NVC Lighting Holding Ltd reports 13.7 pp EBITDA Margin growth from -5.8% to 7.9% in 2015 and 10.8% Revenue growth
05/04/2016 • About NVC Lighting Holding Ltd (
$2222) • By InTwits
NVC Lighting Holding 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: 7.9% in 2015, -5.8% in 2014, 11.9% in 2013, 6.0% in 2012, 18.4% in 2011
- NVC Lighting Holding Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's in pair with industry average of 8.9%.
- CAPEX is quite volatile: 82.0 in 2015, 77.5 in 2014, 126 in 2013, 177 in 2012, 431 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.2%
- It operates with high leverage: Net Debt/EBITDA is -2.4x 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.
NVC Lighting Holding Ltd ($2222) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,798 | 3,546 | 3,774 | 3,471 | 3,846 | 10.8% |
| Gross Profit | 974 | 761 | 797 | 742 | 901 | 21.5% |
| SG&A | 489 | 570 | 530 | 813 | 742 | -8.8% |
| EBITDA | 697 | 214 | 449 | -202 | 305 | -250.9% |
| Net Income | 548 | 8 | 245 | -354 | 56 | -115.7% |
Balance Sheet
|
|---|
| Cash | 781 | 1,210 | 936 | 851 | 904 | 6.2% |
| Short Term Debt | 41 | 94 | 47 | 41 | 174 | 325.2% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 431 | 177 | 126 | 78 | 82 | 5.8% |
Ratios
|
|---|
| Revenue growth | 19.0% | -6.6% | 6.4% | -8.0% | 10.8% | |
| EBITDA growth | 8.1% | -69.3% | 109.3% | -145.0% | -250.9% | |
| Gross Margin | 25.6% | 21.5% | 21.1% | 21.4% | 23.4% | 2.1% |
| EBITDA Margin | 18.4% | 6.0% | 11.9% | -5.8% | 7.9% | 13.7% |
| Net Income Margin | 14.4% | 0.2% | 6.5% | -10.2% | 1.4% | 11.7% |
| SG&A, % of revenue | 12.9% | 16.1% | 14.0% | 23.4% | 19.3% | -4.1% |
| CAPEX, % of revenue | 11.3% | 5.0% | 3.3% | 2.2% | 2.1% | -0.1% |
| ROIC | 16.5% | 2.3% | 8.6% | -8.8% | 5.2% | 14.0% |
| ROE | 15.9% | 0.2% | 6.8% | -10.2% | 1.7% | 11.9% |
| Net Debt/EBITDA | -1.1x | -5.2x | -2.0x | | -2.4x | -2.4x |
Revenue and profitability
The company's Revenue surged on 10.8% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 13.7 pp from -5.8% to 7.9% in 2015.
Gross Margin increased on 2.1 pp from 21.4% to 23.4% in 2015. SG&A as a % of Revenue decreased on 4.1 pp from 23.4% to 19.3% in 2015.
Net Income marign surged on 11.7 pp from -10.2% to 1.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 NVC Lighting Holding Ltd had CAPEX/Revenue of 2.1%. CAPEX/Revenue decreased on 2.9 pp from 5.0% in 2012 to 2.1% in 2015. Average CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at low ROIC (5.20%) and ROE (1.70%). ROIC surged on 14.0 pp from -8.8% to 5.2% in 2015. ROE surged on 11.9 pp from -10.2% to 1.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.4x and Debt / EBITDA is 0.6x. Net Debt / EBITDA dropped2.4x from to -2.4x in 2015. Debt jumped on 325% in 2015 while cash increased on 6.2% in 2015.
Appendix 1: Peers in Electrical Compo&Equip
Below you can find NVC Lighting Holding 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 (32 companies) | 19.8% | 0.2% | 8.9% | 16.2% | 6.1% |
|---|
| NVC Lighting Holding Ltd ($2222) | | -6.6% | 6.4% | -8.0% | 10.8% |
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 (30 companies) | 20.4% | 18.8% | 17.4% | 16.2% | 17.0% |
|---|
| NVC Lighting Holding Ltd ($2222) | 25.6% | 21.5% | 21.1% | 21.4% | 23.4% |
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 (32 companies) | 10.7% | 8.3% | 7.0% | 5.5% | 6.4% |
|---|
| NVC Lighting Holding Ltd ($2222) | 18.4% | 6.0% | 11.9% | -5.8% | 7.9% |
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 (32 companies) | 9.2% | 6.7% | 5.4% | 4.0% | 2.7% |
|---|
| NVC Lighting Holding Ltd ($2222) | 11.3% | 5.0% | 3.3% | 2.2% | 2.1% |
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 (32 companies) | 5.4% | 2.8% | 3.0% | 2.8% | 2.9% |
|---|
| NVC Lighting Holding Ltd ($2222) | 16.5% | 2.3% | 8.6% | -8.8% | 5.2% |
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 (25 companies) | 0.5x | 1.6x | 1.8x | 2.2x | 1.4x |
|---|
| NVC Lighting Holding Ltd ($2222) | -1.1x | -5.2x | -2.0x | | -2.4x |
