Shinhint Acoustic Link Holdings Ltd reports 759% revenue growth in 2015 and 1.7 pp EBITDA Margin decline from 2.0% to 0.26%
30/03/2016 • About Shinhint Acoustic Link Holdings Ltd (
$2728) • By InTwits
Shinhint Acoustic Link Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shinhint Acoustic Link Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.7%
- EBITDA Margin is quite volatile: 0.3% in 2015, 2.0% in 2014, 4.7% in 2013, 6.5% in 2012, -2.0% in 2011
- Shinhint Acoustic Link Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 50.9%.
- CAPEX is quite volatile: 111 in 2015, 3.1 in 2014, 7.3 in 2013, 7.0 in 2012, 26.7 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.7%
- It operates with high leverage: Net Debt/EBITDA is 8.8x 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.
Shinhint Acoustic Link Holdings Ltd ($2728) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,151 | 398 | 434 | 551 | 4,736 | 759.3% |
| Gross Profit | 79 | 36 | 31 | 43 | 118 | 174.1% |
| SG&A | | 29 | 26 | 35 | 109 | 216.1% |
| EBITDA | -23 | 26 | 20 | 11 | 12 | 11.1% |
| Net Income | -36 | -33 | 6 | 8 | -10 | -234.3% |
Balance Sheet
|
|---|
| Cash | 87 | 87 | 50 | 228 | 31 | -86.4% |
| Short Term Debt | 30 | 15 | 0 | 0 | 137 | 274,478.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 27 | 7 | 7 | 3 | 111 | 3,465.7% |
Ratios
|
|---|
| Revenue growth | 8.9% | -65.4% | 8.8% | 27.1% | 759.3% | |
| EBITDA growth | -170.1% | -212.4% | -20.9% | -46.4% | 11.1% | |
| Gross Margin | 6.9% | 9.0% | 7.1% | 7.8% | 2.5% | -5.3% |
| EBITDA Margin | -2.0% | 6.5% | 4.7% | 2.0% | 0.3% | -1.7% |
| Net Income Margin | -3.1% | -8.4% | 1.3% | 1.4% | -0.2% | -1.6% |
| SG&A, % of revenue | | 7.4% | 6.0% | 6.3% | 2.3% | -4.0% |
| CAPEX, % of revenue | 2.3% | 1.7% | 1.7% | 0.6% | 2.3% | 1.8% |
| ROIC | -12.4% | 1.5% | 0.9% | 2.2% | 1.7% | -0.5% |
| ROE | -11.6% | -12.3% | 2.2% | 2.9% | -3.3% | -6.1% |
| Net Debt/EBITDA | | -2.8x | -2.5x | -20.8x | 8.8x | 29.6x |
Revenue and profitability
The company's Revenue jumped on 759% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from 2.0% to 0.26% in 2015.
Gross Margin decreased on 5.3 pp from 7.8% to 2.5% in 2015. SG&A as a % of Revenue decreased on 4.0 pp from 6.3% to 2.3% in 2015.
Net Income marign decreased slightly on 1.6 pp from 1.4% to -0.21% in 2015.
Capital expenditures (CAPEX) and working capital investments
Shinhint Acoustic Link Holdings Ltd's CAPEX/Revenue was 2.3% in 2015. CAPEX/Revenue increased slightly on 0.59 pp from 1.7% in 2012 to 2.3% in 2015. It's average CAPEX/Revenue for the last three years was 1.5%.The company has spent a lot to CAPEX (911% of EBITDA) to secure its growth.
Return on investment
The company operates at low but positive ROIC (1.71%) and negative ROE (-3.27%). ROIC decreased slightly on 0.54 pp from 2.2% to 1.7% in 2015. ROE decreased on 6.1 pp from 2.9% to -3.3% in 2015.
Leverage (Debt)
Debt level is 8.8x Net Debt / EBITDA and 11.3x Debt / EBITDA. Net Debt / EBITDA surged on 29.6x from -20.8x to 8.8x in 2015. Debt surged on 190,579% in 2015 while cash dropped on 86.4% in 2015.
Appendix 1: Peers in Computers
Below we provide Shinhint Acoustic Link Holdings 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% |
| 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% |
| Peking University Resources Holdings Co Ltd ($618) | | -49.6% | 11.2% | 106.0% | 25.1% |
| |
|---|
| Median (22 companies) | 40.6% | 6.5% | -1.8% | 7.2% | 0.0% |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | | -65.4% | 8.8% | 27.1% | 759.3% |
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) | 13.2% | 14.2% | 17.0% | 17.2% | 19.5% |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | 6.9% | 9.0% | 7.1% | 7.8% | 2.5% |
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) | 3.0% | 2.8% | 2.2% | -1.5% | 5.2% |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | -2.0% | 6.5% | 4.7% | 2.0% | 0.3% |
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% | 2.1% | 1.4% |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | 2.3% | 1.7% | 1.7% | 0.6% | 2.3% |
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) | 3.9% | 1.5% | 0.3% | -1.4% | 3.4% |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | -12.4% | 1.5% | 0.9% | 2.2% | 1.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thiz Technology Group Ltd ($8119) | | | | | 8.2x |
| Powerleader Science & Technology Group Ltd ($8236) | 2.0x | 2.7x | 3.6x | 4.6x | 6.7x |
| EVOC Intelligent Technology Co Ltd ($2308) | 6.4x | 0.5x | 5.8x | 5.7x | 5.4x |
| 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 | -2.1x | -1.3x | -3.2x | 0.3x |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | | -2.8x | -2.5x | -20.8x | 8.8x |
