China High Precision Automation Group Ltd revenue dropped on 44.1% and EBITDA Margin dropped on 21.2 pp from -5.2% to -26.4%
26/09/2016 • About China High Precision Automation Group Ltd (
$591) • By InTwits
China High Precision Automation Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China High Precision Automation Group Ltd is a company in decline: FY2016 revenue growth was -44.1%, 5 years revenue CAGR was -29.3%
- The company operates at negative EBITDA Margin: -26.4%
- EBITDA Margin is quite volatile: -26.4% in FY2016, -5.2% in FY2015, 7.6% in FY2014, 17.5% in FY2013, 36.5% in FY2012
- China High Precision Automation Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.8%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: 0.33 in FY2016, 1.7 in FY2015, 74.3 in FY2014, 47.0 in FY2013, 178 in FY2012
- The company has unprofitable business model: ROIC is at -4.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China High Precision Automation Group Ltd ($591) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 868.1 | 516.5 | 403.8 | 284.3 | 159.0 | -44.1% |
| Gross Profit | 392.8 | 104.1 | 39.0 | 6.7 | -34.0 | -610.3% |
| SG&A | 101.3 | 70.2 | 64.7 | 72.4 | 55.0 | -24.0% |
| EBITDA | 316.9 | 90.4 | 30.6 | -14.8 | -42.0 | |
| Net Income | 259.2 | 36.3 | -19.5 | -65.8 | -94.2 | |
Balance Sheet
|
|---|
| Cash | 1,212.7 | 1,371.4 | 1,400.2 | 1,449.3 | 1,472.1 | 1.6% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 178.0 | 47.0 | 74.3 | 1.7 | 0.3 | -79.9% |
Ratios
|
|---|
| Revenue growth | -3.6% | -40.5% | -21.8% | -29.6% | -44.1% | |
| EBITDA growth | -16.8% | -71.5% | -66.2% | -148.4% | 183.7% | |
| Gross Margin | 45.2% | 20.1% | 9.7% | 2.3% | -21.4% | -23.8% |
| EBITDA Margin | 36.5% | 17.5% | 7.6% | -5.2% | -26.4% | -21.2% |
| Net Income Margin | 29.9% | 7.0% | -4.8% | -23.1% | -59.2% | -36.1% |
| SG&A, % of revenue | 11.7% | 13.6% | 16.0% | 25.5% | 34.6% | 9.1% |
| CAPEX, % of revenue | 20.5% | 9.1% | 18.4% | 0.6% | 0.2% | -0.4% |
| ROIC | 13.5% | 1.7% | -0.9% | -3.0% | -4.4% | -1.3% |
| ROE | 12.2% | 1.6% | -0.9% | -3.0% | -4.4% | -1.4% |
| Net Debt/EBITDA | -3.8x | -15.2x | -45.7x | | | 0.0x |
Revenue and profitability
China High Precision Automation Group Ltd's Revenue dropped on 44.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 56.0 pp from -48.2% to 7.8% in FY2016.
Gross Margin dropped on 23.8 pp from 2.3% to -21.4% in FY2016. SG&A as a % of Revenue increased on 9.1 pp from 25.5% to 34.6% in FY2016.
Net Income marign dropped on 36.1 pp from -23.1% to -59.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.21%. The company showed decline in CAPEX/Revenue of 8.9 pp from 9.1% in FY2013 to 0.21% in FY2016. It's average CAPEX/Revenue for the last three years was 6.4%.
Return on investment
The company operates at negative ROIC (-4.36%) and ROE (-4.42%). ROIC decreased slightly on 1.3 pp from -3.0% to -4.4% in FY2016. ROE decreased slightly on 1.4 pp from -3.0% to -4.4% in FY2016.
Leverage (Debt)
The company has no debt. Cash increased slightly on 1.6%.
