Fittec International Group Ltd reports 32.8% revenue decline in FY2015 and 1.8 pp EBITDA Margin decline from -4.1% to -6.0%
30/09/2015 • About Fittec International Group Ltd (
$2662) • By InTwits
Fittec International Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Fittec International Group Ltd is a company in decline: FY2015 revenue growth was -32.8%, 5 years revenue CAGR was -23.0%
- The company operates at negative EBITDA Margin: -6.0%
- Fittec International Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 12.0%.
- CAPEX is quite volatile: 6.7 in FY2015, 5.1 in FY2014, 8.9 in FY2013, 18.5 in FY2012, 94.7 in FY2011
- The company has unprofitable business model: ROIC is at -13.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fittec International Group Ltd ($2662) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,814 | 1,529 | 1,169 | 1,082 | 727 | -32.8% |
| Gross Profit | 40 | 31 | 10 | -27 | -17 | -37.5% |
| SG&A | | 78 | 75 | 61 | 62 | 0.0% |
| EBITDA | 29 | 40 | 39 | -45 | -43 | -2.8% |
| Net Income | -69 | -104 | -48 | -265 | -78 | -70.6% |
Balance Sheet
|
|---|
| Cash | 246 | 256 | 279 | 247 | 193 | -22.0% |
| Short Term Debt | 23 | 18 | 9 | 2 | 0 | -100.0% |
| Long Term Debt | 11 | 7 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 95 | 18 | 9 | 5 | 7 | 31.9% |
Ratios
|
|---|
| Revenue growth | -32.3% | -15.7% | -23.6% | -7.4% | -32.8% | |
| EBITDA growth | -75.6% | 38.9% | -3.8% | -215.4% | -2.8% | |
| Gross Margin | 2.2% | 2.0% | 0.9% | -2.5% | -2.4% | 0.2% |
| EBITDA Margin | 1.6% | 2.6% | 3.3% | -4.1% | -6.0% | -1.8% |
| Net Income Margin | -3.8% | -6.8% | -4.1% | -24.5% | -10.7% | 13.8% |
| SG&A, % of revenue | | 5.1% | 6.4% | 5.7% | 8.5% | 2.8% |
| CAPEX, % of revenue | 5.2% | 1.2% | 0.8% | 0.5% | 0.9% | 0.5% |
| ROIC | -4.9% | -3.5% | -2.9% | -13.2% | -13.7% | -0.5% |
| ROE | -6.7% | -11.1% | -5.5% | -37.2% | -14.6% | 22.6% |
| Net Debt/EBITDA | -7.3x | -5.8x | -7.0x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 32.8% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from -4.1% to -6.0% in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue increased on 2.8 pp from 5.7% to 8.5% in FY2015.
Net Income marign jumped on 13.8 pp from -24.5% to -10.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Fittec International Group Ltd's CAPEX/Revenue was 0.93% in FY2015. Fittec International Group Ltd's CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.72%.
Return on investment
The company operates at negative ROIC (-13.67%) and ROE (-14.59%). ROIC decreased slightly on 0.51 pp from -13.2% to -13.7% in FY2015. ROE jumped on 22.6 pp from -37.2% to -14.6% in FY2015.
Leverage (Debt)
The company paid down all the debt in FY2015. Cash dropped on 22.0% in FY2015.
