Jinheng Automotive Safety Technology Holdings Ltd reports 6,956% CAPEX growth and 5.3% Revenue growth
31/03/2016 • About Jinheng Automotive Safety Technology Holdings Ltd (
$872) • By InTwits
Jinheng Automotive Safety Technology Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jinheng Automotive Safety Technology Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -27.2%
- The company operates at negative EBITDA Margin: -72.4%
- Jinheng Automotive Safety Technology Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -20.3% for the sames years0
- Jinheng Automotive Safety Technology Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.7%. At the same time it's in pair with industry average of 17.7%.
- CAPEX is quite volatile: 11.8 in 2015, 0.17 in 2014, 95.9 in 2013, 89.8 in 2012, 28.7 in 2011
- The company has unprofitable business model: ROIC is at -27.2%
- It operates with high leverage: Net Debt/EBITDA is 1.6x while industry average is -0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jinheng Automotive Safety Technology Holdings Ltd ($872) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 290.8 | 261.0 | 199.8 | 184.9 | 194.6 | 5.3% |
| Gross Profit | 57.0 | 25.7 | 18.0 | 10.6 | 21.5 | 103.1% |
| SG&A | | 42.1 | 63.5 | 78.9 | 92.7 | 17.5% |
| EBITDA | 42.7 | 13.7 | -48.8 | -95.9 | -140.9 | 47.0% |
| Net Income | 8.2 | -33.6 | -62.8 | -96.1 | -144.7 | 50.6% |
Balance Sheet
|
|---|
| Cash | 45.4 | 260.0 | 41.0 | 105.3 | 240.1 | 127.9% |
| Short Term Debt | 36.5 | 66.4 | 59.1 | 17.5 | 34.0 | 93.8% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 28.7 | 89.8 | 95.9 | 0.2 | 11.8 | 6,956.0% |
Ratios
|
|---|
| Revenue growth | -64.4% | -10.2% | -23.5% | -7.5% | 5.3% | |
| EBITDA growth | -66.9% | -67.8% | -455.8% | 96.3% | 47.0% | |
| Gross Margin | 19.6% | 9.8% | 9.0% | 5.7% | 11.0% | 5.3% |
| EBITDA Margin | 14.7% | 5.3% | -24.4% | -51.9% | -72.4% | -20.6% |
| Net Income Margin | 2.8% | -12.9% | -31.4% | -52.0% | -74.4% | -22.4% |
| SG&A, % of revenue | | 16.1% | 31.8% | 42.7% | 47.7% | 5.0% |
| CAPEX, % of revenue | 9.9% | 34.4% | 48.0% | 0.1% | 6.0% | 6.0% |
| ROIC | 3.0% | -2.0% | -12.2% | -19.2% | -27.2% | -8.0% |
| ROE | 1.2% | -5.1% | -10.6% | -17.7% | -27.1% | -9.3% |
| Net Debt/EBITDA | -0.2x | -14.1x | | | | 0.0x |
Revenue and profitability
The company's Revenue increased on 5.3% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.7 pp from 13.2% to 6.5% in 2015.
Gross Margin increased on 5.3 pp from 5.7% to 11.0% in 2015. SG&A as a % of Revenue increased on 5.0 pp from 42.7% to 47.7% in 2015.
Net Income marign dropped on 22.4 pp from -52.0% to -74.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.0% in 2015. CAPEX/Revenue dropped on 28.3 pp from 34.4% in 2012 to 6.0% in 2015. It's average CAPEX/Revenue for the last three years was 18.0%.
Return on investment
The company operates at negative ROIC (-27.18%) and ROE (-27.05%). ROIC decreased on 8.0 pp from -19.2% to -27.2% in 2015. ROE decreased on 9.3 pp from -17.7% to -27.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt jumped on 93.8% in 2015 while cash jumped on 128% in 2015.
