SUNeVision Holdings Ltd reports 78.6% CAPEX decline while 8.5% Revenue growth
04/09/2015 • About SUNeVision Holdings Ltd (
$8008) • By InTwits
SUNeVision Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- SUNeVision Holdings Ltd is a growth stock: FY2015 revenue growth was 8.5%, 5 year revenue CAGR was 11.0% at FY2015 ROIC 15.3%
- SUNeVision Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.4%. At the same time it's a lot of higher than industry average of 4.8%.
- CAPEX is quite volatile: 114 in FY2015, 531 in FY2014, 78.4 in FY2013, 53.6 in FY2012, 89.3 in FY2011
- The company has highly profitable business model: ROIC is at 15.3%
- It operates with high leverage: Net Debt/EBITDA is -1.2x while industry average is -7.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SUNeVision Holdings Ltd ($8008) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 630.8 | 705.9 | 764.6 | 846.2 | 918.1 | 8.5% |
| Gross Profit | 324.4 | 377.9 | 462.7 | 547.8 | 601.9 | 9.9% |
| SG&A | | | 38.9 | 41.7 | 44.3 | 6.2% |
| EBITDA | 385.3 | 453.0 | 547.2 | 606.1 | 664.5 | 9.6% |
| Net Income | 405.2 | 449.9 | 530.4 | 585.5 | 569.4 | -2.7% |
Balance Sheet
|
|---|
| Cash | 1,037.4 | 976.0 | 1,111.2 | 885.1 | 768.5 | -13.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 89.3 | 53.6 | 78.4 | 531.1 | 113.7 | -78.6% |
Ratios
|
|---|
| Revenue growth | 15.9% | 11.9% | 8.3% | 10.7% | 8.5% | |
| EBITDA growth | 5.2% | 17.6% | 20.8% | 10.8% | 9.6% | |
| Gross Margin | 51.4% | 53.5% | 60.5% | 64.7% | 65.6% | 0.8% |
| EBITDA Margin | 61.1% | 64.2% | 71.6% | 71.6% | 72.4% | 0.7% |
| Net Income Margin | 64.2% | 63.7% | 69.4% | 69.2% | 62.0% | -7.2% |
| SG&A, % of revenue | | | 5.1% | 4.9% | 4.8% | -0.1% |
| CAPEX, % of revenue | 14.2% | 7.6% | 10.2% | 62.8% | 12.4% | -50.4% |
| ROIC | 9.9% | 10.8% | 13.3% | 14.4% | 15.3% | 0.9% |
| ROE | 14.7% | 15.2% | 16.9% | 17.6% | 16.5% | -1.1% |
| Net Debt/EBITDA | -2.7x | -2.2x | -2.0x | -1.5x | -1.2x | 0.3x |
Revenue and profitability
The company's Revenue increased on 8.5% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 11.0 pp from 26.9% to 37.9% in 2015.
Gross Margin increased slightly on 0.82 pp from 64.7% to 65.6% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign decreased on 7.2 pp from 69.2% to 62.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
SUNeVision Holdings Ltd's CAPEX/Revenue was 12.4% in FY2015. SUNeVision Holdings Ltd's CAPEX/Revenue increased on 4.8 pp from 7.6% in FY2012 to 12.4% in FY2015. Average CAPEX/Revenue for the last three years was 28.5%.
Return on investment
The company operates at good ROIC (15.34%) and ROE (16.48%). ROIC increased slightly on 0.91 pp from 14.4% to 15.3% in FY2015. ROE decreased slightly on 1.1 pp from 17.6% to 16.5% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 13.2% in FY2015.
