AV Concept Holdings Ltd revenue dropped on 28.8% in 2015 and EBITDA Margin decreased slightly on 1.3 pp from -1.9% to -3.2%
22/06/2015 • About AV Concept Holdings Ltd (
$595) • By InTwits
AV Concept Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AV Concept Holdings Ltd is a company in decline: FY2015 revenue growth was -28.8%, 5 years revenue CAGR was -4.4%
- The company operates at negative EBITDA Margin: -3.2%
- AV Concept Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -0.7% for the sames years0
- AV Concept Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has unprofitable business model: ROIC is at -6.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
AV Concept Holdings Ltd ($595) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,909 | 3,367 | 2,334 | 2,750 | 1,958 | -28.8% |
| Gross Profit | 140 | 260 | 107 | 111 | 85 | -23.6% |
| SG&A | | | 161 | 131 | 126 | -3.4% |
| EBITDA | -0 | 8 | 9 | -51 | -62 | 20.3% |
| Net Income | 124 | 2 | 9 | 3 | -94 | -2,912.0% |
Balance Sheet
|
|---|
| Cash | 287 | 166 | 87 | 88 | 131 | 49.0% |
| Short Term Debt | 506 | 526 | 496 | 494 | 341 | -30.9% |
| Long Term Debt | 2 | 53 | 19 | 18 | 10 | -45.5% |
Cash flow
|
|---|
| Capex | 2 | 127 | 16 | 6 | 2 | -57.9% |
Ratios
|
|---|
| Revenue growth | 18.4% | 15.7% | -30.7% | 17.8% | -28.8% | |
| EBITDA growth | -100.0% | -111,471.4% | 19.0% | -654.6% | 20.3% | |
| Gross Margin | 4.8% | 7.7% | 4.6% | 4.0% | 4.3% | 0.3% |
| EBITDA Margin | -0.0% | 0.2% | 0.4% | -1.9% | -3.2% | -1.3% |
| Net Income Margin | 4.2% | 0.1% | 0.4% | 0.1% | -4.8% | -4.9% |
| SG&A, % of revenue | | | 6.9% | 4.7% | 6.4% | 1.7% |
| CAPEX, % of revenue | 0.1% | 3.8% | 0.7% | 0.2% | 0.1% | -0.1% |
| ROIC | -1.0% | -0.4% | -0.7% | -5.7% | -6.6% | -0.9% |
| ROE | 23.3% | 0.4% | 1.4% | 0.5% | -14.1% | -14.6% |
| Net Debt/EBITDA | | 52.9x | 46.1x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 28.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 26.7% to 27.9% in 2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue increased slightly on 1.7 pp from 4.7% to 6.4% in FY2015.
Net Income marign decreased on 4.9 pp from 0.12% to -4.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 AV Concept Holdings Ltd had CAPEX/Revenue of 0.12%. CAPEX/Revenue decreased on 3.7 pp from 3.8% in FY2012 to 0.12% in FY2015. Average CAPEX/Revenue for the last three years was 0.34%.
Return on investment
The company operates at negative ROIC (-6.62%) and ROE (-14.08%). ROIC decreased slightly on 0.89 pp from -5.7% to -6.6% in FY2015. ROE dropped on 14.6 pp from 0.49% to -14.1% in FY2015.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt dropped on 31.4% in FY2015 while cash jumped on 49.0% in FY2015.
