QPL International Holdings Ltd EBITDA dropped on 143% in 2015 and EBITDA Margin decreased on 7.8 pp from 5.4% to -2.3%
24/07/2015 • About QPL International Holdings Ltd (
$243) • By InTwits
QPL International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- QPL International Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -22.0%
- EBITDA Margin is quite volatile: -2.3% in FY2015, 5.4% in FY2014, 2.5% in FY2013, 3.0% in FY2012, 1.5% in FY2011
- QPL International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's in pair with industry average of 5.9%.
- CAPEX is quite volatile: 9.2 in FY2015, 12.9 in FY2014, 10.7 in FY2013, 7.0 in FY2012, 17.8 in FY2011
- The company has unprofitable business model: ROIC is at -22.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
QPL International Holdings Ltd ($243) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 354.0 | 279.1 | 217.2 | 262.7 | 262.3 | -0.2% |
| EBITDA | 5.4 | 8.2 | 5.4 | 14.3 | -6.1 | -142.7% |
| Net Income | -13.2 | -6.5 | -6.1 | 1.7 | -46.7 | -2,923.9% |
Balance Sheet
|
|---|
| Cash | 9.0 | 13.9 | 8.7 | 9.6 | 4.7 | -51.2% |
| Short Term Debt | 21.4 | 13.0 | 15.0 | 40.1 | 29.8 | -25.8% |
| Long Term Debt | 0.3 | 0.1 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 17.8 | 7.0 | 10.7 | 12.9 | 9.2 | -28.5% |
Ratios
|
|---|
| Revenue growth | 8.9% | -21.1% | -22.2% | 21.0% | -0.2% | |
| EBITDA growth | -85.5% | 51.9% | -34.3% | 163.5% | -142.7% | |
| EBITDA Margin | 1.5% | 3.0% | 2.5% | 5.4% | -2.3% | -7.8% |
| Net Income Margin | -3.7% | -2.3% | -2.8% | 0.6% | -17.8% | -18.4% |
| CAPEX, % of revenue | 5.0% | 2.5% | 4.9% | 4.9% | 3.5% | -1.4% |
| ROIC | -5.1% | -4.2% | -7.7% | 1.0% | -22.0% | -22.9% |
| ROE | -14.1% | -7.8% | -7.8% | 2.2% | -90.2% | -92.4% |
| Net Debt/EBITDA | 2.3x | -0.1x | 1.2x | 2.1x | | -2.1x |
Revenue and profitability
The company's Revenue showed almost no change in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 8.0% to 11.4% in 2015.
Net Income marign dropped on 18.4 pp from 0.63% to -17.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
QPL International Holdings Ltd's CAPEX/Revenue was 3.5% in FY2015. CAPEX/Revenue increased slightly on 1.0 pp from 2.5% in FY2012 to 3.5% in FY2015. It's average level of CAPEX/Revenue for the last three years was 4.4%.
Return on investment
The company operates at negative ROIC (-21.98%) and ROE (-90.20%). ROIC dropped on 22.9 pp from 0.96% to -22.0% in FY2015. ROE dropped on 92.4 pp from 2.2% to -90.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.1x and Debt / EBITDA is . Net Debt / EBITDA dropped on 2.1x from 2.1x to in FY2015. Debt dropped on 25.8% in FY2015 while cash dropped on 51.2% in FY2015.
Appendix 1: Peers in Electronics
Below we provide QPL International Holdings 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 (48 companies) | 7.1% | -1.0% | 3.6% | 3.7% | 6.1% |
|---|
| QPL International Holdings Ltd ($243) | | -21.1% | -22.2% | 21.0% | -0.2% |
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 (47 companies) | 13.6% | 14.6% | 13.8% | 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) | 9.3% | 7.4% | 6.0% | 3.4% | 4.4% |
|---|
| QPL International Holdings Ltd ($243) | 1.5% | 3.0% | 2.5% | 5.4% | -2.3% |
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 (48 companies) | 3.3% | 3.7% | 3.0% | 3.7% | 1.7% |
|---|
| QPL International Holdings Ltd ($243) | 5.0% | 2.5% | 4.9% | 4.9% | 3.5% |
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) | 5.9% | 4.3% | 3.5% | 3.0% | 3.9% |
|---|
| QPL International Holdings Ltd ($243) | -5.1% | -4.2% | -7.7% | 1.0% | -22.0% |
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 | 19.9x |
| 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) | 0.6x | 1.1x | 1.1x | 1.0x | 0.1x |
|---|
| QPL International Holdings Ltd ($243) | 2.3x | -0.1x | 1.2x | 2.1x | |
