Computer & Technologies Holdings Ltd EBITDA jumped on 20.2% in 2015 and EBITDA Margin increased on 3.1 pp from 20.1% to 23.2%
17/03/2016 • About Computer & Technologies Holdings Ltd (
$46) • By InTwits
Computer & Technologies Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 23.2% in 2015 vs. 20.1% in 2014 vs. 4.8% in 2011
- EBITDA Margin is quite volatile: 23.2% in 2015, 20.1% in 2014, 19.9% in 2013, 12.9% in 2012, 4.8% in 2011
- Computer & Technologies Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's in pair with industry average of 3.7%.
- CAPEX is quite volatile: 1.4 in 2015, 6.3 in 2014, 0.53 in 2013, 1.8 in 2012, 0.87 in 2011
- The company has business model with average profitability: ROIC is at 10.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Computer & Technologies Holdings Ltd ($46) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 391.2 | 206.7 | 187.1 | 210.8 | 219.1 | 3.9% |
| Gross Profit | 107.0 | 93.6 | 101.1 | 109.7 | 118.7 | 8.1% |
| SG&A | 44.4 | 44.6 | 42.5 | 46.5 | 71.2 | 53.0% |
| EBITDA | 18.9 | 26.7 | 37.2 | 42.3 | 50.9 | 20.2% |
| Net Income | 51.0 | 47.0 | 48.1 | 48.8 | 44.1 | -9.6% |
Balance Sheet
|
|---|
| Cash | 311.8 | 274.8 | 304.8 | 342.6 | 320.9 | -6.4% |
| Short Term Debt | 22.5 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.9 | 1.8 | 0.5 | 6.3 | 1.4 | -77.1% |
Ratios
|
|---|
| Revenue growth | 15.5% | -47.2% | -9.5% | 12.6% | 3.9% | |
| EBITDA growth | -58.0% | 41.8% | 38.9% | 13.9% | 20.2% | |
| Gross Margin | 27.4% | 45.3% | 54.0% | 52.1% | 54.2% | 2.1% |
| EBITDA Margin | 4.8% | 12.9% | 19.9% | 20.1% | 23.2% | 3.1% |
| Net Income Margin | 13.0% | 22.7% | 25.7% | 23.1% | 20.1% | -3.0% |
| SG&A, % of revenue | 11.4% | 21.6% | 22.7% | 22.1% | 32.5% | 10.4% |
| CAPEX, % of revenue | 0.2% | 0.8% | 0.3% | 3.0% | 0.7% | -2.3% |
| ROIC | 4.1% | 6.0% | 8.6% | 9.4% | 10.8% | 1.4% |
| ROE | 13.5% | 12.0% | 11.8% | 11.7% | 10.4% | -1.3% |
| Net Debt/EBITDA | -15.3x | -10.3x | -8.2x | -8.1x | -6.3x | 1.8x |
Revenue and profitability
The company's Revenue increased on 3.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.9 pp from -5.8% to -1.9% in FY2015.
Gross Margin increased on 2.1 pp from 52.1% to 54.2% in 2015. SG&A as a % of Revenue surged on 10.4 pp from 22.1% to 32.5% in 2015.
Net Income marign decreased on 3.0 pp from 23.1% to 20.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Computer & Technologies Holdings Ltd had CAPEX/Revenue of 0.66%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at low ROIC (10.78%) and ROE (10.36%). ROIC increased slightly on 1.4 pp from 9.4% to 10.8% in 2015. ROE decreased slightly on 1.3 pp from 11.7% to 10.4% in 2015.
Leverage (Debt)
The company has no debt. Cash decreased on 6.4% in 2015.
