Mobicon Group Ltd EBITDA increased on 4.7% and EBITDA Margin showed almost no change
23/06/2016 • About Mobicon Group Ltd (
$1213) • By InTwits
Mobicon Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 3.5% in FY2016 vs. 3.3% in FY2015 vs. 1.6% in FY2012
- EBITDA Margin is quite volatile: 3.5% in FY2016, 3.3% in FY2015, 1.9% in FY2014, 1.7% in FY2013, 1.6% in FY2012
- Mobicon Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has potentially unprofitable business model: ROIC is at 5.8%
- It operates with high leverage: Net Debt/EBITDA is 2.6x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mobicon Group Ltd ($1213) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 588.6 | 545.9 | 603.3 | 695.1 | 684.4 | -1.5% |
| Gross Profit | 107.1 | 101.3 | 110.2 | 148.6 | 164.3 | 10.6% |
| SG&A | 63.2 | 57.2 | 64.0 | 84.5 | 97.7 | 15.5% |
| EBITDA | 9.2 | 9.3 | 11.4 | 22.8 | 23.8 | 4.7% |
| Net Income | 0.7 | 1.1 | 1.0 | 7.8 | 3.8 | -51.6% |
Balance Sheet
|
|---|
| Cash | 39.2 | 35.9 | 41.3 | 45.2 | 40.0 | -11.7% |
| Short Term Debt | 45.3 | 46.4 | 59.0 | 93.0 | 100.8 | 8.4% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.4 | 1.9 | 6.2 | 9.9 | 6.1 | -38.3% |
Ratios
|
|---|
| Revenue growth | -20.4% | -7.3% | 10.5% | 15.2% | -1.5% | |
| EBITDA growth | -53.7% | 1.8% | 22.5% | 99.3% | 4.7% | |
| Gross Margin | 18.2% | 18.6% | 18.3% | 21.4% | 24.0% | 2.6% |
| EBITDA Margin | 1.6% | 1.7% | 1.9% | 3.3% | 3.5% | 0.2% |
| Net Income Margin | 0.1% | 0.2% | 0.2% | 1.1% | 0.6% | -0.6% |
| SG&A, % of revenue | 10.7% | 10.5% | 10.6% | 12.2% | 14.3% | 2.1% |
| CAPEX, % of revenue | 0.2% | 0.3% | 1.0% | 1.4% | 0.9% | -0.5% |
| ROIC | 3.1% | 3.5% | 3.7% | 6.7% | 5.8% | -0.8% |
| ROE | 0.4% | 0.7% | 0.6% | 4.7% | 2.3% | -2.4% |
| Net Debt/EBITDA | 0.7x | 1.1x | 1.5x | 2.1x | 2.6x | 0.5x |
Revenue and profitability
Mobicon Group Ltd's Revenue decreased slightly on 1.5%. EBITDA Margin showed almost no change in FY2016.
Gross Margin increased on 2.6 pp from 21.4% to 24.0% in FY2016. SG&A as a % of Revenue increased on 2.1 pp from 12.2% to 14.3% in FY2016.
Net Income marign decreased slightly on 0.57 pp from 1.1% to 0.55% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.89%. CAPEX/Revenue increased slightly on 0.55 pp from 0.34% in FY2013 to 0.89% in FY2016. It's average level of CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at low ROIC (5.85%) and ROE (2.29%). ROIC decreased slightly on 0.82 pp from 6.7% to 5.8% in FY2016. ROE decreased on 2.4 pp from 4.7% to 2.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.6x and Debt / EBITDA is 4.2x. Net Debt / EBITDA surged on 0.5x from 2.1x to 2.6x in FY2016. Debt increased on 8.4% while cash dropped on 11.7%.
