Leoch International Technology Ltd Debt surged on 18.3% in 2015 and EBITDA increased on 7.2%
28/03/2016 • About Leoch International Technology Ltd (
$842) • By InTwits
Leoch International Technology 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: 10.2% in 2015, 9.7% in 2014, 3.0% in 2013, 6.8% in 2012, 12.5% in 2011
- Leoch International Technology Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.4%. At the same time it's a lot of higher than industry average of 12.7%.
- CAPEX is quite volatile: 211 in 2015, 155 in 2014, 324 in 2013, 610 in 2012, 810 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.8%
- It operates with high leverage: Net Debt/EBITDA is 5.0x 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.
Leoch International Technology Ltd ($842) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,164 | 3,248 | 3,647 | 4,248 | 4,331 | 1.9% |
| Gross Profit | 654 | 592 | 583 | 717 | 770 | 7.4% |
| SG&A | 294 | 390 | 409 | 422 | 433 | 2.6% |
| EBITDA | 395 | 221 | 111 | 413 | 443 | 7.2% |
| Net Income | 284 | 72 | -129 | 82 | 107 | 30.3% |
Balance Sheet
|
|---|
| Cash | 73 | 83 | 138 | 139 | 208 | 49.5% |
| Short Term Debt | 1,073 | 1,945 | 1,914 | 2,000 | 2,355 | 17.8% |
| Long Term Debt | 331 | 186 | 39 | 62 | 85 | 36.5% |
Cash flow
|
|---|
| Capex | 810 | 610 | 324 | 155 | 211 | 36.2% |
Ratios
|
|---|
| Revenue growth | 49.5% | 2.7% | 12.3% | 16.5% | 1.9% | |
| EBITDA growth | 6.7% | -44.2% | -49.6% | 271.8% | 7.2% | |
| Gross Margin | 20.7% | 18.2% | 16.0% | 16.9% | 17.8% | 0.9% |
| EBITDA Margin | 12.5% | 6.8% | 3.0% | 9.7% | 10.2% | 0.5% |
| Net Income Margin | 9.0% | 2.2% | -3.5% | 1.9% | 2.5% | 0.5% |
| SG&A, % of revenue | 9.3% | 12.0% | 11.2% | 9.9% | 10.0% | 0.1% |
| CAPEX, % of revenue | 25.6% | 18.8% | 8.9% | 3.6% | 4.9% | 1.2% |
| ROIC | 10.1% | 2.8% | -1.3% | 4.8% | 4.8% | -0.0% |
| ROE | 12.9% | 3.1% | -5.7% | 3.6% | 4.5% | 0.9% |
| Net Debt/EBITDA | 3.4x | 9.3x | 16.3x | 4.7x | 5.0x | 0.4x |
Revenue and profitability
The company's Revenue increased slightly on 1.9% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.50 pp from 9.7% to 10.2% in 2015.
Gross Margin increased slightly on 0.90 pp from 16.9% to 17.8% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 0.54 pp from 1.9% to 2.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Leoch International Technology Ltd's CAPEX/Revenue was 4.9% in 2015. Leoch International Technology Ltd showed big decline in CAPEX/Revenue of 13.9 pp from 18.8% in 2012 to 4.9% in 2015. It's average CAPEX/Revenue for the last three years was 5.8%.
Return on investment
The company operates at low ROIC (4.76%) and ROE (4.47%). ROIC showed almost no change in 2015. ROE increased slightly on 0.87 pp from 3.6% to 4.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.0x and Debt / EBITDA is 5.5x. Net Debt / EBITDA surged on 0.4x from 4.7x to 5.0x in 2015. Debt jumped on 18.3% in 2015 while cash jumped on 49.5% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Leoch International Technology 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% | -6.0% | 8.5% | 15.5% | 6.0% |
|---|
| Leoch International Technology Ltd ($842) | | 2.7% | 12.3% | 16.5% | 1.9% |
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% | 19.6% | 17.9% | 16.2% | 19.0% |
|---|
| Leoch International Technology Ltd ($842) | 20.7% | 18.2% | 16.0% | 16.9% | 17.8% |
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% | 8.3% | 7.3% | 3.8% | 4.7% |
|---|
| Leoch International Technology Ltd ($842) | 12.5% | 6.8% | 3.0% | 9.7% | 10.2% |
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% | 5.0% | 4.0% | 3.2% |
|---|
| Leoch International Technology Ltd ($842) | 25.6% | 18.8% | 8.9% | 3.6% | 4.9% |
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% |
|---|
| Leoch International Technology Ltd ($842) | 10.1% | 2.8% | -1.3% | 4.8% | 4.8% |
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 | 1.5x | 0.6x | 2.0x | -0.0x |
|---|
| Leoch International Technology Ltd ($842) | 3.4x | 9.3x | 16.3x | 4.7x | 5.0x |
