Minth Group Ltd reports 35.2% Net Income growth and 22.8% Revenue growth
21/03/2017 • About Minth Group Ltd (
$425) • By InTwits
Minth Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Minth Group Ltd is a fast growth stock: FY2016 revenue growth was 22.8%, 5 year revenue CAGR was 19.3% at FY2016 ROIC 17.1%
- The company has highly profitable business model: ROIC is at 17.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Minth Group Ltd ($425) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,330 | 5,510 | 6,684 | 7,654 | 9,400 | 22.8% |
| Gross Profit | 1,434 | 1,819 | 2,085 | 2,428 | 3,250 | 33.9% |
| SG&A | 477 | 632 | 770 | 817 | 1,038 | 27.1% |
| EBITDA | 1,107 | 1,336 | 1,543 | 1,874 | 2,469 | 31.8% |
| Net Income | 841 | 971 | 1,118 | 1,272 | 1,719 | 35.2% |
Balance Sheet
|
|---|
| Cash | 4,130 | 4,119 | 3,594 | 2,767 | 2,940 | 6.3% |
| Short Term Debt | 1,271 | 2,385 | 2,708 | 1,958 | 1,446 | -26.2% |
| Long Term Debt | 187 | 25 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 642 | 886 | 1,249 | 1,180 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 11.3% | 27.3% | 21.3% | 14.5% | 22.8% | |
| EBITDA growth | 10.0% | 20.7% | 15.5% | 21.5% | 31.8% | |
| Gross Margin | 33.1% | 33.0% | 31.2% | 31.7% | 34.6% | 2.9% |
| EBITDA Margin | 25.6% | 24.2% | 23.1% | 24.5% | 26.3% | 1.8% |
| Net Income Margin | 19.4% | 17.6% | 16.7% | 16.6% | 18.3% | 1.7% |
| SG&A, % of revenue | 11.0% | 11.5% | 11.5% | 10.7% | 11.0% | 0.4% |
| CAPEX, % of revenue | 14.8% | 16.1% | 18.7% | 15.4% | | -15.4% |
| ROIC | 11.9% | 12.1% | 11.8% | 13.4% | 17.1% | 3.7% |
| ROE | 13.1% | 13.7% | 14.2% | 14.5% | 17.4% | 2.8% |
| Net Debt/EBITDA | -2.4x | -1.3x | -0.6x | -0.4x | -0.6x | -0.2x |
Revenue and profitability
Minth Group Ltd's Revenue jumped on 22.8%. 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 on 2.9 pp from 31.7% to 34.6% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased slightly on 1.7 pp from 16.6% to 18.3% in FY2016.
Return on investment
The company operates at good ROIC (17.11%) and ROE (17.37%). ROIC increased on 3.7 pp from 13.4% to 17.1% in FY2016. ROE increased on 2.8 pp from 14.5% to 17.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 0.6x. Net Debt / EBITDA dropped on 0.2x from -0.4x to -0.6x in FY2016. Debt dropped on 26.2% while cash increased on 6.3%.
Management team
Shi Jian Hui is a the company's CEO. Shi Jian Hui has spent 13 years at the company. Bao Jian Ya is a Minth Group Ltd's CFO. Bao Jian Ya has spent 11 years at the company.
