Datronix Holdings Ltd Net Income dropped on 91.4% in 2015 and Revenue decreased on 7.3%
21/03/2016 • About Datronix Holdings Ltd (
$889) • By InTwits
Datronix Holdings 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: 11.4% in 2015, 8.0% in 2014, 10.1% in 2013, 10.4% in 2012, 19.4% in 2011
- Datronix Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's a lot of higher than industry average of 21.9%.
- CAPEX is quite volatile: 93.7 in 2015, 114 in 2014, 31.7 in 2013, 26.6 in 2012, 115 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Datronix Holdings Ltd ($889) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 263.4 | 262.6 | 284.0 | 301.6 | 279.7 | -7.3% |
| Gross Profit | 108.8 | 86.5 | 91.0 | 102.7 | 96.9 | -5.7% |
| SG&A | | 69.0 | 70.3 | 78.2 | 83.1 | 6.2% |
| EBITDA | 51.0 | 27.4 | 28.6 | 24.0 | 31.9 | 33.0% |
| Net Income | 44.3 | 33.1 | 33.3 | 32.6 | 2.8 | -91.4% |
Balance Sheet
|
|---|
| Cash | 388.1 | 404.5 | 429.5 | 463.8 | 340.5 | -26.6% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 3.5 | 2.8 | 2.5 | 3.2 | 2.4 | -25.5% |
Ratios
|
|---|
| Revenue growth | -12.3% | -0.3% | 8.2% | 6.2% | -7.3% | |
| EBITDA growth | -30.9% | -46.3% | 4.5% | -16.1% | 33.0% | |
| Gross Margin | 41.3% | 32.9% | 32.0% | 34.1% | 34.6% | 0.6% |
| EBITDA Margin | 19.4% | 10.4% | 10.1% | 8.0% | 11.4% | 3.4% |
| Net Income Margin | 16.8% | 12.6% | 11.7% | 10.8% | 1.0% | -9.8% |
| SG&A, % of revenue | | 26.3% | 24.8% | 25.9% | 29.7% | 3.8% |
| CAPEX, % of revenue | 1.3% | 1.1% | 0.9% | 1.0% | 0.8% | -0.2% |
| ROIC | 7.2% | 3.0% | 3.1% | 2.5% | 3.7% | 1.2% |
| ROE | 7.7% | 5.3% | 4.9% | 4.6% | 0.4% | -4.2% |
| Net Debt/EBITDA | -7.6x | -14.8x | -15.0x | -19.3x | -10.7x | 8.7x |
Revenue and profitability
The company's Revenue decreased on 7.3% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.4 pp from 8.0% to 11.4% in 2015.
Gross Margin increased slightly on 0.57 pp from 34.1% to 34.6% in 2015. SG&A as a % of Revenue increased on 3.8 pp from 25.9% to 29.7% in 2015.
Net Income marign decreased on 9.8 pp from 10.8% to 1.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.84%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.93%.
Return on investment
The company operates at low ROIC (3.68%) and ROE (0.39%). ROIC increased slightly on 1.2 pp from 2.5% to 3.7% in 2015. ROE decreased on 4.2 pp from 4.6% to 0.39% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 26.6% in 2015.
Appendix 1: Peers in Electronics
Below we provide Datronix Holdings Ltd benchmarking against other companies in Electronics 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 |
|---|
| 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 (49 companies) | 7.3% | -1.6% | 3.1% | 3.8% | -0.2% |
|---|
| Datronix Holdings Ltd ($889) | | -0.3% | 8.2% | 6.2% | -7.3% |
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% | 30.2% |
| Hi Sun Technology China Ltd ($818) | 20.8% | 28.1% | 37.4% | 33.3% | 34.7% |
| |
|---|
| Median (47 companies) | 13.5% | 13.6% | 13.7% | 13.8% | 16.6% |
|---|
| Datronix Holdings Ltd ($889) | 41.3% | 32.9% | 32.0% | 34.1% | 34.6% |
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% | 19.3% |
| 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% |
| |
|---|
| Median (49 companies) | 8.8% | 5.7% | 4.4% | 4.0% | 5.5% |
|---|
| Datronix Holdings Ltd ($889) | 19.4% | 10.4% | 10.1% | 8.0% | 11.4% |
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% | 25.8% |
| 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 (49 companies) | 3.4% | 3.8% | 3.0% | 4.2% | 3.5% |
|---|
| Datronix Holdings Ltd ($889) | 1.3% | 1.1% | 0.9% | 1.0% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 22.3% | 29.1% | 30.0% | 26.0% | |
| Cowell e Holdings Inc ($1415) | | 12.5% | 27.1% | 24.4% | 25.8% |
| 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% |
| |
|---|
| Median (49 companies) | 5.4% | 4.5% | 3.5% | 3.4% | 2.4% |
|---|
| Datronix Holdings Ltd ($889) | 7.2% | 3.0% | 3.1% | 2.5% | 3.7% |
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 (35 companies) | 0.8x | 1.1x | 1.1x | 1.2x | 0.9x |
|---|
| Datronix Holdings Ltd ($889) | -7.6x | -14.8x | -15.0x | -19.3x | -10.7x |
