Sinotruk Hong Kong Ltd reports 16.8% EBITDA decline and 13.7% Revenue decline
31/03/2016 • About Sinotruk Hong Kong Ltd (
$3808) • By InTwits
Sinotruk Hong Kong Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sinotruk Hong Kong Ltd is a company in decline: 2015 revenue growth was -13.7%, 5 years revenue CAGR was -6.5%
- EBITDA Margin is relatively stable: 7.5% in 2015 vs. 7.8% in 2014 vs. 8.0% in 2011
- Sinotruk Hong Kong Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's in pair with industry average of 10.5%.
- CAPEX is quite volatile: 692 in 2015, 376 in 2014, 448 in 2013, 663 in 2012, 1,717 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.4%
- It operates with high leverage: Net Debt/EBITDA is 0.3x while industry average is 0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sinotruk Hong Kong Ltd ($3808) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 36,604 | 27,888 | 30,410 | 32,809 | 28,305 | -13.7% |
| Gross Profit | 5,706 | 4,151 | 5,091 | 5,536 | 5,028 | -9.2% |
| SG&A | 3,664 | 3,610 | 3,915 | 4,193 | 4,122 | -1.7% |
| EBITDA | 2,938 | 1,835 | 2,262 | 2,544 | 2,117 | -16.8% |
| Net Income | 1,002 | 123 | 271 | 408 | 206 | -49.5% |
Balance Sheet
|
|---|
| Cash | 7,676 | 4,061 | 4,004 | 6,440 | 4,946 | -23.2% |
| Short Term Debt | 13,499 | 5,388 | 9,019 | 4,814 | 3,380 | -29.8% |
| Long Term Debt | 2,107 | 5,619 | 753 | 2,412 | 2,291 | -5.0% |
Cash flow
|
|---|
| Capex | 1,717 | 663 | 448 | 376 | 692 | 84.0% |
Ratios
|
|---|
| Revenue growth | -7.7% | -23.8% | 9.0% | 7.9% | -13.7% | |
| EBITDA growth | -13.9% | -37.5% | 23.3% | 12.5% | -16.8% | |
| Gross Margin | 15.6% | 14.9% | 16.7% | 16.9% | 17.8% | 0.9% |
| EBITDA Margin | 8.0% | 6.6% | 7.4% | 7.8% | 7.5% | -0.3% |
| Net Income Margin | 2.7% | 0.4% | 0.9% | 1.2% | 0.7% | -0.5% |
| SG&A, % of revenue | 10.0% | 12.9% | 12.9% | 12.8% | 14.6% | 1.8% |
| CAPEX, % of revenue | 4.7% | 2.4% | 1.5% | 1.1% | 2.4% | 1.3% |
| ROIC | 5.7% | 2.5% | 3.5% | 3.9% | 2.4% | -1.4% |
| ROE | 5.4% | 0.7% | 1.4% | 2.1% | 1.1% | -1.1% |
| Net Debt/EBITDA | 2.7x | 3.8x | 2.6x | 0.3x | 0.3x | 0.0x |
Revenue and profitability
The company's Revenue dropped on 13.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.5 pp from 29.2% to 30.7% in 2015.
Gross Margin increased slightly on 0.89 pp from 16.9% to 17.8% in 2015. SG&A as a % of Revenue increased slightly on 1.8 pp from 12.8% to 14.6% in 2015.
Net Income marign decreased slightly on 0.52 pp from 1.2% to 0.73% in 2015.
Capital expenditures (CAPEX) and working capital investments
Sinotruk Hong Kong Ltd's CAPEX/Revenue was 2.4% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at low ROIC (2.45%) and ROE (1.07%). ROIC decreased slightly on 1.4 pp from 3.9% to 2.4% in 2015. ROE decreased slightly on 1.1 pp from 2.1% to 1.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 2.7x. Net Debt / EBITDA increased on 0.033x from 0.3x to 0.3x in 2015. Debt dropped on 21.5% in 2015 while cash dropped on 23.2% in 2015.
