Man Yue Technology Holdings Ltd EBITDA dropped on 44.5% in 2015 and EBITDA Margin decreased on 3.9 pp from 12.0% to 8.1%
09/03/2016 • About Man Yue Technology Holdings Ltd (
$894) • By InTwits
Man Yue Technology Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Man Yue Technology Holdings Ltd is a company in decline: 2015 revenue growth was -17.9%, 5 years revenue CAGR was -6.4%
- EBITDA Margin is declining: 8.1% in 2015 vs. 12.0% in 2014 vs. 15.1% in 2011
- Man Yue Technology Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.7%. At the same time it's in pair with industry average of 6.1%.
- CAPEX is quite volatile: 24.7 in 2015, 83.2 in 2014, 39.8 in 2013, 153 in 2012, 157 in 2011
- The company has unprofitable business model: ROIC is at -0.5%
- It operates with high leverage: Net Debt/EBITDA is 6.5x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Man Yue Technology Holdings Ltd ($894) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,540 | 1,392 | 1,322 | 1,187 | 974 | -17.9% |
| Gross Profit | 362 | 330 | 291 | 253 | 175 | -30.9% |
| SG&A | | 219 | 221 | 208 | 194 | -7.0% |
| EBITDA | 233 | 204 | 173 | 142 | 79 | -44.5% |
| Net Income | 104 | 80 | 61 | 43 | -45 | -204.2% |
Balance Sheet
|
|---|
| Cash | 680 | 625 | 433 | 401 | 348 | -13.2% |
| Short Term Debt | 501 | 517 | 558 | 521 | 555 | 6.5% |
| Long Term Debt | 586 | 536 | 337 | 352 | 308 | -12.5% |
Cash flow
|
|---|
| Capex | 157 | 153 | 40 | 83 | 25 | -70.3% |
Ratios
|
|---|
| Revenue growth | 13.8% | -9.6% | -5.0% | -10.2% | -17.9% | |
| EBITDA growth | 9.9% | -12.7% | -15.2% | -17.8% | -44.5% | |
| Gross Margin | 23.5% | 23.7% | 22.0% | 21.3% | 18.0% | -3.4% |
| EBITDA Margin | 15.1% | 14.6% | 13.1% | 12.0% | 8.1% | -3.9% |
| Net Income Margin | 6.8% | 5.7% | 4.6% | 3.6% | -4.6% | -8.3% |
| SG&A, % of revenue | | 15.7% | 16.7% | 17.5% | 19.9% | 2.3% |
| CAPEX, % of revenue | 10.2% | 11.0% | 3.0% | 7.0% | 2.5% | -4.5% |
| ROIC | 6.5% | 4.1% | 2.8% | 2.0% | -0.5% | -2.5% |
| ROE | 8.2% | 5.8% | 4.1% | 2.8% | -3.1% | -5.8% |
| Net Debt/EBITDA | 1.7x | 2.1x | 2.7x | 3.3x | 6.5x | 3.2x |
Revenue and profitability
The company's Revenue dropped on 17.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 97.9 pp from 104% to 202% in 2015.
Gross Margin decreased on 3.4 pp from 21.3% to 18.0% in 2015. SG&A as a % of Revenue increased on 2.3 pp from 17.5% to 19.9% in 2015.
Net Income marign decreased on 8.3 pp from 3.6% to -4.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.5% in 2015. Man Yue Technology Holdings Ltd's CAPEX/Revenue decreased on 8.4 pp from 11.0% in 2012 to 2.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 4.2%.
Return on investment
The company operates at negative ROIC (-0.52%) and ROE (-3.05%). ROIC decreased on 2.5 pp from 2.0% to -0.52% in 2015. ROE decreased on 5.8 pp from 2.8% to -3.1% in 2015.
Leverage (Debt)
Debt level is 6.5x Net Debt / EBITDA and 10.9x Debt / EBITDA. Net Debt / EBITDA jumped on 3.2x from 3.3x to 6.5x in 2015. Debt decreased slightly on 1.2% in 2015 while cash dropped on 13.2% in 2015.
Appendix 1: Peers in Electronics
Below we provide Man Yue Technology 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) | 14.0% | -1.0% | 3.6% | 5.0% | -2.5% |
|---|
| Man Yue Technology Holdings Ltd ($894) | | -9.6% | -5.0% | -10.2% | -17.9% |
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% | 13.2% |
|---|
| Man Yue Technology Holdings Ltd ($894) | 23.5% | 23.7% | 22.0% | 21.3% | 18.0% |
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% | 3.8% |
|---|
| Man Yue Technology Holdings Ltd ($894) | 15.1% | 14.6% | 13.1% | 12.0% | 8.1% |
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% | 3.1% | 3.7% | 2.6% |
|---|
| Man Yue Technology Holdings Ltd ($894) | 10.2% | 11.0% | 3.0% | 7.0% | 2.5% |
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% | 4.3% | 3.5% | 3.0% | 0.8% |
|---|
| Man Yue Technology Holdings Ltd ($894) | 6.5% | 4.1% | 2.8% | 2.0% | -0.5% |
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 | 1.0x | 0.1x |
|---|
| Man Yue Technology Holdings Ltd ($894) | 1.7x | 2.1x | 2.7x | 3.3x | 6.5x |
