New Focus Auto Tech Holdings Ltd reports 227% EBITDA decline and 5.1 pp EBITDA Margin decline from 2.1% to -3.0%
30/03/2016 • About New Focus Auto Tech Holdings Ltd (
$360) • By InTwits
New Focus Auto Tech Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- New Focus Auto Tech Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -8.3%
- The company operates at negative EBITDA Margin: -3.0%
- EBITDA Margin is quite volatile: -3.0% in 2015, 2.1% in 2014, -6.9% in 2013, -1.2% in 2012, 9.6% in 2011
- New Focus Auto Tech Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's in pair with industry average of 17.9%.
- CAPEX is quite volatile: 35.8 in 2015, 22.9 in 2014, 57.1 in 2013, 61.2 in 2012, 69.7 in 2011
- The company has unprofitable business model: ROIC is at -8.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
New Focus Auto Tech Holdings Ltd ($360) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,493 | 1,398 | 1,415 | 1,397 | 1,254 | -10.3% |
| Gross Profit | 406 | 291 | 258 | 297 | 255 | -14.1% |
| SG&A | | 361 | 412 | 346 | 342 | -1.3% |
| EBITDA | 143 | -17 | -98 | 29 | -37 | -227.1% |
| Net Income | 28 | -325 | -447 | -43 | -91 | 110.5% |
Balance Sheet
|
|---|
| Cash | 327 | 134 | 235 | 164 | 140 | -14.2% |
| Short Term Debt | 176 | 449 | 128 | 153 | 373 | 144.2% |
| Long Term Debt | 332 | 144 | 250 | 144 | 8 | -94.5% |
Cash flow
|
|---|
| Capex | 70 | 61 | 57 | 23 | 36 | 56.7% |
Ratios
|
|---|
| Revenue growth | 38.7% | -6.4% | 1.2% | -1.2% | -10.3% | |
| EBITDA growth | 49.7% | -112.0% | 473.4% | -129.8% | -227.1% | |
| Gross Margin | 27.2% | 20.8% | 18.2% | 21.3% | 20.3% | -0.9% |
| EBITDA Margin | 9.6% | -1.2% | -6.9% | 2.1% | -3.0% | -5.1% |
| Net Income Margin | 1.9% | -23.2% | -31.6% | -3.1% | -7.3% | -4.2% |
| SG&A, % of revenue | | 25.8% | 29.1% | 24.8% | 27.3% | 2.5% |
| CAPEX, % of revenue | 4.7% | 4.4% | 4.0% | 1.6% | 2.9% | 1.2% |
| ROIC | 8.5% | -4.8% | -14.5% | -1.6% | -8.3% | -6.8% |
| ROE | 5.1% | -72.0% | -145.2% | -11.7% | -20.5% | -8.8% |
| Net Debt/EBITDA | 1.3x | | | 4.5x | | -4.5x |
Revenue and profitability
The company's Revenue dropped on 10.3% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.1 pp from 2.1% to -3.0% in 2015.
Gross Margin decreased slightly on 0.92 pp from 21.3% to 20.3% in 2015. SG&A as a % of Revenue increased on 2.5 pp from 24.8% to 27.3% in 2015.
Net Income marign decreased on 4.2 pp from -3.1% to -7.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.9% in 2015. CAPEX/Revenue decreased slightly on 1.5 pp from 4.4% in 2012 to 2.9% in 2015. For the last three years the average CAPEX/Revenue was 2.8%.
Return on investment
The company operates at negative ROIC (-8.33%) and ROE (-20.50%). ROIC decreased on 6.8 pp from -1.6% to -8.3% in 2015. ROE decreased on 8.8 pp from -11.7% to -20.5% in 2015.
Leverage (Debt)
Debt level is -1.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 4.5x from 4.5x to in 2015. Debt surged on 28.3% in 2015 while cash dropped on 14.2% in 2015.
