Wasion Group Holdings Ltd CAPEX jumped on 85.4% in 2015 and Revenue increased on 5.6%
18/03/2016 • About Wasion Group Holdings Ltd (
$3393) • By InTwits
Wasion Group Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wasion Group Holdings Ltd is a growth stock: 2015 revenue growth was 5.6%, 5 year revenue CAGR was 17.4% at 2015 ROIC 10.3%
- Wasion Group Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.8%. At the same time it's in pair with industry average of 6.2%.
- CAPEX is quite volatile: 227 in 2015, 122 in 2014, 30.1 in 2013, 180 in 2012, 170 in 2011
- The company has business model with average profitability: ROIC is at 10.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wasion Group Holdings Ltd ($3393) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,969 | 2,452 | 2,412 | 2,812 | 2,969 | 5.6% |
| Gross Profit | 596 | 805 | 847 | 963 | 896 | -6.9% |
| SG&A | 291 | 356 | 356 | 373 | 382 | 2.2% |
| EBITDA | 371 | 460 | 511 | 618 | 574 | -7.2% |
| Net Income | 247 | 323 | 401 | 482 | 424 | -12.2% |
Balance Sheet
|
|---|
| Cash | 987 | 586 | 553 | 327 | 1,172 | 257.9% |
| Short Term Debt | 700 | 548 | 453 | 503 | 301 | -40.2% |
| Long Term Debt | 389 | 57 | 173 | 248 | 576 | 132.7% |
Cash flow
|
|---|
| Capex | 170 | 180 | 30 | 122 | 227 | 85.4% |
Ratios
|
|---|
| Revenue growth | 47.9% | 24.6% | -1.6% | 16.6% | 5.6% | |
| EBITDA growth | 17.4% | 24.0% | 10.9% | 21.1% | -7.2% | |
| Gross Margin | 30.3% | 32.8% | 35.1% | 34.2% | 30.2% | -4.1% |
| EBITDA Margin | 18.9% | 18.8% | 21.2% | 22.0% | 19.3% | -2.7% |
| Net Income Margin | 12.6% | 13.2% | 16.6% | 17.2% | 14.3% | -2.9% |
| SG&A, % of revenue | 14.8% | 14.5% | 14.8% | 13.3% | 12.9% | -0.4% |
| CAPEX, % of revenue | 8.7% | 7.3% | 1.2% | 4.4% | 7.6% | 3.3% |
| ROIC | 8.4% | 10.5% | 12.0% | 13.7% | 10.3% | -3.4% |
| ROE | 10.7% | 13.0% | 14.7% | 15.8% | 11.5% | -4.2% |
| Net Debt/EBITDA | 0.3x | 0.0x | 0.1x | 0.7x | -0.5x | -1.2x |
Revenue and profitability
The company's Revenue increased on 5.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 18.1 pp from 25.3% to 43.4% in 2015.
Gross Margin decreased on 4.1 pp from 34.2% to 30.2% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 2.9 pp from 17.2% to 14.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Wasion Group Holdings Ltd's CAPEX/Revenue was 7.6% in 2015. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 4.4%.
Return on investment
The company operates at low ROIC (10.32%) and ROE (11.53%). ROIC decreased on 3.4 pp from 13.7% to 10.3% in 2015. ROE decreased on 4.2 pp from 15.8% to 11.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.5x and Debt / EBITDA is 1.5x. Net Debt / EBITDA dropped on 1.2x from 0.7x to -0.5x in 2015. Debt jumped on 16.8% in 2015 while cash surged on 258% in 2015.
Appendix 1: Peers in Electronics
Below you can find Wasion 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% | |
| Tongda Group Holdings Ltd ($698) | | 8.3% | 6.4% | 32.1% | 26.8% |
| 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) | 7.1% | -1.7% | 3.6% | 3.7% | -0.2% |
|---|
| Wasion Group Holdings Ltd ($3393) | | 24.6% | -1.6% | 16.6% | 5.6% |
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% |
| Datronix Holdings Ltd ($889) | 41.3% | 32.9% | 32.0% | 34.1% | |
| Hi Sun Technology China Ltd ($818) | 20.8% | 28.1% | 37.4% | 33.3% | 34.7% |
| |
|---|
| Median (46 companies) | 13.6% | 14.1% | 13.8% | 13.9% | 16.6% |
|---|
| Wasion Group Holdings Ltd ($3393) | 30.3% | 32.8% | 35.1% | 34.2% | 30.2% |
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% | |
| 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% |
| Tongda Group Holdings Ltd ($698) | 15.3% | 17.1% | 16.8% | 18.4% | 18.9% |
| |
|---|
| Median (48 companies) | 9.0% | 5.9% | 4.1% | 3.4% | 4.8% |
|---|
| Wasion Group Holdings Ltd ($3393) | 18.9% | 18.8% | 21.2% | 22.0% | 19.3% |
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% | 3.2% | 3.7% | 2.5% |
|---|
| Wasion Group Holdings Ltd ($3393) | 8.7% | 7.3% | 1.2% | 4.4% | 7.6% |
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% | 16.3% |
| Trigiant Group Ltd ($1300) | 17.9% | 17.8% | 18.3% | 15.2% | 11.2% |
| |
|---|
| Median (48 companies) | 5.4% | 4.1% | 3.3% | 2.7% | 1.2% |
|---|
| Wasion Group Holdings Ltd ($3393) | 8.4% | 10.5% | 12.0% | 13.7% | 10.3% |
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) | 0.7x | 1.1x | 1.1x | 1.2x | 1.3x |
|---|
| Wasion Group Holdings Ltd ($3393) | 0.3x | 0.0x | 0.1x | 0.7x | -0.5x |
