Xinyi Solar Holdings Ltd reports 72.5% EBITDA growth and 26.5% Revenue growth
28/02/2017 • About Xinyi Solar Holdings Ltd (
$968) • By InTwits
Xinyi Solar Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Xinyi Solar Holdings Ltd is a fast growth stock: FY2016 revenue growth was 26.5%, 5 year revenue CAGR was 37.2% at FY2016 ROIC 19.7%
- EBITDA Margin is expanding: 47.3% in FY2016 vs. 34.7% in FY2015 vs. 16.3% in FY2012
- EBITDA Margin is quite volatile: 47.3% in FY2016, 34.7% in FY2015, 28.4% in FY2014, 23.8% in FY2013, 16.3% in FY2012
- The company has highly profitable 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.
Xinyi Solar Holdings Ltd ($968) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,533 | 1,968 | 2,410 | 4,750 | 6,007 | 26.5% |
| Gross Profit | 264 | 592 | 761 | 1,710 | 2,750 | 60.8% |
| SG&A | 121 | 205 | 155 | 313 | 331 | 6.0% |
| EBITDA | 250 | 468 | 684 | 1,647 | 2,840 | 72.5% |
| Net Income | 120 | 304 | 493 | 1,206 | 1,986 | 64.7% |
Balance Sheet
|
|---|
| Cash | 54 | 279 | 543 | 2,869 | 843 | -70.6% |
| Short Term Debt | 0 | 0 | 143 | 474 | 1,952 | 311.7% |
| Long Term Debt | 0 | 0 | 1,157 | 3,116 | 4,714 | 51.3% |
Cash flow
|
|---|
| Capex | 348 | 240 | 2,381 | 3,583 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 24.3% | 28.3% | 22.5% | 97.1% | 26.5% | |
| EBITDA growth | -43.3% | 87.0% | 46.1% | 140.7% | 72.5% | |
| Gross Margin | 17.2% | 30.1% | 31.6% | 36.0% | 45.8% | 9.8% |
| EBITDA Margin | 16.3% | 23.8% | 28.4% | 34.7% | 47.3% | 12.6% |
| Net Income Margin | 7.8% | 15.4% | 20.5% | 25.4% | 33.1% | 7.7% |
| SG&A, % of revenue | 7.9% | 10.4% | 6.4% | 6.6% | 5.5% | -1.1% |
| CAPEX, % of revenue | 22.7% | 12.2% | 98.8% | 75.4% | | -75.4% |
| ROIC | 13.8% | 21.6% | 16.9% | 18.7% | 19.7% | 1.0% |
| ROE | 12.1% | 18.0% | 17.6% | 26.6% | 33.2% | 6.6% |
| Net Debt/EBITDA | -0.2x | -0.6x | 1.1x | 0.4x | 2.1x | 1.6x |
Revenue and profitability
Xinyi Solar Holdings Ltd's Revenue jumped on 26.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.1 pp from 17.7% to 21.7% in FY2016.
Gross Margin increased on 9.8 pp from 36.0% to 45.8% in FY2016. SG&A as a % of Revenue decreased slightly on 1.1 pp from 6.6% to 5.5% in FY2016.
Net Income marign increased on 7.7 pp from 25.4% to 33.1% in FY2016.
Return on investment
The company operates at high and attractive ROE (33.20%) while ROIC is a bit lower (19.73%). ROIC increased slightly on 1.0 pp from 18.7% to 19.7% in FY2016. ROE increased on 6.6 pp from 26.6% to 33.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.1x and Debt / EBITDA is 2.3x. Net Debt / EBITDA surged on 1.6x from 0.4x to 2.1x in FY2016. Debt surged on 85.7% while cash dropped on 70.6%.
Management team
The company's CEO Lee Yau-Ching has spent 8 years at the company.
