Mobicon Group Ltd reports 99.3% EBITDA growth and 15.2% Revenue growth
24/06/2015 • About Mobicon Group Ltd (
$1213) • By InTwits
Mobicon Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 3.3% in FY2015 vs. 1.9% in FY2014 vs. 2.7% in FY2011
- Mobicon Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has potentially unprofitable business model: ROIC is at 6.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mobicon Group Ltd ($1213) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 739.8 | 588.6 | 545.9 | 603.3 | 695.1 | 15.2% |
| Gross Profit | 124.1 | 107.1 | 101.3 | 110.2 | 148.6 | 34.9% |
| SG&A | 63.8 | 63.2 | 57.2 | 64.0 | 84.5 | 32.0% |
| EBITDA | 19.8 | 9.2 | 9.3 | 11.4 | 22.8 | 99.3% |
| Net Income | 11.6 | 0.7 | 1.1 | 1.0 | 7.8 | 668.9% |
Balance Sheet
|
|---|
| Cash | 42.4 | 39.2 | 35.9 | 41.3 | 45.2 | 9.6% |
| Short Term Debt | 53.4 | 45.3 | 46.4 | 59.0 | 93.0 | 57.8% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.4 | 1.4 | 1.9 | 6.2 | 9.9 | 60.0% |
Ratios
|
|---|
| Revenue growth | 3.2% | -20.4% | -7.3% | 10.5% | 15.2% | |
| EBITDA growth | 153.1% | -53.7% | 1.8% | 22.5% | 99.3% | |
| Gross Margin | 16.8% | 18.2% | 18.6% | 18.3% | 21.4% | 3.1% |
| EBITDA Margin | 2.7% | 1.6% | 1.7% | 1.9% | 3.3% | 1.4% |
| Net Income Margin | 1.6% | 0.1% | 0.2% | 0.2% | 1.1% | 1.0% |
| SG&A, % of revenue | 8.6% | 10.7% | 10.5% | 10.6% | 12.2% | 1.5% |
| CAPEX, % of revenue | 0.2% | 0.2% | 0.3% | 1.0% | 1.4% | 0.4% |
| ROIC | 7.1% | 3.1% | 3.5% | 3.7% | 6.7% | 3.0% |
| ROE | 6.9% | 0.4% | 0.7% | 0.6% | 4.7% | 4.1% |
| Net Debt/EBITDA | 0.6x | 0.7x | 1.1x | 1.5x | 2.1x | 0.5x |
Revenue and profitability
Mobicon Group Ltd's Revenue jumped on 15.2% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.6 pp from 16.0% to 18.6% in 2015.
Gross Margin increased on 3.1 pp from 18.3% to 21.4% in FY2015. SG&A as a % of Revenue increased slightly on 1.5 pp from 10.6% to 12.2% in FY2015.
Net Income marign increased slightly on 0.95 pp from 0.17% to 1.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Mobicon Group Ltd's CAPEX/Revenue was 1.4% in FY2015. Mobicon Group Ltd showed small growth in CAPEX/Revenue of 1.2 pp from 0.23% in FY2012 to 1.4% in FY2015. Average CAPEX/Revenue for the last three years was 0.93%.
Return on investment
The company operates at low ROIC (6.67%) and ROE (4.71%). ROIC increased on 3.0 pp from 3.7% to 6.7% in FY2015. ROE increased on 4.1 pp from 0.61% to 4.7% in FY2015.
Leverage (Debt)
Debt level is 2.1x Net Debt / EBITDA and 4.1x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 1.5x to 2.1x in FY2015. Debt surged on 57.8% in FY2015 while cash increased on 9.6% in FY2015.
Appendix 1: Peers in Electronics
Below we provide Mobicon Group Ltd benchmarking against other companies in Electronics 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 |
|---|
| 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) | 9.4% | -0.3% | 3.1% | 3.8% | -11.3% |
|---|
| Mobicon Group Ltd ($1213) | | -20.4% | -7.3% | 10.5% | 15.2% |
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) | 13.5% | 13.6% | 13.7% | 13.8% | 6.7% |
|---|
| Mobicon Group Ltd ($1213) | 16.8% | 18.2% | 18.6% | 18.3% | 21.4% |
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% | -0.5% |
|---|
| Mobicon Group Ltd ($1213) | 2.7% | 1.6% | 1.7% | 1.9% | 3.3% |
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% | 3.8% | 3.3% | 4.2% | 0.2% |
|---|
| Mobicon Group Ltd ($1213) | 0.2% | 0.2% | 0.3% | 1.0% | 1.4% |
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) | 5.4% | 4.1% | 3.1% | 2.9% | -0.8% |
|---|
| Mobicon Group Ltd ($1213) | 7.1% | 3.1% | 3.5% | 3.7% | 6.7% |
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 (34 companies) | 0.8x | 1.1x | 1.2x | 1.0x | 5.4x |
|---|
| Mobicon Group Ltd ($1213) | 0.6x | 0.7x | 1.1x | 1.5x | 2.1x |
