Dongfeng Motor Group Co Ltd reports 52.3% revenue growth in 2015 and almost no change in EBITDA Margin of 2.4%
29/03/2016 • About Dongfeng Motor Group Co Ltd (
$489) • By InTwits
Dongfeng Motor Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dongfeng Motor Group Co Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.2%
- Dongfeng Motor Group Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 0.9%.
- CAPEX is quite volatile: 3,132 in 2015, 3,121 in 2014, 814 in 2013, 387 in 2012, 6,549 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dongfeng Motor Group Co Ltd ($489) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 131,441 | 6,090 | 37,263 | 83,114 | 126,566 | 52.3% |
| Gross Profit | 26,390 | 354 | 4,681 | 10,817 | 16,929 | 56.5% |
| SG&A | 9,916 | 1,518 | 4,447 | 7,527 | 10,835 | 43.9% |
| EBITDA | 16,230 | -1,123 | -333 | 2,285 | 3,078 | 34.7% |
| Net Income | 10,481 | 9,092 | 10,528 | 12,797 | 11,550 | -9.7% |
Balance Sheet
|
|---|
| Cash | 42,899 | 17,940 | 21,739 | 25,233 | 31,806 | 26.0% |
| Short Term Debt | 15,971 | 2,697 | 17,597 | 30,175 | 17,930 | -40.6% |
| Long Term Debt | 2,820 | 0 | 0 | 350 | 7,559 | 2,059.7% |
Cash flow
|
|---|
| Capex | 6,549 | 387 | 814 | 3,121 | 3,132 | 0.4% |
Ratios
|
|---|
| Revenue growth | 7.4% | -95.4% | 511.9% | 123.0% | 52.3% | |
| EBITDA growth | -8.1% | -106.9% | -70.3% | -786.2% | 34.7% | |
| Gross Margin | 20.1% | 5.8% | 12.6% | 13.0% | 13.4% | 0.4% |
| EBITDA Margin | 12.3% | -18.4% | -0.9% | 2.7% | 2.4% | -0.3% |
| Net Income Margin | 8.0% | 149.3% | 28.3% | 15.4% | 9.1% | -6.3% |
| SG&A, % of revenue | 7.5% | 24.9% | 11.9% | 9.1% | 8.6% | -0.5% |
| CAPEX, % of revenue | 5.0% | 6.4% | 2.2% | 3.8% | 2.5% | -1.3% |
| ROIC | 20.1% | -2.1% | -1.6% | 0.8% | 1.2% | 0.5% |
| ROE | 25.0% | 18.1% | 18.0% | 18.7% | 14.6% | -4.1% |
| Net Debt/EBITDA | -1.5x | | | 2.3x | -2.1x | -4.4x |
Revenue and profitability
Dongfeng Motor Group Co Ltd's Revenue jumped on 52.3% 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 decreased on 6.3 pp from 15.4% to 9.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
Dongfeng Motor Group Co Ltd's CAPEX/Revenue was 2.5% in 2015. CAPEX/Revenue decreased on 3.9 pp from 6.4% in 2012 to 2.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 2.8%.To fuel this fast growth the company made large investments to CAPEX (102% of EBITDA).
Return on investment
The company operates at good ROE (14.58%) while ROIC is low (1.24%). ROIC showed almost no change in 2015. ROE decreased on 4.1 pp from 18.7% to 14.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.1x and Debt / EBITDA is 8.3x. Net Debt / EBITDA dropped on 4.4x from 2.3x to -2.1x in 2015. Debt dropped on 16.5% in 2015 while cash jumped on 26.0% in 2015.
