Shenji Group Kunming Machine Tool Co Ltd CAPEX jumped on 48.0% in 2015 while Revenue dropped on 10.7%
30/03/2016 • About Shenji Group Kunming Machine Tool Co Ltd (
$300) • By InTwits
Shenji Group Kunming Machine Tool Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shenji Group Kunming Machine Tool Co Ltd is a company in decline: 2015 revenue growth was -10.7%, 5 years revenue CAGR was -13.6%
- The company operates at negative EBITDA Margin: -20.4%
- Shenji Group Kunming Machine Tool Co Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -3.9% for the sames years0
- Shenji Group Kunming Machine Tool Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.8%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: 64.0 in 2015, 43.2 in 2014, 68.6 in 2013, 102 in 2012, 166 in 2011
- The company has unprofitable business model: ROIC is at -10.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shenji Group Kunming Machine Tool Co Ltd ($300) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,797 | 1,079 | 1,022 | 861 | 769 | -10.7% |
| Gross Profit | 428 | 199 | 220 | 158 | 109 | -31.1% |
| SG&A | 304 | 257 | 244 | 301 | 253 | -16.1% |
| EBITDA | 106 | -62 | 26 | -128 | -157 | 22.4% |
| Net Income | 55 | -73 | 9 | -204 | -196 | -3.8% |
Balance Sheet
|
|---|
| Cash | 192 | 99 | 182 | 163 | 121 | -25.7% |
| Short Term Debt | 147 | 134 | 368 | 380 | 734 | 93.5% |
| Long Term Debt | 2 | 0 | 2 | 201 | 130 | -35.4% |
Cash flow
|
|---|
| Capex | 166 | 102 | 69 | 43 | 64 | 48.0% |
Ratios
|
|---|
| Revenue growth | 12.6% | -39.9% | -5.3% | -15.8% | -10.7% | |
| EBITDA growth | -52.3% | -158.3% | -142.1% | -591.4% | 22.4% | |
| Gross Margin | 23.8% | 18.4% | 21.5% | 18.3% | 14.2% | -4.2% |
| EBITDA Margin | 5.9% | -5.8% | 2.6% | -14.9% | -20.4% | -5.5% |
| Net Income Margin | 3.0% | -6.8% | 0.8% | -23.7% | -25.5% | -1.8% |
| SG&A, % of revenue | 16.9% | 23.8% | 23.9% | 35.0% | 32.9% | -2.1% |
| CAPEX, % of revenue | 9.2% | 9.5% | 6.7% | 5.0% | 8.3% | 3.3% |
| ROIC | 3.8% | -6.4% | -1.3% | -9.3% | -10.5% | -1.1% |
| ROE | 3.9% | -5.4% | 0.7% | -17.1% | -19.9% | -2.8% |
| Net Debt/EBITDA | -0.4x | | 7.2x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 10.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.1 pp from 51.1% to 56.2% in 2015.
Gross Margin decreased on 4.2 pp from 18.3% to 14.2% in 2015. SG&A as a % of Revenue decreased on 2.1 pp from 35.0% to 32.9% in 2015.
Net Income marign decreased slightly on 1.8 pp from -23.7% to -25.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 8.3%. CAPEX/Revenue decreased slightly on 1.1 pp from 9.5% in 2012 to 8.3% in 2015. Average CAPEX/Revenue for the last three years was 6.7%.
Return on investment
The company operates at negative ROIC (-10.49%) and ROE (-19.89%). ROIC decreased slightly on 1.1 pp from -9.3% to -10.5% in 2015. ROE decreased on 2.8 pp from -17.1% to -19.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 48.8% in 2015 while cash dropped on 25.7% in 2015.