Appendix 1: Peers in Auto Manufacturers
Below we provide Sinotruk Hong Kong Ltd benchmarking against other companies in Auto Manufacturers 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 |
|---|
| Dongfeng Motor Group Co Ltd ($489) | | -95.4% | 511.9% | 123.0% | 52.3% |
| BAIC Motor Corp Ltd ($1958) | | 83.7% | 263.2% | 341.0% | 49.2% |
| Byd Co Ltd ($1211) | | -4.2% | 16.4% | 7.2% | 40.2% |
| Geely Automobile Holdings Ltd ($175) | | 17.5% | 16.6% | -24.3% | 38.6% |
| Guangzhou Automobile Group Co Ltd ($2238) | | 18.0% | 45.2% | 18.9% | 31.4% |
| |
|---|
| Median (10 companies) | | 6.4% | 16.5% | 8.6% | 26.3% |
|---|
| Sinotruk Hong Kong Ltd ($3808) | | -23.8% | 9.0% | 7.9% | -13.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Wall Motor Co Ltd ($2333) | 22.2% | 24.1% | 25.9% | 25.0% | 22.3% |
| Qingling Motors Co Ltd ($1122) | 12.4% | 12.3% | 15.2% | 15.1% | 18.7% |
| BAIC Motor Corp Ltd ($1958) | 1.4% | -4.8% | 3.2% | 15.9% | 18.2% |
| Geely Automobile Holdings Ltd ($175) | 18.2% | 18.5% | 20.1% | 18.2% | 18.2% |
| Byd Co Ltd ($1211) | 14.8% | 11.6% | 13.4% | 13.8% | 15.3% |
| |
|---|
| Median (10 companies) | 12.8% | 11.6% | 12.0% | 13.4% | 14.3% |
|---|
| Sinotruk Hong Kong Ltd ($3808) | 15.6% | 14.9% | 16.7% | 16.9% | 17.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Wall Motor Co Ltd ($2333) | 16.1% | 18.0% | 19.5% | 17.8% | 15.5% |
| Geely Automobile Holdings Ltd ($175) | 14.4% | 14.6% | 15.8% | 15.9% | 14.4% |
| Byd Co Ltd ($1211) | 11.3% | 10.2% | 9.6% | 12.0% | 14.2% |
| Qingling Motors Co Ltd ($1122) | 8.8% | 10.3% | 12.8% | 11.4% | 12.2% |
| BAIC Motor Corp Ltd ($1958) | -27.8% | 9.6% | -13.2% | 5.4% | 9.7% |
| |
|---|
| Median (10 companies) | 6.9% | 7.1% | 3.8% | 4.8% | 7.3% |
|---|
| Sinotruk Hong Kong Ltd ($3808) | 8.0% | 6.6% | 7.4% | 7.8% | 7.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangzhou Automobile Group Co Ltd ($2238) | 20.4% | 22.7% | 10.1% | 15.7% | 14.7% |
| Brilliance China Automotive Holdings Ltd ($1114) | 4.8% | 8.9% | 10.1% | 13.4% | 12.5% |
| BAIC Motor Corp Ltd ($1958) | 172.9% | 132.8% | 45.0% | 16.1% | 11.0% |
| Great Wall Motor Co Ltd ($2333) | 12.9% | 10.7% | 13.0% | 12.0% | 8.0% |
| Byd Co Ltd ($1211) | 16.2% | 13.0% | 11.2% | 4.2% | 5.7% |
| |
|---|
| Median (10 companies) | 5.9% | 7.6% | 7.0% | 4.6% | 5.5% |
|---|
| Sinotruk Hong Kong Ltd ($3808) | 4.7% | 2.4% | 1.5% | 1.1% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Wall Motor Co Ltd ($2333) | 22.9% | 27.7% | 32.2% | 25.5% | 22.5% |
| Geely Automobile Holdings Ltd ($175) | 15.7% | 16.2% | 19.6% | 13.4% | 15.0% |
| Wuling Motors Holdings Ltd ($305) | 6.2% | 7.2% | 7.7% | 10.0% | 11.8% |
| Byd Co Ltd ($1211) | 6.1% | 2.7% | 2.5% | 3.9% | 8.5% |
| Dah Chong Hong Holdings Ltd ($1828) | 14.2% | 11.4% | 8.5% | 7.7% | 6.2% |
| |
|---|
| Median (10 companies) | 6.2% | 3.6% | 4.1% | 4.5% | 6.1% |
|---|
| Sinotruk Hong Kong Ltd ($3808) | 5.7% | 2.5% | 3.5% | 3.9% | 2.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dah Chong Hong Holdings Ltd ($1828) | 1.5x | 1.5x | 2.8x | 3.8x | 3.3x |
| Byd Co Ltd ($1211) | 2.8x | 3.4x | 6.7x | 3.9x | 2.9x |
| BAIC Motor Corp Ltd ($1958) | | 26.0x | | 2.6x | 0.8x |
| Great Wall Motor Co Ltd ($2333) | -0.5x | -0.2x | -0.1x | 0.1x | 0.3x |
| Guangzhou Automobile Group Co Ltd ($2238) | | | | 13.2x | 0.3x |
| |
|---|
| Median (9 companies) | 1.2x | 1.8x | 0.9x | 2.3x | 0.3x |
|---|
| Sinotruk Hong Kong Ltd ($3808) | 2.7x | 3.8x | 2.6x | 0.3x | 0.3x |
