Wing Tai Investment Holdings Ltd revenue increased on 8.9% in 2015 and EBITDA Margin surged on 13.7 pp from -21.5% to -7.8%
31/03/2016 • About Wing Tai Investment Holdings Ltd (
$876) • By InTwits
Wing Tai Investment Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wing Tai Investment Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -8.9%
- The company operates at negative EBITDA Margin: -7.8%
- EBITDA Margin is quite volatile: -7.8% in 2015, -21.5% in 2014, 6.5% in 2013, 18.0% in 2012, 18.1% in 2011
- Wing Tai Investment Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.9%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: 4.0 in 2015, 22.9 in 2014, 18.5 in 2013, 49.7 in 2012, 100 in 2011
- The company has unprofitable business model: ROIC is at -8.9%
- It operates with high leverage: Net Debt/EBITDA is -1.8x 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.
Wing Tai Investment Holdings Ltd ($876) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 361.3 | 368.8 | 316.0 | 363.5 | 395.7 | 8.9% |
| Gross Profit | 111.3 | 120.4 | 78.8 | 60.4 | 61.5 | 1.7% |
| SG&A | 73.3 | 82.5 | 91.4 | 122.6 | 100.8 | -17.7% |
| EBITDA | 65.3 | 66.3 | 20.6 | -78.1 | -30.8 | -60.5% |
| Net Income | 167.9 | 312.8 | -35.5 | -90.0 | -30.6 | -66.0% |
Balance Sheet
|
|---|
| Cash | 118.1 | 71.4 | 73.0 | 28.0 | 130.2 | 364.7% |
| Short Term Debt | 63.1 | 30.0 | 20.0 | 1.6 | 1.1 | -30.7% |
| Long Term Debt | 99.3 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 100.1 | 49.7 | 18.5 | 22.9 | 4.0 | -82.6% |
Ratios
|
|---|
| Revenue growth | -14.9% | 2.1% | -14.3% | 15.0% | 8.9% | |
| EBITDA growth | -14.6% | 1.5% | -68.9% | -479.1% | -60.5% | |
| Gross Margin | 30.8% | 32.6% | 24.9% | 16.6% | 15.5% | -1.1% |
| EBITDA Margin | 18.1% | 18.0% | 6.5% | -21.5% | -7.8% | 13.7% |
| Net Income Margin | 46.5% | 84.8% | -11.2% | -24.8% | -7.7% | 17.0% |
| SG&A, % of revenue | 20.3% | 22.4% | 28.9% | 33.7% | 25.5% | -8.2% |
| CAPEX, % of revenue | 27.7% | 13.5% | 5.9% | 6.3% | 1.0% | -5.3% |
| ROIC | 4.1% | 3.2% | -1.3% | -32.4% | -8.9% | 23.5% |
| ROE | 22.2% | 32.0% | -4.9% | -37.8% | -9.4% | 28.4% |
| Net Debt/EBITDA | 0.7x | -0.6x | -2.6x | | | 0.0x |
Revenue and profitability
The company's Revenue increased on 8.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.5 pp from 2.4% to 5.0% in 2015.
Gross Margin decreased slightly on 1.1 pp from 16.6% to 15.5% in 2015. SG&A as a % of Revenue decreased on 8.2 pp from 33.7% to 25.5% in 2015.
Net Income marign surged on 17.0 pp from -24.8% to -7.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.0%. CAPEX/Revenue dropped on 12.5 pp from 13.5% in 2012 to 1.0% in 2015. For the last three years the average CAPEX/Revenue was 4.4%.
Return on investment
The company operates at negative ROIC (-8.89%) and ROE (-9.45%). ROIC surged on 23.5 pp from -32.4% to -8.9% in 2015. ROE jumped on 28.4 pp from -37.8% to -9.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 30.7% in 2015 while cash surged on 365% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below you can find Wing Tai Investment Holdings Ltd benchmarking vs. other companies in Electrical Compo&Equip 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 |
|---|
| 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% | 8.9% | 16.2% | 5.8% |
|---|
| Wing Tai Investment Holdings Ltd ($876) | | 2.1% | -14.3% | 15.0% | 8.9% |
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) | 20.4% | 18.8% | 17.4% | 16.2% | 17.0% |
|---|
| Wing Tai Investment Holdings Ltd ($876) | 30.8% | 32.6% | 24.9% | 16.6% | 15.5% |
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) | 10.7% | 7.8% | 7.3% | 5.5% | 6.9% |
|---|
| Wing Tai Investment Holdings Ltd ($876) | 18.1% | 18.0% | 6.5% | -21.5% | -7.8% |
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% | 2.9% |
|---|
| Wing Tai Investment Holdings Ltd ($876) | 27.7% | 13.5% | 5.9% | 6.3% | 1.0% |
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% | 2.7% | 3.0% | 2.8% | 2.9% |
|---|
| Wing Tai Investment Holdings Ltd ($876) | 4.1% | 3.2% | -1.3% | -32.4% | -8.9% |
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 |
| Coslight Technology International Group Co Ltd ($1043) | 11.2x | 51.9x | 8.7x | 54.7x | 7.7x |
| 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 |
| |
|---|
| Median (24 companies) | 0.3x | 1.6x | 1.8x | 2.2x | 1.5x |
|---|
