Man Sang International Ltd reports 366% Net Income growth in 2016 and 160% Revenue growth
26/05/2016 • About Man Sang International Ltd (
$938) • By InTwits
Man Sang International Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Man Sang International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: 0.45 in FY2016, 3.1 in FY2015, 3.1 in FY2014, 2.6 in FY2013, 6.0 in FY2012
- The company has potentially unprofitable business model: ROIC is at 5.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Man Sang International Ltd ($938) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 370.2 | 461.2 | 82.9 | 73.4 | 190.7 | 159.9% |
| Gross Profit | 157.1 | 151.5 | 50.0 | 57.7 | 107.6 | 86.6% |
| SG&A | 100.0 | 102.4 | 30.3 | 42.6 | 33.6 | -21.0% |
| EBITDA | 92.0 | 70.9 | 30.7 | 24.8 | 77.0 | 210.4% |
| Net Income | 54.8 | 48.2 | 68.5 | 11.0 | 51.2 | 366.3% |
Balance Sheet
|
|---|
| Cash | 605.1 | 440.8 | 392.4 | 264.3 | 462.4 | 75.0% |
| Short Term Debt | 36.9 | 216.9 | 125.4 | 137.8 | 0.0 | -100.0% |
| Long Term Debt | 147.6 | 110.7 | 175.6 | 37.8 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 6.0 | 2.6 | 3.1 | 3.1 | 0.4 | -85.3% |
Ratios
|
|---|
| Revenue growth | -7.9% | 24.6% | -82.0% | -11.5% | 159.9% | |
| EBITDA growth | 22.3% | -23.0% | -56.7% | -19.2% | 210.4% | |
| Gross Margin | 42.4% | 32.8% | 60.3% | 78.6% | 56.4% | -22.2% |
| EBITDA Margin | 24.9% | 15.4% | 37.0% | 33.8% | 40.4% | 6.6% |
| Net Income Margin | 14.8% | 10.5% | 82.6% | 15.0% | 26.8% | 11.9% |
| SG&A, % of revenue | 27.0% | 22.2% | 36.5% | 58.0% | 17.6% | -40.4% |
| CAPEX, % of revenue | 1.6% | 0.6% | 3.7% | 4.2% | 0.2% | -3.9% |
| ROIC | 4.5% | 3.6% | 1.4% | 1.3% | 5.3% | 4.0% |
| ROE | 4.4% | 4.5% | 7.6% | 1.3% | 5.9% | 4.6% |
| Net Debt/EBITDA | -4.6x | -1.6x | -3.0x | -3.6x | -6.0x | -2.4x |
Revenue and profitability
Man Sang International Ltd's Revenue jumped on 160%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 10.8 pp from -53.8% to -43.0% in FY2016.
Gross Margin dropped on 22.2 pp from 78.6% to 56.4% in FY2016. SG&A as a % of Revenue dropped on 40.4 pp from 58.0% to 17.6% in FY2016.
Net Income marign jumped on 11.9 pp from 15.0% to 26.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.23%. Man Sang International Ltd's CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 2.7%.
Return on investment
The company operates at low ROIC (5.33%) and ROE (5.90%). ROIC increased on 4.0 pp from 1.3% to 5.3% in FY2016. ROE increased on 4.6 pp from 1.3% to 5.9% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash jumped on 75.0%.