Appendix 1: Peers in Computers
Below we provide Computer & Technologies Holdings Ltd benchmarking against other companies in Computers 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 |
|---|
| Peking University Resources Holdings Co Ltd ($618) | 16.2% | -49.6% | 11.2% | 106.0% | |
| Alibaba Health Information Technology Ltd ($241) | | 29.4% | -96.7% | 73.0% | 35.3% |
| Thiz Technology Group Ltd ($8119) | | -4.1% | -95.1% | 72.2% | 31.9% |
| Universal Technologies Holdings Ltd ($1026) | 95.5% | -47.3% | 49.8% | 67.1% | |
| PAX Global Technology Ltd ($327) | | 19.0% | 12.1% | 61.2% | 21.0% |
| |
|---|
| Median (24 companies) | 12.4% | 6.5% | 0.0% | 7.2% | 9.3% |
|---|
| Computer & Technologies Holdings Ltd ($46) | | -47.2% | -9.5% | 12.6% | 3.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Universal Technologies Holdings Ltd ($1026) | 86.0% | 87.3% | 79.7% | 90.3% | |
| Thiz Technology Group Ltd ($8119) | 2.9% | 8.8% | 63.8% | 86.2% | 96.0% |
| CCID Consulting Co Ltd ($8235) | 46.5% | 43.7% | 49.1% | 51.8% | |
| Alibaba Health Information Technology Ltd ($241) | 10.1% | 11.4% | -12.6% | 49.3% | 53.7% |
| North Asia Resources Holdings Ltd ($61) | 15.6% | 21.7% | 17.3% | 46.7% | |
| |
|---|
| Median (22 companies) | 11.0% | 12.7% | 16.0% | 15.4% | 20.4% |
|---|
| Computer & Technologies Holdings Ltd ($46) | 27.4% | 45.3% | 54.0% | 52.1% | 54.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ju Teng International Holdings Ltd ($3336) | 9.5% | 15.1% | 19.9% | 19.3% | 23.8% |
| PAX Global Technology Ltd ($327) | 18.9% | 16.5% | 17.4% | 18.8% | 22.7% |
| CCID Consulting Co Ltd ($8235) | 19.0% | 10.6% | 10.8% | 12.3% | |
| Universal Technologies Holdings Ltd ($1026) | 29.5% | 12.8% | 1.5% | 9.9% | |
| EVOC Intelligent Technology Co Ltd ($2308) | 10.8% | 8.6% | 11.6% | 8.6% | |
| |
|---|
| Median (24 companies) | 2.5% | 2.8% | 2.2% | -1.5% | 5.8% |
|---|
| Computer & Technologies Holdings Ltd ($46) | 4.8% | 12.9% | 19.9% | 20.1% | 23.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| North Asia Resources Holdings Ltd ($61) | 34.3% | 4.6% | 94.2% | 177.8% | |
| Beautiful China Holdings Co Ltd ($706) | 44.9% | 8.4% | 2.2% | 26.2% | |
| Ju Teng International Holdings Ltd ($3336) | 17.6% | 14.1% | 18.7% | 20.0% | 17.3% |
| Alibaba Health Information Technology Ltd ($241) | 2.1% | 4.4% | 46.3% | 17.2% | 11.7% |
| Universal Technologies Holdings Ltd ($1026) | 8.5% | 20.0% | 5.7% | 14.2% | |
| |
|---|
| Median (24 companies) | 1.6% | 1.2% | 1.6% | 1.6% | 1.4% |
|---|
| Computer & Technologies Holdings Ltd ($46) | 0.2% | 0.8% | 0.3% | 3.0% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lenovo Group Ltd ($992) | 18.9% | 26.2% | 30.5% | 34.7% | 24.5% |
| PAX Global Technology Ltd ($327) | 14.1% | 12.3% | 12.8% | 18.7% | 22.4% |
| CCID Consulting Co Ltd ($8235) | 20.6% | 11.3% | 10.7% | 10.2% | |
| TPV Technology Ltd ($903) | 6.4% | 7.7% | 1.8% | 10.1% | 12.0% |
| Wong's International Hldgs ($99) | 9.5% | 5.1% | 4.8% | 8.5% | |
| |
|---|
| Median (25 companies) | 3.7% | 0.9% | -0.2% | -1.4% | 8.8% |
|---|
| Computer & Technologies Holdings Ltd ($46) | 4.1% | 6.0% | 8.6% | 9.4% | 10.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EVOC Intelligent Technology Co Ltd ($2308) | 6.4x | 0.5x | 5.8x | 5.7x | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.0x | 2.7x | 3.6x | 4.6x | |
| Ju Teng International Holdings Ltd ($3336) | 2.5x | 2.1x | 1.8x | 1.7x | 1.6x |
| Wong's International Hldgs ($99) | -1.8x | -3.5x | 2.7x | 1.4x | |
| TPV Technology Ltd ($903) | 0.5x | -0.2x | 0.6x | -0.0x | 0.3x |
| |
|---|
| Median (12 companies) | -1.6x | -2.1x | -1.3x | -3.2x | 0.3x |
|---|
| Computer & Technologies Holdings Ltd ($46) | -15.3x | -10.3x | -8.2x | -8.1x | -6.3x |
