PAX Global Technology Ltd Net Income surged on 58.4% in 2015 and Revenue jumped on 21.0%
08/03/2016 • About PAX Global Technology Ltd (
$327) • By InTwits
PAX Global Technology Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- PAX Global Technology Ltd is a fast growth stock: 2015 revenue growth was 21.0%, 5 year revenue CAGR was 31.7% at 2015 ROIC 22.4%
- EBITDA Margin is expanding: 22.7% in 2015 vs. 18.8% in 2014 vs. 18.9% in 2011
- PAX Global Technology Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has highly profitable business model: ROIC is at 22.4%
- It operates with high leverage: Net Debt/EBITDA is -3.3x while industry average is -3.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
PAX Global Technology Ltd ($327) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,103 | 1,313 | 1,472 | 2,373 | 2,871 | 21.0% |
| Gross Profit | 392 | 464 | 541 | 865 | 1,092 | 26.3% |
| SG&A | 165 | 187 | 226 | 351 | 370 | 5.4% |
| EBITDA | 209 | 216 | 256 | 447 | 651 | 45.6% |
| Net Income | 182 | 183 | 227 | 392 | 621 | 58.4% |
Balance Sheet
|
|---|
| Cash | 1,152 | 1,358 | 1,698 | 1,919 | 2,144 | 11.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 2 | 3 | 1 | 7 | 5 | -30.0% |
Ratios
|
|---|
| Revenue growth | 52.5% | 19.0% | 12.1% | 61.2% | 21.0% | |
| EBITDA growth | 17.9% | 3.4% | 18.5% | 74.6% | 45.6% | |
| Gross Margin | 35.5% | 35.3% | 36.7% | 36.4% | 38.1% | 1.6% |
| EBITDA Margin | 18.9% | 16.5% | 17.4% | 18.8% | 22.7% | 3.8% |
| Net Income Margin | 16.5% | 13.9% | 15.4% | 16.5% | 21.6% | 5.1% |
| SG&A, % of revenue | 15.0% | 14.2% | 15.4% | 14.8% | 12.9% | -1.9% |
| CAPEX, % of revenue | 0.2% | 0.2% | 0.1% | 0.3% | 0.2% | -0.1% |
| ROIC | 14.1% | 12.3% | 12.8% | 18.7% | 22.4% | 3.7% |
| ROE | 12.6% | 10.7% | 11.6% | 16.9% | 22.1% | 5.2% |
| Net Debt/EBITDA | -5.5x | -6.3x | -6.6x | -4.3x | -3.3x | 1.0x |
Revenue and profitability
PAX Global Technology Ltd's Revenue surged on 21.0% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.66 pp from 4.4% to 5.1% in 2015.
Gross Margin increased slightly on 1.6 pp from 36.4% to 38.1% in 2015. SG&A as a % of Revenue decreased slightly on 1.9 pp from 14.8% to 12.9% in 2015.
Net Income marign increased on 5.1 pp from 16.5% to 21.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.18% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.20%.
Return on investment
The company operates at high and attractive ROIC (22.39%) and ROE (22.07%). ROIC increased on 3.7 pp from 18.7% to 22.4% in 2015. ROE increased on 5.2 pp from 16.9% to 22.1% in 2015.
Leverage (Debt)
The company has no debt. Cash surged on 11.8% in 2015.
