Sandmartin International Holdings Ltd reports 2.2% revenue decline in 2015 and 1.0 pp EBITDA Margin growth from -4.8% to -3.7%
08/04/2016 • About Sandmartin International Holdings Ltd (
$482) • By InTwits
Sandmartin International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sandmartin International Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -8.9%
- The company operates at negative EBITDA Margin: -3.7%
- Sandmartin International Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -0.9% for the sames years0
- Sandmartin International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has unprofitable business model: ROIC is at -8.9%
- It operates with high leverage: Net Debt/EBITDA is 2.9x while industry average is 0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sandmartin International Holdings Ltd ($482) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,604 | 1,343 | 1,399 | 1,664 | 1,628 | -2.2% |
| Gross Profit | 348 | 264 | 159 | 173 | 179 | 3.1% |
| SG&A | | 232 | 229 | 213 | 211 | -0.9% |
| EBITDA | 127 | 26 | -85 | -79 | -61 | -23.2% |
| Net Income | 90 | -53 | -271 | -101 | -103 | 1.7% |
Balance Sheet
|
|---|
| Cash | 276 | 146 | 237 | 75 | 93 | 25.0% |
| Short Term Debt | 74 | 168 | 359 | 358 | 351 | -1.8% |
| Long Term Debt | 5 | 16 | 21 | 18 | 13 | -29.0% |
Cash flow
|
|---|
| Capex | 9 | 13 | 6 | 16 | 30 | 89.3% |
Ratios
|
|---|
| Revenue growth | 2.8% | -16.3% | 4.1% | 19.0% | -2.2% | |
| EBITDA growth | -11.3% | -80.0% | -432.4% | -6.5% | -23.2% | |
| Gross Margin | 21.7% | 19.7% | 11.4% | 10.4% | 11.0% | 0.6% |
| EBITDA Margin | 7.9% | 1.9% | -6.1% | -4.8% | -3.7% | 1.0% |
| Net Income Margin | 5.6% | -4.0% | -19.4% | -6.1% | -6.3% | -0.2% |
| SG&A, % of revenue | | 17.3% | 16.4% | 12.8% | 13.0% | 0.2% |
| CAPEX, % of revenue | 0.6% | 1.0% | 0.4% | 1.0% | 1.9% | 0.9% |
| ROIC | 9.3% | -0.1% | -9.7% | -9.0% | -8.9% | 0.0% |
| ROE | 10.1% | -5.7% | -34.4% | -15.1% | -20.4% | -5.4% |
| Net Debt/EBITDA | -1.5x | 1.5x | | | | 0.0x |
Revenue and profitability
Sandmartin International Holdings Ltd's Revenue decreased on 2.2% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.0 pp from -4.8% to -3.7% in 2015.
Gross Margin increased slightly on 0.56 pp from 10.4% to 11.0% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.9%. The company's CAPEX/Revenue increased slightly on 0.92 pp from 0.95% in 2012 to 1.9% in 2015. It's average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at negative ROIC (-8.94%) and ROE (-20.42%). ROIC showed almost no change in 2015. ROE decreased on 5.4 pp from -15.1% to -20.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.9x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt decreased on 3.1% in 2015 while cash surged on 25.0% in 2015.
Appendix 1: Peers in Electronics
Below we provide Sandmartin International Holdings Ltd benchmarking against other companies in Electronics 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 |
|---|
| 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 (49 companies) | 27.1% | 1.0% | 3.6% | 5.0% | 0.9% |
|---|
| Sandmartin International Holdings Ltd ($482) | | -16.3% | 4.1% | 19.0% | -2.2% |
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 (47 companies) | 13.4% | 13.6% | 13.8% | 14.1% | 16.6% |
|---|
| Sandmartin International Holdings Ltd ($482) | 21.7% | 19.7% | 11.4% | 10.4% | 11.0% |
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 (49 companies) | 9.3% | 7.4% | 7.6% | 5.4% | 5.5% |
|---|
| Sandmartin International Holdings Ltd ($482) | 7.9% | 1.9% | -6.1% | -4.8% | -3.7% |
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 (49 companies) | 3.5% | 3.9% | 3.2% | 4.2% | 2.9% |
|---|
| Sandmartin International Holdings Ltd ($482) | 0.6% | 1.0% | 0.4% | 1.0% | 1.9% |
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 (49 companies) | 5.4% | 4.6% | 4.1% | 3.7% | 2.6% |
|---|
| Sandmartin International Holdings Ltd ($482) | 9.3% | -0.1% | -9.7% | -9.0% | -8.9% |
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) | 0.7x | 1.0x | 1.1x | 0.8x | 0.2x |
|---|
