Techcomp Holdings Ltd reports 20.6% EBITDA decline and 1.5 pp EBITDA Margin decline from 5.9% to 4.4%
26/02/2016 • About Techcomp Holdings Ltd (
$1298) • By InTwits
Techcomp Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Techcomp Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has potentially unprofitable business model: ROIC is at 3.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Techcomp Holdings Ltd ($1298) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 154.1 | 157.7 | 166.4 | 162.7 | 171.9 | 5.7% |
| Gross Profit | 46.6 | 43.1 | 50.2 | 50.7 | 55.5 | 9.4% |
| SG&A | | | | | 51.6 | |
| EBITDA | 13.0 | 7.1 | 7.4 | 9.5 | 7.6 | -20.6% |
| Net Income | 8.4 | 3.2 | 3.7 | 3.4 | 3.5 | 1.9% |
Balance Sheet
|
|---|
| Cash | 8.5 | 17.0 | 14.7 | 16.1 | 16.0 | -0.4% |
| Short Term Debt | 26.9 | 30.3 | 31.3 | 33.3 | 25.7 | -22.8% |
| Long Term Debt | 4.1 | 16.8 | 10.3 | 8.2 | 12.9 | 57.8% |
Cash flow
|
|---|
| Capex | 0.6 | 0.5 | 1.3 | 2.4 | 0.9 | -63.0% |
Ratios
|
|---|
| Revenue growth | 21.3% | 2.3% | 5.6% | -2.3% | 5.7% | |
| EBITDA growth | -1.9% | -45.7% | 4.9% | 28.3% | -20.6% | |
| Gross Margin | 30.3% | 27.3% | 30.2% | 31.2% | 32.3% | 1.1% |
| EBITDA Margin | 8.4% | 4.5% | 4.5% | 5.9% | 4.4% | -1.5% |
| Net Income Margin | 5.5% | 2.0% | 2.2% | 2.1% | 2.0% | -0.1% |
| SG&A, % of revenue | | | | | 30.0% | 30.0% |
| CAPEX, % of revenue | 0.4% | 0.3% | 0.8% | 1.5% | 0.5% | -1.0% |
| ROIC | 11.2% | 3.5% | 3.5% | 4.8% | 3.9% | -0.9% |
| ROE | 14.3% | 5.1% | 5.7% | 4.7% | 4.3% | -0.4% |
| Net Debt/EBITDA | 1.7x | 4.3x | 3.6x | 2.7x | 3.0x | 0.3x |
Revenue and profitability
Techcomp Holdings Ltd's Revenue increased on 5.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 12.5 pp from -4.9% to -17.4% in 2015.
Gross Margin increased slightly on 1.1 pp from 31.2% to 32.3% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Techcomp Holdings Ltd's CAPEX/Revenue was 0.51% in 2015. Techcomp Holdings Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.91%.
Return on investment
The company operates at low ROIC (3.89%) and ROE (4.27%). ROIC decreased slightly on 0.88 pp from 4.8% to 3.9% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.0x and Debt / EBITDA is 5.1x. Net Debt / EBITDA surged on 0.3x from 2.7x to 3.0x in 2015. Debt decreased on 6.9% in 2015 while cash showed almost no change in 2015.
