Trending stocks
$327  
$700  

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. CNY201220132014201520162016/2015
P&L
Revenue41,56554,72760,31773,14794,78329.6%
Gross Profit10,00414,18915,06616,27620,40625.4%
SG&A2,3662,8633,1573,9884,3709.6%
EBITDA7,48810,69010,76611,30314,79430.9%
Net Income5,6928,2248,0428,05910,55130.9%
Balance Sheet
Cash5,5965,5233,0822,4581,892-23.0%
Short Term Debt4,3934,7914,2145,8644,520-22.9%
Long Term Debt0005050-0.4%
Cash flow
Capex4,4457,1337,2295,8576,68414.1%
Ratios
Revenue growth43.1%31.7%10.2%21.3%29.6%
EBITDA growth60.5%42.8%0.7%5.0%30.9%
Gross Margin24.1%25.9%25.0%22.3%21.5%-0.7%
EBITDA Margin18.0%19.5%17.8%15.5%15.6%0.2%
Net Income Margin13.7%15.0%13.3%11.0%11.1%0.1%
SG&A, % of revenue5.7%5.2%5.2%5.5%4.6%-0.8%
CAPEX, % of revenue10.7%13.0%12.0%8.0%7.1%-1.0%
ROIC27.7%32.2%25.5%22.5%25.0%2.5%
ROE29.8%33.2%26.2%22.5%24.6%2.2%
Net Debt/EBITDA-0.2x-0.1x0.1x0.3x0.2x-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
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%
 
Median (9 companies)-4.2%9.0%7.2%10.8%4.5%
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
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%
 
Median (9 companies)11.7%12.6%13.0%13.4%11.8%
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
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%
 
Median (9 companies)4.7%4.6%4.2%4.8%3.5%
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
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%
 
Median (9 companies)4.5%2.5%3.8%2.5%1.1%
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
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%
 
Median (9 companies)2.7%3.5%3.9%5.8%6.3%
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
Dah Chong Hong Holdings Ltd ($1828)1.5x2.8x3.8x3.3x3.8x
Byd Co Ltd ($1211)3.4x6.7x3.9x2.9x
Sinotruk Hong Kong Ltd ($3808)3.8x2.6x0.3x0.3x
Guangzhou Automobile Group Co Ltd ($2238)13.2x0.3x
Wuling Motors Holdings Ltd ($305)2.0x1.9x0.8x-0.6x
 
Median (8 companies)2.0x2.2x1.6x-0.2x1.0x
Great Wall Motor Co Ltd ($2333)-0.2x-0.1x0.1x0.3x0.2x