Suga International Holdings Ltd reports 109% Net Income growth and 7.8% Revenue growth
25/06/2015 • About Suga International Holdings Ltd (
$912) • By InTwits
Suga International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Suga International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's in pair with industry average of 5.0%.
- CAPEX is quite volatile: 101 in FY2015, 98.5 in FY2014, 68.7 in FY2013, 15.8 in FY2012, 18.1 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Suga International Holdings Ltd ($912) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,191 | 1,242 | 1,107 | 1,245 | 1,342 | 7.8% |
| Gross Profit | 163 | 165 | 147 | 175 | 180 | 3.1% |
| SG&A | 49 | 57 | 66 | 71 | 100 | 40.9% |
| EBITDA | 111 | 107 | 85 | 107 | 59 | -45.2% |
| Net Income | 90 | 93 | 78 | 81 | 170 | 109.1% |
Balance Sheet
|
|---|
| Cash | 161 | 144 | 244 | 169 | 177 | 4.5% |
| Short Term Debt | 13 | 9 | 17 | 38 | 88 | 133.8% |
| Long Term Debt | 33 | 22 | 86 | 48 | 12 | -74.0% |
Cash flow
|
|---|
| Capex | 18 | 16 | 69 | 99 | 101 | 2.3% |
Ratios
|
|---|
| Revenue growth | 24.1% | 4.3% | -10.8% | 12.4% | 7.8% | |
| EBITDA growth | 41.7% | -3.8% | -20.4% | 25.9% | -45.2% | |
| Gross Margin | 13.6% | 13.3% | 13.3% | 14.0% | 13.4% | -0.6% |
| EBITDA Margin | 9.3% | 8.6% | 7.7% | 8.6% | 4.4% | -4.2% |
| Net Income Margin | 7.6% | 7.5% | 7.0% | 6.5% | 12.7% | 6.2% |
| SG&A, % of revenue | 4.1% | 4.6% | 6.0% | 5.7% | 7.4% | 1.7% |
| CAPEX, % of revenue | 1.5% | 1.3% | 6.2% | 7.9% | 7.5% | -0.4% |
| ROIC | 23.0% | 19.4% | 11.9% | 14.2% | 3.9% | -10.3% |
| ROE | 24.7% | 22.2% | 17.1% | 16.4% | 29.2% | 12.8% |
| Net Debt/EBITDA | -1.0x | -1.1x | -1.7x | -0.8x | -1.3x | -0.5x |
Revenue and profitability
The company's Revenue increased on 7.8% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.75 pp from -8.7% to -9.5% in FY2015.
Gross Margin decreased slightly on 0.61 pp from 14.0% to 13.4% in FY2015. SG&A as a % of Revenue increased slightly on 1.7 pp from 5.7% to 7.4% in FY2015.
Net Income marign increased on 6.2 pp from 6.5% to 12.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 7.5% in FY2015. The company's CAPEX/Revenue increased on 6.2 pp from 1.3% in FY2012 to 7.5% in FY2015. It's average level of CAPEX/Revenue for the last three years was 7.2%.The company maintained rich investment policy and has spent a lot to CAPEX (172% of EBITDA).
Return on investment
The company operates at good ROE (29.22%) while ROIC is low (3.89%). ROIC dropped on 10.3 pp from 14.2% to 3.9% in FY2015. ROE jumped on 12.8 pp from 16.4% to 29.2% in FY2015.
Leverage (Debt)
Debt level is -1.3x Net Debt / EBITDA and 1.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from -0.8x to -1.3x in FY2015. Debt surged on 17.8% in FY2015 while cash increased on 4.5% in FY2015.
Appendix 1: Peers in Electronics
Below you can find Suga International 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 (48 companies) | 9.1% | -1.7% | 3.6% | 3.7% | 3.5% |
|---|
| Suga International Holdings Ltd ($912) | | 4.3% | -10.8% | 12.4% | 7.8% |
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 (46 companies) | 14.9% | 14.6% | 13.8% | 14.0% | 14.9% |
|---|
| Suga International Holdings Ltd ($912) | 13.6% | 13.3% | 13.3% | 14.0% | 13.4% |
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 (48 companies) | 9.0% | 5.9% | 4.1% | 3.4% | -0.5% |
|---|
| Suga International Holdings Ltd ($912) | 9.3% | 8.6% | 7.7% | 8.6% | 4.4% |
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 (48 companies) | 3.5% | 3.7% | 3.0% | 3.7% | 0.2% |
|---|
| Suga International Holdings Ltd ($912) | 1.5% | 1.3% | 6.2% | 7.9% | 7.5% |
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 (48 companies) | 5.4% | 4.1% | 3.3% | 2.7% | -0.8% |
|---|
| Suga International Holdings Ltd ($912) | 23.0% | 19.4% | 11.9% | 14.2% | 3.9% |
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) | 0.7x | 1.1x | 1.1x | 1.2x | 3.7x |
|---|
| Suga International Holdings Ltd ($912) | -1.0x | -1.1x | -1.7x | -0.8x | -1.3x |
