SAS Dragon Hldg Ltd Net Debt / EBITDA dropped on 1.5x from 6.4x to 4.8x in 2015 and Debt dropped on 16.5%
29/03/2016 • About SAS Dragon Hldg Ltd (
$1184) • By InTwits
SAS Dragon Hldg Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 2.0% in 2015 vs. 1.9% in 2014 vs. 1.6% in 2011
- SAS Dragon Hldg Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has business model with low profitability: ROIC is at 7.1%
- It operates with high leverage: Net Debt/EBITDA is 4.8x while industry average is 1.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SAS Dragon Hldg Ltd ($1184) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,553 | 6,319 | 10,798 | 10,605 | 11,262 | 6.2% |
| Gross Profit | 263 | 271 | 443 | 405 | 428 | 5.7% |
| SG&A | 185 | 190 | 218 | 213 | 260 | 21.8% |
| EBITDA | 91 | 100 | 238 | 204 | 226 | 11.0% |
| Net Income | 102 | 91 | 172 | 145 | 81 | -44.6% |
Balance Sheet
|
|---|
| Cash | 649 | 408 | 615 | 803 | 658 | -18.0% |
| Short Term Debt | 896 | 1,121 | 1,102 | 2,098 | 1,751 | -16.5% |
| Long Term Debt | 11 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 19 | 38 | 27 | 10 | 250 | 2,383.7% |
Ratios
|
|---|
| Revenue growth | 27.2% | 13.8% | 70.9% | -1.8% | 6.2% | |
| EBITDA growth | -22.0% | 9.7% | 137.7% | -14.4% | 11.0% | |
| Gross Margin | 4.7% | 4.3% | 4.1% | 3.8% | 3.8% | -0.0% |
| EBITDA Margin | 1.6% | 1.6% | 2.2% | 1.9% | 2.0% | 0.1% |
| Net Income Margin | 1.8% | 1.4% | 1.6% | 1.4% | 0.7% | -0.7% |
| SG&A, % of revenue | 3.3% | 3.0% | 2.0% | 2.0% | 2.3% | 0.3% |
| CAPEX, % of revenue | 0.3% | 0.6% | 0.3% | 0.1% | 2.2% | 2.1% |
| ROIC | 5.4% | 5.0% | 11.5% | 7.3% | 7.1% | -0.2% |
| ROE | 19.3% | 15.2% | 24.7% | 17.7% | 9.1% | -8.6% |
| Net Debt/EBITDA | 2.8x | 7.1x | 2.0x | 6.4x | 4.8x | -1.5x |
Revenue and profitability
SAS Dragon Hldg Ltd's Revenue increased on 6.2% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.0 pp from 24.7% to 26.7% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 0.66 pp from 1.4% to 0.72% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.2%. The company's CAPEX/Revenue increased slightly on 1.6 pp from 0.60% in 2012 to 2.2% in 2015. Average CAPEX/Revenue for the last three years was 0.85%.SAS Dragon Hldg Ltd maintained rich investment policy and has spent a lot to CAPEX (111% of EBITDA).
Return on investment
The company operates at low ROIC (7.10%) and ROE (9.13%). ROIC showed almost no change in 2015. ROE decreased on 8.6 pp from 17.7% to 9.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.8x and Debt / EBITDA is 7.7x. Net Debt / EBITDA dropped on 1.5x from 6.4x to 4.8x in 2015. Debt dropped on 16.5% in 2015 while cash dropped on 18.0% in 2015.