Appendix 1: Peers in Auto Parts&Equipment
Below you can find Jinheng Automotive Safety Technology 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 |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | | -10.4% | 27.1% | 31.0% | 30.9% |
| Xinchen China Power Holdings Ltd ($1148) | | 11.5% | 0.5% | 2.6% | 23.3% |
| Minth Group Ltd ($425) | | 11.3% | 27.3% | 21.3% | 14.5% |
| Nexteer Automotive Group Ltd ($1316) | | -3.6% | 10.1% | 24.8% | 12.8% |
| Xinyi Glass Holdings Ltd ($868) | | 2.5% | 17.8% | 9.3% | 5.5% |
| |
|---|
| Median (15 companies) | -30.2% | -5.6% | 14.6% | 6.0% | -2.8% |
|---|
| Jinheng Automotive Safety Technology Holdings Ltd ($872) | | -10.2% | -23.5% | -7.5% | 5.3% |
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% |
| Xinyi Glass Holdings Ltd ($868) | 28.6% | 26.4% | 31.6% | 25.2% | 27.3% |
| Zhejiang Shibao Co Ltd ($1057) | 34.9% | 30.3% | 26.0% | 26.4% | 25.5% |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 25.1% | 20.9% | 23.6% | 24.0% | 24.2% |
| |
|---|
| Median (16 companies) | 26.0% | 20.8% | 20.6% | 22.3% | 20.5% |
|---|
| Jinheng Automotive Safety Technology Holdings Ltd ($872) | 19.6% | 9.8% | 9.0% | 5.7% | 11.0% |
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% |
| Xinyi Glass Holdings Ltd ($868) | 23.5% | 22.5% | 43.8% | 20.0% | 25.0% |
| Minth Group Ltd ($425) | 25.9% | 25.6% | 24.2% | 23.1% | 24.5% |
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 20.7% | 17.2% | 16.0% | 18.6% |
| Nexteer Automotive Group Ltd ($1316) | 5.9% | 6.7% | 10.4% | 12.0% | 13.7% |
| |
|---|
| Median (16 companies) | 16.0% | 9.4% | 11.9% | 12.4% | 12.0% |
|---|
| Jinheng Automotive Safety Technology Holdings Ltd ($872) | 14.7% | 5.3% | -24.4% | -51.9% | -72.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hybrid Kinetic Group Ltd ($1188) | 41.7% | 8.5% | | | 176.2% |
| Fuyao Glass Industry Group Co Ltd ($3606) | 11.5% | 14.6% | 16.5% | 21.1% | 23.9% |
| Xiezhong International Holdings Ltd ($3663) | 15.4% | 22.9% | 24.9% | 12.0% | 19.4% |
| Xinyi Glass Holdings Ltd ($868) | 37.3% | 17.0% | 28.9% | 15.8% | 16.7% |
| Minth Group Ltd ($425) | 12.3% | 14.8% | 16.1% | 18.7% | 15.4% |
| |
|---|
| Median (16 companies) | 11.9% | 8.5% | 6.2% | 6.1% | 7.4% |
|---|
| Jinheng Automotive Safety Technology Holdings Ltd ($872) | 9.9% | 34.4% | 48.0% | 0.1% | 6.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nexteer Automotive Group Ltd ($1316) | | 14.0% | 18.2% | 17.7% | 21.2% |
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.1% | 19.0% | 21.1% | 22.3% | 15.7% |
| Minth Group Ltd ($425) | 13.1% | 11.9% | 12.1% | 11.8% | 13.4% |
| Xinyi Glass Holdings Ltd ($868) | 12.8% | 9.3% | 22.6% | 8.3% | 10.8% |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 13.4% | 2.4% | 9.2% | 12.5% | 10.3% |
| |
|---|
| Median (16 companies) | 13.4% | 7.6% | 8.9% | 6.9% | 3.6% |
|---|
| Jinheng Automotive Safety Technology Holdings Ltd ($872) | 3.0% | -2.0% | -12.2% | -19.2% | -27.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 2.2x | 7.9x | 2.8x | 2.2x | 2.9x |
| Xiezhong International Holdings Ltd ($3663) | 0.7x | 0.6x | 1.2x | 1.2x | 2.2x |
| China Vehicle Components Technology Holdings Ltd ($1269) | 2.4x | 9.4x | 5.8x | 5.3x | 2.0x |
| Xinchen China Power Holdings Ltd ($1148) | -0.3x | -0.1x | -2.3x | 0.6x | 1.9x |
| Xinyi Glass Holdings Ltd ($868) | 2.0x | 1.9x | 0.9x | 2.4x | 1.7x |
| |
|---|
| Median (12 companies) | 1.3x | 0.9x | 1.0x | 1.0x | 0.6x |
|---|