Appendix 1: Peers in Computers
Below we provide PAX Global Technology Ltd benchmarking against other companies in Computers 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 |
|---|
| Peking University Resources Holdings Co Ltd ($618) | 16.2% | -49.6% | 11.2% | 106.0% | |
| Alibaba Health Information Technology Ltd ($241) | | 29.4% | -96.7% | 73.0% | 35.3% |
| Thiz Technology Group Ltd ($8119) | | -4.1% | -95.1% | 72.2% | 31.9% |
| Universal Technologies Holdings Ltd ($1026) | 95.5% | -47.3% | 49.8% | 67.1% | |
| EVOC Intelligent Technology Co Ltd ($2308) | -13.0% | 4.6% | 56.2% | 27.4% | |
| |
|---|
| Median (24 companies) | 12.4% | 3.8% | -1.8% | 7.2% | 19.6% |
|---|
| PAX Global Technology Ltd ($327) | | 19.0% | 12.1% | 61.2% | 21.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Universal Technologies Holdings Ltd ($1026) | 86.0% | 87.3% | 79.7% | 90.3% | |
| Thiz Technology Group Ltd ($8119) | 2.9% | 8.8% | 63.8% | 86.2% | 96.0% |
| Computer & Technologies Holdings Ltd ($46) | 27.4% | 45.3% | 54.0% | 52.1% | |
| CCID Consulting Co Ltd ($8235) | 46.5% | 43.7% | 49.1% | 51.8% | |
| Alibaba Health Information Technology Ltd ($241) | 10.1% | 11.4% | -12.6% | 49.3% | 53.7% |
| |
|---|
| Median (22 companies) | 11.0% | 12.7% | 16.0% | 15.4% | 19.5% |
|---|
| PAX Global Technology Ltd ($327) | 35.5% | 35.3% | 36.7% | 36.4% | 38.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Computer & Technologies Holdings Ltd ($46) | 4.8% | 12.9% | 19.9% | 20.1% | |
| Ju Teng International Holdings Ltd ($3336) | 9.5% | 15.1% | 19.9% | 19.3% | |
| CCID Consulting Co Ltd ($8235) | 19.0% | 10.6% | 10.8% | 12.3% | |
| Universal Technologies Holdings Ltd ($1026) | 29.5% | 12.8% | 1.5% | 9.9% | |
| EVOC Intelligent Technology Co Ltd ($2308) | 10.8% | 8.6% | 11.6% | 8.6% | |
| |
|---|
| Median (24 companies) | 2.5% | 2.8% | 2.2% | -1.5% | -8.0% |
|---|
| PAX Global Technology Ltd ($327) | 18.9% | 16.5% | 17.4% | 18.8% | 22.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| North Asia Resources Holdings Ltd ($61) | 34.3% | 4.6% | 94.2% | 177.8% | |
| Beautiful China Holdings Co Ltd ($706) | 44.9% | 8.4% | 2.2% | 26.2% | |
| Ju Teng International Holdings Ltd ($3336) | 17.6% | 14.1% | 18.7% | 20.0% | |
| Alibaba Health Information Technology Ltd ($241) | 2.1% | 4.4% | 46.3% | 17.2% | 11.7% |
| Universal Technologies Holdings Ltd ($1026) | 8.5% | 20.0% | 5.7% | 14.2% | |
| |
|---|
| Median (24 companies) | 1.6% | 1.2% | 1.6% | 2.1% | 2.0% |
|---|
| PAX Global Technology Ltd ($327) | 0.2% | 0.2% | 0.1% | 0.3% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lenovo Group Ltd ($992) | 18.9% | 26.2% | 30.5% | 34.7% | 24.5% |
| CCID Consulting Co Ltd ($8235) | 20.6% | 11.3% | 10.7% | 10.2% | |
| TPV Technology Ltd ($903) | 6.4% | 7.7% | 1.8% | 10.1% | |
| Computer & Technologies Holdings Ltd ($46) | 4.1% | 6.0% | 8.6% | 9.4% | |
| Wong's International Hldgs ($99) | 9.5% | 5.1% | 4.8% | 8.5% | |
| |
|---|
| Median (25 companies) | 3.7% | 0.9% | -0.2% | -1.4% | -13.7% |
|---|
| PAX Global Technology Ltd ($327) | 14.1% | 12.3% | 12.8% | 18.7% | 22.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EVOC Intelligent Technology Co Ltd ($2308) | 6.4x | 0.5x | 5.8x | 5.7x | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.0x | 2.7x | 3.6x | 4.6x | |
| Ju Teng International Holdings Ltd ($3336) | 2.5x | 2.1x | 1.8x | 1.7x | |
| Wong's International Hldgs ($99) | -1.8x | -3.5x | 2.7x | 1.4x | |
| TPV Technology Ltd ($903) | 0.5x | -0.2x | 0.6x | -0.0x | |
| |
|---|
| Median (12 companies) | -1.6x | -2.1x | -1.3x | -3.2x | 1.0x |
|---|
| PAX Global Technology Ltd ($327) | -5.5x | -6.3x | -6.6x | -4.3x | -3.3x |
