Arts Optical International Hldgs CAPEX jumped on 85.8% in 2015 while Revenue dropped on 13.2%
31/03/2016 • About Arts Optical International Hldgs (
$1120) • By InTwits
Arts Optical International Hldgs reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Arts Optical International Hldgs doesn't have a profitable business model yet: 2015 ROIC is -4.6%
- EBITDA Margin is quite volatile: 5.1% in 2015, 13.9% in 2014, 9.4% in 2013, 10.1% in 2012, 13.6% in 2011
- Arts Optical International Hldgs has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.6%. At the same time it's in pair with industry average of 14.8%.
- CAPEX is quite volatile: 414 in 2015, 223 in 2014, 65.9 in 2013, 206 in 2012, 86.7 in 2011
- The company has unprofitable business model: ROIC is at -4.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Arts Optical International Hldgs ($1120) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,547 | 1,475 | 1,463 | 1,593 | 1,382 | -13.2% |
| Gross Profit | 337 | 273 | 271 | 286 | 251 | -12.4% |
| SG&A | 240 | 242 | 253 | 299 | 344 | 15.0% |
| EBITDA | 210 | 149 | 138 | 221 | 71 | -67.9% |
| Net Income | 112 | 49 | 48 | -101 | -49 | -51.6% |
Balance Sheet
|
|---|
| Cash | 232 | 178 | 211 | 595 | 218 | -63.4% |
| Short Term Debt | 16 | 51 | 42 | 94 | 69 | -27.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 87 | 206 | 66 | 223 | 414 | 85.8% |
Ratios
|
|---|
| Revenue growth | 13.7% | -4.6% | -0.8% | 8.9% | -13.2% | |
| EBITDA growth | -10.2% | -29.1% | -7.6% | 60.4% | -67.9% | |
| Gross Margin | 21.8% | 18.5% | 18.5% | 18.0% | 18.2% | 0.2% |
| EBITDA Margin | 13.6% | 10.1% | 9.4% | 13.9% | 5.1% | -8.7% |
| Net Income Margin | 7.3% | 3.3% | 3.3% | -6.3% | -3.5% | 2.8% |
| SG&A, % of revenue | 15.5% | 16.4% | 17.3% | 18.8% | 24.9% | 6.1% |
| CAPEX, % of revenue | 5.6% | 14.0% | 4.5% | 14.0% | 29.9% | 15.9% |
| ROIC | 8.8% | 3.9% | 2.6% | 8.4% | -4.6% | -13.0% |
| ROE | 9.2% | 3.9% | 3.7% | -8.0% | -4.3% | 3.7% |
| Net Debt/EBITDA | -1.0x | -0.8x | -1.2x | -2.3x | -2.1x | 0.2x |
Revenue and profitability
Arts Optical International Hldgs's Revenue dropped on 13.2% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 8.7 pp from 13.9% to 5.1% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 6.1 pp from 18.8% to 24.9% in 2015.
Net Income marign increased on 2.8 pp from -6.3% to -3.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 29.9%. CAPEX/Revenue jumped on 16.0 pp from 14.0% in 2012 to 29.9% in 2015. It's average CAPEX/Revenue for the last three years was 16.1%.Arts Optical International Hldgs has spent a lot to CAPEX (582% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-4.55%) and ROE (-4.32%). ROIC dropped on 13.0 pp from 8.4% to -4.6% in 2015. ROE increased on 3.7 pp from -8.0% to -4.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.1x and Debt / EBITDA is 1.0x. Net Debt / EBITDA surged on 0.2x from -2.3x to -2.1x in 2015. Debt dropped on 27.1% in 2015 while cash dropped on 63.4% in 2015.
