Xinjiang Goldwind Science & Technology Co Ltd CAPEX jumped on 187% in 2015 and Revenue surged on 69.8%
29/03/2016 • About Xinjiang Goldwind Science & Technology Co Ltd (
$2208) • By InTwits
Xinjiang Goldwind Science & Technology Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Xinjiang Goldwind Science & Technology Co Ltd is a growth stock: 2015 revenue growth was 69.8%, 5 year revenue CAGR was 11.3% at 2015 ROIC 12.0%
- EBITDA Margin is quite volatile: 13.2% in 2015, 16.9% in 2014, 7.4% in 2013, 5.7% in 2012, 9.2% in 2011
- Xinjiang Goldwind Science & Technology Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.8%. At the same time it's a lot of higher than industry average of 18.4%.
- CAPEX is quite volatile: 6,796 in 2015, 2,370 in 2014, 6,189 in 2013, 2,598 in 2012, 3,017 in 2011
- The company has highly profitable business model: ROIC is at 12.0%
- It operates with high leverage: Net Debt/EBITDA is 1.6x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Xinjiang Goldwind Science & Technology Co Ltd ($2208) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,756 | 11,225 | 12,196 | 17,573 | 29,846 | 69.8% |
| Gross Profit | 2,057 | 1,592 | 2,454 | 4,566 | 7,777 | 70.3% |
| SG&A | 1,445 | 1,355 | 1,767 | 2,238 | 3,885 | 73.6% |
| EBITDA | 1,172 | 642 | 905 | 2,963 | 3,946 | 33.2% |
| Net Income | 607 | 153 | 428 | 1,830 | 2,850 | 55.7% |
Balance Sheet
|
|---|
| Cash | 7,597 | 6,818 | 4,321 | 9,528 | 6,147 | -35.5% |
| Short Term Debt | 5,467 | 4,238 | 571 | 5,858 | 1,734 | -70.4% |
| Long Term Debt | 2,575 | 5,716 | 7,394 | 6,023 | 10,761 | 78.7% |
Cash flow
|
|---|
| Capex | 3,017 | 2,598 | 6,189 | 2,370 | 6,796 | 186.7% |
Ratios
|
|---|
| Revenue growth | -27.0% | -12.0% | 8.7% | 44.1% | 69.8% | |
| EBITDA growth | -61.8% | -45.2% | 40.8% | 227.6% | 33.2% | |
| Gross Margin | 16.1% | 14.2% | 20.1% | 26.0% | 26.1% | 0.1% |
| EBITDA Margin | 9.2% | 5.7% | 7.4% | 16.9% | 13.2% | -3.6% |
| Net Income Margin | 4.8% | 1.4% | 3.5% | 10.4% | 9.5% | -0.9% |
| SG&A, % of revenue | 11.3% | 12.1% | 14.5% | 12.7% | 13.0% | 0.3% |
| CAPEX, % of revenue | 23.7% | 23.1% | 50.7% | 13.5% | 22.8% | 9.3% |
| ROIC | 5.1% | 1.8% | 3.0% | 10.4% | 12.0% | 1.6% |
| ROE | 4.6% | 1.2% | 3.3% | 13.0% | 18.1% | 5.1% |
| Net Debt/EBITDA | 0.4x | 4.9x | 4.0x | 0.8x | 1.6x | 0.8x |
Revenue and profitability
The company's Revenue surged on 69.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 12.2% to 14.1% 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 slightly on 0.86 pp from 10.4% to 9.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Xinjiang Goldwind Science & Technology Co Ltd's CAPEX/Revenue was 22.8% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 29.0%.Xinjiang Goldwind Science & Technology Co Ltd has spent a lot to CAPEX (172% of EBITDA) to secure its growth.
Return on investment
The company operates at good ROIC (12.01%) and ROE (18.08%). ROIC increased slightly on 1.6 pp from 10.4% to 12.0% in 2015. ROE increased on 5.1 pp from 13.0% to 18.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 3.2x. Net Debt / EBITDA jumped on 0.8x from 0.8x to 1.6x in 2015. Debt increased on 5.2% in 2015 while cash dropped on 35.5% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Xinjiang Goldwind Science & Technology Co 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% | |
| CEC International Holdings Ltd ($759) | | 23.9% | 60.8% | 43.0% | 32.3% |
| Solartech International Hldgs Ltd ($1166) | | -13.4% | -1.8% | 33.7% | -2.7% |
| |
|---|
| Median (32 companies) | 16.2% | 0.2% | 8.7% | 15.5% | 5.5% |
|---|
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | | -12.0% | 8.7% | 44.1% | 69.8% |
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) | 20.7% | 19.6% | 17.4% | 16.2% | 18.1% |
|---|
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 16.1% | 14.2% | 20.1% | 26.0% | 26.1% |
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% |
| Johnson Electric Holdings Ltd ($179) | 14.9% | 14.2% | 14.5% | 15.5% | 15.4% |
| Guodian Technology & Environment Group Corp Ltd ($1296) | 9.4% | 11.2% | 10.8% | 13.5% | |
| |
|---|
| Median (33 companies) | 10.8% | 8.3% | 7.0% | 3.8% | 4.7% |
|---|
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 9.2% | 5.7% | 7.4% | 16.9% | 13.2% |
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% |
| Coslight Technology International Group Co Ltd ($1043) | 11.0% | 9.3% | 11.4% | 11.5% | |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 16.8% | 26.0% | 16.3% | 8.5% | 2.6% |
| |
|---|
| Median (33 companies) | 9.2% | 6.4% | 5.0% | 3.6% | 3.2% |
|---|
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.7% | 23.1% | 50.7% | 13.5% | 22.8% |
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% |
| Wai Chi Holdings Co Ltd ($1305) | | | 10.4% | 9.8% | -0.3% |
| Hengxin Technology Ltd ($1085) | 13.9% | 8.1% | 9.3% | 9.0% | 10.2% |
| |
|---|
| Median (33 companies) | 6.2% | 2.8% | 3.0% | 0.7% | 2.0% |
|---|
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 5.1% | 1.8% | 3.0% | 10.4% | 12.0% |
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) | 0.4x | 1.5x | 0.6x | 2.3x | -0.0x |
|---|
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 0.4x | 4.9x | 4.0x | 0.8x | 1.6x |
