Looking for growth stocks? Pay attention to Sunny Optical Technology Group Co Ltd
16/03/2015 • About Sunny Optical Technology Group Co Ltd (
$2382) • By InTwits
Sunny Optical Technology Group Co Ltd is an attractive growth stock in Miscellaneous Manufactur industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Sunny Optical Technology Group Co Ltd showed growth in the last financial year. Sunny Optical Technology Group Co Ltd's revenue surged on 45.0% in FY2014. Together with revenue growth Sunny Optical Technology Group Co Ltd also managed to keep EBITDA growth. EBITDA grew 30.6% for the same period.
If we look for the longer period Sunny Optical Technology Group Co Ltd showed fast revenue growth of 50.0% from 2011 to 2014 annualy. EBITDA surged on 40.3% from 2011 to 2014 annualy.
Sunny Optical Technology Group Co Ltd ($2382) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 1,818 | 2,499 | 3,984 | 5,813 | 8,426 |
|---|
| Revenue growth, % | | 37.4% | 59.5% | 45.9% | 45.0% |
|---|
| Gross margin, % | 21.6% | 20.9% | 18.6% | 16.6% | 15.3% |
|---|
| SG&A, % | 8.32% | 7.27% | 5.38% | 4.37% | 3.80% |
|---|
| EBITDA | 240 | 300 | 485 | 635 | 830 |
|---|
| EBITDA growth, % | | 25.4% | 61.5% | 31.0% | 30.6% |
|---|
| EBITDA margin, % | 13.2% | 12.0% | 12.2% | 10.9% | 9.84% |
|---|
| Net Income | 144 | 215 | 346 | 440 | 566 |
|---|
| Net Income margin, % | 7.91% | 8.62% | 8.69% | 7.58% | 6.72% |
|---|
| |
| CAPEX | 67 | 170 | 249 | 244 | 274 |
|---|
| CAPEX/Revenue, % | 3.67% | 6.79% | 6.25% | 4.20% | 3.26% |
|---|
| Debt | 113 | 80 | 103 | 535 | 734 |
|---|
| Cash | 188 | 252 | 243 | 709 | 525 |
|---|
| Net Debt/EBITDA | -0.3x | -0.6x | -0.3x | -0.3x | 0.3x |
|---|
| |
| ROIC, % | 9.3% | 12.2% | 19.7% | 17.8% | 16.5% |
|---|
| ROE, % | 9.9% | 13.6% | 19.3% | 18.5% | 18.6% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 10.9% in FY2013 to 9.80% in FY2014. In the last 3 years the company's EBITDA margin dropped on 2.20 pp from 12% in 2011 to 9.80% in 2014.
We call Sunny Optical Technology Group Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 16.5%. During the last three years it surged - it was 12.2% in FY2011. For the last three years the average ROIC was 18.0%.
The company showed big decline in Net Income margin of 0.900 pp from 7.60% to 6.70% in 2014. If we look for the longer period Net Income margin dropped on 1.90 pp from 8.60% in 2011 to 6.70% in 2014.
Sunny Optical Technology Group Co Ltd operates at ROE of 18.6%. Average ROE for the last three years was 18.8%.
Capital expenditures (CAPEX)
Sunny Optical Technology Group Co Ltd's CAPEX/Revenue was 3.26% in FY2014. Sunny Optical Technology Group Co Ltd showed big decline in CAPEX/Revenue of 3.53 pp from 6.79% in 2011 to 3.26% in 2014. For the last three years the average CAPEX/Revenue was 4.57%.
Leverage (Debt)
Sunny Optical Technology Group Co Ltd has low debt level at 0.3x Net Debt/EBITDA - at the same time with high growth. In the longer period Sunny Optical Technology Group Co Ltd's leverage surged on 0.82x from -0.57x in 2011 to 0.25x in 2014.
