FIH Mobile Ltd reports 9.1% revenue growth in 2015 and 0.72 pp EBITDA Margin decline from 5.4% to 4.7%
15/03/2016 • About FIH Mobile Ltd (
$2038) • By InTwits
FIH Mobile Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 4.7% in 2015, 5.4% in 2014, 4.3% in 2013, -3.0% in 2012, 5.3% in 2011
- FIH Mobile Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's in pair with industry average of 5.9%.
- CAPEX is quite volatile: 172 in 2015, 139 in 2014, 181 in 2013, 42.4 in 2012, 178 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
FIH Mobile Ltd ($2038) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,354 | 5,240 | 4,997 | 6,830 | 7,451 | 9.1% |
| Gross Profit | 339 | -1 | 224 | 423 | 386 | -8.8% |
| SG&A | 275 | 236 | 210 | 213 | 206 | -3.3% |
| EBITDA | 336 | -159 | 213 | 369 | 349 | -5.4% |
| Net Income | 73 | -316 | 78 | 169 | 229 | 35.2% |
Balance Sheet
|
|---|
| Cash | 1,922 | 2,357 | 2,517 | 2,368 | 2,223 | -6.1% |
| Short Term Debt | 483 | 215 | 138 | 179 | 13 | -92.5% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 178 | 42 | 181 | 139 | 172 | 23.6% |
Ratios
|
|---|
| Revenue growth | -4.1% | -17.5% | -4.6% | 36.7% | 9.1% | |
| EBITDA growth | 249.1% | -147.2% | -234.2% | 73.5% | -5.4% | |
| Gross Margin | 5.3% | -0.0% | 4.5% | 6.2% | 5.2% | -1.0% |
| EBITDA Margin | 5.3% | -3.0% | 4.3% | 5.4% | 4.7% | -0.7% |
| Net Income Margin | 1.1% | -6.0% | 1.6% | 2.5% | 3.1% | 0.6% |
| SG&A, % of revenue | 4.3% | 4.5% | 4.2% | 3.1% | 2.8% | -0.4% |
| CAPEX, % of revenue | 2.8% | 0.8% | 3.6% | 2.0% | 2.3% | 0.3% |
| ROIC | 2.0% | -9.4% | 1.5% | 5.8% | 5.4% | -0.4% |
| ROE | 2.0% | -8.7% | 2.2% | 4.4% | 6.0% | 1.5% |
| Net Debt/EBITDA | -4.3x | | -11.2x | -5.9x | -6.3x | -0.4x |
Revenue and profitability
FIH Mobile Ltd's Revenue increased on 9.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 10.5 pp from 45.2% to 55.7% in 2015.
Gross Margin decreased slightly on 1.0 pp from 6.2% to 5.2% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 0.59 pp from 2.5% to 3.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
FIH Mobile Ltd's CAPEX/Revenue was 2.3% in 2015. FIH Mobile Ltd's CAPEX/Revenue increased slightly on 1.5 pp from 0.81% in 2012 to 2.3% in 2015. It's average CAPEX/Revenue for the last three years was 2.7%.
Return on investment
The company operates at low ROIC (5.37%) and ROE (5.97%). ROIC showed almost no change in 2015. ROE increased slightly on 1.5 pp from 4.4% to 6.0% in 2015.
Leverage (Debt)
Debt level is -6.3x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from -5.9x to -6.3x in 2015. Debt dropped on 92.5% in 2015 while cash decreased on 6.1% in 2015.
Management team
The company's CEO is Chih Yu Yang. Chih Yu Yang has 6 years tenure at the company.