Appendix 1: Peers in Internet
Below you can find SUNeVision Holdings Ltd benchmarking vs. other companies in Internet 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 Public Procurement Ltd ($1094) | -78.5% | 5,077.0% | -67.5% | 1,258.9% | |
| China Digital Culture Group Ltd ($8175) | 320.4% | -47.9% | 180.8% | 168.8% | |
| GET Holdings Ltd ($8380) | -4.3% | 13.8% | 2,126.4% | 154.4% | |
| China Healthcare Holdings Ltd ($673) | | -14.8% | -52.9% | 63.1% | 0.3% |
| ABC Multiactive Ltd ($8131) | -1.9% | -15.2% | -13.2% | 59.4% | |
| |
|---|
| Median (19 companies) | 25.9% | 12.3% | 3.7% | 14.8% | 0.3% |
|---|
| SUNeVision Holdings Ltd ($8008) | | 11.9% | 8.3% | 10.7% | 8.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ABC Multiactive Ltd ($8131) | 73.0% | 86.7% | 83.5% | 86.2% | |
| Sino-I Technology Ltd ($250) | 74.2% | 75.3% | 82.7% | 78.8% | |
| AcrossAsia Ltd ($8061) | 78.7% | 70.9% | 73.0% | 72.5% | |
| Pacific Online Ltd ($543) | 69.1% | 71.0% | 70.5% | 67.3% | |
| Forgame Holdings Ltd ($484) | 82.1% | 89.8% | 84.7% | 66.1% | |
| |
|---|
| Median (16 companies) | 65.2% | 65.0% | 62.3% | 55.8% | 19.9% |
|---|
| SUNeVision Holdings Ltd ($8008) | 51.4% | 53.5% | 60.5% | 64.7% | 65.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| GET Holdings Ltd ($8380) | -182.0% | -237.7% | 56.8% | 66.4% | |
| AcrossAsia Ltd ($8061) | 15.4% | 20.8% | 24.2% | 44.7% | |
| Tencent Holdings Ltd ($700) | 48.2% | 38.4% | 34.7% | 42.5% | |
| China Digital Culture Group Ltd ($8175) | -12.1% | -66.7% | 22.5% | 40.8% | |
| Tradelink Electronic Commerce Ltd ($536) | 42.1% | 38.6% | 33.8% | 33.1% | |
| |
|---|
| Median (20 companies) | 3.0% | 1.4% | 15.2% | 7.3% | -58.6% |
|---|
| SUNeVision Holdings Ltd ($8008) | 61.1% | 64.2% | 71.6% | 71.6% | 72.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AcrossAsia Ltd ($8061) | 61.2% | 56.6% | 65.9% | 36.3% | |
| China E-Learning Group Ltd ($8055) | 1.3% | 0.0% | 2.7% | 15.3% | |
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | 0.0% | | 12.2% | |
| Capinfo Co Ltd ($1075) | 1.6% | 17.3% | 13.1% | 9.7% | |
| Tai Shing International Holdings Ltd ($8103) | 1.8% | 0.1% | 4.3% | 5.7% | 0.0% |
| |
|---|
| Median (20 companies) | 10.8% | 3.2% | 2.7% | 2.7% | 0.2% |
|---|
| SUNeVision Holdings Ltd ($8008) | 14.2% | 7.6% | 10.2% | 62.8% | 12.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tencent Holdings Ltd ($700) | 33.4% | 29.5% | 26.7% | 29.1% | |
| Pacific Online Ltd ($543) | 41.7% | 37.9% | 36.4% | 28.6% | |
| GET Holdings Ltd ($8380) | -6.8% | -6.5% | 10.8% | 19.3% | |
| Tradelink Electronic Commerce Ltd ($536) | 19.5% | 22.4% | 18.2% | 17.4% | |
| China Digital Culture Group Ltd ($8175) | -2.3% | -11.2% | 4.0% | 11.7% | |
| |
|---|
| Median (20 companies) | -2.4% | -6.3% | 3.0% | -3.1% | -19.3% |
|---|
| SUNeVision Holdings Ltd ($8008) | 9.9% | 10.8% | 13.3% | 14.4% | 15.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ABC Multiactive Ltd ($8131) | | | | 9.5x | |
| AcrossAsia Ltd ($8061) | 1.7x | 2.3x | 2.9x | 1.5x | |
| Tencent Holdings Ltd ($700) | -0.1x | -0.2x | -0.2x | -0.2x | |
| China Digital Culture Group Ltd ($8175) | | | -2.2x | -0.4x | |
| GET Holdings Ltd ($8380) | | | -1.1x | -1.0x | |
| |
|---|
| Median (12 companies) | -1.8x | -1.2x | -1.2x | -1.4x | 82.7x |
|---|
| SUNeVision Holdings Ltd ($8008) | -2.7x | -2.2x | -2.0x | -1.5x | -1.2x |
