Nanjing Sample Technology Co Ltd revenue surged on 34.8% in 2015 while EBITDA Margin decreased on 6.6 pp from 22.3% to 15.7%
23/03/2016 • About Nanjing Sample Technology Co Ltd (
$1708) • By InTwits
Nanjing Sample Technology Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nanjing Sample Technology Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.6%. At the same time it's in pair with industry average of 13.7%.
- CAPEX is quite volatile: 32.2 in 2015, 107 in 2014, 120 in 2013, 172 in 2012, 19.4 in 2011
- The company has business model with low profitability: ROIC is at 7.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nanjing Sample Technology Co Ltd ($1708) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 528 | 719 | 777 | 896 | 1,207 | 34.8% |
| Gross Profit | 200 | 265 | 253 | 285 | 319 | 12.1% |
| SG&A | | 76 | 100 | 121 | 134 | 10.6% |
| EBITDA | 166 | 192 | 164 | 199 | 189 | -5.1% |
| Net Income | 146 | 168 | 126 | 138 | 164 | 19.2% |
Balance Sheet
|
|---|
| Cash | 415 | 450 | 579 | 901 | 1,213 | 34.6% |
| Short Term Debt | 314 | 167 | 341 | 631 | 618 | -2.0% |
| Long Term Debt | 0 | 80 | 76 | 70 | 138 | 97.4% |
Cash flow
|
|---|
| Capex | 19 | 172 | 120 | 107 | 32 | -70.0% |
Ratios
|
|---|
| Revenue growth | 4.0% | 36.1% | 8.0% | 15.4% | 34.8% | |
| EBITDA growth | 24.8% | 15.6% | -14.8% | 21.5% | -5.1% | |
| Gross Margin | 37.9% | 36.9% | 32.6% | 31.8% | 26.4% | -5.4% |
| EBITDA Margin | 31.5% | 26.8% | 21.1% | 22.3% | 15.7% | -6.6% |
| Net Income Margin | 27.6% | 23.4% | 16.3% | 15.4% | 13.6% | -1.8% |
| SG&A, % of revenue | | 10.6% | 12.9% | 13.5% | 11.1% | -2.4% |
| CAPEX, % of revenue | 3.7% | 23.9% | 15.5% | 12.0% | 2.7% | -9.3% |
| ROIC | | 14.8% | 10.3% | 9.9% | 7.3% | -2.7% |
| ROE | 20.2% | 19.6% | 13.1% | 12.9% | 11.8% | -1.2% |
| Net Debt/EBITDA | -0.6x | -1.1x | -1.0x | -1.0x | -2.4x | -1.4x |
Revenue and profitability
The company's Revenue surged on 34.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 7.4% to 9.3% in 2015.
Gross Margin decreased on 5.4 pp from 31.8% to 26.4% in 2015. SG&A as a % of Revenue decreased on 2.4 pp from 13.5% to 11.1% in 2015.
Net Income marign decreased slightly on 1.8 pp from 15.4% to 13.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.7% in 2015. CAPEX/Revenue dropped on 21.3 pp from 23.9% in 2012 to 2.7% in 2015. For the last three years the average CAPEX/Revenue was 10.0%.
Return on investment
The company operates at low ROIC (7.27%) and ROE (11.78%). ROIC decreased on 2.7 pp from 9.9% to 7.3% in 2015. ROE decreased slightly on 1.2 pp from 12.9% to 11.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.4x and Debt / EBITDA is 4.0x. Net Debt / EBITDA dropped on 1.4x from -1.0x to -2.4x in 2015. Debt increased on 8.0% in 2015 while cash surged on 34.6% in 2015.
Appendix 1: Peers in Electronics
Below you can find Nanjing Sample Technology Co 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) | | 27.4% | 34.1% | 35.9% | 19.0% |
| Tongda Group Holdings Ltd ($698) | | 8.3% | 6.4% | 32.1% | 26.8% |
| Advanced Card Systems Holdings Ltd ($8210) | | 36.9% | 20.8% | 26.7% | -4.8% |
| Alltronics Holdings Ltd ($833) | 33.9% | -1.6% | -1.6% | 23.4% | |
| |
|---|
| Median (49 companies) | 6.9% | -1.6% | 3.1% | 3.8% | 0.4% |
|---|
| Nanjing Sample Technology Co Ltd ($1708) | | 36.1% | 8.0% | 15.4% | 34.8% |
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% | 49.6% |
| AAC Technologies Holdings Inc ($2018) | 44.0% | 44.2% | 42.7% | 41.4% | 41.5% |
| 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% |
| |
|---|
| Median (47 companies) | 13.5% | 13.6% | 13.7% | 13.8% | 16.8% |
|---|
| Nanjing Sample Technology Co Ltd ($1708) | 37.9% | 36.9% | 32.6% | 31.8% | 26.4% |
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% | 34.8% |
| 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% | 18.0% |
| 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 (49 companies) | 8.8% | 5.7% | 4.4% | 4.0% | 7.4% |
|---|
| Nanjing Sample Technology Co Ltd ($1708) | 31.5% | 26.8% | 21.1% | 22.3% | 15.7% |
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% | 18.4% |
| 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% | |
| Tongda Group Holdings Ltd ($698) | 5.7% | 7.8% | 4.9% | 11.4% | 16.2% |
| |
|---|
| Median (49 companies) | 3.2% | 3.7% | 2.9% | 3.3% | 3.2% |
|---|
| Nanjing Sample Technology Co Ltd ($1708) | 3.7% | 23.9% | 15.5% | 12.0% | 2.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 22.3% | 29.1% | 30.0% | 26.0% | 27.8% |
| 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% | 9.7% |
| 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) | 5.7% | 4.1% | 3.5% | 2.9% | 3.2% |
|---|
| Nanjing Sample Technology Co Ltd ($1708) | | 14.8% | 10.3% | 9.9% | 7.3% |
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 (35 companies) | 0.8x | 1.1x | 1.1x | 1.2x | 0.5x |
|---|
| Nanjing Sample Technology Co Ltd ($1708) | -0.6x | -1.1x | -1.0x | -1.0x | -2.4x |
