Coslight Technology International Group Co Ltd reports 728% EBITDA growth and 6.3 pp EBITDA Margin growth from 1.0% to 7.3%
31/03/2016 • About Coslight Technology International Group Co Ltd (
$1043) • By InTwits
Coslight Technology International Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 7.3% in 2015, 1.0% in 2014, 7.2% in 2013, 1.2% in 2012, 4.8% in 2011
- Coslight Technology International Group Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.8%. At the same time it's a lot of higher than industry average of 7.2%.
- CAPEX is quite volatile: 297 in 2015, 846 in 2014, 757 in 2013, 36.3 in 2012, 98.5 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.4%
- It operates with high leverage: Net Debt/EBITDA is 7.7x while industry average is -2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Coslight Technology International Group Co Ltd ($1043) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,484 | 2,675 | 3,034 | 3,531 | 4,102 | 16.2% |
| Gross Profit | 425 | 347 | 527 | 369 | 586 | 58.9% |
| SG&A | | 452 | 429 | 503 | 549 | 9.2% |
| EBITDA | 120 | 31 | 217 | 36 | 299 | 728.4% |
| Net Income | 88 | -21 | 173 | 32 | 5 | -83.7% |
Balance Sheet
|
|---|
| Cash | 403 | 392 | 360 | 251 | 235 | -6.3% |
| Short Term Debt | 1,749 | 2,014 | 2,256 | 2,120 | 2,247 | 6.0% |
| Long Term Debt | 0 | 0 | 0 | 103 | 273 | 166.5% |
Cash flow
|
|---|
| Capex | 273 | 249 | 345 | 407 | 232 | -42.9% |
Ratios
|
|---|
| Revenue growth | 13.4% | 7.7% | 13.4% | 16.4% | 16.2% | |
| EBITDA growth | 20.3% | -73.9% | 594.5% | -83.4% | 728.4% | |
| Gross Margin | 17.1% | 13.0% | 17.4% | 10.4% | 14.3% | 3.8% |
| EBITDA Margin | 4.8% | 1.2% | 7.2% | 1.0% | 7.3% | 6.3% |
| Net Income Margin | 3.5% | -0.8% | 5.7% | 0.9% | 0.1% | -0.8% |
| SG&A, % of revenue | | 16.9% | 14.1% | 14.2% | 13.4% | -0.9% |
| CAPEX, % of revenue | 11.0% | 9.3% | 11.4% | 11.5% | 5.7% | -5.9% |
| ROIC | 1.3% | -1.3% | 3.1% | -1.7% | 3.4% | 5.1% |
| ROE | 5.9% | -1.4% | 10.7% | 1.8% | 0.3% | -1.5% |
| Net Debt/EBITDA | 11.2x | 51.9x | 8.7x | 54.7x | 7.7x | -47.1x |
Revenue and profitability
Coslight Technology International Group Co Ltd's Revenue surged on 16.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 17.9 pp from 37.1% to 19.2% in 2015.
Gross Margin increased on 3.8 pp from 10.4% to 14.3% in 2015. SG&A as a % of Revenue decreased slightly on 0.86 pp from 14.2% to 13.4% in 2015.
Net Income marign decreased slightly on 0.78 pp from 0.91% to 0.13% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 5.7% in 2015. The company showed decline in CAPEX/Revenue of 3.7 pp from 9.3% in 2012 to 5.7% in 2015. For the last three years the average CAPEX/Revenue was 9.5%.Coslight Technology International Group Co Ltd invested a big chunk of EBITDA (77.8%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (3.35%) and ROE (0.29%). ROIC increased on 5.1 pp from -1.7% to 3.4% in 2015. ROE decreased slightly on 1.5 pp from 1.8% to 0.29% in 2015.
Leverage (Debt)
Debt level is 7.7x Net Debt / EBITDA and 8.4x Debt / EBITDA. Net Debt / EBITDA dropped on 47.1x from 54.7x to 7.7x in 2015. Debt jumped on 13.4% in 2015 while cash decreased on 6.3% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Coslight Technology International Group Co 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% |
| Jimei International Entertainment Group Ltd ($1159) | | 100.6% | 652.0% | -31.2% | 273.5% |
| 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% |
| |
|---|
| Median (30 companies) | 19.8% | -6.0% | 8.5% | 15.5% | 5.8% |
|---|
| Coslight Technology International Group Co Ltd ($1043) | | 7.7% | 13.4% | 16.4% | 16.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Titans Energy Technology Group Co Ltd ($2188) | 45.4% | 41.4% | 27.3% | 33.7% | 36.6% |
| Boer Power Holdings Ltd ($1685) | 37.1% | 36.8% | 36.0% | 35.3% | 35.7% |
| Sun King Power Electronics Group ($580) | 16.2% | 25.4% | 30.0% | 30.8% | 34.1% |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 25.5% | 24.4% | 24.9% | 24.8% | 32.5% |
| CEC International Holdings Ltd ($759) | 18.5% | 23.6% | 27.9% | 29.9% | 31.8% |
| |
|---|
| Median (28 companies) | 20.7% | 19.6% | 17.9% | 16.6% | 17.0% |
|---|
| Coslight Technology International Group Co Ltd ($1043) | 17.1% | 13.0% | 17.4% | 10.4% | 14.3% |
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% | 45.8% |
| 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% |
| China Titans Energy Technology Group Co Ltd ($2188) | 21.1% | 10.8% | -11.9% | 2.0% | 16.5% |
| Sun King Power Electronics Group ($580) | -3.1% | 8.4% | 13.8% | 2.2% | 15.8% |
| |
|---|
| Median (30 companies) | 10.8% | 8.3% | 7.1% | 5.5% | 6.0% |
|---|
| Coslight Technology International Group Co Ltd ($1043) | 4.8% | 1.2% | 7.2% | 1.0% | 7.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| FDG Electric Vehicles Ltd ($729) | 177.5% | 374.3% | 82.3% | 71.1% | 417.0% |
| Applied Development Holdings Ltd ($519) | 46.4% | 79.7% | | 1,285.3% | 89.8% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.7% | 23.1% | 50.7% | 13.5% | 22.8% |
| Jimei International Entertainment Group Ltd ($1159) | 0.2% | 0.1% | 15.2% | 0.6% | 7.3% |
| CEC International Holdings Ltd ($759) | 10.6% | 8.8% | 10.1% | 4.3% | 6.9% |
| |
|---|
| Median (30 companies) | 9.2% | 6.4% | 5.0% | 3.6% | 2.7% |
|---|
| Coslight Technology International Group Co Ltd ($1043) | 11.0% | 9.3% | 11.4% | 11.5% | 5.7% |
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% |
| Tianneng Power International Ltd ($819) | 27.1% | 20.0% | 4.5% | -3.6% | 14.9% |
| Jiangnan Group Ltd ($1366) | 17.0% | 14.9% | 14.1% | 13.5% | 12.8% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 5.1% | 1.8% | 3.0% | 10.4% | 12.0% |
| Johnson Electric Holdings Ltd ($179) | 13.1% | 11.7% | 11.6% | 12.7% | 11.2% |
| |
|---|
| Median (30 companies) | 6.2% | 2.8% | 3.0% | 2.8% | 2.6% |
|---|
| Coslight Technology International Group Co Ltd ($1043) | 1.3% | -1.3% | 3.1% | -1.7% | 3.4% |
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 (23 companies) | 0.3x | 1.5x | 0.6x | 2.0x | 1.4x |
|---|
| Coslight Technology International Group Co Ltd ($1043) | 11.2x | 51.9x | 8.7x | 54.7x | 7.7x |
