Trigiant Group Ltd Net Income dropped on 25.4% in 2015 while Revenue increased on 9.6%
14/03/2016 • About Trigiant Group Ltd (
$1300) • By InTwits
Trigiant Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Trigiant Group Ltd is a growth stock: 2015 revenue growth was 9.6%, 5 year revenue CAGR was 15.7% at 2015 ROIC 11.2%
- Trigiant Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 20.5%.
- CAPEX is quite volatile: 53.1 in 2015, 40.4 in 2014, 37.2 in 2013, 26.4 in 2012, 16.1 in 2011
- The company has business model with average profitability: ROIC is at 11.2%
- It operates with high leverage: Net Debt/EBITDA is 2.3x 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.
Trigiant Group Ltd ($1300) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,823 | 2,231 | 2,458 | 2,658 | 2,913 | 9.6% |
| Gross Profit | 397 | 522 | 565 | 593 | 650 | 9.6% |
| SG&A | | 125 | 116 | 99 | 115 | 15.3% |
| EBITDA | 310 | 393 | 447 | 493 | 473 | -4.0% |
| Net Income | 207 | 252 | 314 | 369 | 275 | -25.4% |
Balance Sheet
|
|---|
| Cash | 384 | 481 | 438 | 488 | 234 | -52.1% |
| Short Term Debt | 1,263 | 1,052 | 856 | 1,563 | 1,302 | -16.7% |
| Long Term Debt | 110 | 90 | 80 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 16 | 26 | 37 | 40 | 53 | 31.4% |
Ratios
|
|---|
| Revenue growth | 29.7% | 22.4% | 10.2% | 8.1% | 9.6% | |
| EBITDA growth | 39.0% | 26.5% | 13.8% | 10.3% | -4.0% | |
| Gross Margin | 21.8% | 23.4% | 23.0% | 22.3% | 22.3% | 0.0% |
| EBITDA Margin | 17.0% | 17.6% | 18.2% | 18.5% | 16.2% | -2.3% |
| Net Income Margin | 11.3% | 11.3% | 12.8% | 13.9% | 9.4% | -4.4% |
| SG&A, % of revenue | | 5.6% | 4.7% | 3.7% | 3.9% | 0.2% |
| CAPEX, % of revenue | 0.9% | 1.2% | 1.5% | 1.5% | 1.8% | 0.3% |
| ROIC | 17.9% | 17.8% | 18.3% | 15.2% | 11.2% | -4.0% |
| ROE | 49.9% | 31.2% | 25.0% | 21.3% | 12.3% | -9.0% |
| Net Debt/EBITDA | 3.2x | 1.7x | 1.1x | 2.2x | 2.3x | 0.1x |
Revenue and profitability
The company's Revenue increased on 9.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.66 pp from 4.4% to 5.1% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 4.4 pp from 13.9% to 9.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.8%. The company's CAPEX/Revenue increased slightly on 0.64 pp from 1.2% in 2012 to 1.8% in 2015. It's average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at good ROE (12.30%) while ROIC is low (11.16%). ROIC decreased on 4.0 pp from 15.2% to 11.2% in 2015. ROE decreased on 9.0 pp from 21.3% to 12.3% in 2015.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 2.2x to 2.3x in 2015. Debt dropped on 16.7% in 2015 while cash dropped on 52.1% in 2015.
Appendix 1: Peers in Electronics
Below we provide Trigiant Group 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) | 7.6% | -1.7% | 2.8% | 3.7% | -4.8% |
|---|
| Trigiant Group Ltd ($1300) | | 22.4% | 10.2% | 8.1% | 9.6% |
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% | 13.4% |
|---|
| Trigiant Group Ltd ($1300) | 21.8% | 23.4% | 23.0% | 22.3% | 22.3% |
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% | |
| Tongda Group Holdings Ltd ($698) | 15.3% | 17.1% | 16.8% | 18.4% | |
| |
|---|
| Median (48 companies) | 9.0% | 5.9% | 4.1% | 3.4% | 4.4% |
|---|
| Trigiant Group Ltd ($1300) | 17.0% | 17.6% | 18.2% | 18.5% | 16.2% |
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) | 3.5% | 3.7% | 3.2% | 4.2% | 2.5% |
|---|
| Trigiant Group Ltd ($1300) | 0.9% | 1.2% | 1.5% | 1.5% | 1.8% |
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% | |
| Changhong Jiahua Holdings Ltd ($8016) | 8.7% | 29.6% | 17.7% | 15.1% | |
| |
|---|
| Median (48 companies) | 5.4% | 4.1% | 3.3% | 2.7% | 0.3% |
|---|
| Trigiant Group Ltd ($1300) | 17.9% | 17.8% | 18.3% | 15.2% | 11.2% |
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 | 0.7x |
|---|
| Trigiant Group Ltd ($1300) | 3.2x | 1.7x | 1.1x | 2.2x | 2.3x |
