Wong's International Hldgs EBITDA dropped on 11.4% in 2015 and Revenue decreased on 7.8%
23/03/2016 • About Wong's International Hldgs (
$99) • By InTwits
Wong's International Hldgs reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wong's International Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 4.3%.
- CAPEX is quite volatile: 47.0 in 2015, 43.2 in 2014, 94.3 in 2013, 31.2 in 2012, 39.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.1%
- It operates with high leverage: Net Debt/EBITDA is 0.8x while industry average is -3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wong's International Hldgs ($99) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,917 | 3,343 | 3,718 | 4,124 | 3,801 | -7.8% |
| EBITDA | 206 | 131 | 149 | 288 | 255 | -11.4% |
| Net Income | 177 | 100 | 78 | 617 | 598 | -3.0% |
Balance Sheet
|
|---|
| Cash | 681 | 802 | 675 | 656 | 808 | 23.2% |
| Short Term Debt | 311 | 348 | 652 | 636 | 592 | -6.9% |
| Long Term Debt | 0 | 0 | 420 | 420 | 420 | 0.0% |
Cash flow
|
|---|
| Capex | 39 | 31 | 94 | 43 | 47 | 8.7% |
Ratios
|
|---|
| Revenue growth | -0.7% | -14.7% | 11.2% | 10.9% | -7.8% | |
| EBITDA growth | -20.6% | -36.4% | 13.9% | 93.0% | -11.4% | |
| EBITDA Margin | 5.3% | 3.9% | 4.0% | 7.0% | 6.7% | -0.3% |
| Net Income Margin | 4.5% | 3.0% | 2.1% | 15.0% | 15.7% | 0.8% |
| CAPEX, % of revenue | 1.0% | 0.9% | 2.5% | 1.0% | 1.2% | 0.2% |
| ROIC | 9.5% | 5.1% | 4.8% | 8.5% | 6.1% | -2.4% |
| ROE | 13.2% | 6.8% | 5.0% | 33.1% | 25.0% | -8.1% |
| Net Debt/EBITDA | -1.8x | -3.5x | 2.7x | 1.4x | 0.8x | -0.6x |
Revenue and profitability
Wong's International Hldgs's Revenue decreased on 7.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 24.5 pp from 33.5% to 58.0% in 2015.
Net Income marign increased slightly on 0.79 pp from 15.0% to 15.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.2%. Wong's International Hldgs's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at good ROE (25.02%) while ROIC is low (6.13%). ROIC decreased on 2.4 pp from 8.5% to 6.1% in 2015. ROE decreased on 8.1 pp from 33.1% to 25.0% in 2015.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 4.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 1.4x to 0.8x in 2015. Debt decreased on 4.1% in 2015 while cash jumped on 23.2% in 2015.
Management team
Wong's International Hldgs's CEO is Wong Chung Mat "Ben". Wong Chung Mat "Ben" has 15 years tenure at the company. The company's CFO is Lam Sek-Sung "Patrick". Lam Sek-Sung "Patrick" has 11 years tenure at the company.
Appendix 1: Peers in Computers
Below you can find Wong's International Hldgs benchmarking vs. other companies in Computers 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 |
|---|
| 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% | -1.8% | 7.3% | 3.9% |
|---|
| Wong's International Hldgs ($99) | | -14.7% | 11.2% | 10.9% | -7.8% |
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% |
| Computer & Technologies Holdings Ltd ($46) | 27.4% | 45.3% | 54.0% | 52.1% | 54.2% |
| 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% |
| |
|---|
| Median (23 companies) | 11.1% | 13.2% | 16.6% | 15.6% | 24.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Computer & Technologies Holdings Ltd ($46) | 4.8% | 12.9% | 19.9% | 20.1% | 23.2% |
| 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% | |
| |
|---|
| Median (24 companies) | 2.5% | 2.8% | 2.2% | -1.5% | 4.6% |
|---|
| Wong's International Hldgs ($99) | 5.3% | 3.9% | 4.0% | 7.0% | 6.7% |
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% | 110.2% |
| 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% | 1.3% | 2.1% | 1.0% |
|---|
| Wong's International Hldgs ($99) | 1.0% | 0.9% | 2.5% | 1.0% | 1.2% |
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% |
| Computer & Technologies Holdings Ltd ($46) | 4.1% | 6.0% | 8.6% | 9.4% | 10.8% |
| |
|---|
| Median (25 companies) | 3.7% | 0.9% | -0.2% | -1.4% | 4.2% |
|---|
| Wong's International Hldgs ($99) | 9.5% | 5.1% | 4.8% | 8.5% | 6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thiz Technology Group Ltd ($8119) | | | | | 8.2x |
| Ju Teng International Holdings Ltd ($3336) | 2.5x | 2.1x | 1.8x | 1.7x | 1.6x |
| Proview International Holdings Ltd ($334) | | | | | 1.0x |
| TPV Technology Ltd ($903) | 0.5x | -0.2x | 0.6x | -0.0x | 0.3x |
| Lenovo Group Ltd ($992) | -4.8x | -4.9x | -2.8x | -2.5x | 0.1x |
| |
|---|
| Median (10 companies) | -1.6x | -2.1x | -2.1x | -4.1x | -1.5x |
|---|
| Wong's International Hldgs ($99) | -1.8x | -3.5x | 2.7x | 1.4x | 0.8x |
