BAIC Motor Corp Ltd EBITDA jumped on 102% in 2016 and EBITDA Margin increased on 4.5 pp from 9.7% to 14.2%
24/03/2017 • About BAIC Motor Corp Ltd (
$1958) • By InTwits
BAIC Motor Corp Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- BAIC Motor Corp Ltd is a fast growth stock: 2016 revenue growth was 38.1%, 5 year revenue CAGR was 127% at 2016 ROIC 13.8%
- EBITDA Margin is expanding: 14.2% in 2016 vs. 9.7% in 2015 vs. 9.6% in 2012
- EBITDA Margin is quite volatile: 14.2% in 2016, 9.7% in 2015, 5.4% in 2014, -13.2% in 2013, 9.6% in 2012
- BAIC Motor Corp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 42.2%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 8,343 in FY2016, 5,944 in FY2015, 5,485 in FY2014, 4,257 in FY2013, 2,305 in FY2012
- The company has highly profitable business model: ROIC is at 13.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
BAIC Motor Corp Ltd ($1958) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,520 | 12,782 | 56,370 | 84,112 | 116,199 | 38.1% |
| Gross Profit | -168 | 415 | 8,983 | 15,277 | 26,232 | 71.7% |
| SG&A | 1,444 | 3,291 | 8,697 | 11,693 | 14,528 | 24.2% |
| EBITDA | 338 | -1,691 | 3,053 | 8,176 | 16,543 | 102.3% |
| Net Income | 3,417 | 2,714 | 4,511 | 3,319 | 6,367 | 91.9% |
Balance Sheet
|
|---|
| Cash | 2,891 | 16,790 | 21,923 | 23,946 | 36,064 | 50.6% |
| Short Term Debt | 3,627 | 7,833 | 15,983 | 21,280 | 27,570 | 29.6% |
| Long Term Debt | 8,069 | 15,122 | 13,935 | 8,986 | 7,809 | -13.1% |
Cash flow
|
|---|
| Capex | 4,675 | 5,749 | 9,055 | 9,220 | 7,310 | -20.7% |
Ratios
|
|---|
| Revenue growth | 83.7% | 263.2% | 341.0% | 49.2% | 38.1% | |
| EBITDA growth | -163.6% | -600.0% | -280.5% | 167.8% | 102.3% | |
| Gross Margin | -4.8% | 3.2% | 15.9% | 18.2% | 22.6% | 4.4% |
| EBITDA Margin | 9.6% | -13.2% | 5.4% | 9.7% | 14.2% | 4.5% |
| Net Income Margin | 97.1% | 21.2% | 8.0% | 3.9% | 5.5% | 1.5% |
| SG&A, % of revenue | 41.0% | 25.7% | 15.4% | 13.9% | 12.5% | -1.4% |
| CAPEX, % of revenue | 132.8% | 45.0% | 16.1% | 11.0% | 6.3% | -4.7% |
| ROIC | 0.6% | -6.2% | 1.1% | 6.0% | 13.8% | 7.8% |
| ROE | 25.6% | 13.7% | 15.8% | 9.7% | 16.9% | 7.2% |
| Net Debt/EBITDA | 26.0x | | 2.6x | 0.8x | -0.0x | -0.8x |
Revenue and profitability
BAIC Motor Corp Ltd's Revenue surged on 38.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 10.1 pp from 25.8% to 35.9% in FY2016.
Gross Margin increased on 4.4 pp from 18.2% to 22.6% in 2016. SG&A as a % of Revenue decreased slightly on 1.4 pp from 13.9% to 12.5% in 2016.
Net Income marign increased slightly on 1.5 pp from 3.9% to 5.5% in 2016.
Capital expenditures (CAPEX) and working capital investments
BAIC Motor Corp Ltd's CAPEX/Revenue was 6.3% in 2016. CAPEX/Revenue dropped on 38.7 pp from 45.0% in 2013 to 6.3% in 2016. It's average level of CAPEX/Revenue for the last three years was 11.1%.
Return on investment
The company operates at good ROIC (13.83%) and ROE (16.94%). ROIC increased on 7.8 pp from 6.0% to 13.8% in 2016. ROE increased on 7.2 pp from 9.7% to 16.9% in 2016.
Leverage (Debt)
Debt level is -0.0x Net Debt / EBITDA and 2.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from 0.8x to -0.041x in 2016. Debt surged on 16.9% while cash jumped on 50.6%.
Management team
Li Feng is a BAIC Motor Corp Ltd's CEO. Li Feng has spent 5 years at the company.
