AV Concept Holdings Ltd reports 47.0% revenue decline in FY2016 and 4.4 pp EBITDA Margin decline from -3.2% to -7.6%
28/06/2016 • About AV Concept Holdings Ltd (
$595) • By InTwits
AV Concept Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AV Concept Holdings Ltd is a company in decline: FY2016 revenue growth was -47.0%, 5 years revenue CAGR was -18.6%
- The company operates at negative EBITDA Margin: -7.6%
- AV Concept Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -1.5%0
- AV Concept Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has unprofitable business model: ROIC is at -9.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
AV Concept Holdings Ltd ($595) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,367 | 2,334 | 2,750 | 1,958 | 1,037 | -47.0% |
| Gross Profit | 260 | 107 | 111 | 85 | 26 | -69.2% |
| SG&A | | 161 | 131 | 126 | 96 | -23.6% |
| EBITDA | 8 | 9 | -51 | -62 | -78 | |
| Net Income | 2 | 9 | 3 | -94 | 2 | |
Balance Sheet
|
|---|
| Cash | 166 | 87 | 88 | 131 | 70 | -46.6% |
| Short Term Debt | 526 | 496 | 494 | 341 | 128 | -62.6% |
| Long Term Debt | 53 | 19 | 18 | 10 | 9 | -1.1% |
Cash flow
|
|---|
| Capex | 127 | 16 | 6 | 2 | 1 | -72.7% |
Ratios
|
|---|
| Revenue growth | 15.7% | -30.7% | 17.8% | -28.8% | -47.0% | |
| EBITDA growth | -111,471.4% | 19.0% | -654.6% | 20.3% | 26.8% | |
| Gross Margin | 7.7% | 4.6% | 4.0% | 4.3% | 2.5% | -1.8% |
| EBITDA Margin | 0.2% | 0.4% | -1.9% | -3.2% | -7.6% | -4.4% |
| Net Income Margin | 0.1% | 0.4% | 0.1% | -4.8% | 0.2% | 5.0% |
| SG&A, % of revenue | | 6.9% | 4.7% | 6.4% | 9.3% | 2.9% |
| CAPEX, % of revenue | 3.8% | 0.7% | 0.2% | 0.1% | 0.1% | -0.1% |
| ROIC | -0.4% | -0.7% | -5.7% | -6.6% | -9.3% | -2.6% |
| ROE | 0.4% | 1.4% | 0.5% | -14.1% | 0.3% | 14.4% |
| Net Debt/EBITDA | 52.9x | 46.1x | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 47.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.9 pp from 33.3% to 38.2% in FY2016.
Gross Margin decreased slightly on 1.8 pp from 4.3% to 2.5% in FY2016. SG&A as a % of Revenue increased on 2.9 pp from 6.4% to 9.3% in FY2016.
Net Income marign increased on 5.0 pp from -4.8% to 0.21% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.064% in FY2016. AV Concept Holdings Ltd showed small CAPEX/Revenue decline of 0.62 pp from 0.68% in FY2013 to 0.064% in FY2016. Average CAPEX/Revenue for the last three years was 0.13%.
Return on investment
The company operates at negative ROIC (-9.26%) and low but positive ROE (0.33%). ROIC decreased on 2.6 pp from -6.6% to -9.3% in FY2016. ROE surged on 14.4 pp from -14.1% to 0.33% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 60.9% while cash dropped on 46.6%.
Appendix 1: Peers in Electronics
Below you can find AV Concept 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) | 1.6% | 4.1% | 5.0% | 0.9% | 4.7% |
|---|
| AV Concept Holdings Ltd ($595) | | -30.7% | 17.8% | -28.8% | -47.0% |
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% | 14.1% | 16.6% | 15.2% |
|---|
| AV Concept Holdings Ltd ($595) | 7.7% | 4.6% | 4.0% | 4.3% | 2.5% |
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% | 3.8% |
|---|
| AV Concept Holdings Ltd ($595) | 0.2% | 0.4% | -1.9% | -3.2% | -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% | 4.7% |
| 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% | 1.9% |
|---|
| AV Concept Holdings Ltd ($595) | 3.8% | 0.7% | 0.2% | 0.1% | 0.1% |
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% | 3.7% | 2.6% | 3.3% |
|---|
| AV Concept Holdings Ltd ($595) | -0.4% | -0.7% | -5.7% | -6.6% | -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 | 42.7x |
| 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 (33 companies) | 1.0x | 1.1x | 0.8x | 0.2x | 2.6x |
|---|
