Sun Hing Vision Group Holdings Ltd Net Income jumped on 51.2% in 2015 and EBITDA Margin increased on 2.1 pp from 8.8% to 10.9%
26/06/2015 • About Sun Hing Vision Group Holdings Ltd (
$125) • By InTwits
Sun Hing Vision Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sun Hing Vision Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's a lot of higher than industry average of 21.5%.
- CAPEX is quite volatile: 34.8 in 2015, 8.0 in 2014, 10.6 in 2013, 13.0 in 2012, 4.1 in 2011
- The company has business model with low profitability: ROIC is at 8.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sun Hing Vision Group Holdings Ltd ($125) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,126 | 1,155 | 1,165 | 1,177 | 1,214 | 3.1% |
| Gross Profit | 243 | 235 | 213 | 209 | 239 | 14.1% |
| SG&A | | | 148 | 158 | 160 | 1.4% |
| EBITDA | 169 | 150 | 116 | 104 | 132 | 27.4% |
| Net Income | 98 | 83 | 53 | 44 | 67 | 51.2% |
Balance Sheet
|
|---|
| Cash | 353 | 366 | 352 | 335 | 379 | 13.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 81 | 44 | 57 | 59 | 40 | -32.0% |
Ratios
|
|---|
| Revenue growth | 29.1% | 2.6% | 0.8% | 1.0% | 3.1% | |
| EBITDA growth | 15.8% | -10.9% | -22.8% | -10.6% | 27.4% | |
| Gross Margin | 21.6% | 20.4% | 18.3% | 17.8% | 19.7% | 1.9% |
| EBITDA Margin | 15.0% | 13.0% | 10.0% | 8.8% | 10.9% | 2.1% |
| Net Income Margin | 8.7% | 7.2% | 4.6% | 3.8% | 5.5% | 1.8% |
| SG&A, % of revenue | | | 12.7% | 13.4% | 13.2% | -0.2% |
| CAPEX, % of revenue | 7.2% | 3.8% | 4.9% | 5.0% | 3.3% | -1.7% |
| ROIC | 13.2% | 10.2% | 6.6% | 5.4% | 8.5% | 3.0% |
| ROE | 11.3% | 9.1% | 5.7% | 4.7% | 7.1% | 2.4% |
| Net Debt/EBITDA | -2.1x | -2.4x | -3.0x | -3.2x | -2.9x | 0.4x |
Revenue and profitability
The company's Revenue increased on 3.1% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 21.9 pp from 30.6% to 8.7% in 2015.
Gross Margin increased slightly on 1.9 pp from 17.8% to 19.7% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 1.8 pp from 3.8% to 5.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Sun Hing Vision Group Holdings Ltd's CAPEX/Revenue was 3.3% in FY2015. The company showed small CAPEX/Revenue decline of 0.57 pp from 3.8% in FY2012 to 3.3% in FY2015. Average CAPEX/Revenue for the last three years was 4.4%.
Return on investment
The company operates at low ROIC (8.45%) and ROE (7.13%). ROIC increased on 3.0 pp from 5.4% to 8.5% in FY2015. ROE increased on 2.4 pp from 4.7% to 7.1% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 13.1% in FY2015.
