Hanergy Thin Film Power Group Ltd Net Income dropped on 482% in 2015 and Revenue dropped on 70.7%
01/04/2016 • About Hanergy Thin Film Power Group Ltd (
$566) • By InTwits
Hanergy Thin Film Power Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hanergy Thin Film Power Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -73.5%
- Hanergy Thin Film Power Group Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -10.7%0
- Hanergy Thin Film Power Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.9%. At the same time it's a lot of higher than industry average of 47.5%.
- CAPEX is quite volatile: 900 in 2015, 460 in 2014, 91.7 in 2013, 35.5 in 2012, 93.4 in 2011
- The company has unprofitable business model: ROIC is at -73.5%
- It operates with high leverage: Net Debt/EBITDA is 7.2x while industry average is 1.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hanergy Thin Film Power Group Ltd ($566) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,565 | 2,756 | 3,284 | 9,615 | 2,815 | -70.7% |
| Gross Profit | 1,612 | 1,967 | 2,636 | 5,505 | 1,373 | -75.1% |
| SG&A | 119 | 94 | 241 | 1,080 | 2,473 | 128.9% |
| EBITDA | 1,179 | 1,818 | 2,427 | 4,206 | -11,873 | -382.3% |
| Net Income | 719 | 1,316 | 2,018 | 3,204 | -12,234 | -481.9% |
Balance Sheet
|
|---|
| Cash | 285 | 708 | 1,368 | 3,057 | 448 | -85.4% |
| Short Term Debt | 0 | 790 | 1,033 | 492 | 288 | -41.6% |
| Long Term Debt | 729 | 0 | 87 | 908 | 932 | 2.7% |
Cash flow
|
|---|
| Capex | 93 | 35 | 92 | 460 | 900 | 95.5% |
Ratios
|
|---|
| Revenue growth | -15.1% | 7.5% | 19.1% | 192.8% | -70.7% | |
| EBITDA growth | -36.6% | 54.1% | 33.5% | 73.3% | -382.3% | |
| Gross Margin | 62.8% | 71.4% | 80.3% | 57.3% | 48.8% | -8.5% |
| EBITDA Margin | 46.0% | 66.0% | 73.9% | 43.7% | -421.8% | -465.6% |
| Net Income Margin | 28.0% | 47.7% | 61.5% | 33.3% | -434.6% | -468.0% |
| SG&A, % of revenue | 4.6% | 3.4% | 7.3% | 11.2% | 87.9% | 76.6% |
| CAPEX, % of revenue | 3.6% | 1.3% | 2.8% | 4.8% | 32.0% | 27.2% |
| ROIC | 9.3% | 14.1% | 15.1% | 19.3% | -73.5% | -92.9% |
| ROE | 7.7% | 11.9% | 14.6% | 17.6% | -87.6% | -105.2% |
| Net Debt/EBITDA | 0.4x | 0.0x | -0.1x | -0.4x | | 0.4x |
Revenue and profitability
The company's Revenue dropped on 70.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.66 pp from 4.4% to 5.1% in 2015.
Gross Margin decreased on 8.5 pp from 57.3% to 48.8% in 2015. SG&A as a % of Revenue surged on 76.6 pp from 11.2% to 87.9% in 2015.
Net Income marign dropped on 468 pp from 33.3% to -435% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 32.0% in 2015. CAPEX/Revenue surged on 30.7 pp from 1.3% in 2012 to 32.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 13.2%.
Return on investment
The company operates at negative ROIC (-73.51%) and ROE (-87.60%). ROIC dropped on 92.9 pp from 19.3% to -73.5% in 2015. ROE dropped on 105 pp from 17.6% to -87.6% in 2015.
Leverage (Debt)
Debt level is 7.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 0.4x from -0.4x to in 2015. Debt dropped on 12.9% in 2015 while cash dropped on 85.4% in 2015.
