Jiangnan Group Ltd reports 24.4% Net Income decline and 0.61% Revenue decline
16/03/2017 • About Jiangnan Group Ltd (
$1366) • By InTwits
Jiangnan Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 10.0% in FY2016 vs. 12.4% in FY2015 vs. 12.0% in FY2012
- The company has business model with low profitability: ROIC is at 9.3%
- It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is -21.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jiangnan Group Ltd ($1366) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,356 | 6,477 | 8,155 | 9,167 | 9,111 | -0.6% |
| Gross Profit | 842 | 1,000 | 1,271 | 1,482 | 1,358 | -8.4% |
| SG&A | 180 | 243 | 283 | 382 | 454 | 18.8% |
| EBITDA | 644 | 831 | 1,017 | 1,136 | 907 | -20.1% |
| Net Income | 376 | 504 | 626 | 703 | 531 | -24.4% |
Balance Sheet
|
|---|
| Cash | 1,138 | 1,683 | 1,666 | 2,131 | 2,172 | 1.9% |
| Short Term Debt | 2,749 | 4,059 | 4,435 | 3,770 | 3,565 | -5.4% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 125 | 22 | 28 | 46 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 8.7% | 20.9% | 25.9% | 12.4% | -0.6% | |
| EBITDA growth | 21.0% | 28.9% | 22.5% | 11.7% | -20.1% | |
| Gross Margin | 15.7% | 15.4% | 15.6% | 16.2% | 14.9% | -1.3% |
| EBITDA Margin | 12.0% | 12.8% | 12.5% | 12.4% | 10.0% | -2.4% |
| Net Income Margin | 7.0% | 7.8% | 7.7% | 7.7% | 5.8% | -1.8% |
| SG&A, % of revenue | 3.4% | 3.7% | 3.5% | 4.2% | 5.0% | 0.8% |
| CAPEX, % of revenue | 2.3% | 0.3% | 0.3% | 0.5% | | -0.5% |
| ROIC | 14.9% | 14.1% | 13.5% | 12.8% | 9.3% | -3.5% |
| ROE | 24.6% | 24.2% | 22.7% | 17.3% | 10.4% | -6.9% |
| Net Debt/EBITDA | 2.5x | 2.9x | 2.7x | 1.4x | 1.5x | 0.1x |
Revenue and profitability
The company's Revenue decreased slightly on 0.61%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 23.0 pp from 62.1% to 85.1% in FY2016.
Gross Margin decreased slightly on 1.3 pp from 16.2% to 14.9% in FY2016. SG&A as a % of Revenue increased slightly on 0.81 pp from 4.2% to 5.0% in FY2016.
Net Income marign decreased slightly on 1.8 pp from 7.7% to 5.8% in FY2016.
Return on investment
The company operates at low ROIC (9.25%) and ROE (10.43%). ROIC decreased on 3.5 pp from 12.8% to 9.3% in FY2016. ROE decreased on 6.9 pp from 17.3% to 10.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.5x and Debt / EBITDA is 3.9x. Net Debt / EBITDA increased on 0.1x from 1.4x to 1.5x in FY2016. Debt decreased on 5.4% while cash increased slightly on 1.9%.
Appendix 1: Peers in Electrical Compo&Equip
Below you can find Jiangnan Group Ltd benchmarking vs. other companies in Electrical Compo&Equip industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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% | |
| Sun King Power Electronics Group ($580) | | 29.0% | -30.1% | 51.2% | 9.6% |
| |
|---|
| Median (34 companies) | 2.1% | 8.3% | 15.0% | 5.8% | 3.1% |
|---|
| Jiangnan Group Ltd ($1366) | | 20.9% | 25.9% | 12.4% | -0.6% |
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% | |
| Sun King Power Electronics Group ($580) | 25.4% | 30.0% | 30.8% | 34.1% | 38.9% |
| 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 (32 companies) | 19.2% | 17.7% | 16.4% | 18.1% | 28.6% |
|---|
| Jiangnan Group Ltd ($1366) | 15.7% | 15.4% | 15.6% | 16.2% | 14.9% |
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% | |
| Sun King Power Electronics Group ($580) | 8.4% | 13.8% | 2.2% | 15.8% | 21.5% |
| |
|---|
| Median (34 companies) | 7.3% | 6.8% | 3.3% | 5.8% | 5.6% |
|---|
| Jiangnan Group Ltd ($1366) | 12.0% | 12.8% | 12.5% | 12.4% | 10.0% |
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) | 6.5% | 5.0% | 4.1% | 2.7% | 8.3% |
|---|
| Jiangnan Group Ltd ($1366) | 2.3% | 0.3% | 0.3% | 0.5% | |
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% | |
| 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% |
| Hengxin Technology Ltd ($1085) | 8.1% | 9.3% | 9.0% | 10.2% | 7.9% |
| |
|---|
| Median (34 companies) | 2.7% | 2.9% | 0.6% | 2.6% | 0.0% |
|---|
| Jiangnan Group Ltd ($1366) | 14.9% | 14.1% | 13.5% | 12.8% | 9.3% |
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 | 0.6x | 2.0x | 0.6x | -1.5x |
|---|
| Jiangnan Group Ltd ($1366) | 2.5x | 2.9x | 2.7x | 1.4x | 1.5x |