Appendix 1: Peers in Electronics
Below we provide SAS Dragon Hldg 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 |
|---|
| GCL New Energy Holdings Ltd ($451) | | 14.7% | -6.8% | 10.9% | 53.9% |
| Tech Pro Technology Development Ltd ($3823) | | 7.4% | -44.9% | -13.7% | 52.4% |
| Nanjing Sample Technology Co Ltd ($1708) | | 36.1% | 8.0% | 15.4% | 34.8% |
| AAC Technologies Holdings Inc ($2018) | | 54.8% | 28.9% | 9.7% | 32.2% |
| Ningbo Wanhao Holdings Co Ltd ($8249) | | 5.7% | 412.4% | -6.9% | 28.9% |
| |
|---|
| Median (42 companies) | 5.5% | -1.0% | 3.6% | 7.2% | 0.4% |
|---|
| SAS Dragon Hldg Ltd ($1184) | | 13.8% | 70.9% | -1.8% | 6.2% |
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% |
| Hi Sun Technology China Ltd ($818) | 20.8% | 28.1% | 37.4% | 33.3% | 34.7% |
| Datronix Holdings Ltd ($889) | 41.3% | 32.9% | 32.0% | 34.1% | 34.6% |
| |
|---|
| Median (40 companies) | 13.6% | 14.1% | 13.8% | 14.1% | 16.8% |
|---|
| SAS Dragon Hldg Ltd ($1184) | 4.7% | 4.3% | 4.1% | 3.8% | 3.8% |
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% |
| GCL New Energy Holdings Ltd ($451) | 12.1% | 10.8% | 11.1% | 12.6% | 33.0% |
| Daiwa Associate Holdings ($1037) | 1.6% | 2.4% | 3.8% | 2.8% | 25.6% |
| Wasion Group Holdings Ltd ($3393) | 18.9% | 18.8% | 21.2% | 22.0% | 19.3% |
| Tongda Group Holdings Ltd ($698) | 15.3% | 17.1% | 16.8% | 18.4% | 18.9% |
| |
|---|
| Median (42 companies) | 9.3% | 7.4% | 7.6% | 5.4% | 7.4% |
|---|
| SAS Dragon Hldg Ltd ($1184) | 1.6% | 1.6% | 2.2% | 1.9% | 2.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| GCL New Energy Holdings Ltd ($451) | 11.1% | 5.5% | 5.1% | 5.4% | 401.2% |
| National Electronic Hldgs ($213) | 14.9% | 3.4% | 18.1% | 7.1% | 49.7% |
| Irico Group Electronics Co Ltd ($438) | 92.0% | 39.9% | 30.4% | 17.4% | 25.8% |
| Kingwell Group Ltd ($1195) | 26.2% | 8.6% | 5.4% | 5.3% | 21.4% |
| AAC Technologies Holdings Inc ($2018) | 25.9% | 18.7% | 8.7% | 19.6% | 18.4% |
| |
|---|
| Median (42 companies) | 3.5% | 3.9% | 3.2% | 4.2% | 3.3% |
|---|
| SAS Dragon Hldg Ltd ($1184) | 0.3% | 0.6% | 0.3% | 0.1% | 2.2% |
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% |
| Tongda Group Holdings Ltd ($698) | 14.3% | 15.2% | 13.5% | 16.5% | 16.3% |
| Varitronix International Ltd ($710) | 11.7% | 8.7% | 17.5% | 11.4% | 11.6% |
| Trigiant Group Ltd ($1300) | 17.9% | 17.8% | 18.3% | 15.2% | 11.2% |
| |
|---|
| Median (42 companies) | 5.9% | 4.3% | 3.5% | 3.0% | 2.9% |
|---|
| SAS Dragon Hldg Ltd ($1184) | 5.4% | 5.0% | 11.5% | 7.3% | 7.1% |
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 | |
| Willas-Array Electronics Holdings Ltd ($854) | 2.8x | 2.2x | 2.6x | 5.7x | 5.4x |
| Pine Technology Holdings Ltd ($1079) | | 8.0x | 3.3x | 4.9x | |
| |
|---|
| Median (36 companies) | 0.6x | 1.0x | 1.1x | 0.8x | 0.4x |
|---|
| SAS Dragon Hldg Ltd ($1184) | 2.8x | 7.1x | 2.0x | 6.4x | 4.8x |
