财务分析报告英文版.ppt

CHINT ELECTRICS2011FINANCIALREPORTINGANDANALYSIS1.Team Members：Liu ZhaoyeCommon-SizeWang YuyaoDebt-PayingXue JianchaoProfitability/OperationShen KangliangInvestment/OperationJiang RuiCompetitor/IntroductionLI xinCompetitor/Introduction2.CHINT ELECTRICS Is Chinas largest production of low voltage electric appliance manufacturing enterprise,the specialty is engaged in distribution appliances,control electric appliances,terminal apparatus,and power electronic and electric power supply low-voltage products development,production and sales.Chint is recognized for a famous Chinese trademark,chint brand universal type circuit breaker,plastic shell type breaker series product has been awarded China famous brand product title.The company in 2004 won the Chinese quality management of the highest award,the national quality management award 3.Company profile Stock name:CHINT ELECTRICS Stock code:601877lIs Chinas leading company in the field of low voltage electrical appliances lAdhere to the independent innovation,research and development a series of with independent intellectual property rights,reach the international advanced level of low voltage electric products lThe companys brand to borrow Jacques realize from low voltage electrical supplier to solution provider change,so as to get higher gross margin and wide development space,the realization enterprise of in-depth development.4.The review of latest earningsThesaleswere82,880,000,000in2011,increasedto30.75%ofthe2010levelin2011.Realizedearningsbeforeincometaxprovisionandinterestswere10,190,000,000.Anincreaseof24.70%.Thenetprofitwere8,430,000,000.Anincreaseof31.82%.Realized797millionnetprofitafterbuckle,increasedby31.16%.ThedilutedEPSis0.91.Duetothesignificantlydecreaseinmainrawmaterialcostprice,madethegrossearningsratioincreaseto28.71%inthefourthquarter,increasedthegrossearningslevelt h r o u g h o u t t h e y e a r o b v i o u s l y 2 4.0 3%5.6.Balance Sheet Vertical Common-size200920102011CurrentAssets：Monetarycapital36.79%62.16%52.11%Notesreceivable5.80%6.22%13.11%Accountsreceivable17.20%8.17%8.30%Advancepayment2.23%1.84%0.80%Accountsreceivable-others0.35%0.22%0.12%Inventory17.36%10.92%10.29%Currentassets-others0.19%0.07%0.05%Totalcurrentassets79.93%89.60%84.79%Non-currentassets：Equity investment-long term2.23%1.00%5.09%Investment Property 0.14%0.06%0.04%Fixedassets13.27%5.63%4.58%Constructioninprocess0.31%0.98%2.48%Intangibleassets2.50%1.61%1.97%Deferredexpenses-longterm0.47%0.21%0.14%Deferredincometaxassets1.15%0.92%0.91%Totalnon-currentassets20.07%10.40%15.21%Totalassets:100.00%100.00%100.00%7.Current liabilities：2009年年2010年年2011年年Short-term borrowing0.05%0.00%0.01%Account payable33.93%19.63%15.64%Account collected in advance1.49%0.79%0.84%Pay roll payable6.05%3.98%4.10%Tax payable1.22%0.38%0.74%Other payables4.82%2.92%2.58%Current liabilities-others0.75%0.55%0.29%Total current liability48.31%28.25%24.69%Non-current liability：Bonds payable0.00%0.00%17.83%Anticipation liabilities0.86%0.50%0.48%Non-current liability-others0.00%0.07%0.09%Total non-current liability0.86%0.58%18.41%Total liability49.17%28.83%43.10%Owners equity：Paicl-up capital33.24%16.24%12.03%Capital reserve0.17%39.79%28.24%Surplus reserves3.45%2.56%2.98%Undistributed profits10.50%10.61%11.83%Total owners equityvest in parent company47.37%69.20%55.06%Minority equity3.45%1.97%1.84%Total owners equity50.83%71.17%56.90%Total liabilities and owners equity100.00%100.00%100.00%Balance Sheet Vertical Common-size8.In 2011,the non-current liabilities item of company is theproportion of the 2010s increase obviously,mainly because thecompanyin2011toraisefundsforcompanyexecutedbondsissue1.5billionYuan.Fromthecurrentliabilitiestosee,thecompanysshorttermloanshasalwaysbeentheproportionisverylow，In2010thecompanyshort-termborrowingallpaidoff,in2011thecompanyonlyhadanincreaseof1.1millionYuanshort-termborrowing，Shouldsaythisbenefits from the company is very sufficient liquidity。