Haitian International Holdings Ltd EBITDA surged on 18.1% in 2016 and EBITDA Margin increased slightly on 1.6 pp from 22.8% to 24.4%
21/03/2017 • About Haitian International Holdings Ltd (
$1882) • By InTwits
Haitian International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 24.4% in FY2016 vs. 22.8% in FY2015 vs. 19.7% in FY2012
- The company has highly profitable business model: ROIC is at 16.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Haitian International Holdings Ltd ($1882) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,336 | 7,201 | 7,560 | 7,336 | 8,098 | 10.4% |
| Gross Profit | 1,907 | 2,274 | 2,453 | 2,419 | 2,783 | 15.0% |
| SG&A | 796 | 929 | 1,044 | 1,027 | 1,099 | 7.0% |
| EBITDA | 1,249 | 1,490 | 1,652 | 1,674 | 1,976 | 18.1% |
| Net Income | 986 | 1,206 | 1,305 | 1,363 | 1,551 | 13.8% |
Balance Sheet
|
|---|
| Cash | 2,611 | 2,113 | 2,203 | 2,349 | 3,264 | 38.9% |
| Short Term Debt | 428 | 636 | 0 | 436 | 678 | 55.4% |
| Long Term Debt | 0 | 0 | 1,226 | 1,270 | 1,392 | 9.6% |
Cash flow
|
|---|
| Capex | 266 | 487 | 479 | 463 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -9.8% | 13.7% | 5.0% | -3.0% | 10.4% | |
| EBITDA growth | -13.2% | 19.3% | 10.9% | 1.3% | 18.1% | |
| Gross Margin | 30.1% | 31.6% | 32.4% | 33.0% | 34.4% | 1.4% |
| EBITDA Margin | 19.7% | 20.7% | 21.9% | 22.8% | 24.4% | 1.6% |
| Net Income Margin | 15.6% | 16.8% | 17.3% | 18.6% | 19.2% | 0.6% |
| SG&A, % of revenue | 12.6% | 12.9% | 13.8% | 14.0% | 13.6% | -0.4% |
| CAPEX, % of revenue | 4.2% | 6.8% | 6.3% | 6.3% | | -6.3% |
| ROIC | 19.8% | 21.2% | 19.4% | 16.3% | 16.6% | 0.3% |
| ROE | 19.7% | 21.0% | 19.7% | 18.1% | 18.1% | 0.0% |
| Net Debt/EBITDA | -1.7x | -1.0x | -0.6x | -0.4x | -0.6x | -0.2x |
Revenue and profitability
The company's Revenue surged on 10.4%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.7 pp from 19.2% to 23.9% in FY2016.
Gross Margin increased slightly on 1.4 pp from 33.0% to 34.4% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased slightly on 0.57 pp from 18.6% to 19.2% in FY2016.
Return on investment
The company operates at good ROIC (16.65%) and ROE (18.10%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 1.0x. Net Debt / EBITDA dropped on 0.2x from -0.4x to -0.6x in FY2016. Debt surged on 21.3% while cash jumped on 38.9%.
Management team
Zhang Jianming is a Haitian International Holdings Ltd's CEO. Zhang Jianming has spent 18 years at the company. Lo Chi Chiu is a The company's CFO. Lo Chi Chiu has spent 12 years at the company.
