Ju Teng International Holdings Ltd CAPEX dropped on 18.9% in 2015 and Revenue decreased on 6.6%
14/03/2016 • About Ju Teng International Holdings Ltd (
$964) • By InTwits
Ju Teng International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ju Teng International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.5%. At the same time it's a lot of higher than industry average of 11.6%.
- CAPEX is quite volatile: 203 in 2015, 123 in 2014, 251 in 2013, 435 in 2012, 501 in 2011
- The company has business model with low profitability: ROIC is at 8.8%
- It operates with high leverage: Net Debt/EBITDA is 1.6x while industry average is -3.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ju Teng International Holdings Ltd ($964) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,235 | 9,201 | 9,257 | 9,571 | 8,936 | -6.6% |
| Gross Profit | 868 | 1,401 | 1,873 | 1,805 | 1,906 | 5.6% |
| SG&A | 576 | 624 | 683 | 790 | 759 | -4.0% |
| EBITDA | 783 | 1,386 | 1,844 | 1,852 | 2,128 | 14.9% |
| Net Income | 257 | 601 | 762 | 765 | 875 | 14.4% |
Balance Sheet
|
|---|
| Cash | 654 | 1,163 | 1,061 | 1,564 | 1,541 | -1.4% |
| Short Term Debt | 541 | 2,499 | 2,664 | 2,085 | 3,493 | 67.5% |
| Long Term Debt | 2,081 | 1,583 | 1,634 | 2,633 | 1,411 | -46.4% |
Cash flow
|
|---|
| Capex | 1,451 | 1,295 | 1,729 | 1,911 | 1,550 | -18.9% |
Ratios
|
|---|
| Revenue growth | 14.9% | 11.7% | 0.6% | 3.4% | -6.6% | |
| EBITDA growth | -8.9% | 77.0% | 33.0% | 0.4% | 14.9% | |
| Gross Margin | 10.5% | 15.2% | 20.2% | 18.9% | 21.3% | 2.5% |
| EBITDA Margin | 9.5% | 15.1% | 19.9% | 19.3% | 23.8% | 4.5% |
| Net Income Margin | 3.1% | 6.5% | 8.2% | 8.0% | 9.8% | 1.8% |
| SG&A, % of revenue | 7.0% | 6.8% | 7.4% | 8.3% | 8.5% | 0.2% |
| CAPEX, % of revenue | 17.6% | 14.1% | 18.7% | 20.0% | 17.3% | -2.6% |
| ROIC | 3.6% | 8.1% | 10.1% | 8.4% | 8.8% | 0.4% |
| ROE | 5.6% | 11.9% | 13.1% | 12.0% | 13.4% | 1.4% |
| Net Debt/EBITDA | 2.5x | 2.1x | 1.8x | 1.7x | 1.6x | -0.1x |
Revenue and profitability
Ju Teng International Holdings Ltd's Revenue decreased on 6.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.5 pp from 19.3% to 23.8% in 2015.
Gross Margin increased on 2.5 pp from 18.9% to 21.3% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 1.8 pp from 8.0% to 9.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 17.3%. The company's CAPEX/Revenue increased on 3.3 pp from 14.1% in 2012 to 17.3% in 2015. It's average level of CAPEX/Revenue for the last three years was 18.7%.The company invested a big chunk of EBITDA (72.8%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at good ROE (13.37%) while ROIC is low (8.82%). ROIC showed almost no change in 2015. ROE increased slightly on 1.4 pp from 12.0% to 13.4% in 2015.
Leverage (Debt)
Debt level is 1.6x Net Debt / EBITDA and 2.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 1.7x to 1.6x in 2015. Debt increased on 3.9% in 2015 while cash decreased slightly on 1.4% in 2015.
Appendix 1: Peers in Computers
Below we provide Ju Teng International Holdings 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% | |
| PAX Global Technology Ltd ($327) | | 19.0% | 12.1% | 61.2% | 21.0% |
| |
|---|
| Median (24 companies) | 12.4% | 3.8% | -1.8% | 11.0% | 19.6% |
|---|
| Ju Teng International Holdings Ltd ($3336) | | 11.7% | 0.6% | 3.4% | -6.6% |
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) | 13.2% | 12.7% | 16.0% | 15.4% | 28.4% |
|---|
| Ju Teng International Holdings Ltd ($3336) | 10.5% | 15.2% | 20.2% | 18.9% | 21.3% |
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% | |
| 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% | |
| 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% | 5.8% |
|---|
| Ju Teng International Holdings Ltd ($3336) | 9.5% | 15.1% | 19.9% | 19.3% | 23.8% |
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% | |
| 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% | |
| Powerleader Science & Technology Group Ltd ($8236) | 0.8% | 1.4% | 3.4% | 11.0% | |
| |
|---|
| Median (24 companies) | 1.3% | 1.0% | 1.3% | 1.6% | 0.9% |
|---|
| Ju Teng International Holdings Ltd ($3336) | 17.6% | 14.1% | 18.7% | 20.0% | 17.3% |
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) | 3.9% | 0.9% | -0.2% | -1.4% | 2.5% |
|---|
| Ju Teng International Holdings Ltd ($3336) | 3.6% | 8.1% | 10.1% | 8.4% | 8.8% |
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 | |
| 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 | |
| Lenovo Group Ltd ($992) | -4.8x | -4.9x | -2.8x | -2.5x | 0.1x |
| |
|---|
| Median (12 companies) | -1.7x | -2.5x | -2.1x | -4.1x | 0.1x |
|---|
| Ju Teng International Holdings Ltd ($3336) | 2.5x | 2.1x | 1.8x | 1.7x | 1.6x |
