Advanced Card Systems Holdings Ltd is an attractive growth stock: revenue grew 28.0% and EBITDA 37.9% annually over the last three years
06/03/2015 • About Advanced Card Systems Holdings Ltd (
$8210) • By InTwits
Advanced Card Systems Holdings Ltd is a fast-growing stock in Electronics industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Advanced Card Systems Holdings Ltd showed fast growth in the last financial year. The company's revenue surged on 26.7% in FY2014. EBITDA also increased: 3.57% for the same period.
In the longer period Advanced Card Systems Holdings Ltd showed fast revenue growth of 28.0% from 2011 to 2014 annualy. EBITDA surged on 37.9% from 2011 to 2014 annualy.
Advanced Card Systems Holdings Ltd ($8210) financials for the last 5 years
| mln. HKD | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 94 | 117 | 161 | 194 | 246 |
|---|
| Revenue growth, % | | 25.3% | 36.9% | 20.8% | 26.7% |
|---|
| Gross margin, % | 54.0% | 51.4% | 54.0% | 58.1% | 49.5% |
|---|
| SG&A, % | | 28.8% | 26.8% | 27.5% | 23.5% |
|---|
| EBITDA | 14 | 17 | 31 | 42 | 44 |
|---|
| EBITDA growth, % | | 22.5% | 88.6% | 34.2% | 3.6% |
|---|
| EBITDA margin, % | 14.5% | 14.2% | 19.6% | 21.7% | 17.8% |
|---|
| Net Income | 4 | 5 | 17 | 23 | 24 |
|---|
| Net Income margin, % | 4.73% | 4.36% | 10.5% | 11.9% | 9.63% |
|---|
| |
| CAPEX | 4 | 6 | 4 | 3 | 5 |
|---|
| CAPEX/Revenue, % | 4.34% | 5.23% | 2.72% | 1.37% | 2.03% |
|---|
| Debt | 10 | 8 | 14 | 36 | 35 |
|---|
| Cash | 15 | 22 | 34 | 49 | 36 |
|---|
| Net Debt/EBITDA | -0.4x | -0.8x | -0.6x | -0.3x | -0.0x |
|---|
| |
| ROIC, % | 13.9% | 15.5% | 26.7% | 24.7% | 20.2% |
|---|
| ROE, % | 7.8% | 8.5% | 23.6% | 25.8% | 21.9% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 21.7% in FY2013 to 17.8% in FY2014. In the longer period Advanced Card Systems Holdings Ltd's EBITDA margin surged on 3.60 pp from 14.2% in 2011 to 17.8% in 2014.
We call Advanced Card Systems Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 20.2%. During the last three years it surged - it was 15.5% in FY2011. It's average level of ROIC for the last three years was 23.9%.
Advanced Card Systems Holdings Ltd's Net Income margin dropped on 2.30 pp from 11.9% to 9.60% in 2014. In the last 3 years Net Income margin surged on 5.20 pp from 4.40% in 2011 to 9.60% in 2014.
Advanced Card Systems Holdings Ltd operates at ROE of 21.9%. For the last three years the average ROE was 23.7%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 2.03% in FY2014. The company showed big decline in CAPEX/Revenue of 3.20 pp from 5.23% in 2011 to 2.03% in 2014. For the last three years the average CAPEX/Revenue was 2.04%.
Leverage (Debt)
Having such a fast growth profile Advanced Card Systems Holdings Ltd keeps negative net debt at -0.0x Net Debt/EBITDA. In the longer period leverage surged on 0.83x from -0.84x in 2011 to -0.01x in 2014.
