Sunny Optical Technology Group Co Ltd EBITDA surged on 35.8% in 2015 and EBITDA Margin increased slightly on 0.69 pp from 9.8% to 10.5%
14/03/2016 • About Sunny Optical Technology Group Co Ltd (
$2382) • By InTwits
Sunny Optical Technology Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sunny Optical Technology Group Co Ltd is a fast growth stock: 2015 revenue growth was 26.9%, 5 year revenue CAGR was 42.5% at 2015 ROIC 19.4%
- Sunny Optical Technology Group Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.6%. At the same time it's a lot of higher than industry average of 7.3%.
- CAPEX is quite volatile: 534 in 2015, 761 in 2014, 669 in 2013, 1,173 in 2012, 2,430 in 2011
- The company has highly profitable business model: ROIC is at 19.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sunny Optical Technology Group Co Ltd ($2382) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,499 | 3,984 | 5,813 | 8,426 | 10,696 | 26.9% |
| Gross Profit | 523 | 741 | 967 | 1,289 | 1,763 | 36.8% |
| SG&A | 182 | 214 | 254 | 320 | 352 | 10.0% |
| EBITDA | 300 | 485 | 635 | 830 | 1,126 | 35.8% |
| Net Income | 215 | 346 | 440 | 566 | 762 | 34.5% |
Balance Sheet
|
|---|
| Cash | 252 | 243 | 709 | 525 | 259 | -50.7% |
| Short Term Debt | 62 | 103 | 535 | 734 | 1,140 | 55.4% |
| Long Term Debt | 17 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 170 | 249 | 244 | 274 | 283 | 3.1% |
Ratios
|
|---|
| Revenue growth | 37.4% | 59.5% | 45.9% | 45.0% | 26.9% | |
| EBITDA growth | 25.4% | 61.5% | 31.0% | 30.6% | 35.8% | |
| Gross Margin | 20.9% | 18.6% | 16.6% | 15.3% | 16.5% | 1.2% |
| EBITDA Margin | 12.0% | 12.2% | 10.9% | 9.8% | 10.5% | 0.7% |
| Net Income Margin | 8.6% | 8.7% | 7.6% | 6.7% | 7.1% | 0.4% |
| SG&A, % of revenue | 7.3% | 5.4% | 4.4% | 3.8% | 3.3% | -0.5% |
| CAPEX, % of revenue | 6.8% | 6.2% | 4.2% | 3.3% | 2.6% | -0.6% |
| ROIC | 12.2% | 19.7% | 17.8% | 16.5% | 19.4% | 2.9% |
| ROE | 13.6% | 19.3% | 18.5% | 18.6% | 21.5% | 3.0% |
| Net Debt/EBITDA | -0.6x | -0.3x | -0.3x | 0.3x | 0.8x | 0.5x |
Revenue and profitability
Sunny Optical Technology Group Co Ltd's Revenue jumped on 26.9% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 15.0 pp from 29.0% to 14.0% in 2015.
Gross Margin increased slightly on 1.2 pp from 15.3% to 16.5% in 2015. SG&A as a % of Revenue decreased slightly on 0.51 pp from 3.8% to 3.3% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Sunny Optical Technology Group Co Ltd's CAPEX/Revenue was 2.6% in 2015. CAPEX/Revenue decreased on 3.6 pp from 6.2% in 2012 to 2.6% in 2015. For the last three years the average CAPEX/Revenue was 3.4%.
Return on investment
The company operates at high and attractive ROE (21.52%) while ROIC is a bit lower (19.44%). ROIC increased on 2.9 pp from 16.5% to 19.4% in 2015. ROE increased on 3.0 pp from 18.6% to 21.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.8x and Debt / EBITDA is 1.0x. Net Debt / EBITDA surged on 0.5x from 0.3x to 0.8x in 2015. Debt jumped on 55.4% in 2015 while cash dropped on 50.7% in 2015.
Appendix 1: Peers in Miscellaneous Manufactur
Below we provide Sunny Optical Technology Group Co Ltd benchmarking against other companies in Miscellaneous Manufactur 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 |
|---|
| CSR Corp Ltd ($1766) | 24.0% | 12.0% | 9.7% | 123.7% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 1.5% | 22.2% | 43.2% | |
| Time Watch Investments Ltd ($2033) | | 28.2% | 25.4% | 25.6% | 10.4% |
| China International Marine Containers Group Co Ltd ($2039) | 23.4% | -15.6% | 6.6% | 21.4% | |
| Singamas Container Holdings Ltd ($716) | 32.4% | -15.5% | -16.5% | 20.5% | |
| |
|---|
| Median (25 companies) | 23.4% | -7.1% | -0.7% | 6.7% | -10.1% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | | 59.5% | 45.9% | 45.0% | 26.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | 68.1% |
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | 39.6% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | |
| Launch Tech Co Ltd ($2488) | 39.2% | 27.4% | 33.6% | 33.6% | |
| |
|---|
| Median (24 companies) | 20.7% | 19.8% | 20.8% | 24.9% | 21.9% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 20.9% | 18.6% | 16.6% | 15.3% | 16.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 42.8% | 30.4% | 31.3% | 38.4% | 37.6% |
| Man Sang International Ltd ($938) | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% |
| IPE Group Ltd ($929) | 24.9% | 25.6% | 22.5% | 29.5% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | |
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | 20.5% |
| |
|---|
| Median (25 companies) | 10.2% | 8.0% | 8.2% | 9.5% | 4.7% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 12.0% | 12.2% | 10.9% | 9.8% | 10.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | 22.8% |
| KEE Holdings Co Ltd ($2011) | 20.9% | 21.8% | 43.7% | 24.9% | |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | |
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | 47.6% |
| TK Group Holdings Ltd ($2283) | 8.9% | 13.3% | 8.1% | 13.7% | |
| |
|---|
| Median (25 companies) | 5.0% | 4.7% | 4.3% | 4.4% | 4.9% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 6.8% | 6.2% | 4.2% | 3.3% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | |
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | 27.9% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | |
| CSR Corp Ltd ($1766) | 13.4% | 11.1% | 11.2% | 15.3% | |
| Yusei Holdings Ltd ($96) | 8.0% | 4.2% | 7.0% | 13.6% | |
| |
|---|
| Median (25 companies) | 6.4% | 4.2% | 3.6% | 3.9% | 1.4% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | 19.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | |
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | 4,203.6x |
| China International Marine Containers Group Co Ltd ($2039) | 2.8x | 4.0x | 4.7x | 5.8x | |
| VS International Group Ltd ($1002) | 8.6x | 5.1x | 6.5x | 4.4x | 3.3x |
| Launch Tech Co Ltd ($2488) | -0.4x | 7.6x | 2.4x | 3.9x | |
| |
|---|
| Median (21 companies) | 0.1x | -0.2x | -0.2x | -0.2x | 0.9x |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | -0.6x | -0.3x | -0.3x | 0.3x | 0.8x |
