Trony Solar Holdings Co Ltd revenue dropped on 67.9% and EBITDA Margin dropped on 54.1 pp from -41.0% to -95.1%
30/09/2016 • About Trony Solar Holdings Co Ltd (
$2468) • By InTwits
Trony Solar Holdings Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Trony Solar Holdings Co Ltd is a company in decline: FY2016 revenue growth was -67.9%, 5 years revenue CAGR was -54.8%
- The company operates at negative EBITDA Margin: -95.1%
- Trony Solar Holdings Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -56.1%0
- Trony Solar Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.2%. At the same time it's a lot of higher than industry average of 22.1%.
- CAPEX is quite volatile: 4.3 in FY2016, 2.9 in FY2015, 1.2 in FY2014, 32.5 in FY2013, 9.0 in FY2012
- The company has unprofitable business model: ROIC is at -47.8%
- It operates with high leverage: Net Debt/EBITDA is -1.8x while industry average is -19.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Trony Solar Holdings Co Ltd ($2468) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 141.8 | 94.2 | 109.7 | 115.7 | 37.1 | -67.9% |
| Gross Profit | 27.8 | 0.3 | 8.0 | -10.3 | -1.2 | |
| SG&A | 75.3 | 198.8 | 77.1 | 64.9 | 69.5 | 7.0% |
| EBITDA | -75.1 | -81.4 | -40.5 | -47.5 | -35.3 | |
| Net Income | -2,595.7 | -171.0 | -80.2 | -70.9 | -58.1 | |
Balance Sheet
|
|---|
| Cash | 500.3 | 267.0 | 208.3 | 153.8 | 132.7 | -13.7% |
| Short Term Debt | 51.1 | 25.8 | 2.1 | 0.0 | 0.0 | |
| Long Term Debt | 27.9 | 2.1 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 9.0 | 32.5 | 1.2 | 2.9 | 4.3 | 48.7% |
Ratios
|
|---|
| Revenue growth | -92.8% | -33.6% | 16.5% | 5.5% | -67.9% | |
| EBITDA growth | -109.3% | 8.4% | -50.2% | 17.1% | -25.6% | |
| Gross Margin | 19.6% | 0.3% | 7.3% | -8.9% | -3.4% | 5.6% |
| EBITDA Margin | -53.0% | -86.4% | -36.9% | -41.0% | -95.1% | -54.1% |
| Net Income Margin | -1,830.7% | -181.6% | -73.1% | -61.3% | -156.5% | -95.2% |
| SG&A, % of revenue | 53.1% | 211.0% | 70.3% | 56.1% | 187.2% | 131.1% |
| CAPEX, % of revenue | 6.4% | 34.5% | 1.1% | 2.5% | 11.6% | 9.1% |
| ROIC | -4.9% | -23.9% | -23.3% | -37.7% | -47.8% | -10.1% |
| ROE | -145.9% | -44.9% | -30.4% | -37.2% | -45.5% | -8.2% |
Revenue and profitability
The company's Revenue dropped on 67.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 54.1 pp from -41.0% to -95.1% in FY2016.
Gross Margin increased on 5.6 pp from -8.9% to -3.4% in FY2016. SG&A as a % of Revenue jumped on 131 pp from 56.1% to 187% in FY2016.
Net Income marign dropped on 95.2 pp from -61.3% to -156% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 11.6%. Trony Solar Holdings Co Ltd's CAPEX/Revenue dropped on 22.9 pp from 34.5% in FY2013 to 11.6% in FY2016. It's average CAPEX/Revenue for the last three years was 5.1%.
Return on investment
The company operates at negative ROIC (-47.85%) and ROE (-45.48%). ROIC dropped on 10.1 pp from -37.7% to -47.8% in FY2016. ROE decreased on 8.2 pp from -37.2% to -45.5% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 13.7%.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Trony Solar Holdings Co Ltd benchmarking against other companies in Electrical Compo&Equip 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 |
|---|
| Applied Development Holdings Ltd ($519) | | | | 850.5% | 187.4% |
| Jimei International Entertainment Group Ltd ($1159) | 100.6% | 652.0% | -31.2% | 273.5% | |
| FDG Electric Vehicles Ltd ($729) | | -7.0% | 54.0% | 270.8% | 19.7% |
| 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) | 0.6% | 8.9% | 15.5% | 6.1% | 4.7% |
|---|
| Trony Solar Holdings Co Ltd ($2468) | | -33.6% | 16.5% | 5.5% | -67.9% |
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% | 33.4% |
| |
|---|
| Median (31 companies) | 18.8% | 17.9% | 16.6% | 17.8% | 29.9% |
|---|
| Trony Solar Holdings Co Ltd ($2468) | 19.6% | 0.3% | 7.3% | -8.9% | -3.4% |
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) | 8.3% | 7.3% | 5.5% | 6.6% | 4.1% |
|---|
| Trony Solar Holdings Co Ltd ($2468) | -53.0% | -86.4% | -36.9% | -41.0% | -95.1% |
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% | 311.5% |
| Applied Development Holdings Ltd ($519) | 79.7% | | 1,285.3% | 89.8% | 683.8% |
| 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% | 2.8% |
| |
|---|
| Median (33 companies) | 6.7% | 5.0% | 4.0% | 2.6% | 8.3% |
|---|
| Trony Solar Holdings Co Ltd ($2468) | 6.4% | 34.5% | 1.1% | 2.5% | 11.6% |
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% | |
| Johnson Electric Holdings Ltd ($179) | 11.7% | 11.6% | 12.7% | 11.2% | 7.4% |
| |
|---|
| Median (33 companies) | 2.8% | 3.0% | 2.8% | 3.2% | 0.0% |
|---|
| Trony Solar Holdings Co Ltd ($2468) | -4.9% | -23.9% | -23.3% | -37.7% | -47.8% |
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 | 6.0x |
| |
|---|
| Median (26 companies) | 1.5x | 1.4x | 2.2x | 1.0x | 0.8x |
|---|
