Hi Sun Technology China Ltd CAPEX surged on 101% in 2015 while Revenue decreased on 10.0%
08/03/2016 • About Hi Sun Technology China Ltd (
$818) • By InTwits
Hi Sun Technology China Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hi Sun Technology China Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.0%
- Hi Sun Technology China Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -5.1%0
- Hi Sun Technology China Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's in pair with industry average of 6.2%.
- CAPEX is quite volatile: 100 in 2015, 49.9 in 2014, 65.5 in 2013, 52.1 in 2012, 25.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hi Sun Technology China Ltd ($818) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 839 | 868 | 1,294 | 1,529 | 1,377 | -10.0% |
| Gross Profit | 174 | 244 | 484 | 509 | 478 | -6.2% |
| SG&A | 377 | 440 | 504 | 560 | 490 | -12.5% |
| EBITDA | -328 | -186 | 16 | 128 | 66 | -48.4% |
| Net Income | -255 | -161 | 30 | 397 | 183 | -53.8% |
Balance Sheet
|
|---|
| Cash | 1,167 | 814 | 1,082 | 1,989 | 2,316 | 16.4% |
| Short Term Debt | 23 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 25 | 52 | 65 | 50 | 100 | 100.9% |
Ratios
|
|---|
| Revenue growth | -7.0% | 3.5% | 49.1% | 18.1% | -10.0% | |
| EBITDA growth | 77.6% | -43.4% | -108.7% | 693.7% | -48.4% | |
| Gross Margin | 20.8% | 28.1% | 37.4% | 33.3% | 34.7% | 1.4% |
| EBITDA Margin | -39.2% | -21.4% | 1.2% | 8.4% | 4.8% | -3.6% |
| Net Income Margin | -30.5% | -18.5% | 2.3% | 26.0% | 13.3% | -12.6% |
| SG&A, % of revenue | 45.0% | 50.7% | 39.0% | 36.6% | 35.6% | -1.0% |
| CAPEX, % of revenue | 3.0% | 6.0% | 5.1% | 3.3% | 7.3% | 4.0% |
| ROIC | -12.4% | -8.1% | -1.1% | 2.1% | 0.0% | -2.1% |
| ROE | -8.7% | -5.9% | 1.1% | 13.3% | 5.6% | -7.7% |
| Net Debt/EBITDA | | | -67.0x | -15.5x | -35.0x | -19.5x |
Revenue and profitability
Hi Sun Technology China Ltd's Revenue decreased on 10.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.6 pp from 8.4% to 4.8% in 2015.
Gross Margin increased slightly on 1.4 pp from 33.3% to 34.7% in 2015. SG&A as a % of Revenue decreased slightly on 1.0 pp from 36.6% to 35.6% in 2015.
Net Income marign dropped on 12.6 pp from 26.0% to 13.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 7.3%. Hi Sun Technology China Ltd showed small growth in CAPEX/Revenue of 1.3 pp from 6.0% in 2012 to 7.3% in 2015. Average CAPEX/Revenue for the last three years was 5.2%.The company has spent a lot to CAPEX (152% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (0.01%) and ROE (5.64%). ROIC decreased on 2.1 pp from 2.1% to 0.010% in 2015. ROE decreased on 7.7 pp from 13.3% to 5.6% in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 16.4% in 2015.
Appendix 1: Peers in Electronics
Below you can find Hi Sun Technology China Ltd benchmarking vs. other companies in Electronics 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 |
|---|
| 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% | 3.7% | -0.2% |
|---|
| Hi Sun Technology China Ltd ($818) | | 3.5% | 49.1% | 18.1% | -10.0% |
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 (46 companies) | 13.6% | 14.1% | 13.8% | 13.9% | 13.0% |
|---|
| Hi Sun Technology China Ltd ($818) | 20.8% | 28.1% | 37.4% | 33.3% | 34.7% |
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) | 9.3% | 7.4% | 6.0% | 3.4% | 3.3% |
|---|
| Hi Sun Technology China Ltd ($818) | -39.2% | -21.4% | 1.2% | 8.4% | 4.8% |
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% | 4.2% | 1.7% |
|---|
| Hi Sun Technology China Ltd ($818) | 3.0% | 6.0% | 5.1% | 3.3% | 7.3% |
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) | 5.9% | 4.3% | 3.5% | 3.0% | 1.2% |
|---|
| Hi Sun Technology China Ltd ($818) | -12.4% | -8.1% | -1.1% | 2.1% | 0.0% |
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 | 1.0x | 1.1x | 1.2x | 0.7x |
|---|
| Hi Sun Technology China Ltd ($818) | | | -67.0x | -15.5x | -35.0x |
