Haier Electronics Group Co Ltd EBITDA increased on 8.4% in 2016 and Revenue increased slightly on 1.6%
22/03/2017 • About Haier Electronics Group Co Ltd (
$1169) • By InTwits
Haier Electronics Group Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 5.7% in FY2016 vs. 5.3% in FY2015 vs. 4.3% in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Haier Electronics Group Co Ltd ($1169) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 55,615 | 62,263 | 67,134 | 62,826 | 63,855 | 1.6% |
| Gross Profit | 8,941 | 9,138 | 9,842 | 9,993 | 11,072 | 10.8% |
| SG&A | 6,722 | 6,625 | 6,950 | 7,321 | 8,124 | 11.0% |
| EBITDA | 2,401 | 2,758 | 3,233 | 3,350 | 3,632 | 8.4% |
| Net Income | 1,695 | 2,037 | 2,447 | 2,703 | 2,786 | 3.1% |
Balance Sheet
|
|---|
| Cash | 5,368 | 6,824 | 10,930 | 10,244 | 12,596 | 23.0% |
| Short Term Debt | 40 | 160 | 0 | 86 | 1,420 | 1,543.1% |
| Long Term Debt | 700 | 717 | 1,801 | 1,125 | 8 | -99.3% |
Cash flow
|
|---|
| Capex | 408 | 330 | 907 | 1,282 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 11.0% | 12.0% | 7.8% | -6.4% | 1.6% | |
| EBITDA growth | 19.4% | 14.9% | 17.2% | 3.6% | 8.4% | |
| Gross Margin | 16.1% | 14.7% | 14.7% | 15.9% | 17.3% | 1.4% |
| EBITDA Margin | 4.3% | 4.4% | 4.8% | 5.3% | 5.7% | 0.4% |
| Net Income Margin | 3.0% | 3.3% | 3.6% | 4.3% | 4.4% | 0.1% |
| SG&A, % of revenue | 12.1% | 10.6% | 10.4% | 11.7% | 12.7% | 1.1% |
| CAPEX, % of revenue | 0.7% | 0.5% | 1.4% | 2.0% | | -2.0% |
| ROIC | 37.5% | 32.8% | 20.8% | 5.9% | 6.4% | 0.5% |
| ROE | 35.4% | 30.7% | 25.5% | 20.5% | 17.2% | -3.3% |
| Net Debt/EBITDA | -1.9x | -2.2x | -2.8x | -2.7x | -3.1x | -0.4x |
Revenue and profitability
The company's Revenue increased slightly on 1.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.6 pp from 8.2% to 12.7% in 2016.
Gross Margin increased slightly on 1.4 pp from 15.9% to 17.3% in FY2016. SG&A as a % of Revenue increased slightly on 1.1 pp from 11.7% to 12.7% in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at good ROE (17.21%) while ROIC is low (6.41%). ROIC showed almost no change in FY2016. ROE decreased on 3.3 pp from 20.5% to 17.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.1x and Debt / EBITDA is 0.4x. Net Debt / EBITDA dropped on 0.4x from -2.7x to -3.1x in FY2016. Debt surged on 17.8% while cash surged on 23.0%.
Management team
The company's CEO is Zhou Yun Jie. Zhou Yun Jie has 5 years tenure at the company.