Theproportionofaccountspayableislow,onthewhole,thecompanysshort-termdebtservicepressureisverylow.Balance Sheet Vertical Common-size Analysis9.Balance Sheet Crosswise Common-size2009年年2010年年2011年年CurrentAssets：Monetarycapital100.00%386.21%437.18%Notesreceivable100.00%245.13%697.67%Accountsreceivable100.00%108.53%148.98%Advancepayment100.00%188.00%111.17%Accountsreceivable-others100.00%145.51%106.79%Inventory100.00%143.73%182.91%Currentassets-others100.00%91.20%86.33%Totalcurrentassets100.00%256.26%327.46%Non-currentassets：Equity investment-long term100.00%102.77%704.53%Investment Property 100.00%90.25%80.50%Fixedassets100.00%96.89%106.56%Constructioninprocess100.00%725.53%2485.20%Intangibleassets100.00%146.79%242.62%Deferredexpenses-longterm100.00%104.57%94.24%Deferredincometaxassets100.00%183.21%246.14%Totalnon-currentassets100.00%118.47%233.96%Totalassets:100.00%228.60%308.69%10.Current liabilities：2009年年2010年年2011年年Short-term borrowing100.00%0.00%88.25%Account payable100.00%132.22%142.28%Account collected in advance100.00%122.04%173.41%Pay roll payable100.00%150.43%209.49%Tax payable100.00%71.01%187.52%Other payables100.00%138.56%165.18%Current liabilities-others100.00%166.88%121.18%Total current liability100.00%133.68%157.79%Non-current liability：Bonds payableAnticipation liabilities100.00%132.71%171.32%Non-current liability-othersTotal non-current liability100.00%152.50%6575.03%Total liability100.00%134.01%270.56%Owners equity：Paicl-up capital100.00%111.67%111.67%Capital reserve100.00%52587.67%50395.17%Surplus reserves100.00%169.55%266.38%Undistributed profits100.00%231.01%347.70%Total owners equityvest in parent company100.00%333.93%358.81%Minority equity100.00%130.69%164.26%Total owners equity100.00%320.12%345.59%Total liabilities and owners equity100.00%228.60%308.69%Balance Sheet Crosswise Common-size11.Companysalesgrowthnotonlybroughtampleliquidity,moresubsequentreceivables.Accountsreceivable compared to above increase is not alot,butnotesreceivableisnearlyseventimesto2009.Theannualreporttomakeaexplained,inorder to reduce the risk of bad loans,thecompanyadjustcreditpolicy,increasethesettlementscaleofbankacceptance.Balance Sheet Crosswise Common-size Analysis12.1.A long-term equity investment of 2011 years is 2009 7 times,mainlyduetothevalueof161.59millionYuanthiscompanytopurchasethe“ZKtechnology9.18125millionshares,inadditiontothecompanyinvested200millionRMB.2.Theprojectunderconstructioncompanyin2011is2009yearsof24 times,mainly due to current period to raise funds basedconstructionprojectincausedbyincrease.3.The company non-current liabilities in 2011 is 2009 65 times,mainly because of the increase of bonds payable project,thatcompanywastoissue1.5billionbonds.4.Capital reserve in 2011 and 2010 were more than 500 times in2009,mainlybecauseofthecompany2010yearswasjustlisted.Balance Sheet Crosswise Common-size Analysis13.Profits and Loss Items Crosswise Common-sizeItemsCrosswise2009Crosswise2010Crosswise2011NO.1、Taking100.00%132.02%172.62%Cut：Operatingcosts100.00%136.17%182.55%BusinessTaxesandSurcharges100.00%109.65%125.26%Sellingexpenses100.00%125.46%140.07%Managementexpenses100.00%135.57%161.47%FinancialExpense(Benegativeforthreeconsecutiveyears)100.00%185.99%1208.81%Lossfromassetdevaluation100.00%-31.93%31.37%Incomeoninvestment(benegativein2009)100.00%-465.57%-872.47%NO.2、Operatingprofit100.00%119.65%155.06%Plus：Non-businessincome100.00%15.87%7.43%Cut：Non-businessexpenditure100.00%11.11%15.09%NO.3、Totalprofit100.00%121.88%156.36%Cut：Totalprofit100.00%116.61%142.94%NO.4、Netprofit100.00%122.97%159.12%14.ItemsVertical2009Vertical2010Vertical2011NO.1、Taking100.00%100.00%100.00%Cut：Operatingcosts71.84%74.09%75.97%BusinessTaxesandSurcharges0.65%0.54%0.48%Sellingexpenses5.05%4.80%4.10%Managementexpenses7.58%7.79%7.09%FinancialExpense(Benegativeforthreeconsecutiveyears)-0.11%-0.15%-0.76%Lossfromassetdevaluation0.39%-0.09%0.07%Incomeoninvestment(benegativein2009)-0.01%0.04%0.05%NO.2、Operatingprofit14.59%13.22%13.11%Plus：Non-businessincome1.65%0.20%0.07%Cut：Non-businessexpenditure1.87%0.16%0.16%NO.3、Totalprofit14.37%13.26%13.01%Cut：Totalprofit2.45%2.17%2.03%NO.4、Netprofit11.91%11.10%10.98%Profits and Loss Items Vertical Common-size15.Profits and Loss Items Common-size AnalysisThe company business income in 2011 was 1.7 times than that in 2009,operating income increased year by year,explain the company sales scale expands unceasingly.The annual report says the company mainly due to the increasing domestic and foreign market development and promotion of new strength,so domestic auxiliary market demand increase,sales volume growth.The company business cost 2011 is 1.8 times more than in 2009,operating costs increased year by year,and compared with the business income greater proportion.This is mainly because 2011 product sales growth and raw material prices caused by common effect,but net profit in operating income proportion and not as a substantial increase in the sales increase,so the pressure of the rising costs was more.16.The financial cost three years are negative,suggests the company continued interest income were more than interest expenses and financial expenses in 2011 is 2009 of 12 times,annual report also shows that 2011 net interest revenue by two hundred and twenty percent more than at the beginning,because that does not exist is annual report has the controlling shareholders and their affiliates non-business take fund,then according to illustrate the annual report because the 2011 main source of revenue for the financial risk control increased cash reserves,interest income increase.Profits and Loss Items Common-size Analysis17.Main Business Common-size18.Main Business Common-size AnalysisWe can see that the power distribution,terminal and control electric appliance is the companys three big blockbuster products.Low voltage electric low end the market the main competitive factors is cost control ability and product prices,and the company with domestic similar enterprise brand advantage compared significantly,bargaining power,stronger,cost control ability outstanding,higher growth performance for many years the industry average more than 10%of the companys market share increases company experienced industry inside remain relatively high growth.19.analyses of short-term debt-paying parisons between some ratios of recent 3 yearscomparisons between some ratios of recent 3 years yearyearratioratioyear2009year2009year2010year2010year2011year2011Working Working capitalcapital856018150.3856018150.3yuanyuan 36979044213697904421yuanyuan50221431635022143163yuanyuan current current ratioratio1.651.653.123.123.433.43Acid-test Acid-test ratioratio1.301.302.732.733.023.02 cash ratiocash ratio0.760.762.202.202.112.11net cash net cash provided by provided by operating operating activities/curactivities/current rent liabilitiesliabilities0.840.840.400.400.060.0621.Analyses of Working CapitalAswecanseefromthechart，thiscompanysworkingcapitalhasbeenpositiveandgraduallyincreasedrecently，becausetherecent3yearscurrentassetsandliabilitieshavegraduallyincreasedrespectively，andthedifferencebetweenthesetwohavealsoincreased;thisdifferenceistheworkingcapital.Thisincreaseintheworkingcapitalindicatesthatthecompanysshort-termdebt-payingabilityisguaranteed，andstrengthenedrecently。