China Singyes Solar Technologies Holdings Ltd reports 61.5% CAPEX decline and 16.5% Revenue decline
30/03/2016 • About China Singyes Solar Technologies Holdings Ltd (
$750) • By InTwits
China Singyes Solar Technologies Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Singyes Solar Technologies Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.8%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 456 in 2015, 1,184 in 2014, 1,332 in 2013, 368 in 2012, 973 in 2011
- The company has business model with low profitability: ROIC is at 8.1%
- It operates with high leverage: Net Debt/EBITDA is 4.0x while industry average is 2.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Singyes Solar Technologies Holdings Ltd ($750) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,406 | 3,098 | 4,151 | 5,011 | 4,182 | -16.5% |
| Gross Profit | 581 | 749 | 988 | 1,049 | 884 | -15.7% |
| SG&A | 209 | 258 | 295 | 360 | 494 | 37.4% |
| EBITDA | 432 | 560 | 800 | 914 | 677 | -26.0% |
| Net Income | 291 | 329 | 491 | 584 | 356 | -39.1% |
Balance Sheet
|
|---|
| Cash | 315 | 698 | 895 | 901 | 1,265 | 40.4% |
| Short Term Debt | 569 | 917 | 870 | 988 | 1,041 | 5.4% |
| Long Term Debt | 96 | 289 | 681 | 1,524 | 2,923 | 91.8% |
Cash flow
|
|---|
| Capex | 973 | 368 | 1,332 | 1,184 | 456 | -61.5% |
Ratios
|
|---|
| Revenue growth | 35.0% | 28.7% | 34.0% | 20.7% | -16.5% | |
| EBITDA growth | 40.2% | 29.4% | 43.0% | 14.3% | -26.0% | |
| Gross Margin | 24.1% | 24.2% | 23.8% | 20.9% | 21.1% | 0.2% |
| EBITDA Margin | 18.0% | 18.1% | 19.3% | 18.2% | 16.2% | -2.1% |
| Net Income Margin | 12.1% | 10.6% | 11.8% | 11.7% | 8.5% | -3.1% |
| SG&A, % of revenue | 8.7% | 8.3% | 7.1% | 7.2% | 11.8% | 4.6% |
| CAPEX, % of revenue | 40.4% | 11.9% | 32.1% | 23.6% | 10.9% | -12.7% |
| ROIC | 21.1% | 18.6% | 19.9% | 16.0% | 8.1% | -7.9% |
| ROE | 22.7% | 19.5% | 22.1% | 20.4% | 10.8% | -9.5% |
| Net Debt/EBITDA | 0.8x | 0.9x | 0.8x | 1.8x | 4.0x | 2.2x |
Revenue and profitability
China Singyes Solar Technologies Holdings Ltd's Revenue dropped on 16.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 11.2% to 12.4% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 4.6 pp from 7.2% to 11.8% in 2015.
Net Income marign decreased on 3.1 pp from 11.7% to 8.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Singyes Solar Technologies Holdings Ltd's CAPEX/Revenue was 10.9% in 2015. China Singyes Solar Technologies Holdings Ltd's CAPEX/Revenue decreased slightly on 0.98 pp from 11.9% in 2012 to 10.9% in 2015. It's average level of CAPEX/Revenue for the last three years was 22.2%.Battling declining revenue China Singyes Solar Technologies Holdings Ltd invested a large share of EBITDA (67.4%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (8.12%) and ROE (10.85%). ROIC decreased on 7.9 pp from 16.0% to 8.1% in 2015. ROE decreased on 9.5 pp from 20.4% to 10.8% in 2015.
Leverage (Debt)
Debt level is 4.0x Net Debt / EBITDA and 5.9x Debt / EBITDA. Net Debt / EBITDA surged on 2.2x from 1.8x to 4.0x in 2015. Debt surged on 57.8% in 2015 while cash surged on 40.4% in 2015.
