Powerleader Science & Technology Group Ltd revenue jumped on 45.0% in 2015 while EBITDA Margin decreased on 2.2 pp from 7.7% to 5.5%
29/03/2016 • About Powerleader Science & Technology Group Ltd (
$8236) • By InTwits
Powerleader Science & Technology Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Powerleader Science & Technology Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's in pair with industry average of 14.1%.
- CAPEX is quite volatile: 84.1 in 2015, 204 in 2014, 52.3 in 2013, 24.3 in 2012, 13.6 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.8%
- It operates with high leverage: Net Debt/EBITDA is 6.7x while industry average is -3.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Powerleader Science & Technology Group Ltd ($8236) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,696 | 1,737 | 1,558 | 1,851 | 2,684 | 45.0% |
| Gross Profit | 172 | 208 | 182 | 225 | 251 | 11.6% |
| SG&A | 83 | 116 | 97 | 109 | 135 | 23.5% |
| EBITDA | 135 | 138 | 107 | 143 | 147 | 3.1% |
| Net Income | 74 | 79 | 50 | 54 | 21 | -60.6% |
Balance Sheet
|
|---|
| Cash | 331 | 190 | 370 | 466 | 486 | 4.4% |
| Short Term Debt | 575 | 565 | 613 | 1,116 | 1,366 | 22.4% |
| Long Term Debt | 20 | 0 | 140 | 0 | 115 | |
Cash flow
|
|---|
| Capex | 14 | 24 | 52 | 204 | 84 | -58.8% |
Ratios
|
|---|
| Revenue growth | 53.3% | 2.5% | -10.3% | 18.8% | 45.0% | |
| EBITDA growth | 81.8% | 2.6% | -22.4% | 33.1% | 3.1% | |
| Gross Margin | 10.2% | 12.0% | 11.7% | 12.2% | 9.4% | -2.8% |
| EBITDA Margin | 8.0% | 8.0% | 6.9% | 7.7% | 5.5% | -2.2% |
| Net Income Margin | 4.4% | 4.5% | 3.2% | 2.9% | 0.8% | -2.1% |
| SG&A, % of revenue | 4.9% | 6.7% | 6.2% | 5.9% | 5.0% | -0.9% |
| CAPEX, % of revenue | 0.8% | 1.4% | 3.4% | 11.0% | 3.1% | -7.9% |
| ROIC | 8.8% | 8.7% | 5.6% | 6.5% | 4.8% | -1.7% |
| ROE | 12.8% | 11.7% | 6.9% | 7.0% | 2.6% | -4.4% |
| Net Debt/EBITDA | 2.0x | 2.7x | 3.6x | 4.6x | 6.7x | 2.2x |
Revenue and profitability
The company's Revenue surged on 45.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 10.1 pp from 13.4% to 3.3% in 2015.
Gross Margin decreased on 2.8 pp from 12.2% to 9.4% in 2015. SG&A as a % of Revenue decreased slightly on 0.88 pp from 5.9% to 5.0% in 2015.
Net Income marign decreased on 2.1 pp from 2.9% to 0.79% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.1% in 2015. The company showed small growth in CAPEX/Revenue of 1.7 pp from 1.4% in 2012 to 3.1% in 2015. It's average CAPEX/Revenue for the last three years was 5.8%.To maintain this fast growth the company invested a large share of EBITDA (57.1%) to CAPEX.
Return on investment
The company operates at low ROIC (4.84%) and ROE (2.61%). ROIC decreased slightly on 1.7 pp from 6.5% to 4.8% in 2015. ROE decreased on 4.4 pp from 7.0% to 2.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.7x and Debt / EBITDA is 10.0x. Net Debt / EBITDA jumped on 2.2x from 4.6x to 6.7x in 2015. Debt jumped on 32.7% in 2015 while cash increased on 4.4% in 2015.