Appendix 1: Peers in Machinery-Diversified
Below we provide Haitian International Holdings Ltd benchmarking against other companies in Machinery-Diversified 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 |
|---|
| Shanghai Prime Machinery Co Ltd ($2345) | | -8.9% | 37.3% | 52.8% | 7.3% |
| North Asia Strategic Holdings Ltd ($8080) | | -29.1% | 23.7% | 42.6% | -3.9% |
| Huazhang Technology Holding Ltd ($1673) | | 9.5% | 22.9% | 23.5% | 3.3% |
| Sinoref Holdings Ltd ($1020) | -0.2% | -42.2% | 29.2% | 19.9% | |
| LK Technology Holdings Ltd ($558) | | -15.0% | 3.7% | 18.5% | -10.3% |
| |
|---|
| Median (20 companies) | -5.0% | -4.7% | -0.2% | -8.2% | -9.4% |
|---|
| Haitian International Holdings Ltd ($1882) | | 13.7% | 5.0% | -3.0% | 10.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jingwei Textile Machinery ($350) | 49.1% | 51.7% | 54.9% | 65.5% | |
| Renheng Enterprise Holdings Ltd ($3628) | 44.3% | 44.8% | 45.4% | 48.9% | |
| CHTC Fong's Industries Co Ltd ($641) | 24.4% | 30.0% | 32.3% | 31.2% | |
| Good Friend International Holdings Inc ($2398) | 20.1% | 22.9% | 26.5% | 27.1% | |
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | 59.7% | 58.3% | 48.6% | 26.7% | |
| |
|---|
| Median (20 companies) | 24.1% | 22.1% | 19.3% | 20.8% | 17.0% |
|---|
| Haitian International Holdings Ltd ($1882) | 30.1% | 31.6% | 32.4% | 33.0% | 34.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jingwei Textile Machinery ($350) | 24.0% | 26.9% | 28.0% | 28.5% | |
| Renheng Enterprise Holdings Ltd ($3628) | 24.7% | 23.9% | 20.7% | 17.3% | |
| Huazhang Technology Holding Ltd ($1673) | 11.6% | 11.2% | 12.5% | 11.3% | 10.8% |
| Good Friend International Holdings Inc ($2398) | 6.7% | 9.1% | 12.9% | 9.9% | |
| Shanghai Prime Machinery Co Ltd ($2345) | 7.8% | 8.9% | 7.7% | 9.2% | |
| |
|---|
| Median (20 companies) | 9.3% | 8.6% | 8.1% | 4.1% | 0.8% |
|---|
| Haitian International Holdings Ltd ($1882) | 19.7% | 20.7% | 21.9% | 22.8% | 24.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | 2.3% | 10.1% | 7.8% | 31.9% | |
| Honghua Group Ltd ($196) | 11.5% | 14.6% | 6.8% | 27.3% | |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 20.5% | 20.3% | 11.6% | 15.6% | |
| Shenji Group Kunming Machine Tool Co Ltd ($300) | 9.5% | 6.7% | 5.0% | 8.3% | |
| LK Technology Holdings Ltd ($558) | 9.3% | 10.2% | 9.1% | 5.6% | 7.4% |
| |
|---|
| Median (20 companies) | 4.2% | 3.9% | 4.4% | 2.3% | 0.9% |
|---|
| Haitian International Holdings Ltd ($1882) | 4.2% | 6.8% | 6.3% | 6.3% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huazhang Technology Holding Ltd ($1673) | 29.6% | 16.2% | 16.3% | 16.2% | 12.8% |
| Jingwei Textile Machinery ($350) | 19.4% | 20.9% | 17.4% | 14.9% | |
| Good Friend International Holdings Inc ($2398) | 6.5% | 8.7% | 12.1% | 5.9% | |
| Shanghai Prime Machinery Co Ltd ($2345) | 2.5% | 2.8% | 2.5% | 5.8% | |
| Renheng Enterprise Holdings Ltd ($3628) | 17.0% | 12.8% | 6.9% | 4.8% | |
| |
|---|
| Median (20 companies) | 6.8% | 3.6% | 2.6% | 1.1% | -0.0% |
|---|
| Haitian International Holdings Ltd ($1882) | 19.8% | 21.2% | 19.4% | 16.3% | 16.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 3.0x | 11.4x | 5.6x | 129.4x | |
| Honghua Group Ltd ($196) | 1.2x | 3.2x | 5.2x | 14.2x | |
| First Tractor Co Ltd ($38) | 0.5x | 2.5x | 9.2x | 6.3x | |
| LK Technology Holdings Ltd ($558) | 2.5x | 5.1x | 4.9x | 4.6x | 5.7x |
| Cosmos Machinery Enterprises Ltd ($118) | 2.2x | 1.7x | 2.1x | 3.9x | |
| |
|---|
| Median (15 companies) | -0.6x | 0.2x | 0.2x | 3.1x | 4.7x |
|---|
| Haitian International Holdings Ltd ($1882) | -1.7x | -1.0x | -0.6x | -0.4x | -0.6x |
