Time Watch Investments Ltd CAPEX jumped on 60.8% in 2015 and Revenue surged on 10.4%
22/09/2015 • About Time Watch Investments Ltd (
$2033) • By InTwits
Time Watch Investments Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Time Watch Investments Ltd is a fast growth stock: FY2015 revenue growth was 10.4%, 5 year revenue CAGR was 23.6% at FY2015 ROIC 27.9%
- Time Watch Investments Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's in pair with industry average of 67.4%.
- CAPEX is quite volatile: 161 in FY2015, 100 in FY2014, 52.2 in FY2013, 32.8 in FY2012, 26.4 in FY2011
- The company has highly profitable business model: ROIC is at 27.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Time Watch Investments Ltd ($2033) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,189 | 1,525 | 1,912 | 2,402 | 2,653 | 10.4% |
| Gross Profit | 695 | 918 | 1,159 | 1,561 | 1,807 | 15.8% |
| SG&A | | | 850 | 1,154 | 1,333 | 15.5% |
| EBITDA | 200 | 269 | 321 | 467 | 543 | 16.3% |
| Net Income | 135 | 184 | 214 | 310 | 337 | 8.7% |
Balance Sheet
|
|---|
| Cash | 110 | 157 | 537 | 660 | 676 | 2.4% |
| Short Term Debt | 204 | 292 | 49 | 39 | 43 | 9.2% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 26 | 33 | 52 | 100 | 161 | 60.8% |
Ratios
|
|---|
| Revenue growth | 29.3% | 28.2% | 25.4% | 25.6% | 10.4% | |
| EBITDA growth | 87.6% | 34.2% | 19.4% | 45.4% | 16.3% | |
| Gross Margin | 58.5% | 60.2% | 60.6% | 65.0% | 68.1% | 3.1% |
| EBITDA Margin | 16.8% | 17.6% | 16.8% | 19.4% | 20.5% | 1.0% |
| Net Income Margin | 11.3% | 12.1% | 11.2% | 12.9% | 12.7% | -0.2% |
| SG&A, % of revenue | | | 44.5% | 48.0% | 50.2% | 2.2% |
| CAPEX, % of revenue | 2.2% | 2.2% | 2.7% | 4.2% | 6.1% | 1.9% |
| ROIC | 30.5% | 34.5% | 27.1% | 27.8% | 27.9% | 0.1% |
| ROE | 36.9% | 44.4% | 25.7% | 22.8% | 22.0% | -0.8% |
| Net Debt/EBITDA | 0.5x | 0.5x | -1.5x | -1.3x | -1.2x | 0.2x |
Revenue and profitability
The company's Revenue jumped on 10.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.66 pp from 4.4% to 5.1% in 2015.
Gross Margin increased on 3.1 pp from 65.0% to 68.1% in FY2015. SG&A as a % of Revenue increased on 2.2 pp from 48.0% to 50.2% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Time Watch Investments Ltd's CAPEX/Revenue was 6.1% in FY2015. The company's CAPEX/Revenue increased on 3.9 pp from 2.2% in FY2012 to 6.1% in FY2015. It's average CAPEX/Revenue for the last three years was 4.3%.
Return on investment
The company operates at high and attractive ROIC (27.87%) and ROE (21.97%). ROIC showed almost no change in FY2015. ROE decreased slightly on 0.80 pp from 22.8% to 22.0% in FY2015.
Leverage (Debt)
Debt level is -1.2x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from -1.3x to -1.2x in FY2015. Debt increased on 9.2% in FY2015 while cash increased on 2.4% in FY2015.
Appendix 1: Peers in Miscellaneous Manufactur
Below you can find Time Watch Investments Ltd benchmarking vs. other companies in Miscellaneous Manufactur 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 |
|---|
| CSR Corp Ltd ($1766) | 24.0% | 12.0% | 9.7% | 123.7% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 37.4% | 59.5% | 45.9% | 45.0% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 1.5% | 22.2% | 43.2% | |
| China International Marine Containers Group Co Ltd ($2039) | 23.4% | -15.6% | 6.6% | 21.4% | |
| Singamas Container Holdings Ltd ($716) | 32.4% | -15.5% | -16.5% | 20.5% | |
| |
|---|
| Median (25 companies) | 22.4% | -7.1% | -0.7% | 6.7% | -11.5% |
|---|
| Time Watch Investments Ltd ($2033) | | 28.2% | 25.4% | 25.6% | 10.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | |
| Launch Tech Co Ltd ($2488) | 39.2% | 27.4% | 33.6% | 33.6% | |
| DeTeam Co Ltd ($65) | 13.9% | 17.7% | 15.7% | 31.0% | |
| |
|---|
| Median (24 companies) | 20.6% | 19.7% | 19.7% | 23.4% | 23.1% |
|---|
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | 68.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 42.8% | 30.4% | 31.3% | 38.4% | |
| Man Sang International Ltd ($938) | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% |
| IPE Group Ltd ($929) | 24.9% | 25.6% | 22.5% | 29.5% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | |
| TK Group Holdings Ltd ($2283) | 22.1% | 21.4% | 18.9% | 17.9% | |
| |
|---|
| Median (25 companies) | 10.2% | 8.0% | 8.2% | 9.5% | 3.5% |
|---|
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | 20.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | |
| KEE Holdings Co Ltd ($2011) | 20.9% | 21.8% | 43.7% | 24.9% | |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | |
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | 47.6% |
| TK Group Holdings Ltd ($2283) | 8.9% | 13.3% | 8.1% | 13.7% | |
| |
|---|
| Median (25 companies) | 5.2% | 4.9% | 4.3% | 4.4% | 4.2% |
|---|
| Time Watch Investments Ltd ($2033) | 2.2% | 2.2% | 2.7% | 4.2% | 6.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | |
| CSR Corp Ltd ($1766) | 13.4% | 11.1% | 11.2% | 15.3% | |
| Yusei Holdings Ltd ($96) | 8.0% | 4.2% | 7.0% | 13.6% | |
| |
|---|
| Median (25 companies) | 6.4% | 4.2% | 3.6% | 3.9% | 1.3% |
|---|
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | 27.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | |
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | |
| China International Marine Containers Group Co Ltd ($2039) | 2.8x | 4.0x | 4.7x | 5.8x | |
| VS International Group Ltd ($1002) | 8.6x | 5.1x | 6.5x | 4.4x | |
| Launch Tech Co Ltd ($2488) | -0.4x | 7.6x | 2.4x | 3.9x | |
| |
|---|
| Median (21 companies) | -0.3x | -0.3x | -0.2x | 0.1x | -3.6x |
|---|
| Time Watch Investments Ltd ($2033) | 0.5x | 0.5x | -1.5x | -1.3x | -1.2x |
