Asia Tele-Net & Technology Corp Ltd Net Income jumped on 193% in 2015 while Revenue dropped on 24.1%
30/03/2016 • About Asia Tele-Net & Technology Corp Ltd (
$679) • By InTwits
Asia Tele-Net & Technology Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asia Tele-Net & Technology Corp Ltd is a company in decline: 2015 revenue growth was -24.1%, 5 years revenue CAGR was -6.3%
- The company operates at negative EBITDA Margin: -1.1%
- EBITDA Margin is quite volatile: -1.1% in 2015, 3.2% in 2014, 3.9% in 2013, -1.3% in 2012, -0.5% in 2011
- Asia Tele-Net & Technology Corp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has unprofitable business model: ROIC is at -2.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asia Tele-Net & Technology Corp Ltd ($679) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 606.4 | 382.8 | 470.8 | 558.3 | 423.8 | -24.1% |
| Gross Profit | 119.5 | 103.9 | 131.3 | 113.5 | 87.8 | -22.6% |
| SG&A | | 116.1 | 114.9 | 105.5 | 100.3 | -5.0% |
| EBITDA | -3.2 | -5.1 | 18.5 | 18.1 | -4.7 | -126.1% |
| Net Income | -37.7 | -21.6 | 8.6 | 9.9 | 29.0 | 193.3% |
Balance Sheet
|
|---|
| Cash | 151.6 | 159.7 | 221.7 | 94.6 | 128.6 | 36.0% |
| Short Term Debt | 8.9 | 0.5 | 6.8 | 2.0 | 22.8 | 1,053.6% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 7.0 | 2.6 | 0.6 | 1.3 | 6.4 | 403.7% |
Ratios
|
|---|
| Revenue growth | 3.5% | -36.9% | 23.0% | 18.6% | -24.1% | |
| EBITDA growth | -107.2% | 61.9% | -460.1% | -2.1% | -126.1% | |
| Gross Margin | 19.7% | 27.1% | 27.9% | 20.3% | 20.7% | 0.4% |
| EBITDA Margin | -0.5% | -1.3% | 3.9% | 3.2% | -1.1% | -4.4% |
| Net Income Margin | -6.2% | -5.6% | 1.8% | 1.8% | 6.8% | 5.1% |
| SG&A, % of revenue | | 30.3% | 24.4% | 18.9% | 23.7% | 4.8% |
| CAPEX, % of revenue | 1.2% | 0.7% | 0.1% | 0.2% | 1.5% | 1.3% |
| ROIC | -3.9% | -4.7% | 3.1% | 3.0% | -2.8% | -5.8% |
| ROE | -12.7% | -7.9% | 3.2% | 3.5% | 9.9% | 6.4% |
| Net Debt/EBITDA | | | -11.6x | -5.1x | | 5.1x |
Revenue and profitability
The company's Revenue dropped on 24.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.8 pp from -23.9% to -18.1% in FY2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 4.8 pp from 18.9% to 23.7% in 2015.
Net Income marign increased on 5.1 pp from 1.8% to 6.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.5% in 2015. Asia Tele-Net & Technology Corp Ltd showed small growth in CAPEX/Revenue of 0.85 pp from 0.67% in 2012 to 1.5% in 2015. For the last three years the average CAPEX/Revenue was 0.63%.
Return on investment
The company operates at negative ROIC (-2.81%) and low but positive ROE (9.86%). ROIC decreased on 5.8 pp from 3.0% to -2.8% in 2015. ROE increased on 6.4 pp from 3.5% to 9.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.2x and Debt / EBITDA is . Net Debt / EBITDA jumped on 5.1x from -5.1x to in 2015. Debt jumped on 1,054% in 2015 while cash surged on 36.0% in 2015.
