Beijing Jingcheng Machinery Electric Co Ltd revenue decline decelerated to 17.7% in 2016 vs. 40.3% a year earliner
17/03/2017 • About Beijing Jingcheng Machinery Electric Co Ltd (
$187) • By InTwits
Beijing Jingcheng Machinery Electric Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Beijing Jingcheng Machinery Electric Co Ltd doesn't have a profitable business model yet: 2016 ROIC is -11.7%
- The company operates at negative EBITDA Margin: -6.9%
- Beijing Jingcheng Machinery Electric Co Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2012-2016 was 0.0%. On average EBITDA Margin was -2.1% for the sames years0
- Beijing Jingcheng Machinery Electric Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's in pair with industry average of 6.1%.
- CAPEX is quite volatile: 20.1 in 2016, 11.6 in 2015, 149 in 2014, 290 in 2013, 82.1 in 2012
- The company has unprofitable business model: ROIC is at -11.7%
- It operates with high leverage: Net Debt/EBITDA is -0.7x while industry average is -1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beijing Jingcheng Machinery Electric Co Ltd ($187) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,036 | 2,819 | 1,785 | 1,066 | 877 | -17.7% |
| Gross Profit | 493 | 417 | 164 | 51 | 86 | 69.3% |
| SG&A | 525 | 440 | 286 | 238 | 202 | -15.2% |
| EBITDA | 23 | 64 | -39 | -192 | -60 | |
| Net Income | -124 | -108 | 21 | -208 | -149 | |
Balance Sheet
|
|---|
| Cash | 528 | 338 | 164 | 182 | 103 | -43.7% |
| Short Term Debt | 744 | 563 | 434 | 217 | 231 | 6.5% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 82 | 290 | 149 | 12 | 20 | 73.5% |
Ratios
|
|---|
| Revenue growth | 280.5% | -7.1% | -36.7% | -40.3% | -17.7% | |
| EBITDA growth | 55.1% | 176.4% | -160.4% | 393.5% | -68.6% | |
| Gross Margin | 16.2% | 14.8% | 9.2% | 4.7% | 9.8% | 5.0% |
| EBITDA Margin | 0.8% | 2.3% | -2.2% | -18.0% | -6.9% | 11.2% |
| Net Income Margin | -4.1% | -3.8% | 1.2% | -19.5% | -17.0% | 2.5% |
| SG&A, % of revenue | 17.3% | 15.6% | 16.0% | 22.3% | 23.0% | 0.7% |
| CAPEX, % of revenue | 2.7% | 10.3% | 8.4% | 1.1% | 2.3% | 1.2% |
| ROIC | -4.8% | -2.5% | -6.9% | -17.8% | -11.7% | 6.1% |
| ROE | -11.3% | -9.7% | 2.5% | -25.5% | -23.3% | 2.2% |
| Net Debt/EBITDA | 9.3x | 3.5x | | | | 0.0x |
Revenue and profitability
Beijing Jingcheng Machinery Electric Co Ltd's Revenue dropped on 17.7%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 11.2 pp from -18.0% to -6.9% in 2016.
Gross Margin increased on 5.0 pp from 4.7% to 9.8% in 2016. SG&A as a % of Revenue increased slightly on 0.69 pp from 22.3% to 23.0% in 2016.
Net Income marign increased on 2.5 pp from -19.5% to -17.0% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 2.3%. The company showed decline in CAPEX/Revenue of 8.0 pp from 10.3% in 2013 to 2.3% in 2016. It's average CAPEX/Revenue for the last three years was 3.9%.
Return on investment
The company operates at negative ROIC (-11.69%) and ROE (-23.29%). ROIC increased on 6.1 pp from -17.8% to -11.7% in 2016. ROE increased on 2.2 pp from -25.5% to -23.3% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2016. Debt increased on 6.5% while cash dropped on 43.7%.