Appendix 1: Peers in Machinery-Diversified
Below you can find Shenji Group Kunming Machine Tool Co Ltd benchmarking vs. other companies in Machinery-Diversified 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 |
|---|
| Sun East Technology Holdings Ltd ($365) | | -25.1% | -10.7% | 39.3% | 6.4% |
| Shanghai Prime Machinery Co Ltd ($2345) | | 2.6% | -8.9% | 37.3% | 52.8% |
| Sinoref Holdings Ltd ($1020) | 1.5% | -0.2% | -42.2% | 29.2% | |
| North Asia Strategic Holdings Ltd ($8080) | | -52.2% | -29.1% | 23.7% | 42.6% |
| Huazhang Technology Holding Ltd ($1673) | | 131.6% | 9.5% | 22.9% | 23.5% |
| |
|---|
| Median (23 companies) | 19.3% | -3.6% | -2.4% | 1.1% | -3.0% |
|---|
| Shenji Group Kunming Machine Tool Co Ltd ($300) | | -39.9% | -5.3% | -15.8% | -10.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jingwei Textile Machinery ($350) | 38.3% | 49.1% | 51.7% | 54.9% | 65.5% |
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | 45.5% | 59.7% | 58.3% | 48.6% | 26.7% |
| Renheng Enterprise Holdings Ltd ($3628) | 36.4% | 44.3% | 44.8% | 45.4% | |
| Haitian International Holdings Ltd ($1882) | 29.7% | 30.1% | 31.6% | 32.4% | 33.0% |
| CHTC Fong's Industries Co Ltd ($641) | 26.5% | 24.4% | 30.0% | 32.3% | 31.2% |
| |
|---|
| Median (23 companies) | 24.2% | 24.4% | 22.6% | 20.0% | 21.0% |
|---|
| Shenji Group Kunming Machine Tool Co Ltd ($300) | 23.8% | 18.4% | 21.5% | 18.3% | 14.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | 31.1% | 46.8% | 48.7% | 46.6% | -134.1% |
| Jingwei Textile Machinery ($350) | 18.5% | 24.0% | 26.9% | 28.0% | 28.5% |
| Haitian International Holdings Ltd ($1882) | 20.5% | 19.7% | 20.7% | 21.9% | 22.8% |
| Renheng Enterprise Holdings Ltd ($3628) | 22.9% | 24.7% | 23.9% | 20.7% | |
| Good Friend International Holdings Inc ($2398) | 11.7% | 6.7% | 9.1% | 12.9% | |
| |
|---|
| Median (23 companies) | 9.7% | 10.9% | 8.7% | 8.7% | 5.7% |
|---|
| Shenji Group Kunming Machine Tool Co Ltd ($300) | 5.9% | -5.8% | 2.6% | -14.9% | -20.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China High Precision Automation Group Ltd ($591) | 33.0% | 20.5% | 9.1% | 18.4% | 0.6% |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 14.9% | 20.5% | 20.3% | 11.6% | 15.6% |
| LK Technology Holdings Ltd ($558) | 7.6% | 9.3% | 10.2% | 9.1% | 5.6% |
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | 1.3% | 2.3% | 10.1% | 7.8% | 31.9% |
| First Tractor Co Ltd ($38) | 6.3% | 4.9% | 4.3% | 7.3% | 4.3% |
| |
|---|
| Median (23 companies) | 5.3% | 4.2% | 3.6% | 4.2% | 2.4% |
|---|
| Shenji Group Kunming Machine Tool Co Ltd ($300) | 9.2% | 9.5% | 6.7% | 5.0% | 8.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | | 52.8% | 28.7% | 20.8% | -14.5% |
| Haitian International Holdings Ltd ($1882) | 26.8% | 19.8% | 21.2% | 19.4% | 16.3% |
| Jingwei Textile Machinery ($350) | 23.3% | 19.4% | 20.9% | 17.4% | 14.9% |
| Huazhang Technology Holding Ltd ($1673) | | 29.6% | 16.2% | 16.3% | 16.2% |
| Good Friend International Holdings Inc ($2398) | 20.0% | 6.5% | 8.7% | 12.1% | |
| |
|---|
| Median (23 companies) | 9.9% | 7.9% | 4.3% | 3.0% | 1.9% |
|---|
| Shenji Group Kunming Machine Tool Co Ltd ($300) | 3.8% | -6.4% | -1.3% | -9.3% | -10.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First Tractor Co Ltd ($38) | 1.1x | 0.5x | 2.5x | 9.2x | 6.3x |
| Shanghai Prime Machinery Co Ltd ($2345) | -0.0x | -0.6x | 0.3x | 6.0x | 3.2x |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 1.9x | 3.0x | 11.4x | 5.6x | 129.4x |
| Honghua Group Ltd ($196) | 0.1x | 1.2x | 3.2x | 5.2x | 14.2x |
| LK Technology Holdings Ltd ($558) | 0.9x | 2.5x | 5.1x | 4.9x | 4.6x |
| |
|---|
| Median (20 companies) | -0.3x | -0.7x | -1.0x | -0.5x | 1.4x |
|---|
