Geely Automobile Holdings Ltd demonstrates fast growth in fundamentals
29/03/2017 • About Geely Automobile Holdings Ltd (
$175) • By InTwits
Geely Automobile Holdings Ltd is a fast-growing stock in Auto Manufacturers industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Geely Automobile Holdings Ltd showed growth in the last financial year. Geely Automobile Holdings Ltd's revenue surged on 78.3% in FY2016. EBITDA also increased considerably: 67.5% for the same period.
If we look for the longer period Geely Automobile Holdings Ltd showed fast revenue growth of 23.2% from FY2013 to FY2016 annualy. EBITDA surged on 17.2% from FY2013 to FY2016 annualy.
Geely Automobile Holdings Ltd ($175) financials for the last 5 years
| mln. CNY | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 24,628 | 28,708 | 21,738 | 30,138 | 53,722 |
|---|
| Revenue growth, % | | 16.6% | -24.3% | 38.6% | 78.3% |
|---|
| Gross margin, % | 18.5% | 20.1% | 18.2% | 18.2% | 18.3% |
|---|
| SG&A, % | 11.4% | 11.8% | 13.9% | 12.4% | 9.42% |
|---|
| EBITDA | 3,584 | 4,526 | 3,462 | 4,346 | 7,280 |
|---|
| EBITDA growth, % | | 26.3% | -23.5% | 25.5% | 67.5% |
|---|
| EBITDA margin, % | 14.6% | 15.8% | 15.9% | 14.4% | 13.6% |
|---|
| Net Income | 2,040 | 2,663 | 1,431 | 2,261 | 5,112 |
|---|
| Net Income margin, % | 8.28% | 9.28% | 6.58% | 7.50% | 9.52% |
|---|
| |
| CAPEX | 1,105 | 1,121 | 1,076 | 1,603 | 589 |
|---|
| CAPEX/Revenue, % | 4.49% | 3.91% | 4.95% | 5.32% | 1.10% |
|---|
| Debt | 3,663 | 1,610 | 2,877 | 2,001 | 2,342 |
|---|
| Cash | 4,189 | 5,478 | 7,203 | 9,167 | 15,045 |
|---|
| Net Debt/EBITDA | -0.1x | -0.9x | -1.2x | -1.6x | -1.7x |
|---|
| |
| ROIC, % | 16.2% | 19.6% | 13.4% | 15.0% | 22.6% |
|---|
| ROE, % | 18.2% | 18.4% | 8.6% | 12.3% | 23.3% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 14.4% in FY2015 to 13.6% in FY2016. In the longer period Geely Automobile Holdings Ltd's EBITDA margin dropped on 2.20 pp from 15.8% in FY2013 to 13.6% in FY2016.
We call Geely Automobile Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 22.6%. During the last three years it surged - it was 19.6% in FY2013. It's average ROIC for the last three years was 17.0%.
Net Income margin surged on 2 pp from 7.50% to 9.50% in FY2016. If we look for the longer period the company showed small growth in Net Income margin of 0.200 pp from 9.30% in FY2013 to 9.50% in FY2016.
Geely Automobile Holdings Ltd operates at ROE of 23.3%. For the last three years the average ROE was 14.7%.
Capital expenditures (CAPEX)
In FY2016 Geely Automobile Holdings Ltd had CAPEX/Revenue of 1.10%. CAPEX/Revenue dropped on 2.81 pp from 3.91% in FY2013 to 1.10% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.79%.
Leverage (Debt)
Geely Automobile Holdings Ltd has negative net debt at -1.7x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period leverage surged on 0.89x from -0.85x in FY2013 to -1.74x in FY2016.
Management team
Geely Automobile Holdings Ltd is headed by Gui Sheng Yue as a CEO.
Peers in Auto Manufacturers
Below we provide Geely Automobile 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Dongfeng Motor Group Co Ltd ($489) | -95.4% | 511.9% | 123.0% | 52.3% | |
| BAIC Motor Corp Ltd ($1958) | 83.7% | 263.2% | 341.0% | 49.2% | |
| Byd Co Ltd ($1211) | -4.2% | 16.4% | 7.2% | 40.2% | |
| Guangzhou Automobile Group Co Ltd ($2238) | 18.0% | 45.2% | 18.9% | 31.4% | |
| Great Wall Motor Co Ltd ($2333) | 43.1% | 31.7% | 10.2% | 21.3% | |
| |
|---|
| Median (10 companies) | -4.2% | 12.7% | 8.9% | 16.0% | 3.7% |
|---|
| Geely Automobile Holdings Ltd ($175) | | 16.6% | -24.3% | 38.6% | 78.3% |
Top companies by Gross margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Great Wall Motor Co Ltd ($2333) | 24.1% | 25.9% | 25.0% | 22.3% | |
| Qingling Motors Co Ltd ($1122) | 12.3% | 15.2% | 15.1% | 18.7% | |
| BAIC Motor Corp Ltd ($1958) | -4.8% | 3.2% | 15.9% | 18.2% | |
| 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) | 11.6% | 12.0% | 13.4% | 14.3% | 11.8% |
|---|
| Geely Automobile Holdings Ltd ($175) | 18.5% | 20.1% | 18.2% | 18.2% | 18.3% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Great Wall Motor Co Ltd ($2333) | 18.0% | 19.5% | 17.8% | 15.5% | |
| 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% | |
| BAIC Motor Corp Ltd ($1958) | 9.6% | -13.2% | 5.4% | 9.7% | |
| Sinotruk Hong Kong Ltd ($3808) | 6.6% | 7.4% | 7.8% | 7.5% | |
| |
|---|
| Median (10 companies) | 5.6% | 3.8% | 4.8% | 6.1% | 3.5% |
|---|
| Geely Automobile Holdings Ltd ($175) | 14.6% | 15.8% | 15.9% | 14.4% | 13.6% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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% | |
| BAIC Motor Corp Ltd ($1958) | 132.8% | 45.0% | 16.1% | 11.0% | |
| Great Wall Motor Co Ltd ($2333) | 10.7% | 13.0% | 12.0% | 8.0% | |
| Byd Co Ltd ($1211) | 13.0% | 11.2% | 4.2% | 5.7% | |
| |
|---|
| Median (10 companies) | 7.6% | 6.3% | 4.0% | 4.1% | |
|---|
| Geely Automobile Holdings Ltd ($175) | 4.5% | 3.9% | 5.0% | 5.3% | 1.1% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Great Wall Motor Co Ltd ($2333) | 27.7% | 32.2% | 25.5% | 22.5% | |
| 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% |
| BAIC Motor Corp Ltd ($1958) | 0.6% | -6.2% | 1.1% | 6.0% | |
| |
|---|
| Median (10 companies) | 2.6% | 3.0% | 3.9% | 5.9% | 6.3% |
|---|
| Geely Automobile Holdings Ltd ($175) | 16.2% | 19.6% | 13.4% | 15.0% | 22.6% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 | |
| BAIC Motor Corp Ltd ($1958) | 26.0x | | 2.6x | 0.8x | |
| 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 | |
| |
|---|
| Median (9 companies) | 2.7x | 2.2x | 2.3x | 0.3x | 3.8x |
|---|
| Geely Automobile Holdings Ltd ($175) | -0.1x | -0.9x | -1.2x | -1.6x | -1.7x |
