TeleEye Holdings Ltd revenue decline accelerated to 22.9% in FY2015 vs. 4.2% a year earliner
18/09/2015 • About TeleEye Holdings Ltd (
$8051) • By InTwits
TeleEye Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TeleEye Holdings Ltd is a company in decline: FY2015 revenue growth was -22.9%, 5 years revenue CAGR was -10.6%
- The company operates at negative EBITDA Margin: -14.6%
- TeleEye Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -9.7% for the sames years0
- TeleEye Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has unprofitable business model: ROIC is at -10.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TeleEye Holdings Ltd ($8051) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 45.693 | 37.425 | 39.159 | 37.513 | 28.941 | -22.9% |
| Gross Profit | 23.576 | 16.476 | 16.468 | 14.442 | 10.702 | -25.9% |
| SG&A | | 18.156 | 17.401 | 17.140 | 16.556 | -3.4% |
| EBITDA | 1.620 | -5.452 | -4.096 | -6.216 | -4.219 | -32.1% |
| Net Income | 1.206 | -6.182 | -5.268 | -6.548 | -7.843 | 19.8% |
Balance Sheet
|
|---|
| Cash | 15.719 | 14.431 | 14.692 | 7.844 | 68.715 | 776.0% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.707 | 0.144 | 0.089 | 0.138 | 0.221 | 60.1% |
Ratios
|
|---|
| Revenue growth | -9.7% | -18.1% | 4.6% | -4.2% | -22.9% | |
| EBITDA growth | -65.2% | -436.5% | -24.9% | 51.8% | -32.1% | |
| Gross Margin | 51.6% | 44.0% | 42.1% | 38.5% | 37.0% | -1.5% |
| EBITDA Margin | 3.5% | -14.6% | -10.5% | -16.6% | -14.6% | 2.0% |
| Net Income Margin | 2.6% | -16.5% | -13.5% | -17.5% | -27.1% | -9.6% |
| SG&A, % of revenue | | 48.5% | 44.4% | 45.7% | 57.2% | 11.5% |
| CAPEX, % of revenue | 1.5% | 0.4% | 0.2% | 0.4% | 0.8% | 0.4% |
| ROIC | 0.7% | -18.4% | -16.2% | -23.2% | -10.9% | 12.3% |
| ROE | 3.0% | -16.4% | -15.2% | -20.1% | -14.5% | 5.6% |
| Net Debt/EBITDA | -9.7x | | | | | 0.0x |
Revenue and profitability
TeleEye Holdings Ltd's Revenue dropped on 22.9% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 2.0 pp from -16.6% to -14.6% in FY2015.
Gross Margin decreased slightly on 1.5 pp from 38.5% to 37.0% in FY2015. SG&A as a % of Revenue surged on 11.5 pp from 45.7% to 57.2% in FY2015.
Net Income marign decreased on 9.6 pp from -17.5% to -27.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.76%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 0.45%.
Return on investment
The company operates at negative ROIC (-10.94%) and ROE (-14.45%). ROIC jumped on 12.3 pp from -23.2% to -10.9% in FY2015. ROE increased on 5.6 pp from -20.1% to -14.5% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 776% in FY2015.
Appendix 1: Peers in Electronics
Below you can find TeleEye 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) | 7.6% | -1.0% | 2.8% | 5.0% | 3.0% |
|---|
| TeleEye Holdings Ltd ($8051) | | -18.1% | 4.6% | -4.2% | -22.9% |
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% | |
| 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% | |
| Hi Sun Technology China Ltd ($818) | 20.8% | 28.1% | 37.4% | 33.3% | |
| |
|---|
| Median (46 companies) | 13.6% | 14.1% | 13.8% | 13.9% | 13.2% |
|---|
| TeleEye Holdings Ltd ($8051) | 51.6% | 44.0% | 42.1% | 38.5% | 37.0% |
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% | 4.6% | 3.3% |
|---|
| TeleEye Holdings Ltd ($8051) | 3.5% | -14.6% | -10.5% | -16.6% | -14.6% |
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% | 3.2% | 4.2% | 1.7% |
|---|
| TeleEye Holdings Ltd ($8051) | 1.5% | 0.4% | 0.2% | 0.4% | 0.8% |
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% | 2.4% |
|---|
| TeleEye Holdings Ltd ($8051) | 0.7% | -18.4% | -16.2% | -23.2% | -10.9% |
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 | 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 (35 companies) | 0.7x | 1.0x | 1.1x | 1.2x | 0.1x |
|---|