Appendix 1: Peers in Machinery-Diversified
Below you can find Asia Tele-Net & Technology Corp Ltd benchmarking vs. other companies in Machinery-Diversified 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 |
|---|
| Sun East Technology Holdings Ltd ($365) | | -25.1% | -10.7% | 39.3% | 6.4% |
| Shanghai Prime Machinery Co Ltd ($2345) | | 2.6% | -8.9% | 37.3% | 52.8% |
| Sinoref Holdings Ltd ($1020) | 1.5% | -0.2% | -42.2% | 29.2% | |
| North Asia Strategic Holdings Ltd ($8080) | | -52.2% | -29.1% | 23.7% | 42.6% |
| Huazhang Technology Holding Ltd ($1673) | | 131.6% | 9.5% | 22.9% | 23.5% |
| |
|---|
| Median (23 companies) | 19.3% | -3.6% | -4.2% | -1.5% | -3.0% |
|---|
| Asia Tele-Net & Technology Corp Ltd ($679) | | -36.9% | 23.0% | 18.6% | -24.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jingwei Textile Machinery ($350) | 38.3% | 49.1% | 51.7% | 54.9% | 65.5% |
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | 45.5% | 59.7% | 58.3% | 48.6% | 26.7% |
| Renheng Enterprise Holdings Ltd ($3628) | 36.4% | 44.3% | 44.8% | 45.4% | |
| Haitian International Holdings Ltd ($1882) | 29.7% | 30.1% | 31.6% | 32.4% | 33.0% |
| CHTC Fong's Industries Co Ltd ($641) | 26.5% | 24.4% | 30.0% | 32.3% | 31.2% |
| |
|---|
| Median (23 companies) | 24.2% | 23.8% | 21.5% | 18.7% | 21.0% |
|---|
| Asia Tele-Net & Technology Corp Ltd ($679) | 19.7% | 27.1% | 27.9% | 20.3% | 20.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | 31.1% | 46.8% | 48.7% | 46.6% | -134.1% |
| Jingwei Textile Machinery ($350) | 18.5% | 24.0% | 26.9% | 28.0% | 28.5% |
| Haitian International Holdings Ltd ($1882) | 20.5% | 19.7% | 20.7% | 21.9% | 22.8% |
| Renheng Enterprise Holdings Ltd ($3628) | 22.9% | 24.7% | 23.9% | 20.7% | |
| Good Friend International Holdings Inc ($2398) | 11.7% | 6.7% | 9.1% | 12.9% | |
| |
|---|
| Median (23 companies) | 9.7% | 10.9% | 8.7% | 8.7% | 5.7% |
|---|
| Asia Tele-Net & Technology Corp Ltd ($679) | -0.5% | -1.3% | 3.9% | 3.2% | -1.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China High Precision Automation Group Ltd ($591) | 33.0% | 20.5% | 9.1% | 18.4% | 0.6% |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 14.9% | 20.5% | 20.3% | 11.6% | 15.6% |
| LK Technology Holdings Ltd ($558) | 7.6% | 9.3% | 10.2% | 9.1% | 5.6% |
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | 1.3% | 2.3% | 10.1% | 7.8% | 31.9% |
| First Tractor Co Ltd ($38) | 6.3% | 4.9% | 4.3% | 7.3% | 4.3% |
| |
|---|
| Median (23 companies) | 6.1% | 4.2% | 4.3% | 4.5% | 3.6% |
|---|
| Asia Tele-Net & Technology Corp Ltd ($679) | 1.2% | 0.7% | 0.1% | 0.2% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wuxi Sunlit Science and Technology Co Ltd ($1289) | | 52.8% | 28.7% | 20.8% | -14.5% |
| Haitian International Holdings Ltd ($1882) | 26.8% | 19.8% | 21.2% | 19.4% | 16.3% |
| Jingwei Textile Machinery ($350) | 23.3% | 19.4% | 20.9% | 17.4% | 14.9% |
| Huazhang Technology Holding Ltd ($1673) | | 29.6% | 16.2% | 16.3% | 16.2% |
| Good Friend International Holdings Inc ($2398) | 20.0% | 6.5% | 8.7% | 12.1% | |
| |
|---|
| Median (23 companies) | 9.9% | 7.9% | 4.3% | 2.6% | 1.9% |
|---|
| Asia Tele-Net & Technology Corp Ltd ($679) | -3.9% | -4.7% | 3.1% | 3.0% | -2.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First Tractor Co Ltd ($38) | 1.1x | 0.5x | 2.5x | 9.2x | 6.3x |
| Shanghai Prime Machinery Co Ltd ($2345) | -0.0x | -0.6x | 0.3x | 6.0x | 3.2x |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 1.9x | 3.0x | 11.4x | 5.6x | 129.4x |
| Honghua Group Ltd ($196) | 0.1x | 1.2x | 3.2x | 5.2x | 14.2x |
| LK Technology Holdings Ltd ($558) | 0.9x | 2.5x | 5.1x | 4.9x | 4.6x |
| |
|---|
| Median (19 companies) | -0.4x | -0.7x | 0.1x | -0.3x | 1.4x |
|---|
| Asia Tele-Net & Technology Corp Ltd ($679) | | | -11.6x | -5.1x | |
