Xinyi Glass Holdings Ltd Net Income surged on 52.1% in 2016 and EBITDA Margin increased on 6.4 pp from 25.0% to 31.4%
28/02/2017 • About Xinyi Glass Holdings Ltd (
$868) • By InTwits
Xinyi Glass Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has highly profitable business model: ROIC is at 15.5%
- It operates with high leverage: Net Debt/EBITDA is 1.2x while industry average is -0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Xinyi Glass Holdings Ltd ($868) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,433 | 9,936 | 10,861 | 11,460 | 12,848 | 12.1% |
| Gross Profit | 2,227 | 3,137 | 2,733 | 3,133 | 4,659 | 48.7% |
| SG&A | 1,057 | 1,251 | 1,638 | 1,615 | 1,822 | 12.9% |
| EBITDA | 1,895 | 4,349 | 2,172 | 2,860 | 4,031 | 41.0% |
| Net Income | 1,188 | 3,522 | 1,364 | 2,113 | 3,213 | 52.1% |
Balance Sheet
|
|---|
| Cash | 703 | 1,042 | 831 | 1,298 | 2,763 | 112.8% |
| Short Term Debt | 1,770 | 2,116 | 2,609 | 2,740 | 3,165 | 15.5% |
| Long Term Debt | 2,496 | 3,024 | 3,483 | 3,514 | 4,509 | 28.3% |
Cash flow
|
|---|
| Capex | 1,435 | 2,874 | 1,715 | 1,914 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 2.5% | 17.8% | 9.3% | 5.5% | 12.1% | |
| EBITDA growth | -1.8% | 129.5% | -50.1% | 31.7% | 41.0% | |
| Gross Margin | 26.4% | 31.6% | 25.2% | 27.3% | 36.3% | 8.9% |
| EBITDA Margin | 22.5% | 43.8% | 20.0% | 25.0% | 31.4% | 6.4% |
| Net Income Margin | 14.1% | 35.4% | 12.6% | 18.4% | 25.0% | 6.6% |
| SG&A, % of revenue | 12.5% | 12.6% | 15.1% | 14.1% | 14.2% | 0.1% |
| CAPEX, % of revenue | 17.0% | 28.9% | 15.8% | 16.7% | | -16.7% |
| ROIC | 9.3% | 22.6% | 8.3% | 10.8% | 15.5% | 4.8% |
| ROE | 12.9% | 31.8% | 11.1% | 16.9% | 24.8% | 7.9% |
| Net Debt/EBITDA | 1.9x | 0.9x | 2.4x | 1.7x | 1.2x | -0.5x |
Revenue and profitability
The company's Revenue jumped on 12.1%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 6.4 pp from 25.0% to 31.4% in FY2016.
Gross Margin increased on 8.9 pp from 27.3% to 36.3% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased on 6.6 pp from 18.4% to 25.0% in FY2016.
Return on investment
The company operates at high and attractive ROE (24.81%) while ROIC is a bit lower (15.55%). ROIC increased on 4.8 pp from 10.8% to 15.5% in FY2016. ROE increased on 7.9 pp from 16.9% to 24.8% in FY2016.
Leverage (Debt)
Debt level is 1.2x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 1.7x to 1.2x in FY2016. Debt surged on 22.7% while cash surged on 113%.
Management team
The company's CEO Tung Ching Sai has spent 14 years at the company. The company's CFO Lau Sik Yuen has spent 15 years at the company.
Appendix 1: Peers in Auto Parts&Equipment
Below we provide Xinyi Glass Holdings 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% | |
| Jinheng Automotive Safety Technology Holdings Ltd ($872) | -10.2% | -23.5% | -7.5% | 5.3% | |
| |
|---|
| Median (16 companies) | -10.2% | 10.7% | 2.6% | -2.9% | 22.5% |
|---|
| Xinyi Glass Holdings Ltd ($868) | | 17.8% | 9.3% | 5.5% | 12.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 37.4% | 41.0% | 41.5% | 41.5% | 42.0% |
| Minth Group Ltd ($425) | 33.1% | 33.0% | 31.2% | 31.7% | |
| 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% | 42.0% |
|---|
| Xinyi Glass Holdings Ltd ($868) | 26.4% | 31.6% | 25.2% | 27.3% | 36.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 28.5% | 28.7% | 29.2% | 27.7% | 28.6% |
| 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% | 28.6% |
|---|
| Xinyi Glass Holdings Ltd ($868) | 22.5% | 43.8% | 20.0% | 25.0% | 31.4% |
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% | |
| Fuyao Glass Industry Group Co Ltd ($3606) | 14.6% | 16.5% | 21.1% | 23.9% | 21.3% |
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 24.9% | 12.0% | 19.4% | |
| Minth Group Ltd ($425) | 14.8% | 16.1% | 18.7% | 15.4% | |
| |
|---|
| Median (17 companies) | 8.5% | 6.2% | 5.4% | 7.4% | 21.3% |
|---|
| Xinyi Glass Holdings Ltd ($868) | 17.0% | 28.9% | 15.8% | 16.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nexteer Automotive Group Ltd ($1316) | 14.0% | 18.2% | 17.7% | 21.2% | |
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.0% | 21.1% | 22.3% | 15.7% | 15.0% |
| Minth Group Ltd ($425) | 11.9% | 12.1% | 11.8% | 13.4% | |
| 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% | 15.0% |
|---|
| Xinyi Glass Holdings Ltd ($868) | 9.3% | 22.6% | 8.3% | 10.8% | 15.5% |
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 | |
| Weichai Power Co Ltd ($2338) | 0.7x | 0.6x | 1.1x | 0.6x | |
| |
|---|
| Median (11 companies) | 0.6x | 1.1x | 1.0x | 0.5x | 0.0x |
|---|
| Xinyi Glass Holdings Ltd ($868) | 1.9x | 0.9x | 2.4x | 1.7x | 1.2x |
