Changhong Jiahua Holdings Ltd revenue returned to growth in 2015: increased 13.0% vs. 4.3% decline a year earliner
30/03/2016 • About Changhong Jiahua Holdings Ltd (
$8016) • By InTwits
Changhong Jiahua Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Changhong Jiahua Holdings Ltd is a fast growth stock: 2015 revenue growth was 13.0%, 5 year revenue CAGR was 50.0% at 2015 ROIC 16.7%
- EBITDA Margin is relatively stable: 1.8% in 2015 vs. 1.9% in 2014 vs. 0.8% in 2011
- Changhong Jiahua Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has highly profitable business model: ROIC is at 16.7%
- It operates with high leverage: Net Debt/EBITDA is 1.1x while industry average is 0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Changhong Jiahua Holdings Ltd ($8016) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,724 | 14,929 | 18,344 | 17,559 | 19,839 | 13.0% |
| Gross Profit | 44 | 606 | 777 | 762 | 809 | 6.2% |
| SG&A | | 324 | 448 | 449 | 510 | 13.4% |
| EBITDA | 21 | 307 | 363 | 336 | 349 | 3.8% |
| Net Income | 10 | 155 | 178 | 185 | 132 | -28.8% |
Balance Sheet
|
|---|
| Cash | 72 | 349 | 500 | 212 | 151 | -28.9% |
| Short Term Debt | 95 | 987 | 531 | 869 | 525 | -39.6% |
| Long Term Debt | 0 | 0 | 504 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 0 | 22 | 11 | 6 | 10 | 65.5% |
Ratios
|
|---|
| Revenue growth | 4.2% | 448.0% | 22.9% | -4.3% | 13.0% | |
| EBITDA growth | -18.2% | 1,379.7% | 18.2% | -7.4% | 3.8% | |
| Gross Margin | 1.6% | 4.1% | 4.2% | 4.3% | 4.1% | -0.3% |
| EBITDA Margin | 0.8% | 2.1% | 2.0% | 1.9% | 1.8% | -0.2% |
| Net Income Margin | 0.4% | 1.0% | 1.0% | 1.1% | 0.7% | -0.4% |
| SG&A, % of revenue | | 2.2% | 2.4% | 2.6% | 2.6% | 0.0% |
| CAPEX, % of revenue | 0.0% | 0.1% | 0.1% | 0.0% | 0.0% | 0.0% |
| ROIC | 8.7% | 29.6% | 17.7% | 15.1% | 16.7% | 1.6% |
| ROE | 26.4% | 37.0% | 20.7% | 17.0% | 10.6% | -6.4% |
| Net Debt/EBITDA | 1.1x | 2.1x | 1.5x | 2.0x | 1.1x | -0.9x |
Revenue and profitability
The company's Revenue surged on 13.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.9 pp from 13.5% to 9.6% 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
In 2015 the company had CAPEX/Revenue of 0.049%. Changhong Jiahua Holdings Ltd showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.048%.
Return on investment
The company operates at good ROIC (16.66%) while ROE is low (10.59%). ROIC increased slightly on 1.6 pp from 15.1% to 16.7% in 2015. ROE decreased on 6.4 pp from 17.0% to 10.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 1.5x. Net Debt / EBITDA dropped on 0.9x from 2.0x to 1.1x in 2015. Debt dropped on 39.6% in 2015 while cash dropped on 28.9% in 2015.
