China Ludao Technology Co Ltd reports 553% Net Income growth in 2016 and 7.0 pp EBITDA Margin growth from 3.3% to 10.3%
23/03/2017 • About China Ludao Technology Co Ltd (
$2023) • By InTwits
China Ludao Technology Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 10.3% in FY2016, 3.3% in FY2015, 11.7% in FY2014, 13.9% in FY2013, 13.5% in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.1%
- It operates with high leverage: Net Debt/EBITDA is -0.9x while industry average is -6.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Ludao Technology Co Ltd ($2023) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 228.9 | 251.4 | 253.8 | 266.0 | 274.2 | 3.1% |
| Gross Profit | 55.3 | 62.5 | 64.7 | 65.7 | 77.2 | 17.5% |
| SG&A | 32.9 | 41.1 | 43.7 | 64.9 | 57.4 | -11.6% |
| EBITDA | 30.9 | 34.8 | 29.6 | 8.7 | 28.1 | 221.8% |
| Net Income | 23.8 | 24.0 | 20.5 | 3.6 | 23.3 | 552.7% |
Balance Sheet
|
|---|
| Cash | 36.3 | 54.3 | 26.8 | 120.8 | 25.9 | -78.6% |
| Short Term Debt | 67.0 | 70.9 | 88.9 | 58.6 | 0.9 | -98.5% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 4.7 | 8.9 | 23.9 | 17.6 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 7.6% | 9.8% | 1.0% | 4.8% | 3.1% | |
| EBITDA growth | 3.2% | 12.6% | -14.9% | -70.5% | 221.8% | |
| Gross Margin | 24.2% | 24.9% | 25.5% | 24.7% | 28.2% | 3.5% |
| EBITDA Margin | 13.5% | 13.9% | 11.7% | 3.3% | 10.3% | 7.0% |
| Net Income Margin | 10.4% | 9.6% | 8.1% | 1.3% | 8.5% | 7.1% |
| SG&A, % of revenue | 14.4% | 16.3% | 17.2% | 24.4% | 20.9% | -3.5% |
| CAPEX, % of revenue | 2.1% | 3.5% | 9.4% | 6.6% | | -6.6% |
| ROIC | 18.2% | 14.9% | 9.1% | 1.0% | 6.1% | 5.1% |
| ROE | 29.0% | 17.4% | 10.6% | 1.4% | 7.2% | 5.8% |
| Net Debt/EBITDA | 1.0x | 0.5x | 2.1x | -7.1x | -0.9x | 6.2x |
Revenue and profitability
China Ludao Technology Co Ltd's Revenue increased on 3.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.2 pp from 18.0% to 21.2% in FY2016.
Gross Margin increased on 3.5 pp from 24.7% to 28.2% in FY2016. SG&A as a % of Revenue decreased on 3.5 pp from 24.4% to 20.9% in FY2016.
Net Income marign increased on 7.1 pp from 1.3% to 8.5% in FY2016.
Return on investment
The company operates at low ROIC (6.11%) and ROE (7.19%). ROIC increased on 5.1 pp from 1.0% to 6.1% in FY2016. ROE increased on 5.8 pp from 1.4% to 7.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.9x and Debt / EBITDA is 0.0x. Net Debt / EBITDA surged on 6.2x from -7.1x to -0.9x in FY2016. Debt dropped on 98.5% while cash dropped on 78.6%.
