Enterprise Development Holdings Ltd revenue surged on 25.9% in 2015 while EBITDA Margin decreased slightly on 1.3 pp from 7.5% to 6.2%
01/04/2016 • About Enterprise Development Holdings Ltd (
$1808) • By InTwits
Enterprise Development Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.2% in 2015, 7.5% in 2014, 13.3% in 2013, 0.8% in 2012, 6.3% in 2011
- Enterprise Development Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has potentially unprofitable business model: ROIC is at 5.3%
- It operates with high leverage: Net Debt/EBITDA is -1.3x 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.
Enterprise Development Holdings Ltd ($1808) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 128.8 | 132.0 | 181.3 | 333.4 | 419.7 | 25.9% |
| Gross Profit | 33.6 | 33.2 | 59.1 | 71.3 | 115.0 | 61.4% |
| SG&A | | 24.0 | 22.5 | 28.1 | 67.7 | 141.2% |
| EBITDA | 8.1 | 1.0 | 24.1 | 25.1 | 26.0 | 3.7% |
| Net Income | 10.9 | -29.9 | 8.8 | 11.5 | 7.4 | -35.2% |
Balance Sheet
|
|---|
| Cash | 10.3 | 17.3 | 49.3 | 57.5 | 81.8 | 42.3% |
| Short Term Debt | 0.0 | 16.0 | 5.1 | 11.3 | 48.5 | 328.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.8 | 0.9 | 1.0 | 0.8 | 2.4 | 181.7% |
Ratios
|
|---|
| Revenue growth | 225.9% | 2.5% | 37.3% | 83.9% | 25.9% | |
| EBITDA growth | -76.9% | -87.4% | 2,257.6% | 3.8% | 3.7% | |
| Gross Margin | 26.1% | 25.2% | 32.6% | 21.4% | 27.4% | 6.0% |
| EBITDA Margin | 6.3% | 0.8% | 13.3% | 7.5% | 6.2% | -1.3% |
| Net Income Margin | 8.5% | -22.7% | 4.9% | 3.4% | 1.8% | -1.7% |
| SG&A, % of revenue | | 18.2% | 12.4% | 8.4% | 16.1% | 7.7% |
| CAPEX, % of revenue | 2.1% | 0.7% | 0.6% | 0.3% | 0.6% | 0.3% |
| ROIC | 1.0% | -3.5% | 12.3% | 8.3% | 5.3% | -3.0% |
| ROE | 3.0% | -38.8% | 7.1% | 6.0% | 2.1% | -3.9% |
| Net Debt/EBITDA | -1.3x | -1.2x | -1.8x | -1.8x | -1.3x | 0.6x |
Revenue and profitability
Enterprise Development Holdings Ltd's Revenue jumped on 25.9% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.3 pp from 7.5% to 6.2% in 2015.
Gross Margin increased on 6.0 pp from 21.4% to 27.4% in 2015. SG&A as a % of Revenue increased on 7.7 pp from 8.4% to 16.1% in 2015.
Net Income marign decreased slightly on 1.7 pp from 3.4% to 1.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
Enterprise Development Holdings Ltd's CAPEX/Revenue was 0.57% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 0.46%.
Return on investment
The company operates at low ROIC (5.29%) and ROE (2.11%). ROIC decreased on 3.0 pp from 8.3% to 5.3% in 2015. ROE decreased on 3.9 pp from 6.0% to 2.1% in 2015.
Leverage (Debt)
Debt level is -1.3x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA surged on 0.6x from -1.8x to -1.3x in 2015. Debt surged on 328% in 2015 while cash surged on 42.3% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Enterprise Development Holdings Ltd benchmarking against other companies in Electrical Compo&Equip 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 |
|---|
| 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 (31 companies) | 19.4% | -6.0% | 8.5% | 15.5% | 6.0% |
|---|
| Enterprise Development Holdings Ltd ($1808) | | 2.5% | 37.3% | 83.9% | 25.9% |
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 (29 companies) | 20.4% | 18.8% | 17.4% | 16.2% | 16.2% |
|---|
| Enterprise Development Holdings Ltd ($1808) | 26.1% | 25.2% | 32.6% | 21.4% | 27.4% |
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 (31 companies) | 10.8% | 8.3% | 7.0% | 3.8% | 6.6% |
|---|
| Enterprise Development Holdings Ltd ($1808) | 6.3% | 0.8% | 13.3% | 7.5% | 6.2% |
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 (31 companies) | 9.4% | 6.7% | 5.4% | 4.0% | 2.7% |
|---|
| Enterprise Development Holdings Ltd ($1808) | 2.1% | 0.7% | 0.6% | 0.3% | 0.6% |
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 (31 companies) | 6.2% | 2.8% | 3.0% | 0.7% | 2.7% |
|---|
| Enterprise Development Holdings Ltd ($1808) | 1.0% | -3.5% | 12.3% | 8.3% | 5.3% |
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) | 0.5x | 1.6x | 1.8x | 2.3x | 1.5x |
|---|
| Enterprise Development Holdings Ltd ($1808) | -1.3x | -1.2x | -1.8x | -1.8x | -1.3x |