Appendix 1: Peers in Auto Manufacturers
Below we provide Dongfeng Motor Group Co Ltd benchmarking against other companies in Auto Manufacturers 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 |
|---|
| BAIC Motor Corp Ltd ($1958) | | 83.7% | 263.2% | 341.0% | 49.2% |
| Byd Co Ltd ($1211) | | -4.2% | 16.4% | 7.2% | 40.2% |
| Geely Automobile Holdings Ltd ($175) | | 17.5% | 16.6% | -24.3% | 38.6% |
| Guangzhou Automobile Group Co Ltd ($2238) | | 18.0% | 45.2% | 18.9% | 31.4% |
| Great Wall Motor Co Ltd ($2333) | | 43.1% | 31.7% | 10.2% | 21.3% |
| |
|---|
| Median (9 companies) | -7.7% | 6.4% | 12.7% | 7.5% | 21.3% |
|---|
| Dongfeng Motor Group Co Ltd ($489) | | -95.4% | 511.9% | 123.0% | 52.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Wall Motor Co Ltd ($2333) | 22.2% | 24.1% | 25.9% | 25.0% | 22.3% |
| Qingling Motors Co Ltd ($1122) | 12.4% | 12.3% | 15.2% | 15.1% | 18.7% |
| BAIC Motor Corp Ltd ($1958) | 1.4% | -4.8% | 3.2% | 15.9% | 18.2% |
| Geely Automobile Holdings Ltd ($175) | 18.2% | 18.5% | 20.1% | 18.2% | 18.2% |
| Byd Co Ltd ($1211) | 14.8% | 11.6% | 13.4% | 13.8% | 15.3% |
| |
|---|
| Median (9 companies) | 12.8% | 11.7% | 12.5% | 14.4% | 15.3% |
|---|
| Dongfeng Motor Group Co Ltd ($489) | 20.1% | 5.8% | 12.6% | 13.0% | 13.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Wall Motor Co Ltd ($2333) | 16.1% | 18.0% | 19.5% | 17.8% | 15.5% |
| Geely Automobile Holdings Ltd ($175) | 14.4% | 14.6% | 15.8% | 15.9% | 14.4% |
| Byd Co Ltd ($1211) | 11.3% | 10.2% | 9.6% | 12.0% | 14.2% |
| Qingling Motors Co Ltd ($1122) | 8.8% | 10.3% | 12.8% | 11.4% | 12.2% |
| BAIC Motor Corp Ltd ($1958) | -27.8% | 9.6% | -13.2% | 5.4% | 9.7% |
| |
|---|
| Median (9 companies) | 6.4% | 8.1% | 6.0% | 6.6% | 9.7% |
|---|
| Dongfeng Motor Group Co Ltd ($489) | 12.3% | -18.4% | -0.9% | 2.7% | 2.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangzhou Automobile Group Co Ltd ($2238) | 20.4% | 22.7% | 10.1% | 15.7% | 14.7% |
| Brilliance China Automotive Holdings Ltd ($1114) | 4.8% | 8.9% | 10.1% | 13.4% | 12.5% |
| BAIC Motor Corp Ltd ($1958) | 172.9% | 132.8% | 45.0% | 16.1% | 11.0% |
| Great Wall Motor Co Ltd ($2333) | 12.9% | 10.7% | 13.0% | 12.0% | 8.0% |
| Byd Co Ltd ($1211) | 16.2% | 13.0% | 11.2% | 4.2% | 5.7% |
| |
|---|
| Median (9 companies) | 5.8% | 6.7% | 7.0% | 4.6% | 5.7% |
|---|
| Dongfeng Motor Group Co Ltd ($489) | 5.0% | 6.4% | 2.2% | 3.8% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Wall Motor Co Ltd ($2333) | 22.9% | 27.7% | 32.2% | 25.5% | 22.5% |
| Geely Automobile Holdings Ltd ($175) | 15.7% | 16.2% | 19.6% | 13.4% | 15.0% |
| Wuling Motors Holdings Ltd ($305) | 6.2% | 7.2% | 7.7% | 10.0% | 11.8% |
| Byd Co Ltd ($1211) | 6.1% | 2.7% | 2.5% | 3.9% | 8.5% |
| Dah Chong Hong Holdings Ltd ($1828) | 14.2% | 11.4% | 8.5% | 7.7% | 6.2% |
| |
|---|
| Median (9 companies) | 6.1% | 3.6% | 4.6% | 4.5% | 6.2% |
|---|
| Dongfeng Motor Group Co Ltd ($489) | 20.1% | -2.1% | -1.6% | 0.8% | 1.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dah Chong Hong Holdings Ltd ($1828) | 1.5x | 1.5x | 2.8x | 3.8x | 3.3x |
| Byd Co Ltd ($1211) | 2.8x | 3.4x | 6.7x | 3.9x | 2.9x |
| BAIC Motor Corp Ltd ($1958) | | 26.0x | | 2.6x | 0.8x |
| Great Wall Motor Co Ltd ($2333) | -0.5x | -0.2x | -0.1x | 0.1x | 0.3x |
| Guangzhou Automobile Group Co Ltd ($2238) | | | | 13.2x | 0.3x |
| |
|---|
| Median (8 companies) | 2.1x | 2.0x | 1.9x | 0.8x | 0.3x |
|---|
| Dongfeng Motor Group Co Ltd ($489) | -1.5x | | | 2.3x | -2.1x |
