Johnson Electric Holdings Ltd CAPEX jumped on 55.4% and Revenue increased on 4.7%
17/05/2016 • About Johnson Electric Holdings Ltd (
$179) • By InTwits
Johnson Electric Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Johnson Electric Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's in pair with industry average of 6.7%.
- CAPEX is quite volatile: 186 in FY2016, 120 in FY2015, 92.2 in FY2014, 82.6 in FY2013, 91.3 in FY2012
- The company has business model with low profitability: ROIC is at 7.4%
- It operates with high leverage: Net Debt/EBITDA is 0.8x while industry average is -2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Johnson Electric Holdings Ltd ($179) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,141 | 2,060 | 2,098 | 2,136 | 2,236 | 4.7% |
| Gross Profit | 584 | 578 | 619 | 632 | 590 | -6.8% |
| SG&A | 371 | 387 | 394 | 405 | 435 | 7.4% |
| EBITDA | 303 | 298 | 326 | 328 | 286 | -13.0% |
| Net Income | 187 | 191 | 208 | 211 | 173 | -18.1% |
Balance Sheet
|
|---|
| Cash | 385 | 481 | 644 | 773 | 193 | -75.0% |
| Short Term Debt | 203 | 123 | 115 | 66 | 98 | 49.6% |
| Long Term Debt | 2 | 2 | 1 | 226 | 324 | 43.7% |
Cash flow
|
|---|
| Capex | 91 | 83 | 92 | 120 | 186 | 55.4% |
Ratios
|
|---|
| Revenue growth | 1.7% | -3.8% | 1.8% | 1.8% | 4.7% | |
| EBITDA growth | -3.2% | -1.6% | 9.1% | 0.8% | -13.0% | |
| Gross Margin | 27.3% | 28.0% | 29.5% | 29.6% | 26.4% | -3.2% |
| EBITDA Margin | 14.2% | 14.5% | 15.5% | 15.4% | 12.8% | -2.6% |
| Net Income Margin | 8.7% | 9.3% | 9.9% | 9.9% | 7.7% | -2.2% |
| SG&A, % of revenue | 17.3% | 18.8% | 18.8% | 19.0% | 19.5% | 0.5% |
| CAPEX, % of revenue | 4.3% | 4.0% | 4.4% | 5.6% | 8.3% | 2.7% |
| ROIC | 11.7% | 11.6% | 12.7% | 11.2% | 7.4% | -3.8% |
| ROE | 13.2% | 12.6% | 12.6% | 11.7% | 9.3% | -2.4% |
| Net Debt/EBITDA | -0.6x | -1.2x | -1.6x | -1.5x | 0.8x | 2.3x |
Revenue and profitability
Johnson Electric Holdings Ltd's Revenue increased on 4.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 42.8 pp from -16.3% to -59.0% in FY2016.
Gross Margin decreased on 3.2 pp from 29.6% to 26.4% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased on 2.2 pp from 9.9% to 7.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Johnson Electric Holdings Ltd's CAPEX/Revenue was 8.3% in FY2016. Johnson Electric Holdings Ltd showed CAPEX/Revenue growth of 4.3 pp from 4.0% in FY2013 to 8.3% in FY2016. For the last three years the average CAPEX/Revenue was 6.1%.Johnson Electric Holdings Ltd invested a large share of EBITDA (65.2%) to CAPEX.
Return on investment
The company operates at low ROIC (7.37%) and ROE (9.32%). ROIC decreased on 3.8 pp from 11.2% to 7.4% in FY2016. ROE decreased on 2.4 pp from 11.7% to 9.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.8x and Debt / EBITDA is 1.5x. Net Debt / EBITDA surged on 2.3x from -1.5x to 0.8x in FY2016. Debt surged on 45.0% while cash dropped on 75.0%.
Management team
Johnson Electric Holdings Ltd's CEO is Wang Shui Chung "Patrick". Wang Shui Chung "Patrick" has 22 years tenure at the company.
