Universal Technologies Holdings Ltd reports 241% EBITDA decline and 29.2% Revenue decline
31/03/2016 • About Universal Technologies Holdings Ltd (
$1026) • By InTwits
Universal Technologies Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Universal Technologies Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -5.4%
- EBITDA Margin is quite volatile: -19.7% in 2015, 9.9% in 2014, 1.5% in 2013, 12.8% in 2012, 29.5% in 2011
- Universal Technologies Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.7%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: 45.5 in 2015, 45.2 in 2014, 10.8 in 2013, 25.3 in 2012, 20.3 in 2011
- The company has unprofitable business model: ROIC is at -5.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Universal Technologies Holdings Ltd ($1026) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 240.3 | 126.7 | 189.8 | 317.1 | 224.4 | -29.2% |
| Gross Profit | 206.6 | 110.6 | 151.4 | 286.5 | 220.9 | -22.9% |
| SG&A | | | | 294.0 | 294.6 | 0.2% |
| EBITDA | 70.9 | 16.2 | 2.9 | 31.4 | -44.1 | -240.5% |
| Net Income | 58.1 | 7.0 | -34.1 | 32.7 | -44.4 | -235.8% |
Balance Sheet
|
|---|
| Cash | 365.3 | 341.5 | 592.1 | 850.3 | 701.0 | -17.6% |
| Short Term Debt | 217.8 | 217.8 | 4.2 | 0.0 | 413.9 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 248.0 | |
Cash flow
|
|---|
| Capex | 20.3 | 25.3 | 10.8 | 45.2 | 45.5 | 0.7% |
Ratios
|
|---|
| Revenue growth | 95.5% | -47.3% | 49.8% | 67.1% | -29.2% | |
| EBITDA growth | 141.6% | -77.1% | -82.0% | 974.3% | -240.5% | |
| Gross Margin | 86.0% | 87.3% | 79.7% | 90.3% | 98.4% | 8.1% |
| EBITDA Margin | 29.5% | 12.8% | 1.5% | 9.9% | -19.7% | -29.6% |
| Net Income Margin | 24.2% | 5.5% | -18.0% | 10.3% | -19.8% | -30.1% |
| SG&A, % of revenue | | | | 92.7% | 131.3% | 38.6% |
| CAPEX, % of revenue | 8.5% | 20.0% | 5.7% | 14.2% | 20.3% | 6.0% |
| ROIC | 11.0% | 0.3% | -2.4% | -0.6% | -5.4% | -4.8% |
| ROE | 15.6% | 1.6% | -6.4% | 5.6% | -8.3% | -13.9% |
| Net Debt/EBITDA | -2.1x | -7.6x | -201.1x | -27.1x | | 27.1x |
Revenue and profitability
Universal Technologies Holdings Ltd's Revenue dropped on 29.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.1 pp from -11.1% to -4.0% in 2015.
Gross Margin increased on 8.1 pp from 90.3% to 98.4% in 2015. SG&A as a % of Revenue jumped on 38.6 pp from 92.7% to 131% in 2015.
Net Income marign dropped on 30.1 pp from 10.3% to -19.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 20.3%. Universal Technologies Holdings Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 13.4%.
Return on investment
The company operates at negative ROIC (-5.38%) and ROE (-8.28%). ROIC decreased on 4.8 pp from -0.62% to -5.4% in 2015. ROE dropped on 13.9 pp from 5.6% to -8.3% in 2015.
Leverage (Debt)
Debt level is -13.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA jumped on 27.1x from -27.1x to in 2015. Debt surged while cash dropped on 17.6% in 2015.
Appendix 1: Peers in Computers
Below you can find Universal Technologies Holdings 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 (23 companies) | -14.3% | 6.5% | -1.8% | 7.2% | 3.9% |
|---|
| Universal Technologies Holdings Ltd ($1026) | | -47.3% | 49.8% | 67.1% | -29.2% |
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 (23 companies) | 11.0% | 12.7% | 16.0% | 15.4% | 19.5% |
|---|
| Universal Technologies Holdings Ltd ($1026) | 86.0% | 87.3% | 79.7% | 90.3% | 98.4% |
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 (24 companies) | 2.5% | 2.8% | 2.7% | -1.5% | 4.6% |
|---|
| Universal Technologies Holdings Ltd ($1026) | 29.5% | 12.8% | 1.5% | 9.9% | -19.7% |
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 (24 companies) | 1.3% | 1.0% | 1.3% | 1.6% | 1.4% |
|---|
| Universal Technologies Holdings Ltd ($1026) | 8.5% | 20.0% | 5.7% | 14.2% | 20.3% |
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 (24 companies) | 3.7% | 2.1% | 1.4% | -0.8% | 2.5% |
|---|
| Universal Technologies Holdings Ltd ($1026) | 11.0% | 0.3% | -2.4% | -0.6% | -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 |
| EVOC Intelligent Technology Co Ltd ($2308) | 6.4x | 0.5x | 5.8x | 5.7x | 5.4x |
| Perception Digital Holdings Ltd ($1822) | | | | | 1.8x |
| |
|---|
| Median (16 companies) | -1.6x | -2.1x | -1.3x | -3.2x | 0.6x |
|---|
