Advanced Card Systems Holdings Ltd reports 29.3% EBITDA decline and 4.6 pp EBITDA Margin decline from 17.8% to 13.2%
22/03/2016 • About Advanced Card Systems Holdings Ltd (
$8210) • By InTwits
Advanced Card Systems Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Advanced Card Systems Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's a lot of higher than industry average of 19.5%.
- CAPEX is quite volatile: 2.5 in 2015, 5.0 in 2014, 2.7 in 2013, 4.4 in 2012, 6.1 in 2011
- The company has business model with low profitability: ROIC is at 9.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Advanced Card Systems Holdings Ltd ($8210) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 117.5 | 160.9 | 194.4 | 246.3 | 234.5 | -4.8% |
| Gross Profit | 60.4 | 86.8 | 113.0 | 121.9 | 116.2 | -4.6% |
| SG&A | 33.8 | 43.1 | 53.5 | 58.0 | 60.8 | 4.9% |
| EBITDA | 16.7 | 31.5 | 42.2 | 43.7 | 30.9 | -29.3% |
| Net Income | 5.1 | 16.9 | 23.2 | 23.7 | 20.3 | -14.4% |
Balance Sheet
|
|---|
| Cash | 22.3 | 34.2 | 48.6 | 35.7 | 38.9 | 9.2% |
| Short Term Debt | 8.3 | 14.2 | 36.3 | 35.3 | 43.6 | 23.4% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 6.1 | 4.4 | 2.7 | 5.0 | 2.5 | -49.7% |
Ratios
|
|---|
| Revenue growth | 25.3% | 36.9% | 20.8% | 26.7% | -4.8% | |
| EBITDA growth | 22.5% | 88.6% | 34.2% | 3.6% | -29.3% | |
| Gross Margin | 51.4% | 54.0% | 58.1% | 49.5% | 49.6% | 0.1% |
| EBITDA Margin | 14.2% | 19.6% | 21.7% | 17.8% | 13.2% | -4.6% |
| Net Income Margin | 4.4% | 10.5% | 11.9% | 9.6% | 8.7% | -1.0% |
| SG&A, % of revenue | 28.8% | 26.8% | 27.5% | 23.5% | 25.9% | 2.4% |
| CAPEX, % of revenue | 5.2% | 2.7% | 1.4% | 2.0% | 1.1% | -1.0% |
| ROIC | 15.5% | 26.7% | 24.7% | 20.2% | 9.7% | -10.6% |
| ROE | 8.5% | 23.6% | 25.8% | 21.9% | 16.4% | -5.5% |
| Net Debt/EBITDA | -0.8x | -0.6x | -0.3x | -0.0x | 0.2x | 0.2x |
Revenue and profitability
Advanced Card Systems Holdings Ltd's Revenue decreased on 4.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.1 pp from -11.1% to -4.0% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 2.4 pp from 23.5% to 25.9% in 2015.
Net Income marign decreased slightly on 0.97 pp from 9.6% to 8.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.1%. The company showed small CAPEX/Revenue decline of 1.6 pp from 2.7% in 2012 to 1.1% in 2015. For the last three years the average CAPEX/Revenue was 1.5%.
Return on investment
The company operates at good ROE (16.38%) while ROIC is low (9.65%). ROIC dropped on 10.6 pp from 20.2% to 9.7% in 2015. ROE decreased on 5.5 pp from 21.9% to 16.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.2x and Debt / EBITDA is 1.4x. Net Debt / EBITDA surged on 0.2x from -0.0077x to 0.2x in 2015. Debt surged on 23.4% in 2015 while cash increased on 9.2% in 2015.
Appendix 1: Peers in Electronics
Below we provide Advanced Card Systems 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% |
| 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 (49 companies) | 7.0% | -1.6% | 3.1% | 3.8% | -0.2% |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | | 36.9% | 20.8% | 26.7% | -4.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Datronix Holdings Ltd ($889) | 41.3% | 32.9% | 32.0% | 34.1% | 34.6% |
| 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% |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 51.4% | 54.0% | 58.1% | 49.5% | 49.6% |
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% | 6.7% |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 14.2% | 19.6% | 21.7% | 17.8% | 13.2% |
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% | 18.0% |
| 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) | 3.2% | 3.8% | 3.0% | 4.2% | 3.5% |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 5.2% | 2.7% | 1.4% | 2.0% | 1.1% |
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% |
| 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 (49 companies) | 5.4% | 4.1% | 3.5% | 2.9% | 2.4% |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 15.5% | 26.7% | 24.7% | 20.2% | 9.7% |
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 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | -0.8x | -0.6x | -0.3x | -0.0x | 0.2x |
