Truly International Holdings Ltd CAPEX dropped on 31.8% in 2015 and Revenue decreased on 9.3%
08/03/2016 • About Truly International Holdings Ltd (
$732) • By InTwits
Truly International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 11.2% in 2015 vs. 11.3% in 2014 vs. 11.8% in 2011
- Truly International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.5%. At the same time it's a lot of higher than industry average of 6.2%.
- CAPEX is quite volatile: 1,487 in 2015, 2,179 in 2014, 1,184 in 2013, 799 in 2012, 764 in 2011
- The company has business model with low profitability: ROIC is at 9.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.3x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Truly International Holdings Ltd ($732) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,504 | 12,374 | 20,681 | 21,416 | 19,427 | -9.3% |
| Gross Profit | 1,310 | 1,557 | 2,892 | 2,486 | 2,122 | -14.7% |
| SG&A | 491 | 571 | 805 | 825 | 843 | 2.2% |
| EBITDA | 1,235 | 1,600 | 2,711 | 2,416 | 2,179 | -9.8% |
| Net Income | 381 | 710 | 1,620 | 1,118 | 845 | -24.4% |
Balance Sheet
|
|---|
| Cash | 868 | 1,331 | 2,806 | 3,662 | 2,128 | -41.9% |
| Short Term Debt | 2,234 | 2,249 | 2,949 | 4,569 | 2,883 | -36.9% |
| Long Term Debt | 798 | 906 | 935 | 869 | 2,000 | 130.2% |
Cash flow
|
|---|
| Capex | 764 | 799 | 1,184 | 2,179 | 1,487 | -31.8% |
Ratios
|
|---|
| Revenue growth | 35.8% | 17.8% | 67.1% | 3.6% | -9.3% | |
| EBITDA growth | 20.0% | 29.6% | 69.4% | -10.9% | -9.8% | |
| Gross Margin | 12.5% | 12.6% | 14.0% | 11.6% | 10.9% | -0.7% |
| EBITDA Margin | 11.8% | 12.9% | 13.1% | 11.3% | 11.2% | -0.1% |
| Net Income Margin | 3.6% | 5.7% | 7.8% | 5.2% | 4.4% | -0.9% |
| SG&A, % of revenue | 4.7% | 4.6% | 3.9% | 3.9% | 4.3% | 0.5% |
| CAPEX, % of revenue | 7.3% | 6.5% | 5.7% | 10.2% | 7.7% | -2.5% |
| ROIC | 10.2% | 12.7% | 21.1% | 13.6% | 9.8% | -3.8% |
| ROE | 9.1% | 15.2% | 27.3% | 16.0% | 11.9% | -4.1% |
| Net Debt/EBITDA | 1.8x | 1.1x | 0.4x | 0.7x | 1.3x | 0.5x |
Revenue and profitability
Truly International Holdings Ltd's Revenue decreased on 9.3% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin decreased slightly on 0.69 pp from 11.6% to 10.9% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 0.87 pp from 5.2% to 4.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 7.7%. CAPEX/Revenue increased slightly on 1.2 pp from 6.5% in 2012 to 7.7% in 2015. It's average CAPEX/Revenue for the last three years was 7.9%.The company invested a big chunk of EBITDA (68.3%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (9.77%) and ROE (11.94%). ROIC decreased on 3.8 pp from 13.6% to 9.8% in 2015. ROE decreased on 4.1 pp from 16.0% to 11.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 2.2x. Net Debt / EBITDA surged on 0.5x from 0.7x to 1.3x in 2015. Debt dropped on 10.2% in 2015 while cash dropped on 41.9% in 2015.
Appendix 1: Peers in Electronics
Below we provide Truly International Holdings 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% | -0.2% |
|---|
| Truly International Holdings Ltd ($732) | | 17.8% | 67.1% | 3.6% | -9.3% |
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) | 15.0% | 14.6% | 13.8% | 14.1% | 13.4% |
|---|
| Truly International Holdings Ltd ($732) | 12.5% | 12.6% | 14.0% | 11.6% | 10.9% |
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% | 3.3% |
|---|
| Truly International Holdings Ltd ($732) | 11.8% | 12.9% | 13.1% | 11.3% | 11.2% |
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) | 3.3% | 3.7% | 3.0% | 3.7% | 1.7% |
|---|
| Truly International Holdings Ltd ($732) | 7.3% | 6.5% | 5.7% | 10.2% | 7.7% |
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% |
|---|
| Truly International Holdings Ltd ($732) | 10.2% | 12.7% | 21.1% | 13.6% | 9.8% |
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) | 0.6x | 1.0x | 1.1x | 1.2x | -0.1x |
|---|
| Truly International Holdings Ltd ($732) | 1.8x | 1.1x | 0.4x | 0.7x | 1.3x |