Appendix 1: Peers in Computers
Below we provide Powerleader Science & Technology Group Ltd benchmarking against other companies in Computers 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 |
|---|
| Beautiful China Holdings Co Ltd ($706) | | -7.8% | -23.3% | -37.1% | 267.1% |
| 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% |
| Peking University Resources Holdings Co Ltd ($618) | | -49.6% | 11.2% | 106.0% | 25.1% |
| Perception Digital Holdings Ltd ($1822) | | -36.1% | -41.3% | 11.1% | 23.9% |
| |
|---|
| Median (19 companies) | 8.9% | 6.5% | 0.0% | 7.2% | 3.9% |
|---|
| Powerleader Science & Technology Group Ltd ($8236) | | 2.5% | -10.3% | 18.8% | 45.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Alibaba Health Information Technology Ltd ($241) | 10.1% | 11.4% | -12.6% | 49.3% | 53.7% |
| CCID Consulting Co Ltd ($8235) | 46.5% | 43.7% | 49.1% | 51.8% | 48.7% |
| Founder Holdings Ltd ($418) | 21.2% | 19.8% | 28.4% | 33.7% | 41.3% |
| |
|---|
| Median (19 companies) | 13.2% | 14.2% | 17.0% | 17.2% | 19.5% |
|---|
| Powerleader Science & Technology Group Ltd ($8236) | 10.2% | 12.0% | 11.7% | 12.2% | 9.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thiz Technology Group Ltd ($8119) | -39.1% | -47.4% | -847.3% | -506.6% | 74.0% |
| World Wide Touch Technology Holdings Ltd ($1282) | 14.0% | 3.4% | -6.4% | -6.4% | 35.7% |
| Ju Teng International Holdings Ltd ($3336) | 9.5% | 15.1% | 19.9% | 19.3% | 23.8% |
| Computer & Technologies Holdings Ltd ($46) | 4.8% | 12.9% | 19.9% | 20.1% | 23.2% |
| PAX Global Technology Ltd ($327) | 18.9% | 16.5% | 17.4% | 18.8% | 22.7% |
| |
|---|
| Median (20 companies) | 2.5% | 2.8% | 2.2% | -1.5% | 4.6% |
|---|
| Powerleader Science & Technology Group Ltd ($8236) | 8.0% | 8.0% | 6.9% | 7.7% | 5.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Beautiful China Holdings Co Ltd ($706) | 44.9% | 8.4% | 2.2% | 26.2% | 743.7% |
| North Asia Resources Holdings Ltd ($61) | 34.3% | 4.6% | 94.2% | 177.8% | 110.2% |
| China Uptown Group Co Ltd ($2330) | 0.0% | 0.0% | 0.2% | 1.0% | 20.5% |
| 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% |
| |
|---|
| Median (20 companies) | 1.6% | 1.0% | 1.3% | 1.6% | 1.3% |
|---|
| Powerleader Science & Technology Group Ltd ($8236) | 0.8% | 1.4% | 3.4% | 11.0% | 3.1% |
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% | 15.0% |
| 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 (20 companies) | 3.7% | 0.9% | -0.2% | -1.4% | 2.5% |
|---|
| Powerleader Science & Technology Group Ltd ($8236) | 8.8% | 8.7% | 5.6% | 6.5% | 4.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thiz Technology Group Ltd ($8119) | | | | | 8.2x |
| Perception Digital Holdings Ltd ($1822) | | | | | 1.8x |
| Ju Teng International Holdings Ltd ($3336) | 2.5x | 2.1x | 1.8x | 1.7x | 1.6x |
| Proview International Holdings Ltd ($334) | | | | | 1.0x |
| Wong's International Hldgs ($99) | -1.8x | -3.5x | 2.7x | 1.4x | 0.8x |
| |
|---|
| Median (13 companies) | -1.7x | -2.5x | -2.1x | -4.1x | 0.1x |
|---|
| Powerleader Science & Technology Group Ltd ($8236) | 2.0x | 2.7x | 3.6x | 4.6x | 6.7x |
