Sunway International Holdings Ltd reports 237% Net Income growth while 13.8 pp EBITDA Margin decline from -7.7% to -21.6%
31/03/2016 • About Sunway International Holdings Ltd (
$58) • By InTwits
Sunway International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sunway International Holdings Ltd is a company in decline: 2015 revenue growth was -61.7%, 5 years revenue CAGR was -18.9%
- The company operates at negative EBITDA Margin: -21.6%
- Sunway International Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -7.7%0
- Sunway International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 4.2%.
- CAPEX is quite volatile: 3.9 in 2015, 20.0 in 2014, 15.0 in 2013, 61.3 in 2012, 34.3 in 2011
- The company has unprofitable business model: ROIC is at -13.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sunway International Holdings Ltd ($58) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,021 | 794 | 788 | 897 | 344 | -61.7% |
| Gross Profit | 26 | -60 | -76 | -65 | 66 | -200.9% |
| SG&A | | 116 | 102 | 105 | 64 | -39.6% |
| EBITDA | 11 | -90 | -74 | -69 | -74 | 6.7% |
| Net Income | -88 | -211 | -208 | -217 | 298 | -237.2% |
Balance Sheet
|
|---|
| Cash | 224 | 271 | 148 | 142 | 23 | -83.9% |
| Short Term Debt | 375 | 650 | 326 | 563 | 27 | -95.2% |
| Long Term Debt | 0 | 0 | 154 | 110 | 19 | -83.2% |
Cash flow
|
|---|
| Capex | 34 | 61 | 15 | 20 | 4 | -80.4% |
Ratios
|
|---|
| Revenue growth | 4.0% | -22.2% | -0.8% | 13.8% | -61.7% | |
| EBITDA growth | -68.0% | -939.3% | -17.9% | -6.1% | 6.7% | |
| Gross Margin | 2.6% | -7.6% | -9.6% | -7.3% | 19.2% | 26.5% |
| EBITDA Margin | 1.1% | -11.3% | -9.4% | -7.7% | -21.6% | -13.8% |
| Net Income Margin | -8.6% | -26.6% | -26.3% | -24.2% | 86.7% | 111.0% |
| SG&A, % of revenue | | 14.7% | 12.9% | 11.8% | 18.5% | 6.8% |
| CAPEX, % of revenue | 3.4% | 7.7% | 1.9% | 2.2% | 1.1% | -1.1% |
| ROIC | -5.7% | -13.3% | -14.1% | -15.8% | -13.6% | 2.1% |
| ROE | -11.1% | -30.4% | -42.4% | -64.5% | 109.5% | 174.0% |
| Net Debt/EBITDA | 14.1x | | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 61.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 70.8 pp from -81.7% to -11.0% in FY2015.
Gross Margin jumped on 26.5 pp from -7.3% to 19.2% in 2015. SG&A as a % of Revenue increased on 6.8 pp from 11.8% to 18.5% in 2015.
Net Income marign jumped on 111 pp from -24.2% to 86.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.1% in 2015. CAPEX/Revenue decreased on 6.6 pp from 7.7% in 2012 to 1.1% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at negative ROIC (-13.65%) and low but positive ROE (109.48%). ROIC increased on 2.1 pp from -15.8% to -13.6% in 2015. ROE jumped on 174 pp from -64.5% to 109% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -10.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 93.2% in 2015 while cash dropped on 83.9% in 2015.
Appendix 1: Peers in Electronics
Below you can find Sunway International Holdings Ltd benchmarking vs. other companies in Electronics 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 |
|---|
| 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 (47 companies) | 2.8% | 1.0% | 4.1% | 5.0% | 0.9% |
|---|
| Sunway International Holdings Ltd ($58) | | -22.2% | -0.8% | 13.8% | -61.7% |
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 (45 companies) | 13.6% | 14.1% | 13.8% | 14.1% | 16.6% |
|---|
| Sunway International Holdings Ltd ($58) | 2.6% | -7.6% | -9.6% | -7.3% | 19.2% |
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 (47 companies) | 9.3% | 7.4% | 7.6% | 5.4% | 6.7% |
|---|
| Sunway International Holdings Ltd ($58) | 1.1% | -11.3% | -9.4% | -7.7% | -21.6% |
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 (47 companies) | 3.5% | 3.7% | 3.2% | 4.2% | 2.9% |
|---|
| Sunway International Holdings Ltd ($58) | 3.4% | 7.7% | 1.9% | 2.2% | 1.1% |
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% |
| Changhong Jiahua Holdings Ltd ($8016) | 8.7% | 29.6% | 17.7% | 15.1% | 16.7% |
| Tongda Group Holdings Ltd ($698) | 14.3% | 15.2% | 13.5% | 16.5% | 16.3% |
| Alltronics Holdings Ltd ($833) | 19.3% | 13.1% | 15.2% | 19.8% | 15.6% |
| |
|---|
| Median (47 companies) | 5.9% | 4.6% | 4.1% | 3.7% | 3.0% |
|---|
| Sunway International Holdings Ltd ($58) | -5.7% | -13.3% | -14.1% | -15.8% | -13.6% |
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 |
| GCL New Energy Holdings Ltd ($451) | 2.7x | 2.9x | 2.6x | 1.7x | 17.4x |
| Man Yue Technology Holdings Ltd ($894) | 1.7x | 2.1x | 2.7x | 3.3x | 6.5x |
| Willas-Array Electronics Holdings Ltd ($854) | 2.8x | 2.2x | 2.6x | 5.7x | 5.4x |
| SAS Dragon Hldg Ltd ($1184) | 2.8x | 7.1x | 2.0x | 6.4x | 4.8x |
| |
|---|
| Median (33 companies) | 0.6x | 1.0x | 1.1x | 0.8x | 0.2x |
|---|
