CSR Corp Ltd revenue started to decline in 2016: decreased 5.7% vs. 8.9% growth a year earliner
29/03/2017 • About CSR Corp Ltd (
$1766) • By InTwits
CSR Corp Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CSR Corp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's in pair with industry average of 4.2%.
- CAPEX is quite volatile: 7,708 in 2016, 6,427 in 2015, 11,432 in 2014, 5,292 in 2013, 3,588 in 2012
- The company has business model with average profitability: ROIC is at 10.9%
- It operates with high leverage: Net Debt/EBITDA is 0.0x while industry average is -0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CSR Corp Ltd ($1766) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 89,019 | 97,655 | 218,451 | 237,785 | 224,138 | -5.7% |
| Gross Profit | 15,755 | 16,808 | 42,831 | 46,535 | 45,028 | -3.2% |
| SG&A | 10,840 | 11,808 | 27,129 | 30,440 | 29,686 | -2.5% |
| EBITDA | 7,252 | 8,023 | 20,689 | 23,204 | 23,602 | 1.7% |
| Net Income | 4,009 | 4,165 | 10,816 | 11,818 | 11,290 | -4.5% |
Balance Sheet
|
|---|
| Cash | 14,497 | 14,974 | 43,837 | 35,955 | 41,036 | 14.1% |
| Short Term Debt | 8,592 | 6,866 | 27,373 | 15,260 | 27,184 | 78.1% |
| Long Term Debt | 727 | 3,377 | 12,216 | 14,316 | 14,838 | 3.6% |
Cash flow
|
|---|
| Capex | 4,795 | 5,710 | 9,629 | 8,435 | 10,307 | 22.2% |
Ratios
|
|---|
| Revenue growth | 12.0% | 9.7% | 123.7% | 8.9% | -5.7% | |
| EBITDA growth | 1.4% | 10.6% | 157.9% | 12.2% | 1.7% | |
| Gross Margin | 17.7% | 17.2% | 19.6% | 19.6% | 20.1% | 0.5% |
| EBITDA Margin | 8.1% | 8.2% | 9.5% | 9.8% | 10.5% | 0.8% |
| Net Income Margin | 4.5% | 4.3% | 5.0% | 5.0% | 5.0% | 0.1% |
| SG&A, % of revenue | 12.2% | 12.1% | 12.4% | 12.8% | 13.2% | 0.4% |
| CAPEX, % of revenue | 5.4% | 5.8% | 4.4% | 3.5% | 4.6% | 1.1% |
| ROIC | 11.1% | 11.2% | 15.3% | 11.7% | 10.9% | -0.8% |
| ROE | 14.5% | 11.9% | 17.1% | 12.7% | 11.2% | -1.5% |
| Net Debt/EBITDA | -0.7x | -0.6x | -0.2x | -0.3x | 0.0x | 0.3x |
CSR Corp Ltd ($1766) key quoterly financial indicators
| mln. CNY | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 40,061 | 53,488 | 52,561 | 81,745 | | | | |
| Net Income | 1,988 | 2,807 | 2,722 | 3,773 | | | | |
Balance Sheet
|
|---|
| Cash | 34,568 | 31,480 | 39,459 | 45,597 | | | | |
| Short Term Debt | 36,225 | 45,332 | 45,532 | 49,781 | | | | |
| Long Term Debt | 17,579 | 15,350 | 16,935 | 14,471 | | | | |
Ratios
|
|---|
| Gross Margin | 22.7% | 22.5% | 21.1% | 16.8% | | | | |
| Net Income Margin | 5.0% | 5.2% | 5.2% | 4.6% | | | | |
Revenue and profitability
CSR Corp Ltd's Revenue decreased on 5.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.77 pp from 9.8% to 10.5% in 2016.
Gross Margin increased slightly on 0.52 pp from 19.6% to 20.1% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.6% in 2016. CSR Corp Ltd showed small CAPEX/Revenue decline of 1.2 pp from 5.8% in 2013 to 4.6% in 2016. Average CAPEX/Revenue for the last three years was 4.2%.
Return on investment
The company operates at low ROIC (10.90%) and ROE (11.19%). ROIC decreased slightly on 0.79 pp from 11.7% to 10.9% in 2016. ROE decreased slightly on 1.5 pp from 12.7% to 11.2% in 2016.
Leverage (Debt)
Debt level is 0.0x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA jumped on 0.3x from -0.3x to 0.042x in 2016. Debt jumped on 42.1% while cash surged on 14.1%.
Appendix 1: Peers in Miscellaneous Manufactur
Below we provide CSR Corp 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 |
|---|
| Man Sang International Ltd ($938) | | 24.6% | -82.0% | -11.5% | 159.9% |
| China Environmental Energy Investment Ltd ($986) | | -26.7% | -40.0% | -81.2% | 69.7% |
| Sunny Optical Technology Group Co Ltd ($2382) | | 45.9% | 45.0% | 26.9% | 36.6% |
| AMCO United Holding Ltd ($2970) | | 10.8% | 53.9% | 16.8% | 31.1% |
| Herald Holdings Ltd ($114) | | -3.9% | -0.4% | -5.6% | 20.9% |
| |
|---|
| Median (22 companies) | 9.9% | -0.3% | 7.5% | -5.2% | 4.7% |
|---|
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 (25 companies) | 19.8% | 20.6% | 24.9% | 23.1% | 23.9% |
|---|
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 (26 companies) | 8.0% | 8.8% | 8.6% | 7.0% | 9.0% |
|---|
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 (26 companies) | 4.7% | 4.2% | 4.0% | 4.9% | 3.8% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 19.7% | 17.8% | 16.5% | 19.4% | 26.8% |
| TK Group Holdings Ltd ($2283) | 36.8% | 31.1% | 29.4% | 27.6% | 26.0% |
| Time Watch Investments Ltd ($2033) | 34.5% | 27.1% | 27.8% | 27.9% | 18.6% |
| Karrie International Hldgs ($1050) | 1.1% | 4.4% | 7.0% | 5.5% | 12.0% |
| Lee & Man Chemical Co Ltd ($746) | 11.7% | 8.2% | 10.9% | 10.7% | 10.4% |
| |
|---|
| Median (22 companies) | 4.2% | 4.0% | 4.2% | 1.5% | 9.0% |
|---|
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 (23 companies) | -0.2x | -0.0x | -0.1x | 0.4x | -0.7x |
|---|
