Zhuzhou CSR Times Electric Co Ltd EBITDA surged on 31.5% in 2015 and Revenue surged on 11.7%
28/03/2016 • About Zhuzhou CSR Times Electric Co Ltd (
$3898) • By InTwits
Zhuzhou CSR Times Electric Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zhuzhou CSR Times Electric Co Ltd is a fast growth stock: 2015 revenue growth was 11.7%, 5 year revenue CAGR was 19.2% at 2015 ROIC 21.1%
- EBITDA Margin is expanding: 24.2% in 2015 vs. 20.6% in 2014 vs. 19.5% in 2011
- Zhuzhou CSR Times Electric Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's a lot of higher than industry average of 50.4%.
- CAPEX is quite volatile: 753 in 2015, 610 in 2014, 563 in 2013, 332 in 2012, 286 in 2011
- The company has highly profitable business model: ROIC is at 21.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zhuzhou CSR Times Electric Co Ltd ($3898) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,079 | 7,186 | 8,781 | 12,576 | 14,045 | 11.7% |
| Gross Profit | 2,480 | 2,383 | 3,086 | 4,700 | 5,437 | 15.7% |
| SG&A | 1,165 | 1,197 | 1,504 | 2,230 | 2,254 | 1.1% |
| EBITDA | 1,381 | 1,322 | 1,735 | 2,590 | 3,406 | 31.5% |
| Net Income | 1,184 | 1,224 | 1,467 | 2,395 | 2,958 | 23.5% |
Balance Sheet
|
|---|
| Cash | 2,135 | 2,291 | 3,107 | 2,641 | 3,343 | 26.6% |
| Short Term Debt | 713 | 755 | 972 | 1,585 | 1,804 | 13.8% |
| Long Term Debt | 57 | 28 | 52 | 37 | 1,025 | 2,634.9% |
Cash flow
|
|---|
| Capex | 352 | 403 | 298 | 338 | 281 | -16.9% |
Ratios
|
|---|
| Revenue growth | 21.4% | 1.5% | 22.2% | 43.2% | 11.7% | |
| EBITDA growth | 27.4% | -4.3% | 31.3% | 49.3% | 31.5% | |
| Gross Margin | 35.0% | 33.2% | 35.1% | 37.4% | 38.7% | 1.3% |
| EBITDA Margin | 19.5% | 18.4% | 19.8% | 20.6% | 24.2% | 3.7% |
| Net Income Margin | 16.7% | 17.0% | 16.7% | 19.0% | 21.1% | 2.0% |
| SG&A, % of revenue | 16.5% | 16.7% | 17.1% | 17.7% | 16.0% | -1.7% |
| CAPEX, % of revenue | 5.0% | 5.6% | 3.4% | 2.7% | 2.0% | -0.7% |
| ROIC | 21.4% | 16.9% | 17.7% | 20.0% | 21.1% | 1.1% |
| ROE | 24.4% | 21.3% | 19.3% | 23.9% | 24.2% | 0.2% |
| Net Debt/EBITDA | -1.0x | -1.1x | -1.2x | -0.4x | -0.2x | 0.2x |
Revenue and profitability
The company's Revenue jumped on 11.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 15.6 pp from 3.5% to 19.1% in 2015.
Gross Margin increased slightly on 1.3 pp from 37.4% to 38.7% in 2015. SG&A as a % of Revenue decreased slightly on 1.7 pp from 17.7% to 16.0% in 2015.
Net Income marign increased on 2.0 pp from 19.0% to 21.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Zhuzhou CSR Times Electric Co Ltd had CAPEX/Revenue of 2.0%. Zhuzhou CSR Times Electric Co Ltd showed decline in CAPEX/Revenue of 3.6 pp from 5.6% in 2012 to 2.0% in 2015. Average CAPEX/Revenue for the last three years was 2.7%.