22.Analyses of Current Ratio Aswecanseefromthechart，thiscompanyscurrentratiohasbeenpositiveandgraduallyincreasedrecently，becausethecurrentassentsandcurrentliabilitieshavegraduallyincreased,butthecurrentassetshaveincreasedfaster.Theincreaseofcurrentratioindicatesthatthecompanyhasagrowingabilitytopaythecurrentliabilities,andtheshort-termdebt-payingabilityhasstrengthened.23.Analyses of Acid-test RatioAswecanseefromthechart，thecompanysacid-testratiohasgraduallyincreasedrecently，becausethecurrentassetsandinventorieshavebothincreasedbutthecurrentassetshaveincreasedmuchfaster,whichmadethedifferencebetweenthemincrease.Theincreaseintheacid-testratioindicatesthatthecompanyhasagrowingabilitytoimmediatelyrealizeandpayshort-termliabilities.Atthesametime,thistendencyisconsistentwiththecurrentratiostendency,whichmeansthatthecompanysinventorieshavebeenstablerecent.24.Analyses of Cash Ratio Aswecanseefromthechart，thecompanysyear2011scashratiosismuchbiggerthanyear2009s，buttheyear2011sisslightlysmallerthantheyears.Becausethecashequivalentsgrewmuchfasterthanthecurrentliabilities,causingtheirratiotoincrease.Astoyear2011and2010,thecashequivalentsandthecurrentliabilitieshavebothincreasedbuttheirratioshavealittledifference.Thetendencyincashratioindicatesthatthecompanysabilitytopayimmediatelyhasincreasedenormouslyanddecreasedabit.25.Analyses of Net Cash Provided by Operating Analyses of Net Cash Provided by Operating Activities/Current LiabilitiesActivities/Current LiabilitiesAswecanseefromthechart，thecompanysnetcashprovidedbyoperatingactivities/currentliabilitieshasgraduallyincreased,becausethenetcashprovidedbyoperatingactivitieshavedecreasedandthecurrentliabilitieshaveincreased,causingtheirratiotodecrease.Thisratiostendencyindicatesthatthecompanyhasagraduallydecreasedabilitytopayitsshort-termdebtsbyusingnetcash.Thisratiointherecent3yearshasbeenbelow1,sothecompanycantpayitsdebtusingjustnetcashprovidedbyoperatingactivities.Itmustobtaincashinotherwaystoensurethatitsliabilitiescanbepaidintime.26.analysesoflong-termdebt-parisons between some ratios of recent 3 yearscomparisons between some ratios of recent 3 yearsyearyearratioratioyear2009year2009year2010year2010year2011year2011 debt ratiodebt ratio49.17%49.17%29.30%29.30%43.10%43.10%debt/equity debt/equity ratioratio96.75%96.75%41.44%41.44%75.74%75.74%Debt to Debt to tangible net tangible net worth ratio worth ratio 101.76%101.76%42.42%42.42%78.46%78.46%Times interest Times interest earnedearned532.02532.021820.801820.8026.4426.44net cash net cash provided by provided by operating operating activities/totactivities/total liabilitiesal liabilities0.830.830.390.390.030.0328.analyses of debt ratio Aswecanseefromthechart，thecompanys2010yearsdebtratioismuchsmallerthanthe2009s,becausethetotalassetsofyear2010ismuchbiggerthantheyear2009.Thedebtratioofyear2011isnearlylevelwiththeyear2009,becausealthoughthetotalassetsandliabilitieshavebothincreased，butaswithyear2009，thetotalliabilitiesarenearlyhalfofthetotalassets.Theoretically，intherecent3years,thecompanyhasagrowingandthendecreasingdebtburden.However,theseratiosareallbelow50%，whichcanbeconsideredacceptableandmeansthatthecompanyhasacomparativelylightdebtburdenandthecreditorsinterestsarehighlyprotected.29.Analysesofdebt/equityratioandDebttotangiblenetworthratio Aswecanseefromthechart，thesetworatioshavebothdecreasedandincreasedrecently.Becausecomparedwiththetotalownersequity,thetotalintangibleassetsandliabilitiesaremuchsmaller,thereasonsforthistendencyarealmostthesame，thatis,theyear2010stotalequityismuchbiggerthantheyear2009s。Howevertheyear2011stotalequityandliabilitiesandtheyear2009scanbenearlyconsideredthesame.30.AnalysesofTimesinterestearnedAswecanseefromthechart,thecompanystimesinterestearnedhasfluctuatedenormouslyrecently.