Appendix 1: Peers in Home Furnishings
Below you can find Haier Electronics Group Co Ltd benchmarking vs. other companies in Home Furnishings 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 |
|---|
| BEP International Holdings Ltd ($2326) | | -41.5% | 46.2% | 187.9% | 258.0% |
| See Corp Ltd ($491) | | -31.9% | 134.1% | 126.9% | -80.4% |
| Sunrise China Technology Group Ltd ($8226) | -93.0% | 21.9% | -20.4% | 77.5% | |
| Yuxing InfoTech Investment Holdings Ltd ($8005) | | -21.2% | -16.5% | 21.3% | 8.9% |
| Aupu Group Holding Co Ltd ($477) | 5.7% | 9.0% | 26.4% | 18.5% | |
| |
|---|
| Median (27 companies) | -5.1% | 4.8% | 1.7% | -0.8% | -1.0% |
|---|
| Haier Electronics Group Co Ltd ($1169) | | 12.0% | 7.8% | -6.4% | 1.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| South East Group Ltd ($726) | 25.5% | 51.6% | 38.8% | 82.4% | |
| Aupu Group Holding Co Ltd ($477) | 48.6% | 45.0% | 47.8% | 48.7% | |
| Grande Holdings Ltd/The ($186) | 23.7% | 25.4% | 29.0% | 27.7% | |
| Samson Holding Ltd ($531) | 25.6% | 25.4% | 27.3% | 27.3% | 27.6% |
| Gold Peak Industries Holding Ltd ($40) | 25.8% | 23.6% | 24.9% | 25.6% | 25.6% |
| |
|---|
| Median (27 companies) | 20.3% | 18.7% | 17.1% | 16.7% | 21.9% |
|---|
| Haier Electronics Group Co Ltd ($1169) | 16.1% | 14.7% | 14.7% | 15.9% | 17.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aupu Group Holding Co Ltd ($477) | 15.3% | 17.6% | 30.1% | 27.0% | |
| Skyworth Digital Holdings Ltd ($751) | 6.0% | 6.1% | 5.7% | 11.3% | 8.5% |
| Welling Holding Ltd ($382) | 11.9% | 12.8% | 10.8% | 8.6% | 11.5% |
| Hing Lee HK Holdings Ltd ($396) | -3.0% | 4.3% | 9.4% | 8.2% | |
| Raymond Industrial Ltd ($229) | 7.6% | 7.7% | 7.8% | 6.3% | |
| |
|---|
| Median (26 companies) | 6.0% | 4.8% | 4.5% | 3.1% | 5.6% |
|---|
| Haier Electronics Group Co Ltd ($1169) | 4.3% | 4.4% | 4.8% | 5.3% | 5.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| JF Household Furnishings Ltd ($776) | 0.7% | 4.5% | 2.8% | 54.5% | |
| Sunrise China Technology Group Ltd ($8226) | 126.4% | 69.3% | 7.4% | 14.1% | |
| Royale Furniture Holdings Ltd ($1198) | | 14.1% | 16.5% | 10.5% | |
| South East Group Ltd ($726) | 0.0% | 0.0% | 0.0% | 7.9% | |
| Aupu Group Holding Co Ltd ($477) | 1.5% | 6.3% | 5.3% | 5.7% | |
| |
|---|
| Median (27 companies) | 1.5% | 2.2% | 2.8% | 2.2% | 3.6% |
|---|
| Haier Electronics Group Co Ltd ($1169) | 0.7% | 0.5% | 1.4% | 2.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aupu Group Holding Co Ltd ($477) | 14.8% | 17.0% | 32.2% | 32.2% | |
| Mastercraft International Holdings Ltd ($8146) | 54.4% | 38.6% | 36.4% | 23.2% | |
| Skyworth Digital Holdings Ltd ($751) | 11.6% | 13.4% | 10.9% | 23.0% | 13.7% |
| BEP International Holdings Ltd ($2326) | 90.3% | 4.7% | -4.5% | 17.6% | 29.4% |
| Tonly Electronics Holdings Ltd ($1249) | 4.2% | 7.1% | 15.9% | 11.7% | |
| |
|---|
| Median (27 companies) | 3.7% | 4.5% | 3.9% | 0.9% | 3.4% |
|---|
| Haier Electronics Group Co Ltd ($1169) | 37.5% | 32.8% | 20.8% | 5.9% | 6.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kasen International Holdings Ltd ($496) | 2.2x | 3.7x | 44.9x | 20.1x | |
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 1.2x | 0.9x | 1.0x | 6.4x | |
| Gold Peak Industries Holding Ltd ($40) | 10.2x | 3.4x | 3.6x | 2.8x | 3.9x |
| TCL Multimedia Technology Holdings Ltd ($1070) | -0.3x | -2.3x | 0.7x | 0.5x | |
| Skyworth Digital Holdings Ltd ($751) | 1.2x | 1.5x | 1.2x | -0.2x | 0.9x |
| |
|---|
| Median (16 companies) | -0.3x | -0.9x | -1.3x | -0.9x | -0.5x |
|---|
| Haier Electronics Group Co Ltd ($1169) | -1.9x | -2.2x | -2.8x | -2.7x | -3.1x |