Appendix 1: Peers in Healthcare-Products
Below we provide Arts Optical International Hldgs benchmarking against other companies in Healthcare-Products 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 |
|---|
| Vitop Bioenergy Holdings Ltd ($1178) | | -24.7% | -3.2% | -27.3% | 92.4% |
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | | 22.2% | 12.8% | 21.8% | 32.0% |
| China Medical System Holdings Ltd ($867) | | 30.8% | 26.5% | 31.0% | 20.7% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | | 16.0% | 25.1% | 14.4% | 12.1% |
| BBI Life Sciences Corp ($1035) | | 16.4% | 18.0% | 15.1% | 11.5% |
| |
|---|
| Median (16 companies) | | 14.1% | 15.4% | 13.0% | 5.7% |
|---|
| Arts Optical International Hldgs ($1120) | | -4.6% | -0.8% | 8.9% | -13.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lifetech Scientific Corp ($1302) | 80.5% | 80.1% | 81.6% | 81.4% | 81.1% |
| PW Medtech Group Ltd ($1358) | 62.3% | 66.0% | 67.9% | 72.8% | 75.1% |
| Golden Meditech Holdings Ltd ($801) | 57.5% | 69.1% | 69.8% | 70.2% | 72.8% |
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 75.1% | 71.6% | 72.1% | 73.8% | 68.6% |
| Microport Scientific Corp ($853) | 83.7% | 83.6% | 81.0% | 68.5% | 67.2% |
| |
|---|
| Median (16 companies) | 56.6% | 55.2% | 52.9% | 50.6% | 50.7% |
|---|
| Arts Optical International Hldgs ($1120) | 21.8% | 18.5% | 18.5% | 18.0% | 18.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 42.3% | 44.2% | 30.6% | 41.6% | 48.6% |
| Lifetech Scientific Corp ($1302) | 17.2% | 31.6% | 24.5% | 23.4% | 33.1% |
| China Medical System Holdings Ltd ($867) | 31.6% | 34.5% | 32.4% | 39.4% | 32.3% |
| Hengan International Group Co Ltd ($1044) | 20.8% | 27.4% | 25.3% | 25.3% | 28.0% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 31.3% | 28.5% | 28.0% | 29.0% | 27.8% |
| |
|---|
| Median (16 companies) | 25.0% | 26.6% | 24.9% | 12.9% | 11.1% |
|---|
| Arts Optical International Hldgs ($1120) | 13.6% | 10.1% | 9.4% | 13.9% | 5.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lifetech Scientific Corp ($1302) | 10.7% | 0.0% | 16.5% | 0.0% | 70.0% |
| PW Medtech Group Ltd ($1358) | 21.1% | 14.8% | 22.3% | 30.2% | 42.1% |
| Golden Meditech Holdings Ltd ($801) | 9.5% | 12.7% | 51.2% | 27.3% | 26.1% |
| BBI Life Sciences Corp ($1035) | 31.1% | 23.6% | 6.7% | 6.4% | 20.0% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 41.7% | 26.0% | 20.2% | 11.7% | 18.3% |
| |
|---|
| Median (16 companies) | 10.7% | 5.2% | 6.6% | 5.7% | 4.9% |
|---|
| Arts Optical International Hldgs ($1120) | 5.6% | 14.0% | 4.5% | 14.0% | 29.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lifetech Scientific Corp ($1302) | 13.0% | 17.5% | 15.9% | 21.2% | 32.9% |
| China Medical System Holdings Ltd ($867) | 19.7% | 19.4% | 20.2% | 27.4% | 20.5% |
| Hengan International Group Co Ltd ($1044) | 16.9% | 19.5% | 14.9% | 14.0% | 16.4% |
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | | 22.2% | 20.9% | 21.0% | 12.1% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 14.6% | 10.5% | 11.7% | 12.8% | 11.8% |
| |
|---|
| Median (16 companies) | 13.1% | 10.3% | 8.4% | 5.0% | 6.2% |
|---|
| Arts Optical International Hldgs ($1120) | 8.8% | 3.9% | 2.6% | 8.4% | -4.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Microport Scientific Corp ($853) | -3.3x | -1.0x | -2.8x | | 4.3x |
| Techcomp Holdings Ltd ($1298) | 1.7x | 4.3x | 3.6x | 2.7x | 3.0x |
| Hengan International Group Co Ltd ($1044) | 0.9x | 1.4x | 1.7x | 1.8x | 1.7x |
| China Medical System Holdings Ltd ($867) | -0.8x | -0.4x | -0.2x | 0.2x | -0.0x |
| PW Medtech Group Ltd ($1358) | -0.8x | -1.2x | -7.5x | -0.3x | -1.1x |
| |
|---|
| Median (11 companies) | -1.3x | -1.2x | -1.6x | -1.5x | -1.1x |
|---|
| Arts Optical International Hldgs ($1120) | -1.0x | -0.8x | -1.2x | -2.3x | -2.1x |