Appendix 1: Peers in Electronics
Below you can find Mobicon Group 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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) | 2.3% | 4.1% | 5.0% | -0.2% | 7.4% |
|---|
| Mobicon Group Ltd ($1213) | | -7.3% | 10.5% | 15.2% | -1.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 54.0% | 58.1% | 49.5% | 49.6% | |
| AAC Technologies Holdings Inc ($2018) | 44.2% | 42.7% | 41.4% | 41.5% | |
| TeleEye Holdings Ltd ($8051) | 44.0% | 42.1% | 38.5% | 37.0% | |
| Hi Sun Technology China Ltd ($818) | 28.1% | 37.4% | 33.3% | 34.7% | |
| Datronix Holdings Ltd ($889) | 32.9% | 32.0% | 34.1% | 34.6% | |
| |
|---|
| Median (47 companies) | 13.6% | 13.8% | 13.9% | 14.1% | 14.7% |
|---|
| Mobicon Group Ltd ($1213) | 18.2% | 18.6% | 18.3% | 21.4% | 24.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.8% | 35.8% | 34.9% | 34.8% | |
| GCL New Energy Holdings Ltd ($451) | 10.8% | 11.1% | 12.6% | 33.0% | |
| Daiwa Associate Holdings ($1037) | 2.4% | 3.8% | 2.8% | 25.6% | |
| Wasion Group Holdings Ltd ($3393) | 18.8% | 21.2% | 22.0% | 19.3% | |
| Tongda Group Holdings Ltd ($698) | 17.1% | 16.8% | 18.4% | 18.9% | |
| |
|---|
| Median (49 companies) | 7.4% | 7.6% | 5.4% | 5.5% | 0.7% |
|---|
| Mobicon Group Ltd ($1213) | 1.6% | 1.7% | 1.9% | 3.3% | 3.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| GCL New Energy Holdings Ltd ($451) | 5.5% | 5.1% | 5.4% | 401.2% | |
| National Electronic Hldgs ($213) | 3.4% | 18.1% | 7.1% | 49.7% | |
| Irico Group Electronics Co Ltd ($438) | 39.9% | 30.4% | 17.4% | 25.8% | |
| Kingwell Group Ltd ($1195) | 8.6% | 5.4% | 5.3% | 21.4% | |
| AAC Technologies Holdings Inc ($2018) | 18.7% | 8.7% | 19.6% | 18.4% | |
| |
|---|
| Median (49 companies) | 3.9% | 3.2% | 4.2% | 2.9% | 1.7% |
|---|
| Mobicon Group Ltd ($1213) | 0.2% | 0.3% | 1.0% | 1.4% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AAC Technologies Holdings Inc ($2018) | 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) | 29.6% | 17.7% | 15.1% | 16.7% | |
| Tongda Group Holdings Ltd ($698) | 15.2% | 13.5% | 16.5% | 16.3% | |
| Alltronics Holdings Ltd ($833) | 13.1% | 15.2% | 19.8% | 15.6% | |
| |
|---|
| Median (49 companies) | 4.6% | 4.1% | 3.0% | 2.2% | 0.8% |
|---|
| Mobicon Group Ltd ($1213) | 3.1% | 3.5% | 3.7% | 6.7% | 5.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| National Electronic Hldgs ($213) | 16.3x | 30.2x | 84.8x | 19.9x | |
| GCL New Energy Holdings Ltd ($451) | 2.9x | 2.6x | 1.7x | 17.4x | |
| Man Yue Technology Holdings Ltd ($894) | 2.1x | 2.7x | 3.3x | 6.5x | |
| Willas-Array Electronics Holdings Ltd ($854) | 2.2x | 2.6x | 5.7x | 5.4x | 14.1x |
| SAS Dragon Hldg Ltd ($1184) | 7.1x | 2.0x | 6.4x | 4.8x | |
| |
|---|
| Median (32 companies) | 1.1x | 1.1x | 0.8x | 0.2x | 6.5x |
|---|
| Mobicon Group Ltd ($1213) | 0.7x | 1.1x | 1.5x | 2.1x | 2.6x |
