Shuanghua Holdings Ltd EBITDA dropped on 147% in 2015 and EBITDA Margin dropped on 21.3 pp from 12.9% to -8.3%
31/03/2016 • About Shuanghua Holdings Ltd (
$1241) • By InTwits
Shuanghua Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shuanghua Holdings Ltd is a company in decline: 2015 revenue growth was -27.4%, 5 years revenue CAGR was -24.7%
- EBITDA Margin is quite volatile: -8.3% in 2015, 12.9% in 2014, 5.6% in 2013, 9.3% in 2012, 13.9% in 2011
- Shuanghua Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 0.92 in 2015, 12.7 in 2014, 24.3 in 2013, 4.6 in 2012, 19.4 in 2011
- The company has unprofitable business model: ROIC is at -5.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shuanghua Holdings Ltd ($1241) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 528.6 | 379.6 | 261.1 | 197.0 | 143.1 | -27.4% |
| Gross Profit | 112.9 | 64.9 | 44.0 | 51.1 | 12.6 | -75.4% |
| SG&A | | 50.6 | 49.1 | 47.3 | 38.0 | -19.8% |
| EBITDA | 73.5 | 35.3 | 14.7 | 25.5 | -11.9 | -146.7% |
| Net Income | 59.0 | 21.8 | -23.7 | 9.3 | -39.0 | -518.1% |
Balance Sheet
|
|---|
| Cash | 151.6 | 62.1 | 174.6 | 165.7 | 81.6 | -50.8% |
| Short Term Debt | 123.0 | 20.0 | 15.3 | 10.5 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 19.4 | 4.6 | 24.3 | 12.7 | 0.9 | -92.8% |
Ratios
|
|---|
| Revenue growth | -10.6% | -28.2% | -31.2% | -24.6% | -27.4% | |
| EBITDA growth | -15.2% | -51.9% | -58.4% | 73.3% | -146.7% | |
| Gross Margin | 21.4% | 17.1% | 16.8% | 26.0% | 8.8% | -17.2% |
| EBITDA Margin | 13.9% | 9.3% | 5.6% | 12.9% | -8.3% | -21.3% |
| Net Income Margin | 11.2% | 5.8% | -9.1% | 4.7% | -27.3% | -32.0% |
| SG&A, % of revenue | | 13.3% | 18.8% | 24.0% | 26.5% | 2.5% |
| CAPEX, % of revenue | 3.7% | 1.2% | 9.3% | 6.5% | 0.6% | -5.8% |
| ROIC | 9.2% | 2.5% | -0.7% | 1.6% | -5.5% | -7.1% |
| ROE | 12.7% | 3.9% | -4.4% | 1.7% | -8.2% | -10.0% |
| Net Debt/EBITDA | -0.4x | -1.2x | -10.8x | -6.1x | | 6.1x |
Revenue and profitability
Shuanghua Holdings Ltd's Revenue dropped on 27.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.61 pp from 14.4% to 15.0% in 2015.
Gross Margin dropped on 17.2 pp from 26.0% to 8.8% in 2015. SG&A as a % of Revenue increased on 2.5 pp from 24.0% to 26.5% in 2015.
Net Income marign dropped on 32.0 pp from 4.7% to -27.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.64% in 2015. The company showed small CAPEX/Revenue decline of 0.58 pp from 1.2% in 2012 to 0.64% in 2015. Average CAPEX/Revenue for the last three years was 5.5%.
Return on investment
The company operates at negative ROIC (-5.51%) and ROE (-8.24%). ROIC decreased on 7.1 pp from 1.6% to -5.5% in 2015. ROE decreased on 10.0 pp from 1.7% to -8.2% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash dropped on 50.8% in 2015.
Appendix 1: Peers in Auto Parts&Equipment
Below we provide Shuanghua Holdings Ltd benchmarking against other companies in Auto Parts&Equipment 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 |
|---|
| 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% | 3.2% |
|---|
| Shuanghua Holdings Ltd ($1241) | | -28.2% | -31.2% | -24.6% | -27.4% |
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% | 21.2% | 20.5% |
|---|
| Shuanghua Holdings Ltd ($1241) | 21.4% | 17.1% | 16.8% | 26.0% | 8.8% |
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% | 11.5% | 12.0% |
|---|
| Shuanghua Holdings Ltd ($1241) | 13.9% | 9.3% | 5.6% | 12.9% | -8.3% |
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% | 10.2% | 6.2% | 5.4% | 7.4% |
|---|
| Shuanghua Holdings Ltd ($1241) | 3.7% | 1.2% | 9.3% | 6.5% | 0.6% |
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% |
|---|
| Shuanghua Holdings Ltd ($1241) | 9.2% | 2.5% | -0.7% | 1.6% | -5.5% |
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 | 1.1x | 1.1x | 0.6x |
|---|
