Shanxi Changcheng Microlight Equipment Co Ltd reports 15.9% revenue decline in 2015 and 17.5 pp EBITDA Margin decline from -4.6% to -22.1%
15/06/2016 • About Shanxi Changcheng Microlight Equipment Co Ltd (
$8286) • By InTwits
Shanxi Changcheng Microlight Equipment Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shanxi Changcheng Microlight Equipment Co Ltd is a company in decline: 2015 revenue growth was -15.9%, 5 years revenue CAGR was -7.7%
- The company operates at negative EBITDA Margin: -22.1%
- Shanxi Changcheng Microlight Equipment Co Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -6.9% for the sames years0
- Shanxi Changcheng Microlight Equipment Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.9%. At the same time it's a lot of higher than industry average of 7.5%.
- CAPEX is quite volatile: 2.8 in 2015, 2.9 in 2014, 3.0 in 2013, 8.3 in 2012, 11.2 in 2011
- The company has unprofitable business model: ROIC is at -19.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shanxi Changcheng Microlight Equipment Co Ltd ($8286) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 55.333 | 48.113 | 62.758 | 51.466 | 43.282 | -15.9% |
| Gross Profit | 15.433 | 10.785 | 17.077 | 12.197 | 7.943 | -34.9% |
| SG&A | | 21.342 | 15.928 | 16.903 | 15.820 | -6.4% |
| EBITDA | 2.392 | -11.997 | 3.572 | -2.367 | -9.552 | 303.5% |
| Net Income | -11.041 | -26.406 | -2.230 | -11.306 | -14.855 | 31.4% |
Balance Sheet
|
|---|
| Cash | 1.099 | 0.955 | 13.452 | 1.233 | 0.542 | -56.0% |
| Short Term Debt | 14.000 | 12.000 | 17.000 | 15.000 | 14.000 | -6.7% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 11.156 | 8.332 | 2.973 | 2.922 | 2.839 | -2.8% |
Ratios
|
|---|
| Revenue growth | -14.3% | -13.0% | 30.4% | -18.0% | -15.9% | |
| EBITDA growth | -86.5% | -601.5% | -129.8% | -166.3% | 303.5% | |
| Gross Margin | 27.9% | 22.4% | 27.2% | 23.7% | 18.4% | -5.3% |
| EBITDA Margin | 4.3% | -24.9% | 5.7% | -4.6% | -22.1% | -17.5% |
| Net Income Margin | -20.0% | -54.9% | -3.6% | -22.0% | -34.3% | -12.4% |
| SG&A, % of revenue | | 44.4% | 25.4% | 32.8% | 36.6% | 3.7% |
| CAPEX, % of revenue | 20.2% | 17.3% | 4.7% | 5.7% | 6.6% | 0.9% |
| ROIC | -6.1% | -20.9% | -2.7% | -9.3% | -19.7% | -10.4% |
| ROE | -9.8% | -28.1% | -2.8% | -15.5% | -24.8% | -9.3% |
| Net Debt/EBITDA | 5.4x | | 1.0x | | | 0.0x |
Revenue and profitability
Shanxi Changcheng Microlight Equipment Co Ltd's Revenue dropped on 15.9% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 17.5 pp from -4.6% to -22.1% in 2015.
Gross Margin decreased on 5.3 pp from 23.7% to 18.4% in 2015. SG&A as a % of Revenue increased on 3.7 pp from 32.8% to 36.6% in 2015.
Net Income marign dropped on 12.4 pp from -22.0% to -34.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Shanxi Changcheng Microlight Equipment Co Ltd's CAPEX/Revenue was 6.6% in 2015. Shanxi Changcheng Microlight Equipment Co Ltd showed big decline in CAPEX/Revenue of 10.8 pp from 17.3% in 2012 to 6.6% in 2015. It's average level of CAPEX/Revenue for the last three years was 5.7%.
Return on investment
The company operates at negative ROIC (-19.66%) and ROE (-24.79%). ROIC dropped on 10.4 pp from -9.3% to -19.7% in 2015. ROE decreased on 9.3 pp from -15.5% to -24.8% in 2015.
Leverage (Debt)
Debt level is -88.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt decreased on 6.7% in 2015 while cash dropped on 56.0% in 2015.