Return on investment
The company operates at high and attractive ROIC (21.14%) and ROE (24.19%). ROIC increased slightly on 1.1 pp from 20.0% to 21.1% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA jumped on 0.2x from -0.4x to -0.2x in 2015. Debt jumped on 74.3% in 2015 while cash surged on 26.6% in 2015.
Appendix 1: Peers in Miscellaneous Manufactur
Below we provide Zhuzhou CSR Times Electric Co Ltd benchmarking against other companies in Miscellaneous Manufactur 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 |
|---|
| CSR Corp Ltd ($1766) | 24.0% | 12.0% | 9.7% | 123.7% | |
| Sunny Optical Technology Group Co Ltd ($2382) | | 59.5% | 45.9% | 45.0% | 26.9% |
| Time Watch Investments Ltd ($2033) | | 28.2% | 25.4% | 25.6% | 10.4% |
| China International Marine Containers Group Co Ltd ($2039) | | -15.6% | 6.6% | 21.4% | -16.4% |
| Singamas Container Holdings Ltd ($716) | | -15.5% | -16.5% | 20.5% | -27.2% |
| |
|---|
| Median (25 companies) | 9.0% | -7.1% | -0.7% | 6.7% | -8.2% |
|---|
| Zhuzhou CSR Times Electric Co Ltd ($3898) | | 1.5% | 22.2% | 43.2% | 11.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | 68.1% |
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | 39.6% |
| Launch Tech Co Ltd ($2488) | 39.2% | 27.4% | 33.6% | 33.6% | |
| DeTeam Co Ltd ($65) | 13.9% | 17.7% | 15.7% | 31.0% | |
| |
|---|
| Median (24 companies) | 20.6% | 19.7% | 19.7% | 23.4% | 21.3% |
|---|
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | 38.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 42.8% | 30.4% | 31.3% | 38.4% | 37.6% |
| Man Sang International Ltd ($938) | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% |
| IPE Group Ltd ($929) | 24.9% | 25.6% | 22.5% | 29.5% | |
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | 20.5% |
| TK Group Holdings Ltd ($2283) | 22.1% | 21.4% | 18.9% | 17.9% | 17.2% |
| |
|---|
| Median (25 companies) | 10.2% | 8.0% | 8.2% | 9.5% | 5.9% |
|---|
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | 24.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | 22.8% |
| KEE Holdings Co Ltd ($2011) | 20.9% | 21.8% | 43.7% | 24.9% | |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | 21.2% |
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | 47.6% |
| TK Group Holdings Ltd ($2283) | 8.9% | 13.3% | 8.1% | 13.7% | 7.6% |
| |
|---|
| Median (25 companies) | 5.2% | 4.7% | 4.3% | 4.4% | 4.3% |
|---|
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 5.0% | 5.6% | 3.4% | 2.7% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | 27.6% |
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | 27.9% |
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | 19.4% |
| CSR Corp Ltd ($1766) | 13.4% | 11.1% | 11.2% | 15.3% | |
| Yusei Holdings Ltd ($96) | 8.0% | 4.2% | 7.0% | 13.6% | |
| |
|---|
| Median (25 companies) | 6.4% | 4.2% | 3.6% | 3.9% | 1.5% |
|---|
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | 21.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | 27.3x |
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | 4,203.6x |
| China International Marine Containers Group Co Ltd ($2039) | 2.8x | 4.0x | 4.7x | 5.8x | 9.8x |
| VS International Group Ltd ($1002) | 8.6x | 5.1x | 6.5x | 4.4x | 3.3x |
| Launch Tech Co Ltd ($2488) | -0.4x | 7.6x | 2.4x | 3.9x | |
| |
|---|
| Median (21 companies) | 0.1x | -0.2x | -0.2x | 0.1x | 0.2x |
|---|
| Zhuzhou CSR Times Electric Co Ltd ($3898) | -1.0x | -1.1x | -1.2x | -0.4x | -0.2x |