Appendix 1: Peers in Electronics
Below you can find AV Concept 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Netcom Technology Holdings Ltd ($8071) | -22.0% | 11.6% | -23.0% | 104.1% | |
| Technovator International Ltd ($1206) | 31.6% | 27.4% | 34.1% | 35.9% | |
| Tongda Group Holdings Ltd ($698) | 34.0% | 8.3% | 6.4% | 32.1% | |
| Advanced Card Systems Holdings Ltd ($8210) | 25.3% | 36.9% | 20.8% | 26.7% | |
| Alltronics Holdings Ltd ($833) | 33.9% | -1.6% | -1.6% | 23.4% | |
| |
|---|
| Median (47 companies) | 9.1% | -1.6% | 3.1% | 3.8% | 6.1% |
|---|
| AV Concept Holdings Ltd ($595) | | 15.7% | -30.7% | 17.8% | -28.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 51.4% | 54.0% | 58.1% | 49.5% | |
| AAC Technologies Holdings Inc ($2018) | 44.0% | 44.2% | 42.7% | 41.4% | |
| TeleEye Holdings Ltd ($8051) | 51.6% | 44.0% | 42.1% | 38.5% | |
| Wasion Group Holdings Ltd ($3393) | 30.3% | 32.8% | 35.1% | 34.2% | |
| Datronix Holdings Ltd ($889) | 41.3% | 32.9% | 32.0% | 34.1% | |
| |
|---|
| Median (45 companies) | 13.6% | 14.6% | 13.8% | 14.0% | 9.1% |
|---|
| AV Concept Holdings Ltd ($595) | 4.8% | 7.7% | 4.6% | 4.0% | 4.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.2% | 35.8% | 35.8% | 34.9% | |
| Nanjing Sample Technology Co Ltd ($1708) | 31.5% | 26.8% | 21.1% | 22.3% | |
| Wasion Group Holdings Ltd ($3393) | 18.9% | 18.8% | 21.2% | 22.0% | |
| Technovator International Ltd ($1206) | 19.2% | 19.0% | 19.0% | 20.8% | |
| Trigiant Group Ltd ($1300) | 17.0% | 17.6% | 18.2% | 18.5% | |
| |
|---|
| Median (47 companies) | 9.3% | 7.2% | 4.4% | 5.3% | 2.2% |
|---|
| AV Concept Holdings Ltd ($595) | -0.0% | 0.2% | 0.4% | -1.9% | -3.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AKM Industrial Co Ltd ($1639) | 7.4% | 5.0% | 17.4% | 25.2% | |
| AAC Technologies Holdings Inc ($2018) | 25.9% | 18.7% | 8.7% | 19.6% | |
| Irico Group Electronics Co Ltd ($438) | 92.0% | 39.9% | 30.4% | 17.4% | |
| Tech Pro Technology Development Ltd ($3823) | 32.8% | 7.6% | 13.1% | 15.4% | |
| Nanjing Sample Technology Co Ltd ($1708) | 3.7% | 23.9% | 15.5% | 12.0% | |
| |
|---|
| Median (47 companies) | 3.7% | 3.7% | 3.3% | 4.2% | 0.2% |
|---|
| AV Concept Holdings Ltd ($595) | 0.1% | 3.8% | 0.7% | 0.2% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 22.3% | 29.1% | 30.0% | 26.0% | |
| Advanced Card Systems Holdings Ltd ($8210) | 15.5% | 26.7% | 24.7% | 20.2% | |
| Alltronics Holdings Ltd ($833) | 19.3% | 13.1% | 15.2% | 19.8% | |
| Tongda Group Holdings Ltd ($698) | 14.3% | 15.2% | 13.5% | 16.5% | |
| Trigiant Group Ltd ($1300) | 17.9% | 17.8% | 18.3% | 15.2% | |
| |
|---|
| Median (47 companies) | 5.9% | 4.1% | 3.5% | 3.4% | 5.0% |
|---|
| AV Concept Holdings Ltd ($595) | -1.0% | -0.4% | -0.7% | -5.7% | -6.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| National Electronic Hldgs ($213) | 43.0x | 16.3x | 30.2x | 84.8x | |
| Sino-Tech International Holdings Ltd ($724) | | | 15.7x | 24.7x | |
| Eyang Holdings Group Co Ltd ($117) | 4.2x | 3.3x | 3.7x | 17.9x | |
| SAS Dragon Hldg Ltd ($1184) | 2.8x | 7.1x | 2.0x | 6.4x | |
| Willas-Array Electronics Holdings Ltd ($854) | 2.8x | 2.2x | 2.6x | 5.7x | 5.4x |
| |
|---|
| Median (35 companies) | 0.7x | 1.0x | 1.1x | 1.2x | 5.4x |
|---|