Appendix 1: Peers in Computers
Below you can find Shanxi Changcheng Microlight Equipment Co Ltd benchmarking vs. other companies in Computers 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 |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | | -65.4% | 8.8% | 27.1% | 759.3% |
| Beautiful China Holdings Co Ltd ($706) | | -7.8% | -23.3% | -37.1% | 267.1% |
| Powerleader Science & Technology Group Ltd ($8236) | | 2.5% | -10.3% | 18.8% | 45.0% |
| Alibaba Health Information Technology Ltd ($241) | | 29.4% | -96.7% | 73.0% | 35.3% |
| Thiz Technology Group Ltd ($8119) | | -4.1% | -95.1% | 72.2% | 31.9% |
| |
|---|
| Median (24 companies) | | 4.6% | -1.8% | 11.0% | 0.0% |
|---|
| Shanxi Changcheng Microlight Equipment Co Ltd ($8286) | | -13.0% | 30.4% | -18.0% | -15.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Universal Technologies Holdings Ltd ($1026) | 86.0% | 87.3% | 79.7% | 90.3% | 98.4% |
| Thiz Technology Group Ltd ($8119) | 2.9% | 8.8% | 63.8% | 86.2% | 96.0% |
| Computer & Technologies Holdings Ltd ($46) | 27.4% | 45.3% | 54.0% | 52.1% | 54.2% |
| Alibaba Health Information Technology Ltd ($241) | 10.1% | 11.4% | -12.6% | 49.3% | 53.7% |
| CCID Consulting Co Ltd ($8235) | 46.5% | 43.7% | 49.1% | 51.8% | 48.7% |
| |
|---|
| Median (24 companies) | 11.1% | 12.7% | 16.0% | 15.4% | 19.5% |
|---|
| Shanxi Changcheng Microlight Equipment Co Ltd ($8286) | 27.9% | 22.4% | 27.2% | 23.7% | 18.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thiz Technology Group Ltd ($8119) | -39.1% | -47.4% | -847.3% | -506.6% | 74.0% |
| World Wide Touch Technology Holdings Ltd ($1282) | 14.0% | 3.4% | -6.4% | -6.4% | 35.7% |
| Ju Teng International Holdings Ltd ($3336) | 9.5% | 15.1% | 19.9% | 19.3% | 23.8% |
| Computer & Technologies Holdings Ltd ($46) | 4.8% | 12.9% | 19.9% | 20.1% | 23.2% |
| PAX Global Technology Ltd ($327) | 18.9% | 16.5% | 17.4% | 18.8% | 22.7% |
| |
|---|
| Median (25 companies) | 2.5% | 3.2% | 2.2% | 1.8% | 3.9% |
|---|
| Shanxi Changcheng Microlight Equipment Co Ltd ($8286) | 4.3% | -24.9% | 5.7% | -4.6% | -22.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Beautiful China Holdings Co Ltd ($706) | 44.9% | 8.4% | 2.2% | 26.2% | 743.7% |
| North Asia Resources Holdings Ltd ($61) | 34.3% | 4.6% | 94.2% | 177.8% | 110.2% |
| China Uptown Group Co Ltd ($2330) | 0.0% | 0.0% | 0.2% | 1.0% | 20.5% |
| Universal Technologies Holdings Ltd ($1026) | 8.5% | 20.0% | 5.7% | 14.2% | 20.3% |
| Ju Teng International Holdings Ltd ($3336) | 17.6% | 14.1% | 18.7% | 20.0% | 17.3% |
| |
|---|
| Median (25 companies) | 1.5% | 1.0% | 1.3% | 1.6% | 1.5% |
|---|
| Shanxi Changcheng Microlight Equipment Co Ltd ($8286) | 20.2% | 17.3% | 4.7% | 5.7% | 6.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lenovo Group Ltd ($992) | | 26.2% | 30.5% | 34.7% | 24.5% |
| PAX Global Technology Ltd ($327) | 14.1% | 12.3% | 12.8% | 18.7% | 22.4% |
| CCID Consulting Co Ltd ($8235) | 20.6% | 11.3% | 10.7% | 10.2% | 15.0% |
| TPV Technology Ltd ($903) | 6.4% | 7.7% | 1.8% | 10.1% | 12.0% |
| Computer & Technologies Holdings Ltd ($46) | 4.1% | 6.0% | 8.6% | 9.4% | 10.8% |
| |
|---|
| Median (25 companies) | 3.8% | 2.1% | 1.4% | -0.1% | 2.3% |
|---|
| Shanxi Changcheng Microlight Equipment Co Ltd ($8286) | -6.1% | -20.9% | -2.7% | -9.3% | -19.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | | -2.8x | -2.5x | -20.8x | 8.8x |
| Thiz Technology Group Ltd ($8119) | | | | | 8.2x |
| Powerleader Science & Technology Group Ltd ($8236) | 2.0x | 2.7x | 3.6x | 4.6x | 6.7x |
| EVOC Intelligent Technology Co Ltd ($2308) | 6.4x | 0.5x | 5.8x | 5.7x | 5.4x |
| Perception Digital Holdings Ltd ($1822) | | | | | 1.8x |
| |
|---|
| Median (16 companies) | -1.7x | -2.3x | -2.1x | -3.9x | 0.6x |
|---|
