Great Wall Motor Co Ltd reports 30.9% Net Income growth and 29.6% Revenue growth
24/03/2017 • About Great Wall Motor Co Ltd (
$2333) • By InTwits
Great Wall Motor Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Great Wall Motor Co Ltd is a fast growth stock: 2016 revenue growth was 29.6%, 5 year revenue CAGR was 26.7% at 2016 ROIC 25.0%
- Great Wall Motor Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.2%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 1,493 in FY2016, 660 in FY2015, 544 in FY2014, 1,504 in FY2013, 1,099 in FY2012
- The company has highly profitable business model: ROIC is at 25.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Great Wall Motor Co Ltd ($2333) key annual financial indicators
mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
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P&L
|
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Revenue | 41,565 | 54,727 | 60,317 | 73,147 | 94,783 | 29.6% |
Gross Profit | 10,004 | 14,189 | 15,066 | 16,276 | 20,406 | 25.4% |
SG&A | 2,366 | 2,863 | 3,157 | 3,988 | 4,370 | 9.6% |
EBITDA | 7,488 | 10,690 | 10,766 | 11,303 | 14,794 | 30.9% |
Net Income | 5,692 | 8,224 | 8,042 | 8,059 | 10,551 | 30.9% |
Balance Sheet
|
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Cash | 5,596 | 5,523 | 3,082 | 2,458 | 1,892 | -23.0% |
Short Term Debt | 4,393 | 4,791 | 4,214 | 5,864 | 4,520 | -22.9% |
Long Term Debt | 0 | 0 | 0 | 50 | 50 | -0.4% |
Cash flow
|
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Capex | 4,445 | 7,133 | 7,229 | 5,857 | 6,684 | 14.1% |
Ratios
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Revenue growth | 43.1% | 31.7% | 10.2% | 21.3% | 29.6% | |
EBITDA growth | 60.5% | 42.8% | 0.7% | 5.0% | 30.9% | |
Gross Margin | 24.1% | 25.9% | 25.0% | 22.3% | 21.5% | -0.7% |
EBITDA Margin | 18.0% | 19.5% | 17.8% | 15.5% | 15.6% | 0.2% |
Net Income Margin | 13.7% | 15.0% | 13.3% | 11.0% | 11.1% | 0.1% |
SG&A, % of revenue | 5.7% | 5.2% | 5.2% | 5.5% | 4.6% | -0.8% |
CAPEX, % of revenue | 10.7% | 13.0% | 12.0% | 8.0% | 7.1% | -1.0% |
ROIC | 27.7% | 32.2% | 25.5% | 22.5% | 25.0% | 2.5% |
ROE | 29.8% | 33.2% | 26.2% | 22.5% | 24.6% | 2.2% |
Net Debt/EBITDA | -0.2x | -0.1x | 0.1x | 0.3x | 0.2x | -0.1x |
Revenue and profitability
Great Wall Motor Co Ltd's Revenue surged on 29.6%. EBITDA Margin showed almost no change in 2016.
Gross Margin decreased slightly on 0.72 pp from 22.3% to 21.5% in 2016. SG&A as a % of Revenue decreased slightly on 0.84 pp from 5.5% to 4.6% in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 7.1%. CAPEX/Revenue decreased on 6.0 pp from 13.0% in 2013 to 7.1% in 2016. For the last three years the average CAPEX/Revenue was 9.0%.
Return on investment
The company operates at high and attractive ROIC (24.99%) and ROE (24.64%). ROIC increased on 2.5 pp from 22.5% to 25.0% in 2016. ROE increased on 2.2 pp from 22.5% to 24.6% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.2x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.1x from 0.3x to 0.2x in 2016. Debt dropped on 22.7% while cash dropped on 23.0%.
Appendix 1: Peers in Auto Manufacturers
Below we provide Great Wall Motor Co 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 |
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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% | |
Wuling Motors Holdings Ltd ($305) | 8.7% | 1.5% | 0.8% | 10.8% | |
|
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Median (9 companies) | -4.2% | 9.0% | 7.2% | 10.8% | 4.5% |
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Great Wall Motor Co Ltd ($2333) | | 31.7% | 10.2% | 21.3% | 29.6% |
Top companies by Gross margin, %
Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
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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% | |
Dongfeng Motor Group Co Ltd ($489) | 5.8% | 12.6% | 13.0% | 13.4% | |
|
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Median (9 companies) | 11.7% | 12.6% | 13.0% | 13.4% | 11.8% |
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Great Wall Motor Co Ltd ($2333) | 24.1% | 25.9% | 25.0% | 22.3% | 21.5% |
Top companies by EBITDA margin, %
Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
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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% | |
Guangzhou Automobile Group Co Ltd ($2238) | -5.9% | -1.5% | 1.4% | 4.8% | |
|
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Median (9 companies) | 4.7% | 4.6% | 4.2% | 4.8% | 3.5% |
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Great Wall Motor Co Ltd ($2333) | 18.0% | 19.5% | 17.8% | 15.5% | 15.6% |
Top companies by CAPEX/Revenue, %
Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
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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% | |
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% | |
|
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Median (9 companies) | 4.5% | 2.5% | 3.8% | 2.5% | 1.1% |
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Great Wall Motor Co Ltd ($2333) | 10.7% | 13.0% | 12.0% | 8.0% | 7.1% |
Top companies by ROIC, %
Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
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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% |
Qingling Motors Co Ltd ($1122) | 4.5% | 5.7% | 5.1% | 5.8% | |
|
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Median (9 companies) | 2.7% | 3.5% | 3.9% | 5.8% | 6.3% |
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Great Wall Motor Co Ltd ($2333) | 27.7% | 32.2% | 25.5% | 22.5% | 25.0% |
Top companies by Net Debt / EBITDA
Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
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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 | |
Guangzhou Automobile Group Co Ltd ($2238) | | | 13.2x | 0.3x | |
Wuling Motors Holdings Ltd ($305) | 2.0x | 1.9x | 0.8x | -0.6x | |
|
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Median (8 companies) | 2.0x | 2.2x | 1.6x | -0.2x | 1.0x |
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Great Wall Motor Co Ltd ($2333) | -0.2x | -0.1x | 0.1x | 0.3x | 0.2x |