Brilliance China Automotive Holdings Ltd reports 5.4% revenue growth in FY2016 and almost no change in EBITDA Margin of -10.1%
24/03/2017 • About Brilliance China Automotive Holdings Ltd (
$1114) • By InTwits
Brilliance China Automotive Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Brilliance China Automotive Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -3.2%
- The company operates at negative EBITDA Margin: -10.1%
- Brilliance China Automotive Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -4.4%0
- The company has unprofitable business model: ROIC is at -3.2%
- It operates with high leverage: Net Debt/EBITDA is 5.8x while industry average is 0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Brilliance China Automotive Holdings Ltd ($1114) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,916 | 6,103 | 5,515 | 4,863 | 5,125 | 5.4% |
| Gross Profit | 696 | 687 | 562 | 208 | 172 | -17.5% |
| SG&A | 869 | 1,004 | 980 | 933 | 983 | 5.4% |
| EBITDA | 14 | -53 | -175 | -470 | -520 | |
| Net Income | 2,301 | 3,374 | 5,403 | 3,495 | 3,682 | 5.4% |
Balance Sheet
|
|---|
| Cash | 894 | 1,077 | 1,325 | 1,747 | 1,134 | -35.1% |
| Short Term Debt | 2,827 | 2,826 | 3,223 | 3,742 | 3,655 | -2.3% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 526 | 616 | 737 | 606 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -8.2% | 3.2% | -9.6% | -11.8% | 5.4% | |
| EBITDA growth | -95.5% | -481.0% | 227.5% | 168.7% | 10.5% | |
| Gross Margin | 11.8% | 11.2% | 10.2% | 4.3% | 3.3% | -0.9% |
| EBITDA Margin | 0.2% | -0.9% | -3.2% | -9.7% | -10.1% | -0.5% |
| Net Income Margin | 38.9% | 55.3% | 98.0% | 71.9% | 71.8% | -0.0% |
| SG&A, % of revenue | 14.7% | 16.4% | 17.8% | 19.2% | 19.2% | 0.0% |
| CAPEX, % of revenue | 8.9% | 10.1% | 13.4% | 12.5% | | -12.5% |
| ROIC | -1.2% | -1.4% | -1.8% | -3.1% | -3.2% | -0.1% |
| ROE | 27.1% | 29.3% | 36.1% | 19.0% | 16.9% | -2.1% |
| Net Debt/EBITDA | 137.8x | | | | | 0.0x |
Revenue and profitability
Brilliance China Automotive Holdings Ltd's Revenue increased on 5.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.93 pp from 36.4% to 37.3% in FY2016.
Gross Margin decreased slightly on 0.93 pp from 4.3% to 3.3% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at negative ROIC (-3.21%) and low but positive ROE (16.88%). ROIC showed almost no change in FY2016. ROE decreased on 2.1 pp from 19.0% to 16.9% in FY2016.
Leverage (Debt)
Debt level is 5.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt decreased on 2.3% while cash dropped on 35.1%.
Management team
Brilliance China Automotive Holdings Ltd's CEO is Qi Yumin. Qi Yumin has 12 years tenure at the company. The company's CFO Qian Zuming has spent 10 years at the company.
Appendix 1: Peers in Auto Manufacturers
Below we provide Brilliance China Automotive Holdings 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 (9 companies) | -4.2% | 16.4% | 7.9% | 21.3% | 16.6% |
|---|
| Brilliance China Automotive Holdings Ltd ($1114) | | 3.2% | -9.6% | -11.8% | 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 (9 companies) | 11.7% | 13.4% | 13.8% | 15.3% | 18.3% |
|---|
| Brilliance China Automotive Holdings Ltd ($1114) | 11.8% | 11.2% | 10.2% | 4.3% | 3.3% |
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 (9 companies) | 6.6% | 7.4% | 7.8% | 7.5% | 13.6% |
|---|
| Brilliance China Automotive Holdings Ltd ($1114) | 0.2% | -0.9% | -3.2% | -9.7% | -10.1% |
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% | |
| 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% |
| Dongfeng Motor Group Co Ltd ($489) | 6.4% | 2.2% | 3.8% | 2.5% | |
| |
|---|
| Median (9 companies) | 4.5% | 2.5% | 3.8% | 2.5% | 4.1% |
|---|
| Brilliance China Automotive Holdings Ltd ($1114) | 8.9% | 10.1% | 13.4% | 12.5% | |
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 (9 companies) | 4.5% | 5.7% | 5.1% | 6.2% | 22.6% |
|---|
| Brilliance China Automotive Holdings Ltd ($1114) | -1.2% | -1.4% | -1.8% | -3.1% | -3.2% |
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) | 1.5x | 1.9x | 0.8x | 0.3x | 0.2x |
|---|