Appendix 1: Peers in Miscellaneous Manufactur
Below we provide China Ludao Technology Co Ltd benchmarking against other companies in Miscellaneous Manufactur 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 |
|---|
| Karrie International Hldgs ($1050) | | 0.1% | -11.3% | 27.4% | 11.8% |
| Sunny Optical Technology Group Co Ltd ($2382) | | 45.9% | 45.0% | 26.9% | 36.6% |
| TK Group Holdings Ltd ($2283) | | 9.3% | 11.8% | 20.0% | 1.3% |
| AMCO United Holding Ltd ($2970) | | 10.8% | 53.9% | 16.8% | 31.1% |
| Yusei Holdings Ltd ($96) | 18.4% | -9.3% | 6.7% | 15.6% | |
| |
|---|
| Median (25 companies) | 9.9% | -0.7% | 8.2% | -5.6% | 6.3% |
|---|
| China Ludao Technology Co Ltd ($2023) | | 9.8% | 1.0% | 4.8% | 3.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Man Sang International Ltd ($938) | 42.4% | 32.8% | 60.3% | 78.6% | 56.4% |
| Time Watch Investments Ltd ($2033) | 60.2% | 60.6% | 65.0% | 68.1% | 68.5% |
| China Environmental Energy Investment Ltd ($986) | 14.0% | 1.2% | 9.0% | 49.2% | 40.4% |
| Lee & Man Chemical Co Ltd ($746) | 34.3% | 35.7% | 41.9% | 39.6% | 36.3% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 33.2% | 35.1% | 37.4% | 38.7% | |
| |
|---|
| Median (24 companies) | 19.7% | 19.7% | 23.4% | 22.4% | 21.1% |
|---|
| China Ludao Technology Co Ltd ($2023) | 24.2% | 24.9% | 25.5% | 24.7% | 28.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 30.4% | 31.3% | 38.4% | 37.6% | 37.0% |
| Man Sang International Ltd ($938) | 24.9% | 15.4% | 37.0% | 33.8% | 40.4% |
| IPE Group Ltd ($929) | 25.6% | 22.5% | 29.5% | 29.1% | |
| DeTeam Co Ltd ($65) | 8.0% | 3.9% | -1.3% | 24.3% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 18.4% | 19.8% | 20.6% | 24.2% | |
| |
|---|
| Median (25 companies) | 7.9% | 7.8% | 7.4% | 7.9% | 7.9% |
|---|
| China Ludao Technology Co Ltd ($2023) | 13.5% | 13.9% | 11.7% | 3.3% | 10.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Environmental Energy Investment Ltd ($986) | 6.1% | 0.4% | 17.9% | 47.6% | 6.2% |
| DeTeam Co Ltd ($65) | 6.7% | 47.0% | 5.6% | 33.1% | |
| Lee & Man Chemical Co Ltd ($746) | 5.8% | 51.1% | 33.7% | 22.8% | |
| China International Marine Containers Group Co Ltd ($2039) | 3.9% | 12.1% | 18.5% | 21.2% | |
| IPE Group Ltd ($929) | 6.3% | 13.3% | 12.3% | 13.3% | |
| |
|---|
| Median (25 companies) | 4.7% | 4.2% | 3.8% | 4.3% | 3.8% |
|---|
| China Ludao Technology Co Ltd ($2023) | 2.1% | 3.5% | 9.4% | 6.6% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Time Watch Investments Ltd ($2033) | 34.5% | 27.1% | 27.8% | 27.9% | 18.6% |
| TK Group Holdings Ltd ($2283) | 36.8% | 31.1% | 29.4% | 27.6% | 26.0% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 16.9% | 17.7% | 20.0% | 21.1% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 19.7% | 17.8% | 16.5% | 19.4% | 26.8% |
| Yusei Holdings Ltd ($96) | 4.2% | 7.0% | 13.6% | 14.1% | |
| |
|---|
| Median (25 companies) | 3.2% | 3.6% | 3.9% | 1.6% | 9.2% |
|---|
| China Ludao Technology Co Ltd ($2023) | 18.2% | 14.9% | 9.1% | 1.0% | 6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Continental Holdings Ltd ($513) | | 20.1x | 92.9x | 4,203.6x | |
| South China China Ltd ($413) | | 37.5x | 2,842.3x | 27.3x | |
| Launch Tech Co Ltd ($2488) | 7.6x | 2.4x | 3.9x | 14.5x | |
| China International Marine Containers Group Co Ltd ($2039) | 4.0x | 4.7x | 5.8x | 9.8x | |
| VS International Group Ltd ($1002) | 5.1x | 6.5x | 4.4x | 3.3x | 4.6x |
| |
|---|
| Median (22 companies) | -0.2x | -0.2x | -0.2x | 0.4x | -0.6x |
|---|
| China Ludao Technology Co Ltd ($2023) | 1.0x | 0.5x | 2.1x | -7.1x | -0.9x |