Appendix 1: Peers in Telecommunications
Below you can find FIH Mobile Ltd benchmarking vs. other companies in Telecommunications 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 |
|---|
| China Energine International Holdings Ltd ($1185) | -41.8% | 143.6% | 34.3% | 103.1% | |
| MOBI Development Co Ltd ($947) | -23.4% | -13.8% | 29.1% | 85.6% | |
| Vodatel Networks Holdings Ltd ($8033) | 34.4% | -5.9% | -4.6% | 81.7% | |
| Gold Tat Group International Ltd ($8266) | | 29.4% | 1,582.2% | 77.0% | 26.5% |
| Great World Co Holdings Ltd ($8003) | | 1,651.8% | -81.7% | 61.9% | -3.7% |
| |
|---|
| Median (53 companies) | 11.5% | 9.1% | 8.3% | 6.9% | 14.0% |
|---|
| FIH Mobile Ltd ($2038) | | -17.5% | -4.6% | 36.7% | 9.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HKBN Ltd ($1310) | | | 84.3% | 86.5% | 86.9% |
| Synertone Communication Corp ($1613) | 65.4% | 68.1% | 64.1% | 70.5% | 50.3% |
| Zhi Cheng Holdings Ltd ($8130) | 61.6% | 45.9% | 41.0% | 64.0% | 19.6% |
| APT Satellite Holdings Ltd ($1045) | 52.3% | 58.7% | 64.1% | 62.5% | |
| Hong Kong Television Network Ltd ($1137) | | -59.6% | -101.3% | 59.7% | |
| |
|---|
| Median (47 companies) | 28.1% | 25.5% | 28.1% | 27.1% | 38.5% |
|---|
| FIH Mobile Ltd ($2038) | 5.3% | -0.0% | 4.5% | 6.2% | 5.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 83.5% | 86.5% | 85.8% | 81.6% | |
| APT Satellite Holdings Ltd ($1045) | 76.7% | 81.0% | 78.9% | 77.5% | |
| Synertone Communication Corp ($1613) | 49.5% | 44.9% | 48.5% | 49.4% | 51.5% |
| HKBN Ltd ($1310) | | | 39.2% | 40.1% | 39.0% |
| PCCW Ltd ($8) | 31.4% | 32.0% | 31.9% | 39.2% | 30.6% |
| |
|---|
| Median (53 companies) | 14.0% | 9.5% | 6.7% | 7.9% | 13.0% |
|---|
| FIH Mobile Ltd ($2038) | 5.3% | -3.0% | 4.3% | 5.4% | 4.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 12,435.9% | 504.9% | 1,283.5% | |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 61.8% | 93.8% | 71.7% | 75.0% | |
| Hanny Holdings Ltd ($275) | 80.8% | 19.8% | 11.6% | 28.3% | 0.2% |
| APT Satellite Holdings Ltd ($1045) | 155.2% | 74.3% | 2.5% | 27.2% | |
| China Electronics Corp Holdings Co Ltd ($85) | 1.5% | 1.8% | 8.3% | 27.1% | |
| |
|---|
| Median (52 companies) | 3.0% | 2.5% | 3.7% | 4.1% | 2.3% |
|---|
| FIH Mobile Ltd ($2038) | 2.8% | 0.8% | 3.6% | 2.0% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VTech Holdings Ltd ($303) | 40.5% | 37.6% | 39.5% | 40.0% | 39.8% |
| Telecom Service One Holdings Ltd ($8145) | | 95.0% | 5.4% | 26.7% | 39.8% |
| TCL Communication Technology Holdings Ltd ($2618) | 6.4% | -1.6% | 6.0% | 17.2% | |
| China Fiber Optic Network System Group Ltd ($3777) | 23.1% | 18.8% | 17.6% | 16.6% | |
| China U-Ton Holdings Ltd ($6168) | 69.5% | 35.7% | 25.0% | 16.2% | |
| |
|---|
| Median (53 companies) | 7.4% | 6.3% | 5.8% | 6.6% | 7.7% |
|---|
| FIH Mobile Ltd ($2038) | 2.0% | -9.4% | 1.5% | 5.8% | 5.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CCT Land Holdings Ltd ($261) | | 10.1x | 23.8x | 48.4x | |
| China Energine International Holdings Ltd ($1185) | | | | 13.3x | |
| China Electronics Corp Holdings Co Ltd ($85) | -2.1x | -2.0x | -1.3x | 12.5x | |
| China All Access Holdings Ltd ($633) | -1.0x | 0.9x | 1.8x | 5.2x | |
| Synertone Communication Corp ($1613) | -0.3x | -0.4x | -2.2x | 4.8x | 2.5x |
| |
|---|
| Median (38 companies) | -0.2x | -0.2x | 0.6x | 0.7x | 1.1x |
|---|
| FIH Mobile Ltd ($2038) | -4.3x | | -11.2x | -5.9x | -6.3x |
