World Wide Touch Technology Holdings Ltd reports 131% Net Income growth while 3.9% Revenue decline
11/03/2016 • About World Wide Touch Technology Holdings Ltd (
$1282) • By InTwits
World Wide Touch Technology Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- World Wide Touch Technology Holdings Ltd is a company in decline: 2015 revenue growth was -3.9%, 5 years revenue CAGR was -12.5%
- EBITDA Margin is quite volatile: 35.7% in 2015, -6.4% in 2014, -6.4% in 2013, 3.4% in 2012, 14.0% in 2011
- World Wide Touch Technology Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's a lot of higher than industry average of 4.7%.
- CAPEX is quite volatile: 2.8 in 2015, 12.3 in 2014, 21.8 in 2013, 59.6 in 2012, 153 in 2011
- The company has business model with low profitability: ROIC is at 9.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
World Wide Touch Technology Holdings Ltd ($1282) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,164 | 1,200 | 1,037 | 741 | 712 | -3.9% |
| Gross Profit | 214 | 126 | 32 | -251 | 265 | -205.6% |
| SG&A | 131 | 184 | 204 | 324 | 106 | -67.2% |
| EBITDA | 163 | 41 | -67 | -47 | 254 | -638.5% |
| Net Income | 71 | -55 | 129 | -583 | 182 | -131.2% |
Balance Sheet
|
|---|
| Cash | 563 | 365 | 326 | 240 | 3,252 | 1,256.0% |
| Short Term Debt | 281 | 364 | 244 | 197 | 20 | -90.0% |
| Long Term Debt | 14 | 0 | 63 | 58 | 13 | -78.6% |
Cash flow
|
|---|
| Capex | 153 | 60 | 22 | 12 | 3 | -77.6% |
Ratios
|
|---|
| Revenue growth | -16.3% | 3.1% | -13.6% | -28.5% | -3.9% | |
| EBITDA growth | -49.0% | -74.7% | -262.2% | -29.2% | -638.5% | |
| Gross Margin | 18.4% | 10.5% | 3.1% | -33.8% | 37.2% | 71.1% |
| EBITDA Margin | 14.0% | 3.4% | -6.4% | -6.4% | 35.7% | 42.1% |
| Net Income Margin | 6.1% | -4.5% | 12.4% | -78.7% | 25.5% | 104.2% |
| SG&A, % of revenue | 11.2% | 15.4% | 19.7% | 43.7% | 14.9% | -28.8% |
| CAPEX, % of revenue | 13.2% | 5.0% | 2.1% | 1.7% | 0.4% | -1.3% |
| ROIC | 6.3% | -3.5% | -10.8% | -11.5% | 9.0% | 20.4% |
| ROE | 6.7% | -5.0% | 11.3% | -68.8% | 7.8% | 76.6% |
| Net Debt/EBITDA | -1.7x | -0.0x | | | -12.7x | -12.7x |
Revenue and profitability
The company's Revenue decreased on 3.9% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 42.1 pp from -6.4% to 35.7% in 2015.
Gross Margin surged on 71.1 pp from -33.8% to 37.2% in 2015. SG&A as a % of Revenue dropped on 28.8 pp from 43.7% to 14.9% in 2015.
Net Income marign surged on 104 pp from -78.7% to 25.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.39%. CAPEX/Revenue decreased on 4.6 pp from 5.0% in 2012 to 0.39% in 2015. It's average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at low ROIC (8.98%) and ROE (7.83%). ROIC jumped on 20.4 pp from -11.5% to 9.0% in 2015. ROE jumped on 76.6 pp from -68.8% to 7.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -12.7x and Debt / EBITDA is 0.1x. Net Debt / EBITDA dropped12.7x from to -12.7x in 2015. Debt dropped on 87.4% in 2015 while cash jumped on 1,256% in 2015.
Appendix 1: Peers in Computers
Below you can find World Wide Touch Technology Holdings Ltd benchmarking vs. other companies in Computers 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 |
|---|
| 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% | |
| PAX Global Technology Ltd ($327) | | 19.0% | 12.1% | 61.2% | 21.0% |
| |
|---|
| Median (24 companies) | 12.7% | 6.5% | 0.0% | 11.0% | 20.3% |
|---|
| World Wide Touch Technology Holdings Ltd ($1282) | | 3.1% | -13.6% | -28.5% | -3.9% |
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% | 14.2% | 17.0% | 17.2% | 19.5% |
|---|
| World Wide Touch Technology Holdings Ltd ($1282) | 18.4% | 10.5% | 3.1% | -33.8% | 37.2% |
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% | |
| PAX Global Technology Ltd ($327) | 18.9% | 16.5% | 17.4% | 18.8% | 22.7% |
| 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% | |
| |
|---|
| Median (24 companies) | 2.5% | 2.8% | 2.7% | 1.8% | 3.9% |
|---|
| World Wide Touch Technology Holdings Ltd ($1282) | 14.0% | 3.4% | -6.4% | -6.4% | 35.7% |
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) | 1.3% | 1.0% | 1.3% | 2.1% | 1.5% |
|---|
| World Wide Touch Technology Holdings Ltd ($1282) | 13.2% | 5.0% | 2.1% | 1.7% | 0.4% |
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% |
| PAX Global Technology Ltd ($327) | 14.1% | 12.3% | 12.8% | 18.7% | 22.4% |
| 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% | |
| |
|---|
| Median (25 companies) | 3.7% | 2.1% | 1.4% | -0.1% | -5.6% |
|---|
| World Wide Touch Technology Holdings Ltd ($1282) | 6.3% | -3.5% | -10.8% | -11.5% | 9.0% |
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 (13 companies) | -1.7x | -2.5x | -1.8x | -3.9x | 0.5x |
|---|
