Jiangnan Group Ltd revenue growth decelerated to 12.4% in 2015 vs. 25.9% a year earliner
30/03/2016 • About Jiangnan Group Ltd (
$1366) • By InTwits
Jiangnan Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jiangnan Group Ltd is a fast growth stock: 2015 revenue growth was 12.4%, 5 year revenue CAGR was 20.0% at 2015 ROIC 12.8%
- Jiangnan Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has highly profitable business model: ROIC is at 12.8%
- It operates with high leverage: Net Debt/EBITDA is 1.4x 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.
Jiangnan Group Ltd ($1366) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,930 | 5,356 | 6,477 | 8,155 | 9,167 | 12.4% |
| Gross Profit | 735 | 842 | 1,000 | 1,271 | 1,482 | 16.6% |
| SG&A | 199 | 180 | 243 | 283 | 382 | 35.0% |
| EBITDA | 533 | 644 | 831 | 1,017 | 1,136 | 11.7% |
| Net Income | 317 | 376 | 504 | 626 | 703 | 12.3% |
Balance Sheet
|
|---|
| Cash | 678 | 1,138 | 1,683 | 1,666 | 2,131 | 27.9% |
| Short Term Debt | 2,237 | 2,749 | 4,059 | 4,435 | 3,770 | -15.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | -57.0% |
Cash flow
|
|---|
| Capex | 21 | 125 | 22 | 28 | 46 | 65.9% |
Ratios
|
|---|
| Revenue growth | 33.7% | 8.7% | 20.9% | 25.9% | 12.4% | |
| EBITDA growth | 44.6% | 21.0% | 28.9% | 22.5% | 11.7% | |
| Gross Margin | 14.9% | 15.7% | 15.4% | 15.6% | 16.2% | 0.6% |
| EBITDA Margin | 10.8% | 12.0% | 12.8% | 12.5% | 12.4% | -0.1% |
| Net Income Margin | 6.4% | 7.0% | 7.8% | 7.7% | 7.7% | -0.0% |
| SG&A, % of revenue | 4.0% | 3.4% | 3.7% | 3.5% | 4.2% | 0.7% |
| CAPEX, % of revenue | 0.4% | 2.3% | 0.3% | 0.3% | 0.5% | 0.2% |
| ROIC | 17.0% | 14.9% | 14.1% | 13.5% | 12.8% | -0.7% |
| ROE | 30.9% | 24.6% | 24.2% | 22.7% | 17.3% | -5.4% |
| Net Debt/EBITDA | 2.9x | 2.5x | 2.9x | 2.7x | 1.4x | -1.3x |
Revenue and profitability
Jiangnan Group Ltd's Revenue surged on 12.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.7 pp from 8.6% to 10.2% in FY2015.
Gross Margin increased slightly on 0.57 pp from 15.6% to 16.2% in 2015. SG&A as a % of Revenue increased slightly on 0.70 pp from 3.5% to 4.2% 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 0.51%. Jiangnan Group Ltd showed small CAPEX/Revenue decline of 1.8 pp from 2.3% in 2012 to 0.51% in 2015. It's average CAPEX/Revenue for the last three years was 0.40%.
Return on investment
The company operates at good ROIC (12.77%) and ROE (17.31%). ROIC decreased slightly on 0.71 pp from 13.5% to 12.8% in 2015. ROE decreased on 5.4 pp from 22.7% to 17.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 3.3x. Net Debt / EBITDA dropped on 1.3x from 2.7x to 1.4x in 2015. Debt dropped on 15.0% in 2015 while cash surged on 27.9% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below you can find Jiangnan Group Ltd benchmarking vs. other companies in Electrical Compo&Equip 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 |
|---|
| 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% | 15.5% | 4.6% |
|---|
| Jiangnan Group Ltd ($1366) | | 8.7% | 20.9% | 25.9% | 12.4% |
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% | 16.6% | 18.7% |
|---|
| Jiangnan Group Ltd ($1366) | 14.9% | 15.7% | 15.4% | 15.6% | 16.2% |
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) | 10.7% | 7.8% | 7.0% | 3.8% | 6.0% |
|---|
| Jiangnan Group Ltd ($1366) | 10.8% | 12.0% | 12.8% | 12.5% | 12.4% |
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) | 9.4% | 6.7% | 5.4% | 4.0% | 2.7% |
|---|
| Jiangnan Group Ltd ($1366) | 0.4% | 2.3% | 0.3% | 0.3% | 0.5% |
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% |
| 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% |
| Hengxin Technology Ltd ($1085) | 13.9% | 8.1% | 9.3% | 9.0% | 10.2% |
| |
|---|
| Median (33 companies) | 5.4% | 2.7% | 3.0% | 0.7% | 2.9% |
|---|
| Jiangnan Group Ltd ($1366) | 17.0% | 14.9% | 14.1% | 13.5% | 12.8% |
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 |
| Guodian Technology & Environment Group Corp Ltd ($1296) | 5.4x | 6.3x | 7.6x | 6.8x | 6.9x |
| 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 |
| |
|---|
| Median (21 companies) | 0.3x | 1.5x | 0.6x | 2.0x | 1.5x |
|---|
| Jiangnan Group Ltd ($1366) | 2.9x | 2.5x | 2.9x | 2.7x | 1.4x |
