EVOC Intelligent Technology Co Ltd reports 92.1% Net Income growth while 37.6% Revenue decline
30/03/2016 • About EVOC Intelligent Technology Co Ltd (
$2308) • By InTwits
EVOC Intelligent Technology Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EVOC Intelligent Technology Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.2%. At the same time it's a lot of higher than industry average of 6.4%.
- CAPEX is quite volatile: 110 in 2015, 91.9 in 2014, 183 in 2013, 169 in 2012, 274 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.4%
- It operates with high leverage: Net Debt/EBITDA is 5.4x while industry average is -1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
EVOC Intelligent Technology Co Ltd ($2308) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,111 | 1,162 | 1,815 | 2,313 | 1,444 | -37.6% |
| Gross Profit | 228 | 191 | 280 | 240 | 219 | -8.7% |
| SG&A | | 92 | 96 | 87 | 86 | -1.2% |
| EBITDA | 120 | 100 | 210 | 199 | 208 | 4.4% |
| Net Income | 94 | 93 | 49 | 120 | 230 | 92.1% |
Balance Sheet
|
|---|
| Cash | 245 | 1,550 | 444 | 252 | 419 | 66.3% |
| Short Term Debt | 519 | 909 | 939 | 921 | 1,219 | 32.3% |
| Long Term Debt | 493 | 689 | 729 | 470 | 315 | -32.9% |
Cash flow
|
|---|
| Capex | 274 | 169 | 183 | 92 | 110 | 19.6% |
Ratios
|
|---|
| Revenue growth | -13.0% | 4.6% | 56.2% | 27.4% | -37.6% | |
| EBITDA growth | -7.6% | -16.4% | 109.7% | -5.2% | 4.4% | |
| Gross Margin | 20.5% | 16.4% | 15.4% | 10.4% | 15.2% | 4.8% |
| EBITDA Margin | 10.8% | 8.6% | 11.6% | 8.6% | 14.4% | 5.8% |
| Net Income Margin | 8.4% | 8.0% | 2.7% | 5.2% | 15.9% | 10.7% |
| SG&A, % of revenue | | 8.0% | 5.3% | 3.8% | 6.0% | 2.2% |
| CAPEX, % of revenue | 24.7% | 14.6% | 10.1% | 4.0% | 7.6% | 3.6% |
| ROIC | 3.8% | 2.7% | 6.2% | 5.7% | 5.4% | -0.3% |
| ROE | 10.2% | 9.1% | 4.3% | 9.1% | 14.4% | 5.3% |
| Net Debt/EBITDA | 6.4x | 0.5x | 5.8x | 5.7x | 5.4x | -0.4x |
Revenue and profitability
EVOC Intelligent Technology Co Ltd's Revenue dropped on 37.6% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.8 pp from 8.6% to 14.4% in 2015.
Gross Margin increased on 4.8 pp from 10.4% to 15.2% in 2015. SG&A as a % of Revenue increased on 2.2 pp from 3.8% to 6.0% in 2015.
Net Income marign surged on 10.7 pp from 5.2% to 15.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 7.6%. EVOC Intelligent Technology Co Ltd showed decline in CAPEX/Revenue of 6.9 pp from 14.6% in 2012 to 7.6% in 2015. It's average CAPEX/Revenue for the last three years was 7.2%.The company invested a big chunk of EBITDA (53.0%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at good ROE (14.41%) while ROIC is low (5.42%). ROIC showed almost no change in 2015. ROE increased on 5.3 pp from 9.1% to 14.4% in 2015.
Leverage (Debt)
Debt level is 5.4x Net Debt / EBITDA and 7.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 5.7x to 5.4x in 2015. Debt surged on 10.3% in 2015 while cash surged on 66.3% in 2015.
Appendix 1: Peers in Computers
Below you can find EVOC Intelligent Technology Co Ltd 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 |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | | -65.4% | 8.8% | 27.1% | 759.3% |
| Beautiful China Holdings Co Ltd ($706) | | -7.8% | -23.3% | -37.1% | 267.1% |
| Powerleader Science & Technology Group Ltd ($8236) | | 2.5% | -10.3% | 18.8% | 45.0% |
| 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% |
| |
|---|
| Median (22 companies) | 40.6% | 5.8% | -1.8% | 7.2% | 4.5% |
|---|
| EVOC Intelligent Technology Co Ltd ($2308) | | 4.6% | 56.2% | 27.4% | -37.6% |
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 (22 companies) | 11.0% | 12.7% | 17.0% | 17.2% | 19.5% |
|---|
| EVOC Intelligent Technology Co Ltd ($2308) | 20.5% | 16.4% | 15.4% | 10.4% | 15.2% |
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 (23 companies) | 2.5% | 2.8% | 2.2% | -1.5% | 3.9% |
|---|
| EVOC Intelligent Technology Co Ltd ($2308) | 10.8% | 8.6% | 11.6% | 8.6% | 14.4% |
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 (23 companies) | 1.3% | 1.0% | 1.3% | 1.6% | 1.4% |
|---|
| EVOC Intelligent Technology Co Ltd ($2308) | 24.7% | 14.6% | 10.1% | 4.0% | 7.6% |
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 (23 companies) | 3.8% | 0.9% | -0.2% | -1.4% | 2.3% |
|---|
| EVOC Intelligent Technology Co Ltd ($2308) | 3.8% | 2.7% | 6.2% | 5.7% | 5.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | | -2.8x | -2.5x | -20.8x | 8.8x |
| Thiz Technology Group Ltd ($8119) | | | | | 8.2x |
| Powerleader Science & Technology Group Ltd ($8236) | 2.0x | 2.7x | 3.6x | 4.6x | 6.7x |
| Perception Digital Holdings Ltd ($1822) | | | | | 1.8x |
| Ju Teng International Holdings Ltd ($3336) | 2.5x | 2.1x | 1.8x | 1.7x | 1.6x |
| |
|---|
| Median (15 companies) | -1.7x | -2.5x | -2.1x | -4.1x | 0.3x |
|---|
| EVOC Intelligent Technology Co Ltd ($2308) | 6.4x | 0.5x | 5.8x | 5.7x | 5.4x |