Appendix 1: Peers in Semiconductors
Below we provide Fittec International Group Ltd benchmarking against other companies in Semiconductors 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 |
|---|
| Honbridge Holdings Ltd ($8137) | 3,428.4% | -76.4% | -97.5% | 608.9% | |
| Shunfeng International Clean Energy Ltd ($1165) | 216.5% | -46.3% | 44.4% | 275.6% | |
| Phoenitron Holdings Ltd ($8066) | -8.8% | -7.2% | 4.0% | 243.8% | |
| Hanergy Thin Film Power Group Ltd ($566) | -15.1% | 7.5% | 19.1% | 192.8% | |
| China Jinhai International Group Ltd ($139) | | | | 140.3% | -81.9% |
| |
|---|
| Median (19 companies) | 3.6% | -11.2% | 8.0% | 11.7% | -81.9% |
|---|
| Fittec International Group Ltd ($2662) | | -15.7% | -23.6% | -7.4% | -32.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heng Xin China Holdings Ltd ($8046) | 46.3% | 42.1% | 57.6% | 75.0% | |
| China Jinhai International Group Ltd ($139) | -92.8% | | -7.8% | 73.3% | -69.1% |
| PacMOS Technologies Holdings Ltd ($1010) | 68.1% | 68.8% | 65.7% | 65.7% | |
| Intel Corp ($4335) | 62.5% | 62.1% | 59.8% | 63.7% | |
| Hanergy Thin Film Power Group Ltd ($566) | 62.8% | 71.4% | 80.3% | 57.3% | |
| |
|---|
| Median (20 companies) | 22.4% | 26.5% | 29.3% | 35.1% | -69.1% |
|---|
| Fittec International Group Ltd ($2662) | 2.2% | 2.0% | 0.9% | -2.5% | -2.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 13.4% | 9.1% | 37.2% | 88.0% | |
| Hanergy Thin Film Power Group Ltd ($566) | 46.0% | 66.0% | 73.9% | 43.7% | |
| Intel Corp ($4335) | 43.6% | 41.5% | 38.6% | 42.8% | |
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -11.8% | 9.5% | 40.5% | |
| Semiconductor Manufacturing International Corp ($981) | 26.9% | 34.3% | 35.5% | 34.5% | |
| |
|---|
| Median (20 companies) | 12.5% | 9.3% | 9.5% | 7.1% | -1,518.3% |
|---|
| Fittec International Group Ltd ($2662) | 1.6% | 2.6% | 3.3% | -4.1% | -6.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jun Yang Solar Power Investments Ltd ($397) | 390.5% | 671.1% | 25.9% | 78.9% | |
| Han Tang International Holdings Ltd ($1187) | 1.8% | | | 55.2% | |
| Semiconductor Manufacturing International Corp ($981) | 70.6% | 23.5% | 35.1% | 33.2% | |
| Comtec Solar Systems Group Ltd ($712) | 22.2% | | 30.2% | 18.7% | |
| Intel Corp ($4335) | 19.9% | 20.7% | 20.3% | 18.1% | |
| |
|---|
| Median (20 companies) | 10.3% | 4.7% | 11.0% | 7.0% | 18.4% |
|---|
| Fittec International Group Ltd ($2662) | 5.2% | 1.2% | 0.8% | 0.5% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ASM Pacific Technology Ltd ($522) | 52.1% | 12.3% | 9.2% | 21.9% | |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 22.2% | 25.5% | 22.7% | 21.1% | |
| Intel Corp ($4335) | 32.4% | 23.7% | 17.1% | 20.6% | |
| Hanergy Thin Film Power Group Ltd ($566) | 9.3% | 14.1% | 15.1% | 19.3% | |
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -13.0% | 1.5% | 17.4% | |
| |
|---|
| Median (20 companies) | 4.3% | -0.8% | 0.1% | 1.3% | -14.3% |
|---|
| Fittec International Group Ltd ($2662) | -4.9% | -3.5% | -2.9% | -13.2% | -13.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 4.0x | 16.4x | 6.9x | 4.9x | |
| Solargiga Energy Holdings Ltd ($757) | 5.9x | | 13.8x | 4.4x | |
| Shunfeng International Clean Energy Ltd ($1165) | 8.2x | | 25.8x | 3.4x | |
| Phoenitron Holdings Ltd ($8066) | -1.2x | -0.8x | | 3.2x | |
| Semiconductor Manufacturing International Corp ($981) | 1.9x | 1.3x | 1.0x | 1.0x | |
| |
|---|
| Median (11 companies) | -0.0x | 0.2x | 1.0x | 0.5x | |
|---|
