Tongda Group Holdings Ltd CAPEX surged on 80.3% in 2015 and Revenue jumped on 26.8%
16/03/2016 • About Tongda Group Holdings Ltd (
$698) • By InTwits
Tongda Group Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tongda Group Holdings Ltd is a fast growth stock: 2015 revenue growth was 26.8%, 5 year revenue CAGR was 20.9% at 2015 ROIC 16.3%
- Tongda Group Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.2%. At the same time it's a lot of higher than industry average of 6.2%.
- CAPEX is quite volatile: 986 in 2015, 547 in 2014, 178 in 2013, 266 in 2012, 180 in 2011
- The company has highly profitable business model: ROIC is at 16.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.4x 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.
Tongda Group Holdings Ltd ($698) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,147 | 3,408 | 3,627 | 4,791 | 6,074 | 26.8% |
| Gross Profit | 605 | 731 | 798 | 1,144 | 1,512 | 32.2% |
| SG&A | 243 | 292 | 356 | 442 | 594 | 34.3% |
| EBITDA | 482 | 583 | 610 | 882 | 1,148 | 30.1% |
| Net Income | 250 | 300 | 360 | 502 | 703 | 40.1% |
Balance Sheet
|
|---|
| Cash | 254 | 221 | 178 | 360 | 762 | 111.7% |
| Short Term Debt | 403 | 564 | 592 | 629 | 976 | 55.2% |
| Long Term Debt | 237 | 89 | 258 | 351 | 1,392 | 296.9% |
Cash flow
|
|---|
| Capex | 180 | 266 | 178 | 547 | 986 | 80.3% |
Ratios
|
|---|
| Revenue growth | 34.0% | 8.3% | 6.4% | 32.1% | 26.8% | |
| EBITDA growth | 38.2% | 21.0% | 4.5% | 44.7% | 30.1% | |
| Gross Margin | 19.2% | 21.4% | 22.0% | 23.9% | 24.9% | 1.0% |
| EBITDA Margin | 15.3% | 17.1% | 16.8% | 18.4% | 18.9% | 0.5% |
| Net Income Margin | 8.0% | 8.8% | 9.9% | 10.5% | 11.6% | 1.1% |
| SG&A, % of revenue | 7.7% | 8.6% | 9.8% | 9.2% | 9.8% | 0.5% |
| CAPEX, % of revenue | 5.7% | 7.8% | 4.9% | 11.4% | 16.2% | 4.8% |
| ROIC | 14.3% | 15.2% | 13.5% | 16.5% | 16.3% | -0.2% |
| ROE | 14.4% | 15.2% | 15.8% | 16.9% | 18.7% | 1.7% |
| Net Debt/EBITDA | 0.8x | 0.7x | 1.1x | 0.7x | 1.4x | 0.7x |
Revenue and profitability
Tongda Group Holdings Ltd's Revenue jumped on 26.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.1 pp from 26.7% to 32.8% in 2015.
Gross Margin increased slightly on 1.0 pp from 23.9% to 24.9% in 2015. SG&A as a % of Revenue increased slightly on 0.54 pp from 9.2% to 9.8% in 2015.
Net Income marign increased slightly on 1.1 pp from 10.5% to 11.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Tongda Group Holdings Ltd had CAPEX/Revenue of 16.2%. The company showed CAPEX/Revenue growth of 8.4 pp from 7.8% in 2012 to 16.2% in 2015. For the last three years the average CAPEX/Revenue was 10.8%.The company invested a big chunk of EBITDA (85.9%) to CAPEX to secure its growth.
Return on investment
The company operates at good ROIC (16.29%) and ROE (18.66%). ROIC showed almost no change in 2015. ROE increased slightly on 1.7 pp from 16.9% to 18.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 2.1x. Net Debt / EBITDA jumped on 0.7x from 0.7x to 1.4x in 2015. Debt surged on 142% in 2015 while cash surged on 112% in 2015.
Appendix 1: Peers in Electronics
Below you can find Tongda Group Holdings Ltd benchmarking vs. other companies in Electronics 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 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% | |
| 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% | |
| QPL International Holdings Ltd ($243) | | -21.1% | -22.2% | 21.0% | -0.2% |
| |
|---|
| Median (48 companies) | 7.3% | -1.7% | 2.8% | 3.7% | -2.5% |
|---|
| Tongda Group Holdings Ltd ($698) | | 8.3% | 6.4% | 32.1% | 26.8% |
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% | 15.0% |
|---|
| Tongda Group Holdings Ltd ($698) | 19.2% | 21.4% | 22.0% | 23.9% | 24.9% |
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% | |
| Trigiant Group Ltd ($1300) | 17.0% | 17.6% | 18.2% | 18.5% | 16.2% |
| |
|---|
| Median (48 companies) | 9.0% | 5.9% | 4.1% | 3.4% | 4.6% |
|---|
| Tongda Group Holdings Ltd ($698) | 15.3% | 17.1% | 16.8% | 18.4% | 18.9% |
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) | 3.3% | 3.7% | 3.0% | 3.7% | 2.2% |
|---|
| Tongda Group Holdings Ltd ($698) | 5.7% | 7.8% | 4.9% | 11.4% | 16.2% |
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% | |
| Trigiant Group Ltd ($1300) | 17.9% | 17.8% | 18.3% | 15.2% | 11.2% |
| Changhong Jiahua Holdings Ltd ($8016) | 8.7% | 29.6% | 17.7% | 15.1% | |
| |
|---|
| Median (48 companies) | 5.4% | 4.1% | 3.3% | 2.7% | 0.8% |
|---|
| Tongda Group Holdings Ltd ($698) | 14.3% | 15.2% | 13.5% | 16.5% | 16.3% |
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 | 1.1x | 1.1x | 1.2x | 1.3x |
|---|
| Tongda Group Holdings Ltd ($698) | 0.8x | 0.7x | 1.1x | 0.7x | 1.4x |