Appendix 1: Peers in Semiconductors
Below we provide Hanergy Thin Film Power Group Ltd benchmarking against other companies in Semiconductors 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 |
|---|
| Phoenitron Holdings Ltd ($8066) | | -7.2% | 4.0% | 243.8% | 405.3% |
| Jun Yang Solar Power Investments Ltd ($397) | | -81.0% | 256.8% | 1.1% | 168.9% |
| Honbridge Holdings Ltd ($8137) | | -76.4% | -97.5% | 608.9% | 57.0% |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | | 15.5% | 16.0% | 3.3% | 23.2% |
| Shunfeng International Clean Energy Ltd ($1165) | | -46.3% | 44.4% | 275.6% | 22.4% |
| |
|---|
| Median (22 companies) | | -14.0% | 3.0% | 10.4% | 0.5% |
|---|
| Hanergy Thin Film Power Group Ltd ($566) | | 7.5% | 19.1% | 192.8% | -70.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jun Yang Solar Power Investments Ltd ($397) | -2.4% | 87.3% | 79.3% | 53.8% | 73.8% |
| Intel Corp ($4335) | 62.5% | 62.1% | 59.8% | 63.7% | 62.6% |
| PacMOS Technologies Holdings Ltd ($1010) | 68.1% | 68.8% | 65.7% | 65.7% | 57.5% |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 43.7% | 47.7% | 48.7% | 47.5% | 52.9% |
| Shenzhen Mingwah Aohan High Technology Corp Ltd ($8301) | 13.5% | 26.1% | 26.7% | 16.3% | 52.8% |
| |
|---|
| Median (22 companies) | 18.0% | 22.1% | 23.7% | 29.5% | 31.3% |
|---|
| Hanergy Thin Film Power Group Ltd ($566) | 62.8% | 71.4% | 80.3% | 57.3% | 48.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 13.4% | 9.1% | 37.2% | 88.0% | 78.3% |
| Intel Corp ($4335) | 43.6% | 41.5% | 38.6% | 42.8% | 41.0% |
| Jun Yang Solar Power Investments Ltd ($397) | 3.9% | -218.5% | -16.7% | -9.9% | 35.0% |
| Semiconductor Manufacturing International Corp ($981) | 26.9% | 34.3% | 35.5% | 34.5% | 33.3% |
| Hua Hong Semiconductor Ltd ($1347) | 41.9% | 38.5% | 29.7% | 31.5% | 30.0% |
| |
|---|
| Median (22 companies) | 10.9% | 7.4% | 6.1% | -0.9% | 9.1% |
|---|
| Hanergy Thin Film Power Group Ltd ($566) | 46.0% | 66.0% | 73.9% | 43.7% | -421.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heng Xin China Holdings Ltd ($8046) | 17.3% | 16.1% | 4.1% | 11.9% | 110.8% |
| Jun Yang Solar Power Investments Ltd ($397) | 390.5% | 671.1% | 25.9% | 78.9% | 104.2% |
| China Ruifeng Renewable Energy Ltd ($527) | 2.1% | 5.5% | 35.9% | 10.6% | 60.9% |
| Semiconductor Manufacturing International Corp ($981) | 70.6% | 23.5% | 35.1% | 33.2% | 55.0% |
| Hua Hong Semiconductor Ltd ($1347) | 14.6% | 9.0% | 5.5% | 11.4% | 28.0% |
| |
|---|
| Median (22 companies) | 10.6% | 4.7% | 5.5% | 7.0% | 5.2% |
|---|
| Hanergy Thin Film Power Group Ltd ($566) | 3.6% | 1.3% | 2.8% | 4.8% | 32.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 22.2% | 25.5% | 22.7% | 21.1% | 20.9% |
| Intel Corp ($4335) | 32.4% | 23.7% | 17.1% | 20.6% | 17.7% |
| Applied Materials Inc ($4336) | 25.6% | 4.0% | 4.6% | 15.9% | 15.2% |
| ASM Pacific Technology Ltd ($522) | 52.1% | 12.3% | 9.2% | 21.9% | 13.7% |
| Hua Hong Semiconductor Ltd ($1347) | | 5.3% | 4.8% | 7.8% | 6.7% |
| |
|---|
| Median (22 companies) | 1.7% | -2.2% | -0.4% | -0.5% | 0.8% |
|---|
| Hanergy Thin Film Power Group Ltd ($566) | 9.3% | 14.1% | 15.1% | 19.3% | -73.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Solargiga Energy Holdings Ltd ($757) | 5.9x | | 13.8x | 4.4x | 9.0x |
| China Ruifeng Renewable Energy Ltd ($527) | 4.0x | 16.4x | 6.9x | 4.9x | 7.3x |
| Shunfeng International Clean Energy Ltd ($1165) | 8.2x | | 25.8x | 3.4x | 5.7x |
| Semiconductor Manufacturing International Corp ($981) | 1.9x | 1.3x | 1.0x | 1.0x | 0.5x |
| Intel Corp ($4335) | 0.1x | 0.2x | 0.4x | 0.5x | 0.3x |
| |
|---|
| Median (12 companies) | -0.2x | 0.3x | 0.7x | 0.5x | 0.1x |
|---|
