Fuyao Glass Industry Group Co Ltd reports 26.4% EBITDA growth and 0.90 pp EBITDA Margin growth from 27.7% to 28.6%
24/02/2017 • About Fuyao Glass Industry Group Co Ltd (
$3606) • By InTwits
Fuyao Glass Industry Group Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Fuyao Glass Industry Group Co Ltd is a growth stock: 2016 revenue growth was 22.5%, 5 year revenue CAGR was 11.5% at 2016 ROIC 15.0%
- EBITDA Margin is relatively stable: 28.6% in 2016 vs. 27.7% in 2015 vs. 28.5% in 2012
- Fuyao Glass Industry Group Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.5%. At the same time it's in pair with industry average of 19.6%.
- CAPEX is quite volatile: 1,348 in 2016, 1,027 in 2015, 749 in 2014, 547 in 2013, 799 in 2012
- The company has highly profitable business model: ROIC is at 15.0%
- It operates with high leverage: Net Debt/EBITDA is 0.0x while industry average is -0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fuyao Glass Industry Group Co Ltd ($3606) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10,247 | 11,415 | 12,928 | 13,573 | 16,621 | 22.5% |
| Gross Profit | 3,828 | 4,676 | 5,363 | 5,635 | 6,973 | 23.7% |
| SG&A | 1,450 | 1,691 | 1,909 | 2,308 | 2,858 | 23.8% |
| EBITDA | 2,916 | 3,272 | 3,774 | 3,762 | 4,756 | 26.4% |
| Net Income | 1,524 | 1,918 | 2,219 | 2,605 | 3,143 | 20.7% |
Balance Sheet
|
|---|
| Cash | 487 | 491 | 499 | 5,905 | 7,199 | 21.9% |
| Short Term Debt | 3,126 | 3,384 | 3,336 | 3,871 | 5,672 | 46.5% |
| Long Term Debt | 880 | 918 | 1,213 | 848 | 1,574 | 85.6% |
Cash flow
|
|---|
| Capex | 1,500 | 1,887 | 2,734 | 3,245 | 3,548 | 9.3% |
Ratios
|
|---|
| Revenue growth | 6.4% | 11.4% | 13.3% | 5.0% | 22.5% | |
| EBITDA growth | 12.3% | 12.2% | 15.3% | -0.3% | 26.4% | |
| Gross Margin | 37.4% | 41.0% | 41.5% | 41.5% | 42.0% | 0.4% |
| EBITDA Margin | 28.5% | 28.7% | 29.2% | 27.7% | 28.6% | 0.9% |
| Net Income Margin | 14.9% | 16.8% | 17.2% | 19.2% | 18.9% | -0.3% |
| SG&A, % of revenue | 14.2% | 14.8% | 14.8% | 17.0% | 17.2% | 0.2% |
| CAPEX, % of revenue | 14.6% | 16.5% | 21.1% | 23.9% | 21.3% | -2.6% |
| ROIC | 19.0% | 21.1% | 22.3% | 15.7% | 15.0% | -0.8% |
| ROE | 23.1% | 25.9% | 26.6% | 20.6% | 18.2% | -2.4% |
| Net Debt/EBITDA | 1.2x | 1.2x | 1.1x | -0.3x | 0.0x | 0.3x |
Revenue and profitability
The company's Revenue jumped on 22.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 23.8% to 26.0% in FY2016.
Gross Margin showed almost no change in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
Fuyao Glass Industry Group Co Ltd's CAPEX/Revenue was 21.3% in 2016. Fuyao Glass Industry Group Co Ltd showed CAPEX/Revenue growth of 4.8 pp from 16.5% in 2013 to 21.3% in 2016. For the last three years the average CAPEX/Revenue was 22.1%.To secure this fast growth Fuyao Glass Industry Group Co Ltd invested a large share of EBITDA (74.6%) to CAPEX.
Return on investment
The company operates at good ROIC (14.97%) and ROE (18.24%). ROIC decreased slightly on 0.77 pp from 15.7% to 15.0% in 2016. ROE decreased on 2.4 pp from 20.6% to 18.2% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.0x and Debt / EBITDA is 1.5x. Net Debt / EBITDA jumped on 0.3x from -0.3x to 0.0097x in 2016. Debt surged on 53.5% while cash surged on 21.9%.
