Guodian Technology & Environment Group Corp Ltd Debt dropped on 33.0% in 2015 while Net Debt / EBITDA jumped on 0.1x from 6.8x to 6.9x
30/03/2016 • About Guodian Technology & Environment Group Corp Ltd (
$1296) • By InTwits
Guodian Technology & Environment Group Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Guodian Technology & Environment Group Corp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.8%. At the same time it's a lot of higher than industry average of 10.4%.
- CAPEX is quite volatile: 535 in 2015, 1,229 in 2014, 1,690 in 2013, 2,814 in 2012, 4,973 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.7%
- It operates with high leverage: Net Debt/EBITDA is 6.9x while industry average is 0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Guodian Technology & Environment Group Corp Ltd ($1296) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 18,707 | 21,777 | 25,420 | 22,686 | 19,970 | -12.0% |
| Gross Profit | 2,783 | 3,381 | 3,792 | 4,098 | 3,806 | -7.1% |
| SG&A | | 681 | 766 | 2,403 | 3,250 | 35.3% |
| EBITDA | 1,761 | 2,449 | 2,753 | 3,065 | 1,913 | -37.6% |
| Net Income | 841 | 693 | 557 | -393 | -4,640 | 1,079.4% |
Balance Sheet
|
|---|
| Cash | 5,627 | 3,405 | 3,634 | 2,456 | 2,325 | -5.3% |
| Short Term Debt | 13,966 | 12,370 | 17,931 | 18,098 | 10,750 | -40.6% |
| Long Term Debt | 1,139 | 6,367 | 6,733 | 5,087 | 4,793 | -5.8% |
Cash flow
|
|---|
| Capex | 4,973 | 2,814 | 1,690 | 1,229 | 535 | -56.4% |
Ratios
|
|---|
| Revenue growth | 70.1% | 16.4% | 16.7% | -10.8% | -12.0% | |
| EBITDA growth | 65.3% | 39.1% | 12.4% | 11.3% | -37.6% | |
| Gross Margin | 14.9% | 15.5% | 14.9% | 18.1% | 19.1% | 1.0% |
| EBITDA Margin | 9.4% | 11.2% | 10.8% | 13.5% | 9.6% | -3.9% |
| Net Income Margin | 4.5% | 3.2% | 2.2% | -1.7% | -23.2% | -21.5% |
| SG&A, % of revenue | | 3.1% | 3.0% | 10.6% | 16.3% | 5.7% |
| CAPEX, % of revenue | 26.6% | 12.9% | 6.6% | 5.4% | 2.7% | -2.7% |
| ROIC | 5.7% | 6.2% | 5.1% | 5.3% | 2.7% | -2.6% |
| ROE | 11.3% | 7.7% | 5.9% | -4.1% | -67.0% | -62.9% |
| Net Debt/EBITDA | 5.4x | 6.3x | 7.6x | 6.8x | 6.9x | 0.1x |
Revenue and profitability
The company's Revenue dropped on 12.0% 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 increased slightly on 1.00 pp from 18.1% to 19.1% in 2015. SG&A as a % of Revenue increased on 5.7 pp from 10.6% to 16.3% in 2015.
Net Income marign dropped on 21.5 pp from -1.7% to -23.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.7%. The company's CAPEX/Revenue dropped on 10.2 pp from 12.9% in 2012 to 2.7% in 2015. For the last three years the average CAPEX/Revenue was 4.9%.
Return on investment
The company operates at low but positive ROIC (2.67%) and negative ROE (-67.00%). ROIC decreased on 2.6 pp from 5.3% to 2.7% in 2015. ROE dropped on 62.9 pp from -4.1% to -67.0% in 2015.
Leverage (Debt)
Debt level is 6.9x Net Debt / EBITDA and 8.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.1x from 6.8x to 6.9x in 2015. Debt dropped on 33.0% in 2015 while cash decreased on 5.3% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Guodian Technology & Environment Group Corp 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 |
|---|
| Applied Development Holdings Ltd ($519) | | -29.1% | | | 850.5% |
| FDG Electric Vehicles Ltd ($729) | | -23.1% | -7.0% | 54.0% | 270.8% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | | -12.0% | 8.7% | 44.1% | 69.8% |
| Sun King Power Electronics Group ($580) | | -6.0% | 29.0% | -30.1% | 51.2% |
| CEC International Holdings Ltd ($759) | | 23.9% | 60.8% | 43.0% | 32.3% |
| |
|---|
| Median (26 companies) | 13.4% | -6.0% | 8.5% | 16.2% | 5.8% |
|---|
| Guodian Technology & Environment Group Corp Ltd ($1296) | | 16.4% | 16.7% | -10.8% | -12.0% |
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% | 35.7% |
| 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% | 17.9% | 16.2% | 18.1% |
|---|
| Guodian Technology & Environment Group Corp Ltd ($1296) | 14.9% | 15.5% | 14.9% | 18.1% | 19.1% |
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% | 28.6% |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 21.0% | 20.2% | 19.2% | 20.8% | 26.3% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 9.2% | 5.7% | 7.4% | 16.9% | 13.2% |
| Johnson Electric Holdings Ltd ($179) | 14.9% | 14.2% | 14.5% | 15.5% | 15.4% |
| |
|---|
| Median (33 companies) | 10.8% | 7.8% | 7.0% | 3.8% | 6.0% |
|---|
| Guodian Technology & Environment Group Corp Ltd ($1296) | 9.4% | 11.2% | 10.8% | 13.5% | 9.6% |
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% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.7% | 23.1% | 50.7% | 13.5% | 22.8% |
| Coslight Technology International Group Co Ltd ($1043) | 11.0% | 9.3% | 11.4% | 11.5% | |
| |
|---|
| Median (33 companies) | 9.2% | 6.4% | 5.0% | 3.6% | 2.6% |
|---|
| Guodian Technology & Environment Group Corp Ltd ($1296) | 26.6% | 12.9% | 6.6% | 5.4% | 2.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 18.2% | 18.0% | 17.0% | 21.2% | 19.5% |
| Jiangnan Group Ltd ($1366) | 17.0% | 14.9% | 14.1% | 13.5% | 12.8% |
| Johnson Electric Holdings Ltd ($179) | 13.1% | 11.7% | 11.6% | 12.7% | 11.2% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 5.1% | 1.8% | 3.0% | 10.4% | 12.0% |
| Wai Chi Holdings Co Ltd ($1305) | | | 10.4% | 9.8% | -0.3% |
| |
|---|
| Median (33 companies) | 5.9% | 2.7% | 3.0% | 0.7% | 3.3% |
|---|
| Guodian Technology & Environment Group Corp Ltd ($1296) | 5.7% | 6.2% | 5.1% | 5.3% | 2.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wai Chi Holdings Co Ltd ($1305) | 3.1x | 3.4x | 3.1x | 2.0x | 11.8x |
| Leoch International Technology Ltd ($842) | 3.4x | 9.3x | 16.3x | 4.7x | 5.0x |
| CEC International Holdings Ltd ($759) | 2.5x | 3.9x | 6.1x | 4.1x | 4.9x |
| Chaowei Power Holdings Ltd ($951) | 0.5x | 1.4x | 2.1x | 6.1x | 2.9x |
| China Titans Energy Technology Group Co Ltd ($2188) | 0.2x | 1.5x | | 16.9x | 2.4x |
| |
|---|
| Median (21 companies) | 0.3x | 1.5x | 0.6x | 2.0x | 1.4x |
|---|
| Guodian Technology & Environment Group Corp Ltd ($1296) | 5.4x | 6.3x | 7.6x | 6.8x | 6.9x |
