China High Precision Automation Group Ltd revenue dropped on 25.0% and EBITDA Margin dropped on 50.0 pp from -3.5% to -53.5%
28/09/2020 • About China High Precision Automation Group Ltd (
$591) • By InTwits
China High Precision Automation Group Ltd reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China High Precision Automation Group Ltd is a company in decline: FY2020 revenue growth was -25.0%, 5 years revenue CAGR was -19.0%
- The company operates at negative EBITDA Margin: -53.5%
- China High Precision Automation Group Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -26.6%
- China High Precision Automation Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 6.5%.
- CAPEX is quite volatile: 1 CNYm in FY2020, 1 CNYm in FY2019, 9 CNYm in FY2018, 1 CNYm in FY2017, 0 CNYm in FY2016
- In the last 5 years the company invested considerably less than D&A: 12 CNYm vs. 185 CNYm. In FY2020 this situation was still the same: CAPEX was 1 while D&A was 45
- The company has unprofitable business model: ROIC is -5.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 25.0%. During the last 5 years Revenue growth topped in FY2019 at 23.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 50.0 pp from -3.5% to -53.5% in FY2020.
Gross Margin decreased on 8.8 pp from 3.0% to -5.8% in FY2020. SG&A as a % of Revenue surged on 10.8 pp from 36.4% to 47.2% in FY2020.
Net Income margin dropped on 52.7 pp from -35.9% to -88.6% in FY2020.
Investments (CAPEX, working capital and M&A)
China High Precision Automation Group Ltd's CAPEX/Revenue was 0.85% in FY2020. China High Precision Automation Group Ltd showed almost no change in CAPEX/Revenue from FY2017 to FY2020. Average CAPEX/Revenue for the last three years was 3.3%. During FY2016-FY2020 CAPEX as a % of Revenue topped in FY2018 at 8.0% and was declining since that time.
Inventories as a % of Revenue increased on 9.0 pp from 32.4% to 41.4% in FY2020.
Return on investment
The company operates at negative ROIC (-5.2%) and ROE (-4.8%). ROIC decreased on 2.7 pp from -2.6% to -5.2% in FY2020. ROE decreased on 2.3 pp from -2.5% to -4.8% in FY2020. During the last 5 years ROE topped in FY2019 at -2.5%.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and Debt / EBITDA. Debt jumped while cash increased slightly on 1.6%.
China High Precision Automation Group Ltd has no short term refinancing risk: cash is higher than short term debt (122,869.2%).
Management team
The company has 33.1% shares owned by insiders. Insider ownership didn't change in 2020.
At the end of financial year the company had 529 employees. The number of employees decreased on 4.2%. Average revenue per employee in FY2020 was 187,535 CNY and it dropped on 21.7%.
Financial and operational results
FY ended 30/06/2020
China High Precision Automation Group Ltd ($591) key annual financial indicators| mln. CNY | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 159.0 | 121.2 | 106.8 | 132.2 | 99.2 | -25.0% |
| Gross Profit | -34.0 | -45.2 | -22.5 | 4.0 | -5.7 | -243.7% |
| SG&A | 55.0 | 52.1 | 51.1 | 48.1 | 46.8 | -2.7% |
| EBITDA | -42.0 | -43.4 | -21.6 | -4.6 | -53.0 | |
| EBIT | | -93.4 | -66.9 | -49.3 | -97.9 | |
| Tax | | -1.1 | -0.6 | -0.5 | -8.6 | |
| Net Income | -94.2 | -89.7 | -59.3 | -47.5 | -87.9 | |
Balance Sheet
|
|---|
| Cash | 1,472.1 | 1,447.0 | 1,439.2 | 1,438.8 | 1,462.1 | 1.6% |
| Inventory | | 40.1 | 43.0 | 42.9 | 41.1 | -4.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 1.2 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 1.6 | |
Cash flow
|
|---|
| Capex | 0.3 | 0.7 | 8.6 | 1.5 | 0.8 | -42.7% |
Ratios
|
|---|
| Revenue growth | -44.1% | -23.8% | -11.9% | 23.8% | -25.0% | |
| EBITDA growth | 183.7% | 3.3% | -50.2% | -78.5% | 1,042.6% | |
|
|---|
| Gross Margin | -21.4% | -37.3% | -21.0% | 3.0% | -5.8% | -8.8% |
| EBITDA Margin | -26.4% | -35.8% | -20.2% | -3.5% | -53.5% | -50.0% |
| EBIT Margin | | -77.0% | -62.6% | -37.3% | -98.7% | -61.4% |
| SG&A, % of revenue | 34.6% | 43.0% | 47.8% | 36.4% | 47.2% | 10.8% |
| Net Income Margin | -59.2% | -74.0% | -55.5% | -35.9% | -88.6% | -52.7% |
| CAPEX, % of revenue | 0.2% | 0.6% | 8.0% | 1.1% | 0.9% | -0.3% |
|
|---|
| ROIC | -4.4% | -4.5% | -3.4% | -2.6% | -5.2% | -2.7% |
| ROE | -4.4% | -4.4% | -3.0% | -2.5% | -4.8% | -2.3% |
People
|
|---|
| Insider ownership | | 33.1% | 33.1% | 33.1% | 33.1% | 0.0% |
| Employees | | 636 | 685 | 552 | 529 | -4.2% |
| Revenue/Employee, th. CNY | | 191 | 156 | 240 | 188 | -21.7% |
Peers in Machinery-Diversified
Below you can find China High Precision Automation Group Ltd benchmarking vs. other companies in Machinery-Diversified industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Huazhang Technology Holding Ltd ($1673) | - | 20.5% | 55.3% | 19.1% | -58.1% |
| |
|---|
| Median (1 company) | -6.2% | 20.5% | 55.3% | 19.1% | -58.1% |
|---|
| China High Precision Automation Group Ltd ($591) | - | -23.8% | -11.9% | 23.8% | -25.0% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Huazhang Technology Holding Ltd ($1673) | 24.7% | 22.0% | 22.4% | 15.8% | 20.2% |
| |
|---|
| Median (1 company) | 22.0% | 22.0% | 22.4% | 15.8% | 20.2% |
|---|
| China High Precision Automation Group Ltd ($591) | -21.4% | -37.3% | -21.0% | 3.0% | -5.8% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Huazhang Technology Holding Ltd ($1673) | 10.8% | 10.1% | 11.4% | -14.4% | -20.2% |
| |
|---|
| Median (1 company) | 5.1% | 10.1% | 11.4% | -14.4% | -20.2% |
|---|
| China High Precision Automation Group Ltd ($591) | -26.4% | -35.8% | -20.2% | -3.5% | -53.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Huazhang Technology Holding Ltd ($1673) | 0.9% | 0.2% | 2.8% | 1.7% | - |
| |
|---|
| Median (1 company) | 1.7% | 0.2% | 2.8% | 1.7% | - |
|---|
| China High Precision Automation Group Ltd ($591) | 0.2% | 0.6% | 8.0% | 1.1% | 0.9% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Huazhang Technology Holding Ltd ($1673) | 12.8% | 9.3% | 8.9% | -14.2% | -9.5% |
| |
|---|
| Median (1 company) | 2.1% | 9.3% | 8.9% | -14.2% | -9.5% |
|---|
| China High Precision Automation Group Ltd ($591) | -4.4% | -4.5% | -3.4% | -2.6% | -5.2% |