Peers in Electronics
Below you can find Advanced Card Systems Holdings Ltd benchmarking vs. other companies in Electronics 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| QPL International Holdings Ltd ($243) | | 8.9% | -21.1% | -22.2% | 21.0% |
| Sandmartin International Holdings Ltd ($482) | | 2.8% | -16.3% | 4.1% | 19.0% |
| AV Concept Holdings Ltd ($595) | | 18.4% | 15.7% | -30.7% | 17.8% |
| Sunway International Holdings Ltd ($58) | | 4.0% | -22.2% | -0.8% | 13.8% |
| Daiwa Associate Holdings ($1037) | | 9.4% | -63.9% | -14.8% | 12.8% |
| |
|---|
| Median (17 companies) | | 13.6% | -14.1% | -7.3% | 10.5% |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | | 25.3% | 36.9% | 20.8% | 26.7% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| TeleEye Holdings Ltd ($8051) | 51.4% | 51.6% | 44.0% | 42.1% | 38.5% |
| Kingwell Group Ltd ($1195) | -1.6% | 8.7% | 4.4% | 13.5% | 24.1% |
| Mobicon Group Ltd ($1213) | 15.8% | 16.8% | 18.2% | 18.6% | 18.3% |
| Daiwa Associate Holdings ($1037) | 7.1% | 8.7% | 11.0% | 12.5% | 14.2% |
| Suga International Holdings Ltd ($912) | 13.2% | 13.6% | 13.3% | 13.3% | 14.0% |
| |
|---|
| Median (16 companies) | 12.4% | 11.5% | 11.0% | 10.8% | 11.2% |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 54.0% | 51.4% | 54.0% | 58.1% | 49.5% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| GCL New Energy Holdings Ltd ($451) | 13.8% | 12.1% | 10.8% | 11.1% | 12.6% |
| Elec & Eltek International Co Ltd ($1151) | 22.2% | 16.0% | 14.3% | 11.2% | 9.4% |
| Yeebo International Hldg ($259) | 9.8% | 12.8% | 10.4% | 8.7% | 8.9% |
| Suga International Holdings Ltd ($912) | 8.1% | 9.3% | 8.6% | 7.7% | 8.6% |
| QPL International Holdings Ltd ($243) | 11.5% | 1.5% | 3.0% | 2.5% | 5.4% |
| |
|---|
| Median (17 companies) | 5.6% | 3.4% | 2.4% | 2.5% | 1.8% |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 14.5% | 14.2% | 19.6% | 21.7% | 17.8% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Yeebo International Hldg ($259) | 0.9% | 7.5% | 4.1% | 3.4% | 8.3% |
| Elec & Eltek International Co Ltd ($1151) | 6.3% | 12.8% | 6.0% | 9.4% | 8.0% |
| Suga International Holdings Ltd ($912) | 5.9% | 1.5% | 1.3% | 6.2% | 7.9% |
| National Electronic Hldgs ($213) | 18.3% | 14.9% | 3.4% | 18.1% | 7.1% |
| GCL New Energy Holdings Ltd ($451) | 14.2% | 11.1% | 5.5% | 5.1% | 5.4% |
| |
|---|
| Median (17 companies) | 1.7% | 2.3% | 2.5% | 1.9% | 2.2% |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 4.3% | 5.2% | 2.7% | 1.4% | 2.0% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Suga International Holdings Ltd ($912) | 18.3% | 23.0% | 19.4% | 11.9% | 14.2% |
| GCL New Energy Holdings Ltd ($451) | 3.6% | 5.2% | 4.1% | 3.0% | 7.9% |
| Yeebo International Hldg ($259) | 2.7% | 5.4% | 4.8% | 4.7% | 5.1% |
| Willas-Array Electronics Holdings Ltd ($854) | 7.3% | 9.9% | 5.5% | 5.8% | 4.1% |
| Mobicon Group Ltd ($1213) | 2.1% | 7.1% | 3.1% | 3.5% | 3.7% |
| |
|---|
| Median (17 companies) | 4.0% | 2.3% | 0.2% | 1.0% | 1.0% |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 13.9% | 15.5% | 26.7% | 24.7% | 20.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| National Electronic Hldgs ($213) | 24.3x | 43.0x | 16.3x | 30.2x | 84.8x |
| Willas-Array Electronics Holdings Ltd ($854) | 2.9x | 2.8x | 2.2x | 2.6x | 5.7x |
| Pine Technology Holdings Ltd ($1079) | 2.5x | | 8.0x | 3.3x | 4.9x |
| Daiwa Associate Holdings ($1037) | 7.1x | 6.2x | 10.4x | 2.6x | 2.8x |
| QPL International Holdings Ltd ($243) | -0.3x | 2.3x | -0.1x | 1.2x | 2.1x |
| |
|---|
| Median (11 companies) | 1.0x | 0.7x | 1.5x | 2.6x | 1.7x |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | -0.4x | -0.8x | -0.6x | -0.3x | -0.0x |