Appendix 1: Peers in Machinery-Diversified
Below we provide China High Precision Automation Group Ltd benchmarking against other companies in Machinery-Diversified 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shanghai Prime Machinery Co Ltd ($2345) | 2.6% | -8.9% | 37.3% | 52.8% | |
| North Asia Strategic Holdings Ltd ($8080) | | -29.1% | 23.7% | 42.6% | -3.9% |
| Huazhang Technology Holding Ltd ($1673) | | 9.5% | 22.9% | 23.5% | 3.3% |
| Sinoref Holdings Ltd ($1020) | -0.2% | -42.2% | 29.2% | 19.9% | |
| LK Technology Holdings Ltd ($558) | | -15.0% | 3.7% | 18.5% | -10.3% |
| |
|---|
| Median (20 companies) | -6.8% | -3.3% | 2.0% | -4.8% | -10.3% |
|---|
| China High Precision Automation Group Ltd ($591) | | -40.5% | -21.8% | -29.6% | -44.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jingwei Textile Machinery ($350) | 49.1% | 51.7% | 54.9% | 65.5% | |
| Renheng Enterprise Holdings Ltd ($3628) | 44.3% | 44.8% | 45.4% | 48.9% | |
| Haitian International Holdings Ltd ($1882) | 30.1% | 31.6% | 32.4% | 33.0% | |
| CHTC Fong's Industries Co Ltd ($641) | 24.4% | 30.0% | 32.3% | 31.2% | |
| Good Friend International Holdings Inc ($2398) | 20.1% | 22.9% | 26.5% | 27.1% | |
| |
|---|
| Median (20 companies) | 24.1% | 22.8% | 20.2% | 21.0% | 19.4% |
|---|
| China High Precision Automation Group Ltd ($591) | 45.2% | 20.1% | 9.7% | 2.3% | -21.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jingwei Textile Machinery ($350) | 24.0% | 26.9% | 28.0% | 28.5% | |
| Haitian International Holdings Ltd ($1882) | 19.7% | 20.7% | 21.9% | 22.8% | |
| Renheng Enterprise Holdings Ltd ($3628) | 24.7% | 23.9% | 20.7% | 17.3% | |
| Huazhang Technology Holding Ltd ($1673) | 11.6% | 11.2% | 12.5% | 11.3% | 10.8% |
| Good Friend International Holdings Inc ($2398) | 6.7% | 9.1% | 12.9% | 9.9% | |
| |
|---|
| Median (20 companies) | 9.3% | 8.6% | 8.6% | 5.7% | 2.5% |
|---|
| China High Precision Automation Group Ltd ($591) | 36.5% | 17.5% | 7.6% | -5.2% | -26.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | 2.3% | 10.1% | 7.8% | 31.9% | |
| Honghua Group Ltd ($196) | 11.5% | 14.6% | 6.8% | 27.3% | |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 20.5% | 20.3% | 11.6% | 15.6% | |
| Shenji Group Kunming Machine Tool Co Ltd ($300) | 9.5% | 6.7% | 5.0% | 8.3% | |
| Haitian International Holdings Ltd ($1882) | 4.2% | 6.8% | 6.3% | 6.3% | |
| |
|---|
| Median (20 companies) | 4.2% | 3.9% | 4.4% | 2.9% | 1.7% |
|---|
| China High Precision Automation Group Ltd ($591) | 20.5% | 9.1% | 18.4% | 0.6% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Haitian International Holdings Ltd ($1882) | 19.8% | 21.2% | 19.4% | 16.3% | |
| Huazhang Technology Holding Ltd ($1673) | 29.6% | 16.2% | 16.3% | 16.2% | 12.8% |
| Jingwei Textile Machinery ($350) | 19.4% | 20.9% | 17.4% | 14.9% | |
| Good Friend International Holdings Inc ($2398) | 6.5% | 8.7% | 12.1% | 5.9% | |
| Shanghai Prime Machinery Co Ltd ($2345) | 2.5% | 2.8% | 2.5% | 5.8% | |
| |
|---|
| Median (20 companies) | 6.8% | 4.2% | 2.8% | 1.7% | 1.6% |
|---|
| China High Precision Automation Group Ltd ($591) | 13.5% | 1.7% | -0.9% | -3.0% | -4.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 3.0x | 11.4x | 5.6x | 129.4x | |
| Honghua Group Ltd ($196) | 1.2x | 3.2x | 5.2x | 14.2x | |
| First Tractor Co Ltd ($38) | 0.5x | 2.5x | 9.2x | 6.3x | |
| LK Technology Holdings Ltd ($558) | 2.5x | 5.1x | 4.9x | 4.6x | 5.7x |
| Cosmos Machinery Enterprises Ltd ($118) | 2.2x | 1.7x | 2.1x | 3.9x | |
| |
|---|
| Median (16 companies) | -0.6x | 0.2x | 0.2x | 3.1x | 4.7x |
|---|