Appendix 1: Peers in Miscellaneous Manufactur
Below you can find Man Sang International Ltd benchmarking vs. other companies in Miscellaneous Manufactur 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Karrie International Hldgs ($1050) | -11.6% | 0.1% | -11.3% | 27.4% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 59.5% | 45.9% | 45.0% | 26.9% | |
| TK Group Holdings Ltd ($2283) | 40.2% | 9.3% | 11.8% | 20.0% | |
| Yusei Holdings Ltd ($96) | 18.4% | -9.3% | 6.7% | 15.6% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 1.5% | 22.2% | 43.2% | 11.7% | |
| |
|---|
| Median (24 companies) | -4.5% | -0.9% | 7.5% | -5.2% | |
|---|
| Man Sang International Ltd ($938) | | 24.6% | -82.0% | -11.5% | 159.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Time Watch Investments Ltd ($2033) | 60.2% | 60.6% | 65.0% | 68.1% | |
| China Environmental Energy Investment Ltd ($986) | 14.0% | 1.2% | 9.0% | 49.2% | |
| Lee & Man Chemical Co Ltd ($746) | 34.3% | 35.7% | 41.9% | 39.6% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 33.2% | 35.1% | 37.4% | 38.7% | |
| Launch Tech Co Ltd ($2488) | 27.4% | 33.6% | 33.6% | 38.3% | |
| |
|---|
| Median (23 companies) | 19.8% | 20.6% | 24.9% | 23.1% | |
|---|
| Man Sang International Ltd ($938) | 42.4% | 32.8% | 60.3% | 78.6% | 56.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 30.4% | 31.3% | 38.4% | 37.6% | |
| IPE Group Ltd ($929) | 25.6% | 22.5% | 29.5% | 29.1% | |
| DeTeam Co Ltd ($65) | 8.0% | 3.9% | -1.3% | 24.3% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 18.4% | 19.8% | 20.6% | 24.2% | |
| Time Watch Investments Ltd ($2033) | 17.6% | 16.8% | 19.4% | 20.5% | |
| |
|---|
| Median (24 companies) | 8.0% | 8.8% | 8.6% | 7.0% | |
|---|
| Man Sang International Ltd ($938) | 24.9% | 15.4% | 37.0% | 33.8% | 40.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Environmental Energy Investment Ltd ($986) | 6.1% | 0.4% | 17.9% | 47.6% | |
| DeTeam Co Ltd ($65) | 6.7% | 47.0% | 5.6% | 33.1% | |
| Lee & Man Chemical Co Ltd ($746) | 5.8% | 51.1% | 33.7% | 22.8% | |
| China International Marine Containers Group Co Ltd ($2039) | 3.9% | 12.1% | 18.5% | 21.2% | |
| IPE Group Ltd ($929) | 6.3% | 13.3% | 12.3% | 13.3% | |
| |
|---|
| Median (24 companies) | 4.8% | 4.3% | 4.4% | 5.8% | |
|---|
| Man Sang International Ltd ($938) | 1.6% | 0.6% | 3.7% | 4.2% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Time Watch Investments Ltd ($2033) | 34.5% | 27.1% | 27.8% | 27.9% | |
| TK Group Holdings Ltd ($2283) | 36.8% | 31.1% | 29.4% | 27.6% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 16.9% | 17.7% | 20.0% | 21.1% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 19.7% | 17.8% | 16.5% | 19.4% | |
| Yusei Holdings Ltd ($96) | 4.2% | 7.0% | 13.6% | 14.1% | |
| |
|---|
| Median (24 companies) | 3.2% | 3.6% | 4.2% | 1.5% | |
|---|
| Man Sang International Ltd ($938) | 4.5% | 3.6% | 1.4% | 1.3% | 5.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Continental Holdings Ltd ($513) | | 20.1x | 92.9x | 4,203.6x | |
| South China China Ltd ($413) | | 37.5x | 2,842.3x | 27.3x | |
| Launch Tech Co Ltd ($2488) | 7.6x | 2.4x | 3.9x | 14.5x | |
| China International Marine Containers Group Co Ltd ($2039) | 4.0x | 4.7x | 5.8x | 9.8x | |
| VS International Group Ltd ($1002) | 5.1x | 6.5x | 4.4x | 3.3x | |
| |
|---|
| Median (21 companies) | -0.2x | -0.0x | 0.2x | 0.4x | |
|---|
| Man Sang International Ltd ($938) | -4.6x | -1.6x | -3.0x | -3.6x | -6.0x |