Appendix 1: Peers in Healthcare-Products
Below you can find Sun Hing Vision Group Holdings Ltd benchmarking vs. other companies in Healthcare-Products 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 |
|---|
| Microport Scientific Corp ($853) | 20.9% | 13.5% | 2.8% | 134.3% | |
| PW Medtech Group Ltd ($1358) | 188.2% | 89.2% | 37.9% | 33.0% | |
| China Medical System Holdings Ltd ($867) | 52.0% | 30.8% | 26.5% | 31.0% | |
| Lifetech Scientific Corp ($1302) | 34.0% | 29.3% | 27.3% | 22.4% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 29.2% | 16.0% | 25.1% | 14.4% | |
| |
|---|
| Median (14 companies) | 21.0% | 13.5% | 16.0% | 10.8% | -39.3% |
|---|
| Sun Hing Vision Group Holdings Ltd ($125) | | 2.6% | 0.8% | 1.0% | 3.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lifetech Scientific Corp ($1302) | 80.5% | 80.1% | 81.6% | 81.4% | |
| PW Medtech Group Ltd ($1358) | 62.3% | 66.0% | 67.9% | 72.8% | |
| Golden Meditech Holdings Ltd ($801) | 57.5% | 69.1% | 69.8% | 70.2% | |
| Microport Scientific Corp ($853) | 83.7% | 83.6% | 81.0% | 68.5% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 55.3% | 57.3% | 59.1% | 58.8% | |
| |
|---|
| Median (14 companies) | 55.3% | 50.2% | 52.9% | 48.2% | 4.1% |
|---|
| Sun Hing Vision Group Holdings Ltd ($125) | 21.6% | 20.4% | 18.3% | 17.8% | 19.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 42.3% | 44.2% | 30.6% | 41.6% | |
| China Medical System Holdings Ltd ($867) | 31.6% | 34.5% | 32.4% | 39.4% | |
| Golden Meditech Holdings Ltd ($801) | 42.5% | 41.4% | 37.9% | 29.8% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 31.3% | 28.5% | 28.0% | 29.0% | |
| Hengan International Group Co Ltd ($1044) | 20.8% | 27.4% | 25.3% | 25.3% | |
| |
|---|
| Median (14 companies) | 20.8% | 22.8% | 22.2% | 13.6% | -36.4% |
|---|
| Sun Hing Vision Group Holdings Ltd ($125) | 15.0% | 13.0% | 10.0% | 8.8% | 10.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 21.1% | 14.8% | 22.3% | 30.2% | |
| Golden Meditech Holdings Ltd ($801) | 9.5% | 12.7% | 51.2% | 27.3% | |
| Microport Scientific Corp ($853) | 18.5% | 31.6% | 27.9% | 15.0% | |
| Arts Optical International Hldgs ($1120) | 5.6% | 14.0% | 4.5% | 14.0% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 41.7% | 26.0% | 20.2% | 11.7% | |
| |
|---|
| Median (14 companies) | 9.5% | 8.1% | 6.6% | 5.7% | 2.3% |
|---|
| Sun Hing Vision Group Holdings Ltd ($125) | 7.2% | 3.8% | 4.9% | 5.0% | 3.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Medical System Holdings Ltd ($867) | 19.7% | 19.4% | 20.2% | 27.4% | |
| Lifetech Scientific Corp ($1302) | 13.0% | 17.5% | 15.9% | 21.2% | |
| Hengan International Group Co Ltd ($1044) | 16.9% | 19.5% | 14.9% | 14.0% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 14.6% | 10.5% | 11.7% | 12.8% | |
| PW Medtech Group Ltd ($1358) | 30.9% | 30.7% | 9.2% | 10.0% | |
| |
|---|
| Median (14 companies) | 12.1% | 5.3% | 7.4% | 5.0% | -22.1% |
|---|
| Sun Hing Vision Group Holdings Ltd ($125) | 13.2% | 10.2% | 6.6% | 5.4% | 8.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Fortune Investments Holdings Ltd ($8116) | 18.2x | | 2.9x | 93.0x | |
| Techcomp Holdings Ltd ($1298) | 1.7x | 4.3x | 3.6x | 2.7x | |
| Hengan International Group Co Ltd ($1044) | 0.9x | 1.4x | 1.7x | 1.8x | |
| China Medical System Holdings Ltd ($867) | -0.8x | -0.4x | -0.2x | 0.2x | |
| PW Medtech Group Ltd ($1358) | -0.8x | -1.2x | -7.5x | -0.3x | |
| |
|---|
| Median (10 companies) | -1.0x | -1.0x | -1.4x | -0.9x | |
|---|
| Sun Hing Vision Group Holdings Ltd ($125) | -2.1x | -2.4x | -3.0x | -3.2x | -2.9x |