Appendix 1: Peers in Building Materials
Below you can find China Singyes Solar Technologies Holdings Ltd benchmarking vs. other companies in Building Materials 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 |
|---|
| Pacific Plywood Hldg Ltd ($767) | | -34.9% | -14.5% | 119.5% | 57.3% |
| Far East Global Group Ltd ($830) | | 52.9% | 9.5% | 18.6% | 30.5% |
| WLS Holdings Ltd/Hong Kong ($8021) | | 8.9% | 9.4% | -11.1% | 22.0% |
| China Wood Optimization Holding Ltd ($8099) | | 68.7% | 77.9% | 6.5% | 18.9% |
| China Lesso Group Holdings Ltd ($2128) | | 7.4% | 20.0% | 13.4% | 3.0% |
| |
|---|
| Median (22 companies) | 72.6% | -3.5% | 9.6% | 5.1% | -15.2% |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | | 28.7% | 34.0% | 20.7% | -16.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 95.0% | 91.4% | 82.0% | 97.2% | 98.6% |
| Sustainable Forest Holdings Ltd ($723) | 58.2% | -2.4% | 12.1% | 19.7% | 55.2% |
| Luks Group Vietnam Holdings Co Ltd ($366) | 37.6% | 37.2% | 36.9% | 37.0% | 36.4% |
| Anhui Conch Cement Co Ltd ($914) | 39.4% | 27.3% | 32.5% | 33.2% | 26.9% |
| China Lesso Group Holdings Ltd ($2128) | 24.2% | 24.3% | 25.0% | 25.6% | 25.8% |
| |
|---|
| Median (22 companies) | 26.5% | 20.0% | 22.0% | 21.1% | 15.2% |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 24.1% | 24.2% | 23.8% | 20.9% | 21.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 53.6% | 12.6% | -19.8% | 50.5% | 34.7% |
| China Tianrui Group Cement Co Ltd ($1252) | 32.4% | 28.5% | 23.7% | 26.7% | 32.8% |
| Anhui Conch Cement Co Ltd ($914) | 38.8% | 27.1% | 31.1% | 32.1% | 29.7% |
| Luks Group Vietnam Holdings Co Ltd ($366) | 30.8% | 30.4% | 29.9% | 23.8% | 26.2% |
| West China Cement Ltd ($2233) | 36.4% | 30.0% | 28.5% | 25.5% | 23.5% |
| |
|---|
| Median (22 companies) | 22.0% | 15.1% | 16.9% | 17.7% | 13.8% |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 18.0% | 18.1% | 19.3% | 18.2% | 16.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Wood Optimization Holding Ltd ($8099) | 59.7% | 10.9% | 9.6% | 1.8% | 19.3% |
| Luks Group Vietnam Holdings Co Ltd ($366) | 1.7% | 0.6% | 0.5% | 4.1% | 14.2% |
| China Glass Holdings Ltd ($3300) | 37.2% | 19.6% | 12.5% | 12.4% | 13.5% |
| WLS Holdings Ltd/Hong Kong ($8021) | 4.9% | 6.0% | 6.6% | 7.9% | 11.5% |
| China Resources Cement Holdings Ltd ($1313) | 32.7% | 14.5% | 11.4% | 10.8% | 11.1% |
| |
|---|
| Median (22 companies) | 6.3% | 9.7% | 8.3% | 5.4% | 6.5% |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 40.4% | 11.9% | 32.1% | 23.6% | 10.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Wood Optimization Holding Ltd ($8099) | | 33.5% | 27.3% | 17.7% | 17.7% |
| China Lesso Group Holdings Ltd ($2128) | 26.8% | 20.5% | 19.4% | 18.2% | 17.2% |
| Anhui Conch Cement Co Ltd ($914) | 27.2% | 12.7% | 17.5% | 18.4% | 11.7% |
| China Resources Cement Holdings Ltd ($1313) | 14.0% | 8.0% | 9.6% | 13.0% | 5.5% |
| China Tianrui Group Cement Co Ltd ($1252) | 18.1% | 10.4% | 7.7% | 8.3% | 5.5% |
| |
|---|
| Median (22 companies) | 12.1% | 5.0% | 6.9% | 4.8% | 1.2% |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 21.1% | 18.6% | 19.9% | 16.0% | 8.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sustainable Forest Holdings Ltd ($723) | 0.9x | | | 9.6x | |
| China National Building Material Co Ltd ($3323) | 3.9x | 6.7x | 6.8x | 6.3x | 8.5x |
| BBMG Corp ($2009) | 4.4x | 4.6x | 5.0x | 6.1x | 6.6x |
| China Tianrui Group Cement Co Ltd ($1252) | 3.0x | 4.2x | 5.1x | 5.2x | 7.9x |
| China Shanshui Cement Group Ltd ($691) | 1.8x | 3.0x | 4.1x | 4.8x | |
| |
|---|
| Median (20 companies) | 1.4x | 3.0x | 2.7x | 2.0x | 3.9x |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 0.8x | 0.9x | 0.8x | 1.8x | 4.0x |