Appendix 1: Peers in Auto Parts&Equipment
Below you can find Minth Group Ltd benchmarking vs. other companies in Auto Parts&Equipment 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 |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | -10.4% | 27.1% | 31.0% | 30.9% | |
| Xinchen China Power Holdings Ltd ($1148) | 11.5% | 0.5% | 2.6% | 23.3% | |
| Nexteer Automotive Group Ltd ($1316) | | 10.1% | 24.8% | 12.8% | 14.3% |
| Xinyi Glass Holdings Ltd ($868) | | 17.8% | 9.3% | 5.5% | 12.1% |
| Jinheng Automotive Safety Technology Holdings Ltd ($872) | -10.2% | -23.5% | -7.5% | 5.3% | |
| |
|---|
| Median (16 companies) | -10.3% | 10.7% | 2.6% | -2.9% | 12.1% |
|---|
| Minth Group Ltd ($425) | | 27.3% | 21.3% | 14.5% | 22.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 37.4% | 41.0% | 41.5% | 41.5% | 42.0% |
| Xinyi Glass Holdings Ltd ($868) | 26.4% | 31.6% | 25.2% | 27.3% | 36.3% |
| Zhejiang Shibao Co Ltd ($1057) | 30.3% | 26.0% | 26.4% | 25.5% | |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 20.9% | 23.6% | 24.0% | 24.2% | |
| Weichai Power Co Ltd ($2338) | 19.2% | 20.2% | 21.1% | 22.8% | |
| |
|---|
| Median (17 companies) | 20.1% | 20.0% | 21.2% | 19.1% | 36.3% |
|---|
| Minth Group Ltd ($425) | 33.1% | 33.0% | 31.2% | 31.7% | 34.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 28.5% | 28.7% | 29.2% | 27.7% | 28.6% |
| Xinyi Glass Holdings Ltd ($868) | 22.5% | 43.8% | 20.0% | 25.0% | 31.4% |
| Xiezhong International Holdings Ltd ($3663) | 20.7% | 17.2% | 16.0% | 18.6% | |
| Nexteer Automotive Group Ltd ($1316) | 6.7% | 10.4% | 12.0% | 13.7% | 14.8% |
| Zhejiang Shibao Co Ltd ($1057) | 19.8% | 14.0% | 14.5% | 13.5% | |
| |
|---|
| Median (17 companies) | 9.3% | 11.4% | 11.5% | 11.3% | 28.6% |
|---|
| Minth Group Ltd ($425) | 25.6% | 24.2% | 23.1% | 24.5% | 26.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hybrid Kinetic Group Ltd ($1188) | 8.5% | | | 176.2% | |
| Changfeng Axle China Co Ltd ($1039) | 14.4% | 4.1% | 1.1% | 38.3% | |
| Fuyao Glass Industry Group Co Ltd ($3606) | 14.6% | 16.5% | 21.1% | 23.9% | 21.3% |
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 24.9% | 12.0% | 19.4% | |
| Xinyi Glass Holdings Ltd ($868) | 17.0% | 28.9% | 15.8% | 16.7% | |
| |
|---|
| Median (17 companies) | 8.5% | 6.2% | 5.4% | 7.4% | 12.8% |
|---|
| Minth Group Ltd ($425) | 14.8% | 16.1% | 18.7% | 15.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nexteer Automotive Group Ltd ($1316) | 14.0% | 18.2% | 17.7% | 21.2% | 24.9% |
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.0% | 21.1% | 22.3% | 15.7% | 15.0% |
| Xinyi Glass Holdings Ltd ($868) | 9.3% | 22.6% | 8.3% | 10.8% | 15.5% |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 2.4% | 9.2% | 12.5% | 10.3% | |
| Xinchen China Power Holdings Ltd ($1148) | 22.4% | 14.7% | 12.5% | 8.6% | |
| |
|---|
| Median (17 companies) | 6.3% | 8.5% | 5.8% | 2.8% | 15.5% |
|---|
| Minth Group Ltd ($425) | 11.9% | 12.1% | 11.8% | 13.4% | 17.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 7.9x | 2.8x | 2.2x | 2.9x | |
| Xiezhong International Holdings Ltd ($3663) | 0.6x | 1.2x | 1.2x | 2.2x | |
| China Vehicle Components Technology Holdings Ltd ($1269) | 9.4x | 5.8x | 5.3x | 2.0x | |
| Xinchen China Power Holdings Ltd ($1148) | -0.1x | -2.3x | 0.6x | 1.9x | |
| Xinyi Glass Holdings Ltd ($868) | 1.9x | 0.9x | 2.4x | 1.7x | 1.2x |
| |
|---|
| Median (11 companies) | 0.9x | 1.1x | 1.1x | 0.6x | 0.1x |
|---|
| Minth Group Ltd ($425) | -2.4x | -1.3x | -0.6x | -0.4x | -0.6x |