Appendix 1: Peers in Energy-Alternate Sources
Below we provide Xinyi Solar Holdings Ltd benchmarking against other companies in Energy-Alternate Sources 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 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 26.6% | 8.5% | 114.0% | 220.2% | |
| United Photovoltaics Group Ltd ($686) | -74.0% | -83.5% | 1,168.8% | 66.2% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 2.5% | 50.7% | 39.6% | 64.4% | |
| Canvest Environment Protection Group Co Ltd ($1381) | 150.6% | 0.8% | 103.5% | 49.2% | |
| China Renewable Energy Investment Ltd ($987) | 10.7% | 14.3% | -14.4% | 36.6% | |
| |
|---|
| Median (10 companies) | 7.5% | 12.8% | 36.5% | 29.1% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | | 28.3% | 22.5% | 97.1% | 26.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 74.2% | 74.3% | 79.3% | 64.6% | |
| United Photovoltaics Group Ltd ($686) | -29.8% | 99.3% | 90.7% | 54.0% | |
| Canvest Environment Protection Group Co Ltd ($1381) | 53.4% | 51.9% | 43.1% | 37.1% | |
| China Renewable Energy Investment Ltd ($987) | 20.2% | 37.1% | 24.7% | 33.3% | |
| China Suntien Green Energy Corp Ltd ($956) | 33.5% | 31.3% | 25.2% | 26.5% | |
| |
|---|
| Median (7 companies) | 22.9% | 37.1% | 25.2% | 33.3% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | 17.2% | 30.1% | 31.6% | 36.0% | 45.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Photovoltaics Group Ltd ($686) | -42.6% | -230.5% | 92.9% | 83.5% | |
| China Renewable Energy Investment Ltd ($987) | 54.1% | 66.1% | 64.3% | 74.3% | |
| HaiTian Hydropower International Ltd ($8261) | 61.9% | 75.9% | 80.2% | 69.0% | |
| China Longyuan Power Group Corp Ltd ($916) | 56.3% | 54.4% | 63.5% | 64.5% | |
| Canvest Environment Protection Group Co Ltd ($1381) | 59.3% | 56.6% | 50.3% | 41.8% | |
| |
|---|
| Median (10 companies) | 47.5% | 43.9% | 46.1% | 39.2% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | 16.3% | 23.8% | 28.4% | 34.7% | 47.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Suntien Green Energy Corp Ltd ($956) | 41.4% | 25.7% | 35.9% | 128.8% | |
| China Longyuan Power Group Corp Ltd ($916) | 79.5% | 54.9% | 100.2% | 77.7% | |
| International Standard Resources Holdings Ltd ($91) | 51.5% | 2.4% | 11.1% | 69.3% | |
| Concord New Energy Group Ltd ($182) | 64.2% | 19.0% | 52.7% | 54.7% | |
| GCL-Poly Energy Holdings Ltd ($3800) | 19.9% | 13.6% | 23.5% | 42.8% | |
| |
|---|
| Median (10 companies) | 46.5% | 22.3% | 31.2% | 37.6% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | 22.7% | 12.2% | 98.8% | 75.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HaiTian Hydropower International Ltd ($8261) | 6.4% | 7.5% | 7.5% | 11.9% | |
| Canvest Environment Protection Group Co Ltd ($1381) | 27.0% | 18.1% | 12.4% | 10.0% | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 5.8% | 6.8% | 6.3% | 8.1% | |
| GCL-Poly Energy Holdings Ltd ($3800) | 0.3% | 2.8% | 6.9% | 7.2% | |
| China Longyuan Power Group Corp Ltd ($916) | 6.9% | 6.3% | 6.3% | 6.2% | |
| |
|---|
| Median (10 companies) | 4.4% | 5.2% | 6.0% | 6.0% | |
|---|
| Xinyi Solar Holdings Ltd ($968) | 13.8% | 21.6% | 16.9% | 18.7% | 19.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Photovoltaics Group Ltd ($686) | | | 7.8x | 13.2x | |
| China Suntien Green Energy Corp Ltd ($956) | 4.5x | 4.1x | 4.9x | 9.5x | |
| China Longyuan Power Group Corp Ltd ($916) | 5.5x | 5.3x | 5.8x | 5.7x | |
| GCL-Poly Energy Holdings Ltd ($3800) | 11.4x | 7.7x | 5.4x | 5.0x | |
| Beijing Jingneng Clean Energy Co Ltd ($579) | 6.7x | 6.3x | 6.7x | 4.4x | |
| |
|---|
| Median (9 companies) | 5.0x | 4.7x | 5.8x | 4.4x | |
|---|
| Xinyi Solar Holdings Ltd ($968) | -0.2x | -0.6x | 1.1x | 0.4x | 2.1x |
