | -15.4% | 21.4% | -5.1% | 1.1% | |
| EBITDA growth | 182.4% | 9.4% | 36.1% | -1.1% | 3.0% | |
| Gross Margin | 38.3% | 49.1% | 51.7% | 54.9% | 65.5% | 10.6% |
| EBITDA Margin | 18.5% | 24.0% | 26.9% | 28.0% | 28.5% | 0.5% |
| Net Income Margin | 4.8% | 5.1% | 5.7% | 5.5% | 4.6% | -0.9% |
| SG&A, % of revenue | 22.2% | 29.2% | 28.3% | 30.2% | 36.4% | 6.2% |
| CAPEX, % of revenue | 5.3% | 4.2% | 1.5% | 1.3% | 1.3% | -0.0% |
| ROIC | 23.3% | 19.4% | 20.9% | 17.4% | 14.9% | -2.4% |
| ROE | 15.2% | 10.8% | 12.2% | 10.2% | 7.9% | -2.4% |
| Net Debt/EBITDA | -0.7x | -1.6x | -2.0x | -0.3x | -0.9x | -0.6x |
Revenue and profitability
The company's Revenue increased slightly on 1.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.4 pp from 60.5% to 57.1% in 2015.
Gross Margin surged on 10.6 pp from 54.9% to 65.5% in 2015. SG&A as a % of Revenue increased on 6.2 pp from 30.2% to 36.4% in 2015.
Net Income marign decreased slightly on 0.94 pp from 5.5% to 4.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Jingwei Textile Machinery had CAPEX/Revenue of 1.3%. Jingwei Textile Machinery showed decline in CAPEX/Revenue of 3.0 pp from 4.2% in 2012 to 1.3% in 2015. Average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at good ROIC (14.95%) while ROE is low (7.86%). ROIC decreased on 2.4 pp from 17.4% to 14.9% in 2015. ROE decreased on 2.4 pp from 10.2% to 7.9% in 2015.
Leverage (Debt)
Debt level is -0.9x Net Debt / EBITDA and 2.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from -0.3x to -0.9x in 2015. Debt jumped on 47.4% in 2015 while cash surged on 73.0% in 2015.
Appendix 1: Peers in Machinery-Diversified
Below you can find Jingwei Textile Machinery benchmarking vs. other companies in Machinery-Diversified 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 |
|---|
| Sun East Technology Holdings Ltd ($365) | | -25.1% | -10.7% | 39.3% | 6.4% |
| Shanghai Prime Machinery Co Ltd ($2345) | | 2.6% | -8.9% | 37.3% | 52.8% |
| Sinoref Holdings Ltd ($1020) | 1.5% | -0.2% | -42.2% | 29.2% | |
| North Asia Strategic Holdings Ltd ($8080) | | -52.2% | -29.1% | 23.7% | 42.6% |
| Huazhang Technology Holding Ltd ($1673) | | 131.6% | 9.5% | 22.9% | 23.5% |
| |
|---|
| Median (22 companies) | 13.0% | -3.4% | -4.7% | 2.0% | 1.7% |
|---|
| Jingwei Textile Machinery ($350) | | -15.4% | 21.4% | -5.1% | 1.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Renheng Enterprise Holdings Ltd ($3628) | 36.4% | 44.3% | 44.8% | 45.4% | |
| Haitian International Holdings Ltd ($1882) | 29.7% | 30.1% | 31.6% | 32.4% | 33.0% |
| CHTC Fong's Industries Co Ltd ($641) | 26.5% | 24.4% | 30.0% | 32.3% | 31.2% |
| Huazhang Technology Holding Ltd ($1673) | 29.0% | 28.0% | 28.5% | 27.9% | 24.7% |
| Good Friend International Holdings Inc ($2398) | 23.3% | 20.1% | 22.9% | 26.5% | |
| |
|---|
| Median (22 companies) | 23.6% | 22.7% | 20.8% | 18.6% | 21.0% |
|---|
| Jingwei Textile Machinery ($350) | 38.3% | 49.1% | 51.7% | 54.9% | 65.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Haitian International Holdings Ltd ($1882) | 20.5% | 19.7% | 20.7% | 21.9% | 22.8% |
| Renheng Enterprise Holdings Ltd ($3628) | 22.9% | 24.7% | 23.9% | 20.7% | |
| Good Friend International Holdings Inc ($2398) | 11.7% | 6.7% | 9.1% | 12.9% | |
| Huazhang Technology Holding Ltd ($1673) | 3.1% | 11.6% | 11.2% | 12.5% | 11.3% |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 12.9% | 12.9% | 6.5% | 12.3% | |
| |
|---|
| Median (22 companies) | 8.7% | 8.3% | 8.5% | 8.1% | 5.9% |
|---|
| Jingwei Textile Machinery ($350) | 18.5% | 24.0% | 26.9% | 28.0% | 28.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China High Precision Automation Group Ltd ($591) | 33.0% | 20.5% | 9.1% | 18.4% | 0.6% |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 14.9% | 20.5% | 20.3% | 11.6% | |
| LK Technology Holdings Ltd ($558) | 7.6% | 9.3% | 10.2% | 9.1% | 5.6% |
| First Tractor Co Ltd ($38) | 6.3% | 4.9% | 4.3% | 7.3% | |
| Greens Holdings Ltd ($1318) | 9.3% | 8.9% | 3.1% | 7.1% | |
| |
|---|
| Median (22 companies) | 6.2% | 4.2% | 3.9% | 4.4% | 2.3% |
|---|
| Jingwei Textile Machinery ($350) | 5.3% | 4.2% | 1.5% | 1.3% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Haitian International Holdings Ltd ($1882) | 26.8% | 19.8% | 21.2% | 19.4% | 16.3% |
| Huazhang Technology Holding Ltd ($1673) | | 29.6% | 16.2% | 16.3% | 16.2% |
| Good Friend International Holdings Inc ($2398) | 20.0% | 6.5% | 8.7% | 12.1% | |
| China CNR Corp Ltd ($6199) | 11.1% | 7.9% | 9.3% | 10.6% | |
| Shanghai Electric Group Co Ltd ($2727) | 9.8% | 10.9% | 8.6% | 8.9% | |
| |
|---|
| Median (22 companies) | 9.8% | 6.8% | 3.6% | 2.6% | 2.9% |
|---|
| Jingwei Textile Machinery ($350) | 23.3% | 19.4% | 20.9% | 17.4% | 14.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First Tractor Co Ltd ($38) | 1.1x | 0.5x | 2.5x | 9.2x | |
| Shanghai Prime Machinery Co Ltd ($2345) | -0.0x | -0.6x | 0.3x | 6.0x | 3.2x |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 1.9x | 3.0x | 11.4x | 5.6x | |
| Honghua Group Ltd ($196) | 0.1x | 1.2x | 3.2x | 5.2x | |
| LK Technology Holdings Ltd ($558) | 0.9x | 2.5x | 5.1x | 4.9x | 4.6x |
| |
|---|
| Median (18 companies) | -0.4x | -0.7x | -0.4x | 0.1x | -0.4x |
|---|
| Jingwei Textile Machinery ($350) | -0.7x | -1.6x | -2.0x | -0.3x | -0.9x |