Appendix 1: Peers in Auto Manufacturers
Below we provide BAIC Motor Corp Ltd benchmarking against other companies in Auto Manufacturers 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 |
|---|
| Dongfeng Motor Group Co Ltd ($489) | -95.4% | 511.9% | 123.0% | 52.3% | |
| Byd Co Ltd ($1211) | -4.2% | 16.4% | 7.2% | 40.2% | |
| Geely Automobile Holdings Ltd ($175) | | 16.6% | -24.3% | 38.6% | 78.3% |
| Guangzhou Automobile Group Co Ltd ($2238) | 18.0% | 45.2% | 18.9% | 31.4% | |
| Great Wall Motor Co Ltd ($2333) | | 31.7% | 10.2% | 21.3% | 29.6% |
| |
|---|
| Median (10 companies) | -4.2% | 12.7% | 7.5% | 16.0% | 5.4% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Wall Motor Co Ltd ($2333) | 24.1% | 25.9% | 25.0% | 22.3% | 21.5% |
| Qingling Motors Co Ltd ($1122) | 12.3% | 15.2% | 15.1% | 18.7% | |
| Geely Automobile Holdings Ltd ($175) | 18.5% | 20.1% | 18.2% | 18.2% | 18.3% |
| Sinotruk Hong Kong Ltd ($3808) | 14.9% | 16.7% | 16.9% | 17.8% | |
| Byd Co Ltd ($1211) | 11.6% | 13.4% | 13.8% | 15.3% | |
| |
|---|
| Median (10 companies) | 11.7% | 13.0% | 13.4% | 14.3% | 15.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Wall Motor Co Ltd ($2333) | 18.0% | 19.5% | 17.8% | 15.5% | 15.6% |
| Geely Automobile Holdings Ltd ($175) | 14.6% | 15.8% | 15.9% | 14.4% | 13.6% |
| Byd Co Ltd ($1211) | 10.2% | 9.6% | 12.0% | 14.2% | |
| Qingling Motors Co Ltd ($1122) | 10.3% | 12.8% | 11.4% | 12.2% | |
| Sinotruk Hong Kong Ltd ($3808) | 6.6% | 7.4% | 7.8% | 7.5% | |
| |
|---|
| Median (10 companies) | 5.6% | 6.0% | 6.0% | 6.1% | 8.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Guangzhou Automobile Group Co Ltd ($2238) | 22.7% | 10.1% | 15.7% | 14.7% | |
| Brilliance China Automotive Holdings Ltd ($1114) | 8.9% | 10.1% | 13.4% | 12.5% | |
| Great Wall Motor Co Ltd ($2333) | 10.7% | 13.0% | 12.0% | 8.0% | 7.1% |
| Byd Co Ltd ($1211) | 13.0% | 11.2% | 4.2% | 5.7% | |
| Geely Automobile Holdings Ltd ($175) | 4.5% | 3.9% | 5.0% | 5.3% | 1.1% |
| |
|---|
| Median (10 companies) | 5.4% | 3.2% | 4.0% | 3.9% | 4.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Wall Motor Co Ltd ($2333) | 27.7% | 32.2% | 25.5% | 22.5% | 25.0% |
| Geely Automobile Holdings Ltd ($175) | 16.2% | 19.6% | 13.4% | 15.0% | 22.6% |
| Wuling Motors Holdings Ltd ($305) | 7.2% | 7.7% | 10.0% | 11.8% | |
| Byd Co Ltd ($1211) | 2.7% | 2.5% | 3.9% | 8.5% | |
| Dah Chong Hong Holdings Ltd ($1828) | 11.4% | 8.5% | 7.7% | 6.2% | 6.3% |
| |
|---|
| Median (10 companies) | 3.6% | 4.6% | 4.5% | 6.0% | 14.4% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dah Chong Hong Holdings Ltd ($1828) | 1.5x | 2.8x | 3.8x | 3.3x | 3.8x |
| Byd Co Ltd ($1211) | 3.4x | 6.7x | 3.9x | 2.9x | |
| Sinotruk Hong Kong Ltd ($3808) | 3.8x | 2.6x | 0.3x | 0.3x | |
| Great Wall Motor Co Ltd ($2333) | -0.2x | -0.1x | 0.1x | 0.3x | 0.2x |
| Guangzhou Automobile Group Co Ltd ($2238) | | | 13.2x | 0.3x | |
| |
|---|
| Median (9 companies) | 1.8x | 1.9x | 0.8x | 0.3x | 0.2x |
|---|
