Sun Hing Vision Group Holdings Ltd CAPEX jumped on 71.2% while Revenue dropped on 11.2%
24/06/2016 • About Sun Hing Vision Group Holdings Ltd (
$125) • By InTwits
Sun Hing Vision Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sun Hing Vision Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's in pair with industry average of 40.3%.
- CAPEX is quite volatile: 439 in FY2016, 321 in FY2015, 272 in FY2014, 97.0 in FY2013, 231 in FY2012
- The company has business model with low profitability: ROIC is at 7.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sun Hing Vision Group Holdings Ltd ($125) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,155 | 1,165 | 1,177 | 1,214 | 1,078 | -11.2% |
| Gross Profit | 235 | 213 | 209 | 239 | 234 | -2.0% |
| SG&A | | 148 | 158 | 160 | 167 | 4.6% |
| EBITDA | 150 | 116 | 104 | 132 | 116 | -12.5% |
| Net Income | 83 | 53 | 44 | 67 | 55 | -17.3% |
Balance Sheet
|
|---|
| Cash | 366 | 352 | 335 | 379 | 361 | -4.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 44 | 57 | 59 | 40 | 68 | 71.2% |
Ratios
|
|---|
| Revenue growth | 2.6% | 0.8% | 1.0% | 3.1% | -11.2% | |
| EBITDA growth | -10.9% | -22.8% | -10.6% | 27.4% | -12.5% | |
| Gross Margin | 20.4% | 18.3% | 17.8% | 19.7% | 21.7% | 2.0% |
| EBITDA Margin | 13.0% | 10.0% | 8.8% | 10.9% | 10.7% | -0.2% |
| Net Income Margin | 7.2% | 4.6% | 3.8% | 5.5% | 5.1% | -0.4% |
| SG&A, % of revenue | | 12.7% | 13.4% | 13.2% | 15.5% | 2.4% |
| CAPEX, % of revenue | 3.8% | 4.9% | 5.0% | 3.3% | 6.3% | 3.0% |
| ROIC | 10.2% | 6.6% | 5.4% | 8.5% | 7.0% | -1.4% |
| ROE | 9.1% | 5.7% | 4.7% | 7.1% | 6.0% | -1.2% |
| Net Debt/EBITDA | -2.4x | -3.0x | -3.2x | -2.9x | -3.1x | -0.2x |
Revenue and profitability
The company's Revenue dropped on 11.2%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 25.2 pp from 31.1% to 56.3% in FY2016.
Gross Margin increased on 2.0 pp from 19.7% to 21.7% in FY2016. SG&A as a % of Revenue increased on 2.4 pp from 13.2% to 15.5% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
Sun Hing Vision Group Holdings Ltd's CAPEX/Revenue was 6.3% in FY2016. CAPEX/Revenue increased slightly on 1.4 pp from 4.9% in FY2013 to 6.3% in FY2016. It's average CAPEX/Revenue for the last three years was 4.9%.Battling declining revenue the company invested a large share of EBITDA (58.9%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (7.03%) and ROE (5.96%). ROIC decreased slightly on 1.4 pp from 8.5% to 7.0% in FY2016. ROE decreased slightly on 1.2 pp from 7.1% to 6.0% in FY2016.
Leverage (Debt)
The company has no debt. Cash decreased on 4.9%.