Appendix 1: Peers in Commercial Services
Below you can find Beijing Jingcheng Machinery Electric Co Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 99.1% | 14.9% | -88.3% | 271.8% | |
| China Seven Star Holdings Ltd ($245) | 6.7% | -81.8% | -39.3% | 195.3% | |
| China Smartpay Group Holdings Ltd ($8325) | | 274.7% | 75.6% | 124.5% | 79.5% |
| Celebrate International Holdings Ltd ($8212) | | 1,437.6% | -6.3% | 117.0% | -78.1% |
| Haier Healthwise Holdings Ltd ($348) | | -50.1% | -7.5% | 101.1% | -9.4% |
| |
|---|
| Median (67 companies) | 2.6% | 8.6% | 9.9% | 4.7% | 10.3% |
|---|
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | | -7.1% | -36.7% | -40.3% | -17.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HC International Inc ($2280) | 87.5% | 91.9% | 92.5% | 89.6% | |
| Winto Group Holdings Ltd ($8238) | 90.2% | 93.4% | 92.0% | 88.4% | |
| Dingyi Group Investment Ltd ($508) | 75.8% | | 64.5% | 86.0% | 89.6% |
| Fu Shou Yuan International Group Ltd ($1448) | 80.5% | 80.4% | 80.0% | 77.6% | 79.1% |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| |
|---|
| Median (61 companies) | 31.9% | 31.0% | 31.1% | 31.5% | 31.9% |
|---|
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | 16.2% | 14.8% | 9.2% | 4.7% | 9.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | 61.6% | 84.9% | 75.9% | 80.9% | |
| Shenzhen International Holdings Ltd ($152) | 60.2% | 65.8% | 97.1% | 73.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 78.3% | 74.5% | 74.0% | 71.6% | 84.1% |
| CAR Inc ($699) | 43.6% | 30.1% | 43.1% | 67.4% | 62.5% |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | |
| |
|---|
| Median (67 companies) | 17.6% | 16.0% | 12.9% | 10.1% | 3.0% |
|---|
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | 0.8% | 2.3% | -2.2% | -18.0% | -6.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 21.3% | 9.0% | 13.9% | 47.4% | |
| COSCO Pacific Ltd ($1199) | 96.6% | 66.6% | 43.3% | 45.8% | |
| Shenzhen International Holdings Ltd ($152) | 23.0% | 22.1% | 20.9% | 35.0% | |
| Celebrate International Holdings Ltd ($8212) | 211.7% | 12.0% | 6.2% | 34.2% | 18.6% |
| China Maple Leaf Educational Systems Ltd ($1317) | 25.7% | 50.9% | 21.1% | 32.8% | 18.0% |
| |
|---|
| Median (67 companies) | 3.0% | 3.4% | 2.4% | 3.9% | 2.3% |
|---|
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | 2.7% | 10.3% | 8.4% | 1.1% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bamboos Health Care Holdings Ltd ($8216) | | 71.1% | 50.1% | 58.3% | 40.0% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 51.5% | 26.6% | 30.0% | 29.5% | 19.8% |
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | 18.8% |
| China Packaging Holdings Development Ltd ($1439) | 52.0% | 46.6% | 34.1% | 19.8% | |
| iOne Holdings Ltd ($982) | 12.5% | 11.1% | 9.4% | 19.2% | |
| |
|---|
| Median (67 companies) | 7.5% | 7.0% | 6.7% | 3.6% | 3.8% |
|---|
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | -4.8% | -2.5% | -6.9% | -17.8% | -11.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | 22.2x | |
| Kai Yuan Holdings Ltd ($1215) | -143.8x | -0.7x | | 18.8x | |
| Eagle Legend Asia Ltd ($936) | 4.0x | 4.0x | 3.3x | 6.2x | |
| Sichuan Expressway Co Ltd ($107) | 2.7x | 3.8x | 4.3x | 5.5x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 4.5x | 3.1x | 2.7x | 5.3x | 3.5x |
| |
|---|
| Median (45 companies) | -0.0x | -0.7x | -0.8x | -0.6x | -2.3x |
|---|
