Tech Pro Technology Development Ltd revenue returned to growth in 2015: increased 52.4% vs. 13.7% decline a year earliner
24/03/2016 • About Tech Pro Technology Development Ltd (
$3823) • By InTwits
Tech Pro Technology Development Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tech Pro Technology Development Ltd doesn't have a profitable business model yet: 2015 ROIC is -25.5%
- The company operates at negative EBITDA Margin: -98.2%
- Tech Pro Technology Development Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -38.5% for the sames years0
- Tech Pro Technology Development Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.3%. At the same time it's in pair with industry average of 13.4%.
- CAPEX is quite volatile: 16.9 in 2015, 22.2 in 2014, 21.9 in 2013, 22.9 in 2012, 92.8 in 2011
- The company has unprofitable business model: ROIC is at -25.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tech Pro Technology Development Ltd ($3823) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 282.6 | 303.6 | 167.2 | 144.3 | 220.0 | 52.4% |
| Gross Profit | 66.5 | 89.8 | 72.4 | 39.6 | 66.2 | 67.3% |
| SG&A | 52.6 | 35.6 | 50.3 | 74.9 | 175.4 | 134.3% |
| EBITDA | 43.6 | 66.1 | -159.4 | -164.3 | -216.0 | 31.4% |
| Net Income | -48.8 | -119.7 | -245.5 | -216.9 | -192.2 | -11.4% |
Balance Sheet
|
|---|
| Cash | 30.4 | 65.1 | 42.5 | 33.4 | 128.6 | 285.5% |
| Short Term Debt | 231.9 | 301.2 | 69.0 | 78.0 | 0.6 | -99.2% |
| Long Term Debt | 120.8 | 57.6 | 0.7 | 0.4 | 0.7 | 95.0% |
Cash flow
|
|---|
| Capex | 92.8 | 22.9 | 21.9 | 22.2 | 16.9 | -23.9% |
Ratios
|
|---|
| Revenue growth | -33.2% | 7.4% | -44.9% | -13.7% | 52.4% | |
| EBITDA growth | -405.4% | 51.6% | -341.1% | 3.1% | 31.4% | |
| Gross Margin | 23.5% | 29.6% | 43.3% | 27.4% | 30.1% | 2.7% |
| EBITDA Margin | 15.4% | 21.8% | -95.3% | -113.9% | -98.2% | 15.7% |
| Net Income Margin | -17.3% | -39.4% | -146.8% | -150.3% | -87.4% | 62.9% |
| SG&A, % of revenue | 18.6% | 11.7% | 30.1% | 51.9% | 79.7% | 27.9% |
| CAPEX, % of revenue | 32.8% | 7.6% | 13.1% | 15.4% | 7.7% | -7.7% |
| ROIC | -2.8% | -2.7% | -19.0% | -21.6% | -25.5% | -3.9% |
| ROE | -10.7% | -16.9% | -35.5% | -28.9% | -21.7% | 7.1% |
| Net Debt/EBITDA | 7.4x | 4.4x | | | | 0.0x |
Revenue and profitability
The company's Revenue surged on 52.4% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 15.7 pp from -114% to -98.2% in 2015.
Gross Margin increased on 2.7 pp from 27.4% to 30.1% in 2015. SG&A as a % of Revenue surged on 27.9 pp from 51.9% to 79.7% in 2015.
Net Income marign jumped on 62.9 pp from -150% to -87.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Tech Pro Technology Development Ltd had CAPEX/Revenue of 7.7%. Tech Pro Technology Development Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 12.0%.
Return on investment
The company operates at negative ROIC (-25.48%) and ROE (-21.72%). ROIC decreased on 3.9 pp from -21.6% to -25.5% in 2015. ROE increased on 7.1 pp from -28.9% to -21.7% in 2015.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt dropped on 98.3% in 2015 while cash surged on 286% in 2015.
Appendix 1: Peers in Electronics
Below we provide Tech Pro Technology Development 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) | | 11.6% | -23.0% | 104.1% | -72.7% |
| Q Technology Group Co Ltd ($1478) | | 125.0% | 121.2% | 53.2% | 1.9% |
| 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% |
| |
|---|
| Median (50 companies) | 7.1% | -1.0% | 4.1% | 7.2% | -0.2% |
|---|
| Tech Pro Technology Development Ltd ($3823) | | 7.4% | -44.9% | -13.7% | 52.4% |
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 (48 companies) | 13.4% | 13.6% | 13.8% | 13.9% | 16.6% |
|---|
| Tech Pro Technology Development Ltd ($3823) | 23.5% | 29.6% | 43.3% | 27.4% | 30.1% |
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% |
| Nanjing Sample Technology Co Ltd ($1708) | 31.5% | 26.8% | 21.1% | 22.3% | 15.7% |
| 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% |
| |
|---|
| Median (50 companies) | 9.0% | 6.5% | 7.6% | 5.4% | 6.7% |
|---|
| Tech Pro Technology Development Ltd ($3823) | 15.4% | 21.8% | -95.3% | -113.9% | -98.2% |
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% | 18.4% |
| Irico Group Electronics Co Ltd ($438) | 92.0% | 39.9% | 30.4% | 17.4% | 25.8% |
| Nanjing Sample Technology Co Ltd ($1708) | 3.7% | 23.9% | 15.5% | 12.0% | 2.7% |
| Tongda Group Holdings Ltd ($698) | 5.7% | 7.8% | 4.9% | 11.4% | 16.2% |
| |
|---|
| Median (50 companies) | 3.3% | 3.7% | 3.0% | 3.7% | 2.9% |
|---|
| Tech Pro Technology Development Ltd ($3823) | 32.8% | 7.6% | 13.1% | 15.4% | 7.7% |
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% | |
| Q Technology Group Co Ltd ($1478) | | 46.8% | 36.4% | 18.0% | 8.6% |
| |
|---|
| Median (50 companies) | 5.9% | 4.6% | 4.1% | 3.7% | 2.8% |
|---|
| Tech Pro Technology Development Ltd ($3823) | -2.8% | -2.7% | -19.0% | -21.6% | -25.5% |
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 (37 companies) | 0.6x | 1.0x | 1.1x | 0.8x | 0.1x |
|---|