Appendix 1: Peers in Healthcare-Products
Below you can find Sun Hing Vision Group Holdings Ltd benchmarking vs. other companies in Healthcare-Products 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 |
|---|
| Vitop Bioenergy Holdings Ltd ($1178) | -24.7% | -3.2% | -27.3% | 92.4% | |
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 22.2% | 12.8% | 21.8% | 32.0% | |
| China Medical System Holdings Ltd ($867) | 30.8% | 26.5% | 31.0% | 20.7% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 16.0% | 25.1% | 14.4% | 12.1% | |
| BBI Life Sciences Corp ($1035) | 16.4% | 18.0% | 15.1% | 11.5% | |
| |
|---|
| Median (16 companies) | 14.1% | 15.4% | 13.0% | 5.7% | |
|---|
| Sun Hing Vision Group Holdings Ltd ($125) | | 0.8% | 1.0% | 3.1% | -11.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lifetech Scientific Corp ($1302) | 80.1% | 81.6% | 81.4% | 81.1% | |
| PW Medtech Group Ltd ($1358) | 66.0% | 67.9% | 72.8% | 75.1% | |
| Golden Meditech Holdings Ltd ($801) | 69.1% | 69.8% | 70.2% | 72.8% | |
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 71.6% | 72.1% | 73.8% | 68.6% | |
| Microport Scientific Corp ($853) | 83.6% | 81.0% | 68.5% | 67.2% | |
| |
|---|
| Median (16 companies) | 55.2% | 52.9% | 50.6% | 50.7% | |
|---|
| Sun Hing Vision Group Holdings Ltd ($125) | 20.4% | 18.3% | 17.8% | 19.7% | 21.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| PW Medtech Group Ltd ($1358) | 44.2% | 30.6% | 41.6% | 48.6% | |
| Lifetech Scientific Corp ($1302) | 31.6% | 24.5% | 23.4% | 33.1% | |
| China Medical System Holdings Ltd ($867) | 34.5% | 32.4% | 39.4% | 32.3% | |
| Hengan International Group Co Ltd ($1044) | 27.4% | 25.3% | 25.3% | 28.0% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 28.5% | 28.0% | 29.0% | 27.8% | |
| |
|---|
| Median (16 companies) | 26.6% | 24.9% | 13.6% | 9.6% | |
|---|
| Sun Hing Vision Group Holdings Ltd ($125) | 13.0% | 10.0% | 8.8% | 10.9% | 10.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lifetech Scientific Corp ($1302) | 0.0% | 16.5% | 0.0% | 70.0% | |
| PW Medtech Group Ltd ($1358) | 14.8% | 22.3% | 30.2% | 42.1% | |
| Arts Optical International Hldgs ($1120) | 14.0% | 4.5% | 14.0% | 29.9% | |
| Golden Meditech Holdings Ltd ($801) | 12.7% | 51.2% | 27.3% | 26.1% | |
| BBI Life Sciences Corp ($1035) | 23.6% | 6.7% | 6.4% | 20.0% | |
| |
|---|
| Median (16 companies) | 9.6% | 6.6% | 6.7% | 7.4% | |
|---|
| Sun Hing Vision Group Holdings Ltd ($125) | 3.8% | 4.9% | 5.0% | 3.3% | 6.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lifetech Scientific Corp ($1302) | 17.5% | 15.9% | 21.2% | 32.9% | |
| China Medical System Holdings Ltd ($867) | 19.4% | 20.2% | 27.4% | 20.5% | |
| Hengan International Group Co Ltd ($1044) | 19.5% | 14.9% | 14.0% | 16.4% | |
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 22.2% | 20.9% | 21.0% | 12.1% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 10.5% | 11.7% | 12.8% | 11.8% | |
| |
|---|
| Median (16 companies) | 8.6% | 8.4% | 5.0% | 2.5% | |
|---|
| Sun Hing Vision Group Holdings Ltd ($125) | 10.2% | 6.6% | 5.4% | 8.5% | 7.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Microport Scientific Corp ($853) | -1.0x | -2.8x | | 4.3x | |
| Techcomp Holdings Ltd ($1298) | 4.3x | 3.6x | 2.7x | 3.0x | |
| Hengan International Group Co Ltd ($1044) | 1.4x | 1.7x | 1.8x | 1.7x | |
| China Medical System Holdings Ltd ($867) | -0.4x | -0.2x | 0.2x | -0.0x | |
| PW Medtech Group Ltd ($1358) | -1.2x | -7.5x | -0.3x | -1.1x | |
| |
|---|
| Median (11 companies) | -1.0x | -1.4x | -1.5x | -1.1x | |
|---|
| Sun Hing Vision Group Holdings Ltd ($125) | -2.4x | -3.0x | -3.2x | -2.9x | -3.1x |
