Varitronix International Ltd Net Income surged on 20.0% in 2015 while Revenue decreased on 4.8%
29/02/2016 • About Varitronix International Ltd (
$710) • By InTwits
Varitronix International Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Varitronix International Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's in pair with industry average of 6.1%.
- CAPEX is quite volatile: 35.8 in 2015, 109 in 2014, 118 in 2013, 295 in 2012, 43.2 in 2011
- The company has business model with average profitability: ROIC is at 11.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Varitronix International Ltd ($710) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,131 | 2,222 | 2,604 | 2,613 | 2,488 | -4.8% |
| EBITDA | 281 | 238 | 432 | 342 | 341 | -0.5% |
| Net Income | 168 | 171 | 243 | 250 | 301 | 20.0% |
Balance Sheet
|
|---|
| Cash | 391 | 464 | 555 | 575 | 767 | 33.5% |
| Short Term Debt | 154 | 188 | 243 | 184 | 136 | -26.0% |
| Long Term Debt | 0 | 129 | 59 | 44 | 9 | -80.0% |
Cash flow
|
|---|
| Capex | 43 | 295 | 118 | 109 | 36 | -67.1% |
Ratios
|
|---|
| Revenue growth | -5.5% | 4.3% | 17.2% | 0.3% | -4.8% | |
| EBITDA growth | 2.8% | -15.4% | 81.4% | -20.7% | -0.5% | |
| EBITDA Margin | 13.2% | 10.7% | 16.6% | 13.1% | 13.7% | 0.6% |
| Net Income Margin | 7.9% | 7.7% | 9.3% | 9.6% | 12.1% | 2.5% |
| CAPEX, % of revenue | 2.0% | 13.3% | 4.5% | 4.2% | 1.4% | -2.7% |
| ROIC | 11.7% | 8.7% | 17.5% | 11.4% | 11.6% | 0.2% |
| ROE | 12.1% | 11.4% | 14.8% | 14.2% | 16.3% | 2.0% |
| Net Debt/EBITDA | -0.8x | -0.6x | -0.6x | -1.0x | -1.8x | -0.8x |
Revenue and profitability
Varitronix International Ltd's Revenue decreased on 4.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.59 pp from 13.1% to 13.7% in 2015.
Net Income marign increased on 2.5 pp from 9.6% to 12.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Varitronix International Ltd had CAPEX/Revenue of 1.4%. The company showed big decline in CAPEX/Revenue of 11.8 pp from 13.3% in 2012 to 1.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at good ROE (16.26%) while ROIC is low (11.57%). ROIC showed almost no change in 2015. ROE increased on 2.0 pp from 14.2% to 16.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.8x and Debt / EBITDA is 0.4x. Net Debt / EBITDA dropped on 0.8x from -1.0x to -1.8x in 2015. Debt dropped on 36.5% in 2015 while cash jumped on 33.5% in 2015.
Appendix 1: Peers in Electronics
Below we provide Varitronix International Ltd benchmarking against other companies in Electronics 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 |
|---|
| 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) | 13.8% | -1.7% | 2.8% | 5.0% | 0.9% |
|---|
| Varitronix International Ltd ($710) | | 4.3% | 17.2% | 0.3% | -4.8% |
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% | |
| TeleEye Holdings Ltd ($8051) | 51.6% | 44.0% | 42.1% | 38.5% | 37.0% |
| 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% | |
| |
|---|
| Median (47 companies) | 13.6% | 14.6% | 13.8% | 14.0% | 13.2% |
|---|
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) | 9.0% | 5.9% | 4.1% | 3.4% | 2.2% |
|---|
| Varitronix International Ltd ($710) | 13.2% | 10.7% | 16.6% | 13.1% | 13.7% |
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% | 3.0% | 3.7% | 1.7% |
|---|
| Varitronix International Ltd ($710) | 2.0% | 13.3% | 4.5% | 4.2% | 1.4% |
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) | 5.4% | 4.1% | 3.3% | 2.7% | 0.3% |
|---|
| Varitronix International Ltd ($710) | 11.7% | 8.7% | 17.5% | 11.4% | 11.6% |
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 (34 companies) | 0.7x | 1.1x | 1.1x | 1.2x | 0.9x |
|---|
| Varitronix International Ltd ($710) | -0.8x | -0.6x | -0.6x | -1.0x | -1.8x |
