Inspur International Ltd CAPEX dropped on 17.1% in 2015 while Revenue increased on 9.0%
30/03/2016 • About Inspur International Ltd (
$596) • By InTwits
Inspur International Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Inspur International Ltd doesn't have a profitable business model yet: 2015 ROIC is -5.1%
- The company operates at negative EBITDA Margin: -7.2%
- Inspur International Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -3.6% for the sames years0
- Inspur International Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.2%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 248 in 2015, 300 in 2014, 159 in 2013, 98.1 in 2012, 20.4 in 2011
- The company has unprofitable business model: ROIC is at -5.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Inspur International Ltd ($596) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,222 | 1,162 | 1,301 | 891 | 972 | 9.0% |
| Gross Profit | 528 | 424 | 444 | 280 | 292 | 4.3% |
| SG&A | 518 | 577 | 656 | 415 | 446 | 7.5% |
| EBITDA | 105 | -87 | -115 | -68 | -70 | 3.0% |
| Net Income | 50 | -93 | 118 | -69 | 0 | -100.5% |
Balance Sheet
|
|---|
| Cash | 1,256 | 1,185 | 897 | 1,016 | 1,095 | 7.8% |
| Short Term Debt | 0 | 65 | 0 | 0 | 0 | |
| Long Term Debt | 64 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 20 | 98 | 159 | 300 | 248 | -17.1% |
Ratios
|
|---|
| Revenue growth | -4.9% | -47.7% | 12.0% | -31.5% | 9.0% | |
| EBITDA growth | -51.9% | -183.2% | 31.8% | -40.7% | 3.0% | |
| Gross Margin | 23.8% | 36.5% | 34.1% | 31.4% | 30.1% | -1.4% |
| EBITDA Margin | 4.7% | -7.5% | -8.9% | -7.7% | -7.2% | 0.4% |
| Net Income Margin | 2.3% | -8.0% | 9.0% | -7.8% | 0.0% | 7.8% |
| SG&A, % of revenue | 23.3% | 49.6% | 50.4% | 46.5% | 45.9% | -0.7% |
| CAPEX, % of revenue | 0.9% | 8.4% | 12.2% | 33.6% | 25.6% | -8.1% |
| ROIC | 2.9% | -6.9% | -7.7% | -4.6% | -5.1% | -0.5% |
| ROE | 2.9% | -5.3% | 6.5% | -3.7% | 0.0% | 3.7% |
| Net Debt/EBITDA | -11.3x | | | | | 0.0x |
Revenue and profitability
Inspur International Ltd's Revenue increased on 9.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.57 pp from 5.7% to 6.2% in 2015.
Gross Margin decreased slightly on 1.4 pp from 31.4% to 30.1% in 2015. SG&A as a % of Revenue decreased slightly on 0.67 pp from 46.5% to 45.9% in 2015.
Net Income marign increased on 7.8 pp from -7.8% to 0.034% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 25.6% in 2015. Inspur International Ltd's CAPEX/Revenue surged on 17.1 pp from 8.4% in 2012 to 25.6% in 2015. It's average level of CAPEX/Revenue for the last three years was 23.8%.
Return on investment
The company operates at negative ROIC (-5.10%) and low but positive ROE (0.02%). ROIC showed almost no change in 2015. ROE increased on 3.7 pp from -3.7% to 0.018% in 2015.
Leverage (Debt)
The company has no debt. Cash increased on 7.8% in 2015.
Appendix 1: Peers in Distribution/Wholesale
Below you can find Inspur International Ltd benchmarking vs. other companies in Distribution/Wholesale 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 |
|---|
| C Y Foundation Group Ltd ($1182) | | 8.3% | -65.6% | 5.9% | 214.6% |
| Hailiang International Holdings Ltd ($2336) | | 9.7% | -30.8% | -69.1% | 99.7% |
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | 72.0% |
| Yestar International Holdings Co Ltd ($2393) | | -2.2% | 22.8% | 30.5% | 60.3% |
| Goldin Financial Holdings Ltd ($530) | | -39.4% | 63.5% | 60.3% | 42.9% |
| |
|---|
| Median (33 companies) | 24.2% | 3.1% | 0.0% | 1.4% | -2.0% |
|---|
| Inspur International Ltd ($596) | | -47.7% | 12.0% | -31.5% | 9.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 32.6% | 79.6% | 66.3% | | 98.7% |
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | 60.0% |
| E.Bon Holdings Ltd ($599) | 36.6% | 40.3% | 37.4% | 35.8% | 39.6% |
| |
|---|
| Median (31 companies) | 15.5% | 17.3% | 17.1% | 18.0% | 21.1% |
|---|
| Inspur International Ltd ($596) | 23.8% | 36.5% | 34.1% | 31.4% | 30.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | 1,277.8% |
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -649.6% | -1,064.4% | -252.1% | | 62.8% |
| Goldlion Holdings Ltd ($533) | 27.8% | 25.8% | 23.4% | 22.5% | 22.8% |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | 20.3% |
| |
|---|
| Median (34 companies) | 2.2% | 2.6% | 2.5% | 4.6% | 4.9% |
|---|
| Inspur International Ltd ($596) | 4.7% | -7.5% | -8.9% | -7.7% | -7.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | 49.8% |
| China LNG Group Ltd ($931) | 2,875.2% | 11.1% | 0.3% | 0.6% | 15.6% |
| YGM Trading Ltd ($375) | 2.0% | 1.8% | 2.1% | 3.5% | 14.5% |
| Victory Group Ltd ($1139) | | 0.7% | 0.1% | 6.1% | 12.6% |
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| |
|---|
| Median (33 companies) | 1.5% | 1.3% | 1.7% | 1.6% | 1.2% |
|---|
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | 25.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | 56.2% |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | 27.1% |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | 25.4% |
| E.Bon Holdings Ltd ($599) | 4.4% | 7.0% | 7.2% | 3.3% | 16.9% |
| Goldin Financial Holdings Ltd ($530) | -10.1% | 5.9% | 20.6% | 10.4% | 16.0% |
| |
|---|
| Median (35 companies) | 2.2% | 2.7% | 1.7% | 3.2% | 2.8% |
|---|
| Inspur International Ltd ($596) | 2.9% | -6.9% | -7.7% | -4.6% | -5.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | 16.8x |
| Leeport Holdings Ltd ($387) | 3.1x | | | | 16.1x |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | 15.4x |
| Forefront Group Ltd ($885) | | | | -0.0x | 15.3x |
| |
|---|
| Median (26 companies) | -0.2x | -0.2x | -0.6x | -0.0x | 0.0x |
|---|