Appendix 1: Peers in Electronics
Below you can find Changhong Jiahua Holdings Ltd benchmarking vs. other companies in Electronics 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 |
|---|
| GCL New Energy Holdings Ltd ($451) | | 14.7% | -6.8% | 10.9% | 53.9% |
| Tech Pro Technology Development Ltd ($3823) | | 7.4% | -44.9% | -13.7% | 52.4% |
| Nanjing Sample Technology Co Ltd ($1708) | | 36.1% | 8.0% | 15.4% | 34.8% |
| AAC Technologies Holdings Inc ($2018) | | 54.8% | 28.9% | 9.7% | 32.2% |
| Ningbo Wanhao Holdings Co Ltd ($8249) | | 5.7% | 412.4% | -6.9% | 28.9% |
| |
|---|
| Median (45 companies) | 4.0% | -1.0% | 3.6% | 7.2% | 0.9% |
|---|
| Changhong Jiahua Holdings Ltd ($8016) | | 448.0% | 22.9% | -4.3% | 13.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 51.4% | 54.0% | 58.1% | 49.5% | 49.6% |
| AAC Technologies Holdings Inc ($2018) | 44.0% | 44.2% | 42.7% | 41.4% | 41.5% |
| TeleEye Holdings Ltd ($8051) | 51.6% | 44.0% | 42.1% | 38.5% | 37.0% |
| Hi Sun Technology China Ltd ($818) | 20.8% | 28.1% | 37.4% | 33.3% | 34.7% |
| Datronix Holdings Ltd ($889) | 41.3% | 32.9% | 32.0% | 34.1% | 34.6% |
| |
|---|
| Median (43 companies) | 13.6% | 14.1% | 13.8% | 14.1% | 16.6% |
|---|
| Changhong Jiahua Holdings Ltd ($8016) | 1.6% | 4.1% | 4.2% | 4.3% | 4.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.2% | 35.8% | 35.8% | 34.9% | 34.8% |
| GCL New Energy Holdings Ltd ($451) | 12.1% | 10.8% | 11.1% | 12.6% | 33.0% |
| Daiwa Associate Holdings ($1037) | 1.6% | 2.4% | 3.8% | 2.8% | 25.6% |
| Wasion Group Holdings Ltd ($3393) | 18.9% | 18.8% | 21.2% | 22.0% | 19.3% |
| Tongda Group Holdings Ltd ($698) | 15.3% | 17.1% | 16.8% | 18.4% | 18.9% |
| |
|---|
| Median (45 companies) | 9.3% | 7.4% | 7.6% | 5.4% | 6.7% |
|---|
| Changhong Jiahua Holdings Ltd ($8016) | 0.8% | 2.1% | 2.0% | 1.9% | 1.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| GCL New Energy Holdings Ltd ($451) | 11.1% | 5.5% | 5.1% | 5.4% | 401.2% |
| National Electronic Hldgs ($213) | 14.9% | 3.4% | 18.1% | 7.1% | 49.7% |
| Irico Group Electronics Co Ltd ($438) | 92.0% | 39.9% | 30.4% | 17.4% | 25.8% |
| Kingwell Group Ltd ($1195) | 26.2% | 8.6% | 5.4% | 5.3% | 21.4% |
| AAC Technologies Holdings Inc ($2018) | 25.9% | 18.7% | 8.7% | 19.6% | 18.4% |
| |
|---|
| Median (45 companies) | 3.5% | 3.9% | 3.2% | 4.2% | 3.1% |
|---|
| Changhong Jiahua Holdings Ltd ($8016) | 0.0% | 0.1% | 0.1% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 22.3% | 29.1% | 30.0% | 26.0% | 27.8% |
| Cowell e Holdings Inc ($1415) | | 12.5% | 27.1% | 24.4% | 25.8% |
| Tongda Group Holdings Ltd ($698) | 14.3% | 15.2% | 13.5% | 16.5% | 16.3% |
| Varitronix International Ltd ($710) | 11.7% | 8.7% | 17.5% | 11.4% | 11.6% |
| Trigiant Group Ltd ($1300) | 17.9% | 17.8% | 18.3% | 15.2% | 11.2% |
| |
|---|
| Median (45 companies) | 5.4% | 4.3% | 3.5% | 3.0% | 2.6% |
|---|
| Changhong Jiahua Holdings Ltd ($8016) | 8.7% | 29.6% | 17.7% | 15.1% | 16.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| National Electronic Hldgs ($213) | 43.0x | 16.3x | 30.2x | 84.8x | 19.9x |
| GCL New Energy Holdings Ltd ($451) | 2.7x | 2.9x | 2.6x | 1.7x | 17.4x |
| Man Yue Technology Holdings Ltd ($894) | 1.7x | 2.1x | 2.7x | 3.3x | 6.5x |
| Willas-Array Electronics Holdings Ltd ($854) | 2.8x | 2.2x | 2.6x | 5.7x | 5.4x |
| SAS Dragon Hldg Ltd ($1184) | 2.8x | 7.1x | 2.0x | 6.4x | 4.8x |
| |
|---|
| Median (31 companies) | 0.6x | 1.0x | 1.1x | 0.8x | 0.2x |
|---|
| Changhong Jiahua Holdings Ltd ($8016) | 1.1x | 2.1x | 1.5x | 2.0x | 1.1x |
