CSR Corp Ltd reports 12.2% EBITDA growth and 8.9% Revenue growth
29/03/2016 • About CSR Corp Ltd (
$1766) • By InTwits
CSR Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CSR Corp Ltd is a growth stock: 2015 revenue growth was 8.9%, 5 year revenue CAGR was 30.0% at 2015 ROIC 11.7%
- EBITDA Margin is relatively stable: 9.8% in 2015 vs. 9.5% in 2014 vs. 9.0% in 2011
- CSR Corp Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's a lot of higher than industry average of 1.0%.
- CAPEX is quite volatile: 6,427 in 2015, 11,432 in 2014, 5,292 in 2013, 3,588 in 2012, 1,973 in 2011
- The company has business model with average profitability: ROIC is at 11.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CSR Corp Ltd ($1766) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 79,517 | 89,019 | 97,655 | 218,451 | 237,785 | 8.9% |
| Gross Profit | 14,870 | 15,755 | 16,808 | 42,831 | 46,535 | 8.6% |
| SG&A | 9,752 | 10,840 | 11,808 | 27,129 | 30,440 | 12.2% |
| EBITDA | 7,151 | 7,252 | 8,023 | 20,689 | 23,204 | 12.2% |
| Net Income | 3,864 | 4,009 | 4,165 | 10,816 | 11,818 | 9.3% |
Balance Sheet
|
|---|
| Cash | 23,092 | 14,497 | 14,974 | 43,837 | 35,955 | -18.0% |
| Short Term Debt | 18,099 | 8,592 | 6,866 | 27,373 | 15,260 | -44.3% |
| Long Term Debt | 2,325 | 727 | 3,377 | 12,216 | 14,316 | 17.2% |
Cash flow
|
|---|
| Capex | 6,099 | 4,795 | 5,710 | 9,629 | 8,435 | -12.4% |
Ratios
|
|---|
| Revenue growth | 24.0% | 12.0% | 9.7% | 123.7% | 8.9% | |
| EBITDA growth | 54.6% | 1.4% | 10.6% | 157.9% | 12.2% | |
| Gross Margin | 18.7% | 17.7% | 17.2% | 19.6% | 19.6% | -0.0% |
| EBITDA Margin | 9.0% | 8.1% | 8.2% | 9.5% | 9.8% | 0.3% |
| Net Income Margin | 4.9% | 4.5% | 4.3% | 5.0% | 5.0% | 0.0% |
| SG&A, % of revenue | 12.3% | 12.2% | 12.1% | 12.4% | 12.8% | 0.4% |
| CAPEX, % of revenue | 7.7% | 5.4% | 5.8% | 4.4% | 3.5% | -0.9% |
| ROIC | 13.4% | 11.1% | 11.2% | 15.3% | 11.7% | -3.6% |
| ROE | 18.5% | 14.5% | 11.9% | 17.1% | 12.7% | -4.4% |
| Net Debt/EBITDA | -0.4x | -0.7x | -0.6x | -0.2x | -0.3x | -0.1x |
Revenue and profitability
The company's Revenue increased on 8.9% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
CSR Corp Ltd's CAPEX/Revenue was 3.5% in 2015. CAPEX/Revenue decreased slightly on 1.8 pp from 5.4% in 2012 to 3.5% in 2015. It's average CAPEX/Revenue for the last three years was 4.6%.
Return on investment
The company operates at good ROE (12.69%) while ROIC is low (11.70%). ROIC decreased on 3.6 pp from 15.3% to 11.7% in 2015. ROE decreased on 4.4 pp from 17.1% to 12.7% in 2015.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from -0.2x to -0.3x in 2015. Debt dropped on 25.3% in 2015 while cash dropped on 18.0% in 2015.
Appendix 1: Peers in Miscellaneous Manufactur
Below you can find CSR Corp Ltd benchmarking vs. other companies in Miscellaneous Manufactur 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 |
|---|
| Karrie International Hldgs ($1050) | | -11.6% | 0.1% | -11.3% | 27.4% |
| Sunny Optical Technology Group Co Ltd ($2382) | | 59.5% | 45.9% | 45.0% | 26.9% |
| TK Group Holdings Ltd ($2283) | | 40.2% | 9.3% | 11.8% | 20.0% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | | 1.5% | 22.2% | 43.2% | 11.7% |
| Time Watch Investments Ltd ($2033) | | 28.2% | 25.4% | 25.6% | 10.4% |
| |
|---|
| Median (22 companies) | 18.6% | -7.1% | -0.7% | 6.7% | -6.9% |
|---|
| CSR Corp Ltd ($1766) | | 12.0% | 9.7% | 123.7% | 8.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | 68.1% |
| China Environmental Energy Investment Ltd ($986) | 21.0% | 14.0% | 1.2% | 9.0% | 49.2% |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | 39.6% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | 38.7% |
| |
|---|
| Median (21 companies) | 21.0% | 19.8% | 20.8% | 24.9% | 23.1% |
|---|
| CSR Corp Ltd ($1766) | 18.7% | 17.7% | 17.2% | 19.6% | 19.6% |
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% | 29.1% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | 24.2% |
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | 20.5% |
| |
|---|
| Median (22 companies) | 10.7% | 8.0% | 9.8% | 9.8% | 7.0% |
|---|
| CSR Corp Ltd ($1766) | 9.0% | 8.1% | 8.2% | 9.5% | 9.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | 47.6% |
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | 22.8% |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | 21.2% |
| IPE Group Ltd ($929) | 7.1% | 6.3% | 13.3% | 12.3% | 13.3% |
| China Aerospace International Holdings Ltd ($31) | 3.9% | 5.1% | 6.3% | 6.6% | 7.9% |
| |
|---|
| Median (22 companies) | 5.0% | 4.7% | 4.2% | 4.2% | 4.9% |
|---|
| CSR Corp Ltd ($1766) | 7.7% | 5.4% | 5.8% | 4.4% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | 27.9% |
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | 27.6% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | 21.1% |
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | 19.4% |
| Lee & Man Chemical Co Ltd ($746) | 29.8% | 11.7% | 8.2% | 10.9% | 10.7% |
| |
|---|
| Median (22 companies) | 6.4% | 4.2% | 3.6% | 3.9% | 1.5% |
|---|
| CSR Corp Ltd ($1766) | 13.4% | 11.1% | 11.2% | 15.3% | 11.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | 4,203.6x |
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | 27.3x |
| 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 |
| Lee & Man Chemical Co Ltd ($746) | -0.3x | -0.2x | 1.5x | 2.2x | 2.5x |
| |
|---|
| Median (19 companies) | 0.1x | -0.2x | -0.2x | 0.1x | -0.4x |
|---|
| CSR Corp Ltd ($1766) | -0.4x | -0.7x | -0.6x | -0.2x | -0.3x |
