Suga International Holdings Ltd reports 78.5% EBITDA growth in 2016 and 2.0% Revenue growth
23/06/2016 • About Suga International Holdings Ltd (
$912) • By InTwits
Suga International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Suga International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%. At the same time it's a lot of higher than industry average of 12.6%.
- CAPEX is quite volatile: 43.5 in FY2016, 101 in FY2015, 98.5 in FY2014, 68.7 in FY2013, 15.8 in FY2012
- The company has business model with low profitability: ROIC is at 9.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Suga International Holdings Ltd ($912) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,242 | 1,107 | 1,245 | 1,342 | 1,368 | 2.0% |
| Gross Profit | 165 | 147 | 175 | 180 | 201 | 11.5% |
| SG&A | 57 | 66 | 71 | 100 | 131 | 31.1% |
| EBITDA | 107 | 85 | 107 | 59 | 105 | 78.5% |
| Net Income | 93 | 78 | 81 | 170 | 80 | -53.0% |
Balance Sheet
|
|---|
| Cash | 144 | 244 | 169 | 177 | 225 | 27.1% |
| Short Term Debt | 9 | 17 | 38 | 88 | 101 | 14.5% |
| Long Term Debt | 22 | 86 | 48 | 12 | 11 | -11.9% |
Cash flow
|
|---|
| Capex | 16 | 69 | 99 | 101 | 44 | -56.9% |
Ratios
|
|---|
| Revenue growth | 4.3% | -10.8% | 12.4% | 7.8% | 2.0% | |
| EBITDA growth | -3.8% | -20.4% | 25.9% | -45.2% | 78.5% | |
| Gross Margin | 13.3% | 13.3% | 14.0% | 13.4% | 14.7% | 1.3% |
| EBITDA Margin | 8.6% | 7.7% | 8.6% | 4.4% | 7.6% | 3.3% |
| Net Income Margin | 7.5% | 7.0% | 6.5% | 12.7% | 5.9% | -6.8% |
| SG&A, % of revenue | 4.6% | 6.0% | 5.7% | 7.4% | 9.6% | 2.1% |
| CAPEX, % of revenue | 1.3% | 6.2% | 7.9% | 7.5% | 3.2% | -4.3% |
| ROIC | 19.4% | 11.9% | 14.2% | 3.9% | 9.3% | 5.4% |
| ROE | 22.2% | 17.1% | 16.4% | 29.2% | 12.2% | -17.0% |
| Net Debt/EBITDA | -1.1x | -1.7x | -0.8x | -1.3x | -1.1x | 0.2x |
Revenue and profitability
Suga International Holdings Ltd's Revenue increased slightly on 2.0%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.1 pp from 29.0% to 22.9% in 2016.
Gross Margin increased slightly on 1.3 pp from 13.4% to 14.7% in FY2016. SG&A as a % of Revenue increased on 2.1 pp from 7.4% to 9.6% in FY2016.
Net Income marign decreased on 6.8 pp from 12.7% to 5.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Suga International Holdings Ltd's CAPEX/Revenue was 3.2% in FY2016. Suga International Holdings Ltd showed decline in CAPEX/Revenue of 3.0 pp from 6.2% in FY2013 to 3.2% in FY2016. It's average level of CAPEX/Revenue for the last three years was 6.2%.
Return on investment
The company operates at good ROE (12.18%) while ROIC is low (9.26%). ROIC increased on 5.4 pp from 3.9% to 9.3% in FY2016. ROE dropped on 17.0 pp from 29.2% to 12.2% in FY2016.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from -1.3x to -1.1x in FY2016. Debt surged on 11.3% while cash jumped on 27.1%.
Appendix 1: Peers in Electronics
Below you can find Suga 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 | 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% |
|---|
| Suga International Holdings Ltd ($912) | | -10.8% | 12.4% | 7.8% | 2.0% |
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) | 14.1% | 13.8% | 14.0% | 16.6% | 19.4% |
|---|
| Suga International Holdings Ltd ($912) | 13.3% | 13.3% | 14.0% | 13.4% | 14.7% |
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) | 6.5% | 6.0% | 4.6% | 5.5% | 0.7% |
|---|
| Suga International Holdings Ltd ($912) | 8.6% | 7.7% | 8.6% | 4.4% | 7.6% |
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% | 3.0% | 3.7% | 2.9% | 0.9% |
|---|
| Suga International Holdings Ltd ($912) | 1.3% | 6.2% | 7.9% | 7.5% | 3.2% |
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) | 4.3% | 3.5% | 3.0% | 2.2% | 0.8% |
|---|
| Suga International Holdings Ltd ($912) | 19.4% | 11.9% | 14.2% | 3.9% | 9.3% |
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 | 1.0x | 0.4x | 8.3x |
|---|
| Suga International Holdings Ltd ($912) | -1.1x | -1.7x | -0.8x | -1.3x | -1.1x |
