Xiezhong International Holdings Ltd CAPEX surged on 52.0% in 2015 while Revenue decreased on 6.2%
31/03/2016 • About Xiezhong International Holdings Ltd (
$3663) • By InTwits
Xiezhong International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Xiezhong International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.9%. At the same time it's in pair with industry average of 17.7%.
- CAPEX is quite volatile: 85.8 in FY2015, 141 in FY2014, 218 in FY2013, 7.6 in FY2012, 29.1 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.6%
- It operates with high leverage: Net Debt/EBITDA is 2.2x 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.
Xiezhong International Holdings Ltd ($3663) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 619.9 | 589.7 | 728.2 | 744.7 | 698.8 | -6.2% |
| Gross Profit | 172.2 | 155.6 | 169.9 | 174.0 | 147.1 | -15.5% |
| SG&A | | 76.0 | 93.9 | 116.6 | 88.5 | -24.1% |
| EBITDA | 141.8 | 122.2 | 125.3 | 119.4 | 129.9 | 8.8% |
| Net Income | 86.1 | 68.0 | 58.9 | 40.2 | 41.3 | 2.7% |
Balance Sheet
|
|---|
| Cash | 58.5 | 123.7 | 80.6 | 217.9 | 91.1 | -58.2% |
| Short Term Debt | 164.2 | 197.5 | 236.5 | 358.9 | 123.9 | -65.5% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 246.7 | |
Cash flow
|
|---|
| Capex | 95.5 | 135.1 | 181.4 | 89.3 | 135.8 | 52.0% |
Ratios
|
|---|
| Revenue growth | 13.6% | -4.9% | 23.5% | 2.3% | -6.2% | |
| EBITDA growth | 18.0% | -13.8% | 2.5% | -4.7% | 8.8% | |
| Gross Margin | 27.8% | 26.4% | 23.3% | 23.4% | 21.0% | -2.3% |
| EBITDA Margin | 22.9% | 20.7% | 17.2% | 16.0% | 18.6% | 2.6% |
| Net Income Margin | 13.9% | 11.5% | 8.1% | 5.4% | 5.9% | 0.5% |
| SG&A, % of revenue | | 12.9% | 12.9% | 15.7% | 12.7% | -3.0% |
| CAPEX, % of revenue | 15.4% | 22.9% | 24.9% | 12.0% | 19.4% | 7.4% |
| ROIC | 20.6% | 10.2% | 8.5% | 5.8% | 5.6% | -0.1% |
| ROE | 22.6% | 10.9% | 7.9% | 5.2% | 5.2% | 0.0% |
| Net Debt/EBITDA | 0.7x | 0.6x | 1.2x | 1.2x | 2.2x | 1.0x |
Revenue and profitability
Xiezhong International Holdings Ltd's Revenue decreased on 6.2% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.6 pp from 16.0% to 18.6% in 2015.
Gross Margin decreased on 2.3 pp from 23.4% to 21.0% in 2015. SG&A as a % of Revenue decreased on 3.0 pp from 15.7% to 12.7% in 2015.
Net Income marign increased slightly on 0.51 pp from 5.4% to 5.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Xiezhong International Holdings Ltd had CAPEX/Revenue of 19.4%. Xiezhong International Holdings Ltd showed decline in CAPEX/Revenue of 3.5 pp from 22.9% in 2012 to 19.4% in 2015. It's average CAPEX/Revenue for the last three years was 18.8%.The company has spent a lot to CAPEX (105% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (5.65%) and ROE (5.21%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 2.2x Net Debt / EBITDA and 2.9x Debt / EBITDA. Net Debt / EBITDA surged on 1.0x from 1.2x to 2.2x in 2015. Debt increased on 3.3% in 2015 while cash dropped on 58.2% in 2015.
Appendix 1: Peers in Auto Parts&Equipment
Below you can find Xiezhong International 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% | -8.3% | 10.7% | 6.0% | 3.2% |
|---|
| Xiezhong International Holdings Ltd ($3663) | | -4.9% | 23.5% | 2.3% | -6.2% |
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) | 25.1% | 20.1% | 20.0% | 21.2% | 19.7% |
|---|
| Xiezhong International Holdings Ltd ($3663) | 27.8% | 26.4% | 23.3% | 23.4% | 21.0% |
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% |
| Nexteer Automotive Group Ltd ($1316) | 5.9% | 6.7% | 10.4% | 12.0% | 13.7% |
| Zhejiang Shibao Co Ltd ($1057) | 25.8% | 19.8% | 14.0% | 14.5% | 13.5% |
| |
|---|
| Median (16 companies) | 15.2% | 9.3% | 11.4% | 11.5% | 11.4% |
|---|
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 20.7% | 17.2% | 16.0% | 18.6% |
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% |
| 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% |
| Xinchen China Power Holdings Ltd ($1148) | 2.5% | 1.2% | 0.8% | 21.9% | 8.3% |
| |
|---|
| Median (16 companies) | 11.4% | 8.5% | 6.2% | 5.4% | 6.8% |
|---|
| Xiezhong International Holdings Ltd ($3663) | 15.4% | 22.9% | 24.9% | 12.0% | 19.4% |
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) | 13.1% | 6.3% | 8.9% | 6.9% | 3.1% |
|---|
| Xiezhong International Holdings Ltd ($3663) | 20.6% | 10.2% | 8.5% | 5.8% | 5.6% |
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 |
| 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 |
| Weichai Power Co Ltd ($2338) | -0.2x | 0.7x | 0.6x | 1.1x | 0.6x |
| |
|---|
| Median (11 companies) | 1.3x | 0.9x | 0.9x | 1.0x | 0.5x |
|---|
| Xiezhong International Holdings Ltd ($3663) | 0.7x | 0.6x | 1.2x | 1.2x | 2.2x |
