ASM Pacific Technology Ltd reports 40.2% Net Income decline and 2.6 pp EBITDA Margin decline from 17.1% to 14.5%
24/02/2016 • About ASM Pacific Technology Ltd (
$522) • By InTwits
ASM Pacific Technology Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 14.5% in 2015, 17.1% in 2014, 10.4% in 2013, 12.2% in 2012, 28.1% in 2011
- ASM Pacific Technology Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's a lot of higher than industry average of 8.6%.
- CAPEX is quite volatile: 529 in 2015, 314 in 2014, 347 in 2013, 459 in 2012, 752 in 2011
- The company has highly profitable 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.
ASM Pacific Technology Ltd ($522) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,915 | 10,461 | 10,841 | 14,229 | 12,977 | -8.8% |
| Gross Profit | 4,426 | 3,162 | 3,179 | 5,050 | 4,715 | -6.6% |
| SG&A | 1,280 | 1,389 | 1,459 | 1,782 | 2,033 | 14.1% |
| EBITDA | 3,631 | 1,280 | 1,123 | 2,438 | 1,880 | -22.9% |
| Net Income | 2,932 | 689 | 559 | 1,600 | 956 | -40.2% |
Balance Sheet
|
|---|
| Cash | 1,628 | 1,487 | 1,597 | 2,594 | 2,020 | -22.1% |
| Short Term Debt | 331 | 695 | 551 | 151 | 37 | -75.3% |
| Long Term Debt | 0 | 129 | 145 | 2,180 | 2,406 | 10.4% |
Cash flow
|
|---|
| Capex | 752 | 459 | 347 | 314 | 529 | 68.6% |
Ratios
|
|---|
| Revenue growth | 35.7% | -19.0% | 3.6% | 31.3% | -8.8% | |
| EBITDA growth | 6.1% | -64.8% | -12.2% | 117.1% | -22.9% | |
| Gross Margin | 34.3% | 30.2% | 29.3% | 35.5% | 36.3% | 0.8% |
| EBITDA Margin | 28.1% | 12.2% | 10.4% | 17.1% | 14.5% | -2.6% |
| Net Income Margin | 22.7% | 6.6% | 5.2% | 11.2% | 7.4% | -3.9% |
| SG&A, % of revenue | 9.9% | 13.3% | 13.5% | 12.5% | 15.7% | 3.1% |
| CAPEX, % of revenue | 5.8% | 4.4% | 3.2% | 2.2% | 4.1% | 1.9% |
| ROIC | 52.1% | 12.3% | 9.2% | 21.9% | 13.7% | -8.2% |
| ROE | 51.4% | 10.7% | 8.2% | 20.9% | 11.8% | -9.1% |
| Net Debt/EBITDA | -0.4x | -0.5x | -0.8x | -0.1x | 0.2x | 0.3x |
Revenue and profitability
ASM Pacific Technology Ltd's Revenue decreased on 8.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 15.6 pp from 3.5% to 19.1% in 2015.
Gross Margin increased slightly on 0.85 pp from 35.5% to 36.3% in 2015. SG&A as a % of Revenue increased on 3.1 pp from 12.5% to 15.7% in 2015.
Net Income marign decreased on 3.9 pp from 11.2% to 7.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 4.1%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 3.2%.
Return on investment
The company operates at good ROIC (13.72%) while ROE is low (11.80%). ROIC decreased on 8.2 pp from 21.9% to 13.7% in 2015. ROE decreased on 9.1 pp from 20.9% to 11.8% in 2015.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA jumped on 0.3x from -0.1x to 0.2x in 2015. Debt increased on 4.8% in 2015 while cash dropped on 22.1% in 2015.
Management team
The company's CEO Lee Wai Kwong has spent 11 years at the company. Ng Cher Tat "Robin Gerard" is a ASM Pacific Technology Ltd's CFO. Ng Cher Tat "Robin Gerard" has spent 8 years at the company.
Appendix 1: Peers in Semiconductors
Below we provide ASM Pacific Technology 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 (20 companies) | -1.6% | -12.2% | 4.0% | 9.7% | -0.9% |
|---|
| ASM Pacific Technology Ltd ($522) | | -19.0% | 3.6% | 31.3% | -8.8% |
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% | 62.6% |
| Hanergy Thin Film Power Group Ltd ($566) | 62.8% | 71.4% | 80.3% | 57.3% | |
| |
|---|
| Median (21 companies) | 17.4% | 22.8% | 25.2% | 29.2% | 30.5% |
|---|
| ASM Pacific Technology Ltd ($522) | 34.3% | 30.2% | 29.3% | 35.5% | 36.3% |
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% | 41.0% |
| 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% | 33.3% |
| |
|---|
| Median (21 companies) | 10.2% | 5.7% | 5.9% | -3.4% | 21.4% |
|---|
| ASM Pacific Technology Ltd ($522) | 28.1% | 12.2% | 10.4% | 17.1% | 14.5% |
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% | 55.0% |
| Comtec Solar Systems Group Ltd ($712) | 22.2% | | 30.2% | 18.7% | |
| Intel Corp ($4335) | 19.9% | 20.7% | 20.3% | 18.1% | 13.2% |
| |
|---|
| Median (21 companies) | 9.0% | 4.5% | 7.6% | 6.6% | 13.2% |
|---|
| ASM Pacific Technology Ltd ($522) | 5.8% | 4.4% | 3.2% | 2.2% | 4.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | 17.7% |
| 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% | |
| Applied Materials Inc ($4336) | 25.6% | 4.0% | 4.6% | 15.9% | 15.2% |
| |
|---|
| Median (21 companies) | 1.7% | -2.3% | -0.7% | -1.3% | 4.4% |
|---|
| ASM Pacific Technology Ltd ($522) | 52.1% | 12.3% | 9.2% | 21.9% | 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 | 0.5x |
| |
|---|
| Median (10 companies) | -0.0x | 0.2x | 1.0x | 0.7x | 0.3x |
|---|
| ASM Pacific Technology Ltd ($522) | -0.4x | -0.5x | -0.8x | -0.1x | 0.2x |
