Man Sang International Ltd Net Income dropped on 84.0% in 2015 and EBITDA Margin decreased on 3.2 pp from 37.0% to 33.8%
21/05/2015 • About Man Sang International Ltd (
$938) • By InTwits
Man Sang International Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Man Sang International Ltd is a company in decline: FY2015 revenue growth was -11.5%, 5 years revenue CAGR was -26.4%
- EBITDA Margin is quite volatile: 33.8% in FY2015, 37.0% in FY2014, 15.4% in FY2013, 24.9% in FY2012, 18.7% in FY2011
- Man Sang International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's a lot of higher than industry average of 38.8%.
- CAPEX is quite volatile: 3.1 in FY2015, 3.1 in FY2014, 2.6 in FY2013, 6.0 in FY2012, 22.7 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Man Sang International Ltd ($938) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 401.9 | 370.2 | 461.2 | 82.9 | 73.4 | -11.5% |
| Gross Profit | 139.4 | 157.1 | 151.5 | 50.0 | 57.7 | 15.3% |
| SG&A | | 100.0 | 102.4 | 30.3 | 42.6 | 40.5% |
| EBITDA | 75.3 | 92.0 | 70.9 | 30.7 | 24.8 | -19.2% |
| Net Income | 54.8 | 54.8 | 48.2 | 68.5 | 11.0 | -84.0% |
Balance Sheet
|
|---|
| Cash | 606.8 | 605.1 | 440.8 | 392.4 | 264.3 | -32.6% |
| Short Term Debt | 23.8 | 36.9 | 216.9 | 125.4 | 137.8 | 9.9% |
| Long Term Debt | 71.4 | 147.6 | 110.7 | 175.6 | 37.8 | -78.5% |
Cash flow
|
|---|
| Capex | 22.7 | 6.0 | 2.6 | 3.1 | 3.1 | -0.5% |
Ratios
|
|---|
| Revenue growth | 18.4% | -7.9% | 24.6% | -82.0% | -11.5% | |
| EBITDA growth | -347.9% | 22.3% | -23.0% | -56.7% | -19.2% | |
| Gross Margin | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% | 18.3% |
| EBITDA Margin | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% | -3.2% |
| Net Income Margin | 13.6% | 14.8% | 10.5% | 82.6% | 15.0% | -67.6% |
| SG&A, % of revenue | | 27.0% | 22.2% | 36.5% | 58.0% | 21.5% |
| CAPEX, % of revenue | 5.6% | 1.6% | 0.6% | 3.7% | 4.2% | 0.5% |
| ROIC | 3.8% | 4.5% | 3.6% | 1.4% | 1.3% | -0.1% |
| ROE | 4.6% | 4.4% | 4.5% | 7.6% | 1.3% | -6.3% |
| Net Debt/EBITDA | -6.8x | -4.6x | -1.6x | -3.0x | -3.6x | -0.6x |
Revenue and profitability
The company's Revenue dropped on 11.5% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.2 pp from 37.0% to 33.8% in FY2015.
Gross Margin jumped on 18.3 pp from 60.3% to 78.6% in FY2015. SG&A as a % of Revenue jumped on 21.5 pp from 36.5% to 58.0% in FY2015.
Net Income marign dropped on 67.6 pp from 82.6% to 15.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.2% in FY2015. CAPEX/Revenue increased on 2.5 pp from 1.6% in FY2012 to 4.2% in FY2015. For the last three years the average CAPEX/Revenue was 2.8%.
Return on investment
The company operates at low ROIC (1.33%) and ROE (1.33%). ROIC showed almost no change in FY2015. ROE decreased on 6.3 pp from 7.6% to 1.3% in FY2015.
Leverage (Debt)
Debt level is -3.6x Net Debt / EBITDA and 7.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from -3.0x to -3.6x in FY2015. Debt dropped on 41.7% in FY2015 while cash dropped on 32.6% in FY2015.
Appendix 1: Peers in Miscellaneous Manufactur
Below we provide Man Sang International 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CSR Corp Ltd ($1766) | 24.0% | 12.0% | 9.7% | 123.7% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 37.4% | 59.5% | 45.9% | 45.0% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 1.5% | 22.2% | 43.2% | |
| Time Watch Investments Ltd ($2033) | 29.3% | 28.2% | 25.4% | 25.6% | |
| China International Marine Containers Group Co Ltd ($2039) | 23.4% | -15.6% | 6.6% | 21.4% | |
| |
|---|
| Median (25 companies) | 18.6% | -1.8% | -0.7% | 8.2% | |
|---|
| Man Sang International Ltd ($938) | | -7.9% | 24.6% | -82.0% | -11.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | |
| Launch Tech Co Ltd ($2488) | 39.2% | 27.4% | 33.6% | 33.6% | |
| DeTeam Co Ltd ($65) | 13.9% | 17.7% | 15.7% | 31.0% | |
| |
|---|
| Median (24 companies) | 20.6% | 19.7% | 19.7% | 23.4% | |
|---|
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 42.8% | 30.4% | 31.3% | 38.4% | |
| IPE Group Ltd ($929) | 24.9% | 25.6% | 22.5% | 29.5% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | |
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | |
| TK Group Holdings Ltd ($2283) | 22.1% | 21.4% | 18.9% | 17.9% | |
| |
|---|
| Median (25 companies) | 10.2% | 8.0% | 8.2% | 9.5% | |
|---|
| Man Sang International Ltd ($938) | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | |
| KEE Holdings Co Ltd ($2011) | 20.9% | 21.8% | 43.7% | 24.9% | |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | |
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | |
| TK Group Holdings Ltd ($2283) | 8.9% | 13.3% | 8.1% | 13.7% | |
| |
|---|
| Median (25 companies) | 5.0% | 4.9% | 4.3% | 4.4% | |
|---|
| Man Sang International Ltd ($938) | 5.6% | 1.6% | 0.6% | 3.7% | 4.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | |
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | |
| CSR Corp Ltd ($1766) | 13.4% | 11.1% | 11.2% | 15.3% | |
| |
|---|
| Median (25 companies) | 8.0% | 4.2% | 4.4% | 4.4% | |
|---|
| Man Sang International Ltd ($938) | 3.8% | 4.5% | 3.6% | 1.4% | 1.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | |
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | |
| China International Marine Containers Group Co Ltd ($2039) | 2.8x | 4.0x | 4.7x | 5.8x | |
| VS International Group Ltd ($1002) | 8.6x | 5.1x | 6.5x | 4.4x | |
| Launch Tech Co Ltd ($2488) | -0.4x | 7.6x | 2.4x | 3.9x | |
| |
|---|
| Median (21 companies) | 0.1x | -0.2x | -0.2x | 0.1x | |
|---|
| Man Sang International Ltd ($938) | -6.8x | -4.6x | -1.6x | -3.0x | -3.6x |
