Sun King Power Electronics Group Net Income jumped on 131% and EBITDA Margin increased on 5.7 pp from 15.8% to 21.5%
14/03/2017 • About Sun King Power Electronics Group (
$580) • By InTwits
Sun King Power Electronics Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 21.5% in FY2016, 15.8% in FY2015, 2.2% in FY2014, 13.8% in FY2013, 8.4% in FY2012
- The company has business model with average profitability: ROIC is at 11.4%
- It operates with high leverage: Net Debt/EBITDA is 1.2x while industry average is -20.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sun King Power Electronics Group ($580) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 573.5 | 739.9 | 517.3 | 782.0 | 857.0 | 9.6% |
| Gross Profit | 145.8 | 222.2 | 159.1 | 266.9 | 333.7 | 25.0% |
| SG&A | 119.7 | 134.2 | 142.8 | 138.7 | 158.1 | 14.0% |
| EBITDA | 48.1 | 102.1 | 11.6 | 123.7 | 184.5 | 49.1% |
| Net Income | 0.4 | 42.9 | -32.1 | 62.3 | 143.9 | 131.0% |
Balance Sheet
|
|---|
| Cash | 186.7 | 153.9 | 113.6 | 128.0 | 103.0 | -19.5% |
| Short Term Debt | 268.4 | 299.0 | 229.0 | 394.6 | 327.4 | -17.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 94.8 | 57.2 | 80.3 | 12.4 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -6.0% | 29.0% | -30.1% | 51.2% | 9.6% | |
| EBITDA growth | -356.3% | 112.4% | -88.7% | 968.8% | 49.1% | |
| Gross Margin | 25.4% | 30.0% | 30.8% | 34.1% | 38.9% | 4.8% |
| EBITDA Margin | 8.4% | 13.8% | 2.2% | 15.8% | 21.5% | 5.7% |
| Net Income Margin | 0.1% | 5.8% | -6.2% | 8.0% | 16.8% | 8.8% |
| SG&A, % of revenue | 20.9% | 18.1% | 27.6% | 17.7% | 18.4% | 0.7% |
| CAPEX, % of revenue | 16.5% | 7.7% | 15.5% | 1.6% | | -1.6% |
| ROIC | 2.7% | 7.0% | -0.9% | 7.9% | 11.4% | 3.5% |
| ROE | 0.1% | 5.3% | -4.0% | 7.5% | 15.3% | 7.8% |
| Net Debt/EBITDA | 1.7x | 1.4x | 10.0x | 2.2x | 1.2x | -0.9x |
Revenue and profitability
The company's Revenue increased on 9.6%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.7 pp from 15.8% to 21.5% in FY2016.
Gross Margin increased on 4.8 pp from 34.1% to 38.9% in FY2016. SG&A as a % of Revenue increased slightly on 0.71 pp from 17.7% to 18.4% in FY2016.
Net Income marign increased on 8.8 pp from 8.0% to 16.8% in FY2016.
Return on investment
The company operates at good ROE (15.31%) while ROIC is low (11.37%). ROIC increased on 3.5 pp from 7.9% to 11.4% in FY2016. ROE increased on 7.8 pp from 7.5% to 15.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is 1.8x. Net Debt / EBITDA dropped on 0.9x from 2.2x to 1.2x in FY2016. Debt dropped on 17.0% while cash dropped on 19.5%.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Sun King Power Electronics Group 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) | | 8.7% | 44.1% | 69.8% | |
| CEC International Holdings Ltd ($759) | | 60.8% | 43.0% | 32.3% | 1.5% |
| |
|---|
| Median (34 companies) | 2.1% | 8.3% | 16.1% | 5.8% | 3.1% |
|---|
| Sun King Power Electronics Group ($580) | | 29.0% | -30.1% | 51.2% | 9.6% |
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% | |
| 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% |
| Johnson Electric Holdings Ltd ($179) | 27.3% | 28.0% | 29.5% | 29.6% | 26.4% |
| |
|---|
| Median (32 companies) | 18.6% | 16.7% | 15.9% | 17.0% | 26.4% |
|---|
| Sun King Power Electronics Group ($580) | 25.4% | 30.0% | 30.8% | 34.1% | 38.9% |
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% | |
| Johnson Electric Holdings Ltd ($179) | 14.2% | 14.5% | 15.5% | 15.4% | 12.8% |
| |
|---|
| Median (34 companies) | 7.3% | 6.8% | 4.7% | 5.8% | 4.9% |
|---|
| Sun King Power Electronics Group ($580) | 8.4% | 13.8% | 2.2% | 15.8% | 21.5% |
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 (34 companies) | 5.7% | 4.9% | 3.8% | 2.7% | 8.3% |
|---|
| Sun King Power Electronics Group ($580) | 16.5% | 7.7% | 15.5% | 1.6% | |
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 (34 companies) | 2.8% | 2.9% | 1.7% | 2.6% | 0.0% |
|---|
| Sun King Power Electronics Group ($580) | 2.7% | 7.0% | -0.9% | 7.9% | 11.4% |
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 (25 companies) | 1.5x | 1.0x | 2.0x | 0.6x | -3.9x |
|---|
| Sun King Power Electronics Group ($580) | 1.7x | 1.4x | 10.0x | 2.2x | 1.2x |