Peers in Miscellaneous Manufactur
Below we provide Sunny Optical Technology Group Co 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Time Watch Investments Ltd ($2033) | | 29.3% | 28.2% | 25.4% | 25.6% |
| Lee & Man Chemical Co Ltd ($746) | | 40.7% | -15.9% | -12.6% | 17.4% |
| VS International Group Ltd ($1002) | | 8.9% | -7.1% | -19.3% | 12.3% |
| Herald Holdings Ltd ($114) | | 10.7% | -13.8% | -3.9% | -0.4% |
| Continental Holdings Ltd ($513) | | -5.6% | -1.8% | -0.7% | -8.5% |
| |
|---|
| Median (10 companies) | | 13.1% | -7.5% | -2.5% | -9.9% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | | 37.4% | 59.5% | 45.9% | 45.0% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Time Watch Investments Ltd ($2033) | 48.4% | 58.5% | 60.2% | 60.6% | 65.0% |
| Man Sang International Ltd ($938) | 18.5% | 34.7% | 42.4% | 32.8% | 60.3% |
| Lee & Man Chemical Co Ltd ($746) | 44.7% | 46.7% | 34.3% | 35.7% | 41.9% |
| Herald Holdings Ltd ($114) | 27.0% | 24.0% | 23.4% | 25.7% | 24.9% |
| IDT International Ltd ($167) | 35.2% | 32.8% | 30.3% | 28.0% | 24.9% |
| |
|---|
| Median (10 companies) | 21.1% | 22.5% | 18.7% | 19.2% | 19.6% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 21.6% | 20.9% | 18.6% | 16.6% | 15.3% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 40.7% | 42.8% | 30.4% | 31.3% | 38.4% |
| Man Sang International Ltd ($938) | -8.9% | 18.7% | 24.9% | 15.4% | 37.0% |
| Time Watch Investments Ltd ($2033) | 11.6% | 16.8% | 17.6% | 16.8% | 19.4% |
| Karrie International Hldgs ($1050) | 2.5% | 2.7% | 2.7% | 5.0% | 6.6% |
| VS International Group Ltd ($1002) | 8.4% | 4.3% | 6.4% | 4.6% | 5.9% |
| |
|---|
| Median (10 companies) | 6.1% | 7.2% | 4.7% | 4.8% | 5.2% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 13.2% | 12.0% | 12.2% | 10.9% | 9.8% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 8.7% | 1.4% | 5.8% | 51.1% | 33.7% |
| China Environmental Energy Investment Ltd ($986) | 2.8% | 77.7% | 6.1% | 0.4% | 17.9% |
| Karrie International Hldgs ($1050) | 3.7% | 2.6% | 4.9% | 4.7% | 5.2% |
| Time Watch Investments Ltd ($2033) | 2.3% | 2.2% | 2.2% | 2.7% | 4.2% |
| Man Sang International Ltd ($938) | 7.8% | 5.6% | 1.6% | 0.6% | 3.7% |
| |
|---|
| Median (10 companies) | 3.2% | 2.5% | 3.2% | 2.4% | 3.3% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 3.7% | 6.8% | 6.2% | 4.2% | 3.3% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Time Watch Investments Ltd ($2033) | | 30.5% | 34.5% | 27.1% | 27.8% |
| Lee & Man Chemical Co Ltd ($746) | 26.9% | 29.8% | 11.7% | 8.2% | 10.9% |
| Karrie International Hldgs ($1050) | 0.6% | 1.7% | 1.1% | 4.4% | 7.0% |
| Herald Holdings Ltd ($114) | 17.7% | 11.0% | 4.7% | 6.2% | 3.9% |
| Man Sang International Ltd ($938) | -2.4% | 3.8% | 4.5% | 3.6% | 1.4% |
| |
|---|
| Median (10 companies) | 0.6% | 1.9% | 0.7% | 2.0% | 1.4% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 9.3% | 12.2% | 19.7% | 17.8% | 16.5% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Continental Holdings Ltd ($513) | | 8.3x | | 20.1x | 92.9x |
| VS International Group Ltd ($1002) | 5.8x | 8.6x | 5.1x | 6.5x | 4.4x |
| Lee & Man Chemical Co Ltd ($746) | 0.2x | -0.3x | -0.2x | 1.5x | 2.2x |
| Karrie International Hldgs ($1050) | 1.1x | 2.4x | 0.2x | 0.2x | -0.2x |
| Time Watch Investments Ltd ($2033) | 1.2x | 0.5x | 0.5x | -1.5x | -1.3x |
| |
|---|
| Median (7 companies) | 0.7x | -0.3x | -0.2x | -0.6x | -0.2x |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | -0.3x | -0.6x | -0.3x | -0.3x | 0.3x |