Appendix 1: Peers in Electrical Compo&Equip
Below you can find Johnson Electric 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 (33 companies) | -6.0% | 8.9% | 16.2% | 6.1% | |
|---|
| Johnson Electric Holdings Ltd ($179) | | -3.8% | 1.8% | 1.8% | 4.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Titans Energy Technology Group Co Ltd ($2188) | 41.4% | 27.3% | 33.7% | 36.6% | |
| Boer Power Holdings Ltd ($1685) | 36.8% | 36.0% | 35.3% | 35.7% | |
| Sun King Power Electronics Group ($580) | 25.4% | 30.0% | 30.8% | 34.1% | |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 24.4% | 24.9% | 24.8% | 32.5% | |
| CEC International Holdings Ltd ($759) | 23.6% | 27.9% | 29.9% | 31.8% | |
| |
|---|
| Median (31 companies) | 18.8% | 17.4% | 16.2% | 16.2% | |
|---|
| Johnson Electric Holdings Ltd ($179) | 27.3% | 28.0% | 29.5% | 29.6% | 26.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shougang Concord Technology Holdings ($521) | 12.3% | 28.1% | 31.9% | 45.8% | |
| Boer Power Holdings Ltd ($1685) | 26.3% | 27.8% | 28.5% | 28.6% | |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 20.2% | 19.2% | 20.8% | 26.3% | |
| China Titans Energy Technology Group Co Ltd ($2188) | 10.8% | -11.9% | 2.0% | 16.5% | |
| Sun King Power Electronics Group ($580) | 8.4% | 13.8% | 2.2% | 15.8% | |
| |
|---|
| Median (33 companies) | 7.8% | 7.0% | 3.8% | 6.2% | |
|---|
| Johnson Electric Holdings Ltd ($179) | 14.2% | 14.5% | 15.5% | 15.4% | 12.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| FDG Electric Vehicles Ltd ($729) | 374.3% | 82.3% | 71.1% | 417.0% | |
| Applied Development Holdings Ltd ($519) | 79.7% | | 1,285.3% | 89.8% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.1% | 50.7% | 13.5% | 22.8% | |
| Jimei International Entertainment Group Ltd ($1159) | 0.1% | 15.2% | 0.6% | 7.3% | |
| CEC International Holdings Ltd ($759) | 8.8% | 10.1% | 4.3% | 6.9% | |
| |
|---|
| Median (33 companies) | 6.7% | 5.4% | 3.6% | 2.6% | |
|---|
| Johnson Electric Holdings Ltd ($179) | 4.3% | 4.0% | 4.4% | 5.6% | 8.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Boer Power Holdings Ltd ($1685) | 18.0% | 17.0% | 21.2% | 19.5% | |
| Tianneng Power International Ltd ($819) | 20.0% | 4.5% | -3.6% | 14.9% | |
| Jiangnan Group Ltd ($1366) | 14.9% | 14.1% | 13.5% | 12.8% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 1.8% | 3.0% | 10.4% | 12.0% | |
| Hengxin Technology Ltd ($1085) | 8.1% | 9.3% | 9.0% | 10.2% | |
| |
|---|
| Median (33 companies) | 2.7% | 3.0% | 0.7% | 2.7% | |
|---|
| Johnson Electric Holdings Ltd ($179) | 11.7% | 11.6% | 12.7% | 11.2% | 7.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wai Chi Holdings Co Ltd ($1305) | 3.4x | 3.1x | 2.0x | 11.8x | |
| Coslight Technology International Group Co Ltd ($1043) | 51.9x | 8.7x | 54.7x | 7.7x | |
| Guodian Technology & Environment Group Corp Ltd ($1296) | 6.3x | 7.6x | 6.8x | 6.9x | |
| Leoch International Technology Ltd ($842) | 9.3x | 16.3x | 4.7x | 5.0x | |
| CEC International Holdings Ltd ($759) | 3.9x | 6.1x | 4.1x | 4.9x | |
| |
|---|
| Median (25 companies) | 1.6x | 1.8x | 2.3x | 1.4x | |
|---|
| Johnson Electric Holdings Ltd ($179) | -0.6x | -1.2x | -1.6x | -1.5x | 0.8x |