Appendix 1: Peers in Healthcare-Products
Below you can find Techcomp Holdings Ltd benchmarking vs. other companies in Healthcare-Products 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 |
|---|
| Microport Scientific Corp ($853) | 20.9% | 13.5% | 2.8% | 134.3% | |
| PW Medtech Group Ltd ($1358) | 188.2% | 89.2% | 37.9% | 33.0% | |
| China Medical System Holdings Ltd ($867) | 52.0% | 30.8% | 26.5% | 31.0% | |
| Lifetech Scientific Corp ($1302) | 34.0% | 29.3% | 27.3% | 22.4% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 29.2% | 16.0% | 25.1% | 14.4% | |
| |
|---|
| Median (14 companies) | 25.1% | 13.5% | 16.0% | 10.8% | -3.1% |
|---|
| Techcomp Holdings Ltd ($1298) | | 2.3% | 5.6% | -2.3% | 5.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lifetech Scientific Corp ($1302) | 80.5% | 80.1% | 81.6% | 81.4% | |
| PW Medtech Group Ltd ($1358) | 62.3% | 66.0% | 67.9% | 72.8% | |
| Golden Meditech Holdings Ltd ($801) | 57.5% | 69.1% | 69.8% | 70.2% | 72.8% |
| Microport Scientific Corp ($853) | 83.7% | 83.6% | 81.0% | 68.5% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 55.3% | 57.3% | 59.1% | 58.8% | |
| |
|---|
| Median (14 companies) | 55.3% | 50.2% | 52.9% | 48.2% | 19.7% |
|---|
| Techcomp Holdings Ltd ($1298) | 30.3% | 27.3% | 30.2% | 31.2% | 32.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 42.3% | 44.2% | 30.6% | 41.6% | |
| China Medical System Holdings Ltd ($867) | 31.6% | 34.5% | 32.4% | 39.4% | |
| Golden Meditech Holdings Ltd ($801) | 42.5% | 41.4% | 37.9% | 29.8% | -31.7% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 31.3% | 28.5% | 28.0% | 29.0% | |
| Hengan International Group Co Ltd ($1044) | 20.8% | 27.4% | 25.3% | 25.3% | |
| |
|---|
| Median (14 companies) | 20.8% | 22.8% | 22.2% | 13.6% | -31.7% |
|---|
| Techcomp Holdings Ltd ($1298) | 8.4% | 4.5% | 4.5% | 5.9% | 4.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 21.1% | 14.8% | 22.3% | 30.2% | |
| Golden Meditech Holdings Ltd ($801) | 9.5% | 12.7% | 51.2% | 27.3% | 26.1% |
| Microport Scientific Corp ($853) | 18.5% | 31.6% | 27.9% | 15.0% | |
| Arts Optical International Hldgs ($1120) | 5.6% | 14.0% | 4.5% | 14.0% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 41.7% | 26.0% | 20.2% | 11.7% | |
| |
|---|
| Median (14 companies) | 9.5% | 8.2% | 6.6% | 5.9% | 3.3% |
|---|
| Techcomp Holdings Ltd ($1298) | 0.4% | 0.3% | 0.8% | 1.5% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Medical System Holdings Ltd ($867) | 19.7% | 19.4% | 20.2% | 27.4% | |
| Lifetech Scientific Corp ($1302) | 13.0% | 17.5% | 15.9% | 21.2% | |
| Hengan International Group Co Ltd ($1044) | 16.9% | 19.5% | 14.9% | 14.0% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 14.6% | 10.5% | 11.7% | 12.8% | |
| PW Medtech Group Ltd ($1358) | 30.9% | 30.7% | 9.2% | 10.0% | |
| |
|---|
| Median (14 companies) | 13.1% | 8.5% | 7.4% | 5.3% | -17.2% |
|---|
| Techcomp Holdings Ltd ($1298) | 11.2% | 3.5% | 3.5% | 4.8% | 3.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Fortune Investments Holdings Ltd ($8116) | 18.2x | | 2.9x | 93.0x | |
| Hengan International Group Co Ltd ($1044) | 0.9x | 1.4x | 1.7x | 1.8x | |
| China Medical System Holdings Ltd ($867) | -0.8x | -0.4x | -0.2x | 0.2x | |
| PW Medtech Group Ltd ($1358) | -0.8x | -1.2x | -7.5x | -0.3x | |
| Biosino Bio-Technology & Science Inc ($8247) | -1.3x | -1.1x | -1.7x | -1.5x | |
| |
|---|
| Median (10 companies) | -1.3x | -1.2x | -1.6x | -1.5x | -2.9x |
|---|
| Techcomp Holdings Ltd ($1298) | 1.7x | 4.3x | 3.6x | 2.7x | 3.0x |
