Advanced Semiconductor Manufacturing Corp Ltd Net Income dropped on 29.9% in 2015 and EBITDA Margin decreased on 3.1 pp from 13.3% to 10.3%
16/03/2016 • About Advanced Semiconductor Manufacturing Corp Ltd (
$3355) • By InTwits
Advanced Semiconductor Manufacturing Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Advanced Semiconductor Manufacturing Corp Ltd is a company in decline: 2015 revenue growth was -7.1%, 5 years revenue CAGR was -5.4%
- Advanced Semiconductor Manufacturing Corp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.2%. At the same time it's in pair with industry average of 12.0%.
- CAPEX is quite volatile: 53.8 in 2015, 60.0 in 2014, 105 in 2013, 70.8 in 2012, 125 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Advanced Semiconductor Manufacturing Corp Ltd ($3355) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 950.7 | 853.6 | 722.1 | 797.4 | 741.1 | -7.1% |
| Gross Profit | 165.7 | 119.3 | 104.2 | 136.8 | 98.2 | -28.2% |
| SG&A | 69.0 | 63.1 | 65.0 | 65.9 | 66.5 | 0.9% |
| EBITDA | 166.1 | 133.5 | 76.3 | 106.4 | 76.1 | -28.5% |
| Net Income | 51.1 | 44.5 | 12.5 | 48.6 | 34.1 | -29.9% |
Balance Sheet
|
|---|
| Cash | 371.6 | 414.1 | 394.0 | 479.6 | 534.8 | 11.5% |
| Short Term Debt | 50.4 | 18.9 | 18.3 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 125.0 | 70.8 | 105.0 | 60.0 | 53.8 | -10.4% |
Ratios
|
|---|
| Revenue growth | -2.8% | -10.2% | -15.4% | 10.4% | -7.1% | |
| EBITDA growth | -39.4% | -19.6% | -42.9% | 39.5% | -28.5% | |
| Gross Margin | 17.4% | 14.0% | 14.4% | 17.2% | 13.2% | -3.9% |
| EBITDA Margin | 17.5% | 15.6% | 10.6% | 13.3% | 10.3% | -3.1% |
| Net Income Margin | 5.4% | 5.2% | 1.7% | 6.1% | 4.6% | -1.5% |
| SG&A, % of revenue | 7.3% | 7.4% | 9.0% | 8.3% | 9.0% | 0.7% |
| CAPEX, % of revenue | 13.2% | 8.3% | 14.5% | 7.5% | 7.3% | -0.3% |
| ROIC | 6.3% | 4.5% | 1.2% | 4.3% | 0.9% | -3.4% |
| ROE | 6.6% | 5.4% | 1.5% | 5.5% | 3.7% | -1.8% |
| Net Debt/EBITDA | -1.9x | -3.0x | -4.9x | -4.5x | -7.0x | -2.5x |
Revenue and profitability
The company's Revenue decreased on 7.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.8 pp from 36.8% to 40.6% in FY2015.
Gross Margin decreased on 3.9 pp from 17.2% to 13.2% in 2015. SG&A as a % of Revenue increased slightly on 0.71 pp from 8.3% to 9.0% in 2015.
Net Income marign decreased slightly on 1.5 pp from 6.1% to 4.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Advanced Semiconductor Manufacturing Corp Ltd's CAPEX/Revenue was 7.3% in 2015. Advanced Semiconductor Manufacturing Corp Ltd's CAPEX/Revenue decreased slightly on 1.0 pp from 8.3% in 2012 to 7.3% in 2015. It's average level of CAPEX/Revenue for the last three years was 9.8%.Advanced Semiconductor Manufacturing Corp Ltd invested a big chunk of EBITDA (70.7%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (0.93%) and ROE (3.67%). ROIC decreased on 3.4 pp from 4.3% to 0.93% in 2015. ROE decreased slightly on 1.8 pp from 5.5% to 3.7% in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 11.5% in 2015.
Appendix 1: Peers in Semiconductors
Below you can find Advanced Semiconductor Manufacturing Corp Ltd benchmarking vs. other companies in Semiconductors 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 |
|---|
| Honbridge Holdings Ltd ($8137) | 3,428.4% | -76.4% | -97.5% | 608.9% | |
| Shunfeng International Clean Energy Ltd ($1165) | 216.5% | -46.3% | 44.4% | 275.6% | |
| Phoenitron Holdings Ltd ($8066) | -8.8% | -7.2% | 4.0% | 243.8% | |
| Hanergy Thin Film Power Group Ltd ($566) | -15.1% | 7.5% | 19.1% | 192.8% | |
| China Jinhai International Group Ltd ($139) | | | | 140.3% | -81.9% |
| |
|---|
| Median (20 companies) | 1.6% | -15.7% | 4.0% | 10.3% | -8.8% |
|---|
| Advanced Semiconductor Manufacturing Corp Ltd ($3355) | | -10.2% | -15.4% | 10.4% | -7.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heng Xin China Holdings Ltd ($8046) | 46.3% | 42.1% | 57.6% | 75.0% | |
| China Jinhai International Group Ltd ($139) | -92.8% | | -7.8% | 73.3% | -69.1% |
| PacMOS Technologies Holdings Ltd ($1010) | 68.1% | 68.8% | 65.7% | 65.7% | |
| Intel Corp ($4335) | 62.5% | 62.1% | 59.8% | 63.7% | 62.6% |
| Hanergy Thin Film Power Group Ltd ($566) | 62.8% | 71.4% | 80.3% | 57.3% | |
| |
|---|
| Median (21 companies) | 18.6% | 26.1% | 28.0% | 34.6% | 30.5% |
|---|
| Advanced Semiconductor Manufacturing Corp Ltd ($3355) | 17.4% | 14.0% | 14.4% | 17.2% | 13.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 13.4% | 9.1% | 37.2% | 88.0% | |
| Hanergy Thin Film Power Group Ltd ($566) | 46.0% | 66.0% | 73.9% | 43.7% | |
| Intel Corp ($4335) | 43.6% | 41.5% | 38.6% | 42.8% | 41.0% |
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -11.8% | 9.5% | 40.5% | |
| Semiconductor Manufacturing International Corp ($981) | 26.9% | 34.3% | 35.5% | 34.5% | 33.3% |
| |
|---|
| Median (21 companies) | 10.2% | 5.7% | 5.9% | -3.4% | 14.5% |
|---|
| Advanced Semiconductor Manufacturing Corp Ltd ($3355) | 17.5% | 15.6% | 10.6% | 13.3% | 10.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jun Yang Solar Power Investments Ltd ($397) | 390.5% | 671.1% | 25.9% | 78.9% | |
| Han Tang International Holdings Ltd ($1187) | 1.8% | | | 55.2% | 0.3% |
| Semiconductor Manufacturing International Corp ($981) | 70.6% | 23.5% | 35.1% | 33.2% | 55.0% |
| Comtec Solar Systems Group Ltd ($712) | 22.2% | | 30.2% | 18.7% | |
| Intel Corp ($4335) | 19.9% | 20.7% | 20.3% | 18.1% | 13.2% |
| |
|---|
| Median (21 companies) | 8.3% | 4.3% | 4.0% | 4.8% | 4.1% |
|---|
| Advanced Semiconductor Manufacturing Corp Ltd ($3355) | 13.2% | 8.3% | 14.5% | 7.5% | 7.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ASM Pacific Technology Ltd ($522) | 52.1% | 12.3% | 9.2% | 21.9% | 13.7% |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 22.2% | 25.5% | 22.7% | 21.1% | |
| Intel Corp ($4335) | 32.4% | 23.7% | 17.1% | 20.6% | 17.7% |
| Hanergy Thin Film Power Group Ltd ($566) | 9.3% | 14.1% | 15.1% | 19.3% | |
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -13.0% | 1.5% | 17.4% | |
| |
|---|
| Median (21 companies) | 1.7% | -2.3% | -0.7% | -1.3% | 4.4% |
|---|
| Advanced Semiconductor Manufacturing Corp Ltd ($3355) | 6.3% | 4.5% | 1.2% | 4.3% | 0.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 4.0x | 16.4x | 6.9x | 4.9x | |
| Solargiga Energy Holdings Ltd ($757) | 5.9x | | 13.8x | 4.4x | |
| Shunfeng International Clean Energy Ltd ($1165) | 8.2x | | 25.8x | 3.4x | |
| Phoenitron Holdings Ltd ($8066) | -1.2x | -0.8x | | 3.2x | |
| Semiconductor Manufacturing International Corp ($981) | 1.9x | 1.3x | 1.0x | 1.0x | 0.5x |
| |
|---|
| Median (10 companies) | -0.0x | 0.2x | 1.0x | 0.7x | 0.3x |
|---|
| Advanced Semiconductor Manufacturing Corp Ltd ($3355) | -1.9x | -3.0x | -4.9x | -4.5x | -7.0x |