Appendix 1: Peers in Auto Parts&Equipment
Below you can find New Focus Auto Tech Holdings Ltd benchmarking vs. other companies in Auto Parts&Equipment 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 |
|---|
| Weichai Power Co Ltd ($2338) | | -19.8% | 21.0% | 36.8% | -7.4% |
| China Vehicle Components Technology Holdings Ltd ($1269) | | -10.4% | 27.1% | 31.0% | 30.9% |
| Nexteer Automotive Group Ltd ($1316) | | -3.6% | 10.1% | 24.8% | 12.8% |
| Minth Group Ltd ($425) | | 11.3% | 27.3% | 21.3% | 14.5% |
| Zhejiang Shibao Co Ltd ($1057) | | -12.2% | 23.1% | 20.2% | 3.2% |
| |
|---|
| Median (16 companies) | 1.5% | -7.5% | 14.6% | 6.0% | 5.0% |
|---|
| New Focus Auto Tech Holdings Ltd ($360) | | -6.4% | 1.2% | -1.2% | -10.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 36.2% | 37.4% | 41.0% | 41.5% | 41.5% |
| Minth Group Ltd ($425) | 35.0% | 33.1% | 33.0% | 31.2% | 31.7% |
| ZMFY Automobile Glass Services Ltd ($8135) | | 33.2% | 35.8% | 27.4% | 18.5% |
| Zhejiang Shibao Co Ltd ($1057) | 34.9% | 30.3% | 26.0% | 26.4% | 25.5% |
| Shuanghua Holdings Ltd ($1241) | 21.4% | 17.1% | 16.8% | 26.0% | |
| |
|---|
| Median (16 companies) | 25.1% | 20.1% | 20.6% | 22.2% | 20.7% |
|---|
| New Focus Auto Tech Holdings Ltd ($360) | 27.2% | 20.8% | 18.2% | 21.3% | 20.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 26.9% | 28.5% | 28.7% | 29.2% | 27.7% |
| Minth Group Ltd ($425) | 25.9% | 25.6% | 24.2% | 23.1% | 24.5% |
| Xinyi Glass Holdings Ltd ($868) | 23.5% | 22.5% | 43.8% | 20.0% | 25.0% |
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 20.7% | 17.2% | 16.0% | |
| Xinchen China Power Holdings Ltd ($1148) | 16.5% | 15.5% | 14.0% | 15.7% | 12.7% |
| |
|---|
| Median (16 companies) | 16.0% | 9.4% | 11.9% | 12.4% | 12.7% |
|---|
| New Focus Auto Tech Holdings Ltd ($360) | 9.6% | -1.2% | -6.9% | 2.1% | -3.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinchen China Power Holdings Ltd ($1148) | 2.5% | 1.2% | 0.8% | 21.9% | 8.3% |
| Fuyao Glass Industry Group Co Ltd ($3606) | 11.5% | 14.6% | 16.5% | 21.1% | 23.9% |
| Minth Group Ltd ($425) | 12.3% | 14.8% | 16.1% | 18.7% | 15.4% |
| Xinyi Glass Holdings Ltd ($868) | 37.3% | 17.0% | 28.9% | 15.8% | 16.7% |
| Xiezhong International Holdings Ltd ($3663) | 15.4% | 22.9% | 24.9% | 12.0% | |
| |
|---|
| Median (16 companies) | 11.9% | 10.2% | 8.5% | 6.1% | 7.4% |
|---|
| New Focus Auto Tech Holdings Ltd ($360) | 4.7% | 4.4% | 4.0% | 1.6% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.1% | 19.0% | 21.1% | 22.3% | 15.7% |
| Nexteer Automotive Group Ltd ($1316) | | 14.0% | 18.2% | 17.7% | 21.2% |
| Xinchen China Power Holdings Ltd ($1148) | 31.7% | 22.4% | 14.7% | 12.5% | 8.6% |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 13.4% | 2.4% | 9.2% | 12.5% | |
| Minth Group Ltd ($425) | 13.1% | 11.9% | 12.1% | 11.8% | 13.4% |
| |
|---|
| Median (17 companies) | 13.4% | 7.6% | 8.9% | 6.9% | 3.9% |
|---|
| New Focus Auto Tech Holdings Ltd ($360) | 8.5% | -4.8% | -14.5% | -1.6% | -8.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | 2.4x | 9.4x | 5.8x | 5.3x | 2.0x |
| Xinyi Glass Holdings Ltd ($868) | 2.0x | 1.9x | 0.9x | 2.4x | 1.7x |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 2.2x | 7.9x | 2.8x | 2.2x | |
| Xiezhong International Holdings Ltd ($3663) | 0.7x | 0.6x | 1.2x | 1.2x | |
| Weichai Power Co Ltd ($2338) | -0.2x | 0.7x | 0.6x | 1.1x | 0.6x |
| |
|---|
| Median (13 companies) | 0.8x | 0.7x | 1.0x | 1.0x | 0.1x |
|---|
| New Focus Auto Tech Holdings Ltd ($360) | 1.3x | | | 4.5x | |