Appendix 1: Peers in Auto Parts&Equipment
Below we provide Fuyao Glass Industry Group Co Ltd benchmarking against other companies in Auto Parts&Equipment 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 |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | -10.4% | 27.1% | 31.0% | 30.9% | |
| Xinchen China Power Holdings Ltd ($1148) | 11.5% | 0.5% | 2.6% | 23.3% | |
| Minth Group Ltd ($425) | 11.3% | 27.3% | 21.3% | 14.5% | |
| Nexteer Automotive Group Ltd ($1316) | -3.6% | 10.1% | 24.8% | 12.8% | |
| Xinyi Glass Holdings Ltd ($868) | 2.5% | 17.8% | 9.3% | 5.5% | |
| |
|---|
| Median (16 companies) | -8.3% | 14.0% | 2.6% | -2.9% | |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | | 11.4% | 13.3% | 5.0% | 22.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Minth Group Ltd ($425) | 33.1% | 33.0% | 31.2% | 31.7% | |
| Xinyi Glass Holdings Ltd ($868) | 26.4% | 31.6% | 25.2% | 27.3% | |
| Zhejiang Shibao Co Ltd ($1057) | 30.3% | 26.0% | 26.4% | 25.5% | |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 20.9% | 23.6% | 24.0% | 24.2% | |
| Weichai Power Co Ltd ($2338) | 19.2% | 20.2% | 21.1% | 22.8% | |
| |
|---|
| Median (17 companies) | 20.1% | 20.0% | 21.2% | 19.1% | |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 37.4% | 41.0% | 41.5% | 41.5% | 42.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Xinyi Glass Holdings Ltd ($868) | 22.5% | 43.8% | 20.0% | 25.0% | |
| Minth Group Ltd ($425) | 25.6% | 24.2% | 23.1% | 24.5% | |
| Xiezhong International Holdings Ltd ($3663) | 20.7% | 17.2% | 16.0% | 18.6% | |
| Nexteer Automotive Group Ltd ($1316) | 6.7% | 10.4% | 12.0% | 13.7% | |
| Zhejiang Shibao Co Ltd ($1057) | 19.8% | 14.0% | 14.5% | 13.5% | |
| |
|---|
| Median (17 companies) | 9.3% | 11.4% | 11.5% | 11.3% | |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 28.5% | 28.7% | 29.2% | 27.7% | 28.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hybrid Kinetic Group Ltd ($1188) | 8.5% | | | 176.2% | |
| Changfeng Axle China Co Ltd ($1039) | 14.4% | 4.1% | 1.1% | 38.3% | |
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 24.9% | 12.0% | 19.4% | |
| Xinyi Glass Holdings Ltd ($868) | 17.0% | 28.9% | 15.8% | 16.7% | |
| Minth Group Ltd ($425) | 14.8% | 16.1% | 18.7% | 15.4% | |
| |
|---|
| Median (17 companies) | 8.5% | 6.2% | 5.4% | 7.4% | |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 14.6% | 16.5% | 21.1% | 23.9% | 21.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nexteer Automotive Group Ltd ($1316) | 14.0% | 18.2% | 17.7% | 21.2% | |
| Minth Group Ltd ($425) | 11.9% | 12.1% | 11.8% | 13.4% | |
| Xinyi Glass Holdings Ltd ($868) | 9.3% | 22.6% | 8.3% | 10.8% | |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 2.4% | 9.2% | 12.5% | 10.3% | |
| Xinchen China Power Holdings Ltd ($1148) | 22.4% | 14.7% | 12.5% | 8.6% | |
| |
|---|
| Median (17 companies) | 6.3% | 8.5% | 5.8% | 2.8% | |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.0% | 21.1% | 22.3% | 15.7% | 15.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 7.9x | 2.8x | 2.2x | 2.9x | |
| Xiezhong International Holdings Ltd ($3663) | 0.6x | 1.2x | 1.2x | 2.2x | |
| China Vehicle Components Technology Holdings Ltd ($1269) | 9.4x | 5.8x | 5.3x | 2.0x | |
| Xinchen China Power Holdings Ltd ($1148) | -0.1x | -2.3x | 0.6x | 1.9x | |
| Xinyi Glass Holdings Ltd ($868) | 1.9x | 0.9x | 2.4x | 1.7x | |
| |
|---|
| Median (11 companies) | 0.6x | 0.9x | 1.0x | 0.6x | |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 1.2x | 1.2x | 1.1x | -0.3x | 0.0x |
