Elegance Optical International Holdings Ltd revenue dropped on 19.2% and EBITDA Margin dropped on 13.7 pp from -24.7% to -38.3%
28/06/2016 • About Elegance Optical International Holdings Ltd (
$907) • By InTwits
Elegance Optical International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Elegance Optical International Holdings Ltd is a company in decline: FY2016 revenue growth was -19.2%, 5 years revenue CAGR was -16.0%
- The company operates at negative EBITDA Margin: -38.3%
- Elegance Optical International 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 -14.8%0
- Elegance Optical International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: 3.7 in FY2016, 8.9 in FY2015, 17.4 in FY2014, 19.1 in FY2013, 13.5 in FY2012
- The company has unprofitable business model: ROIC is at -27.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Elegance Optical International Holdings Ltd ($907) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 431.2 | 361.5 | 377.2 | 261.7 | 211.5 | -19.2% |
| Gross Profit | 1.8 | 0.8 | 2.6 | -10.6 | -9.8 | |
| SG&A | | 68.5 | 71.7 | 70.9 | 70.2 | -1.0% |
| EBITDA | -22.6 | -33.5 | -41.5 | -64.5 | -81.1 | |
| Net Income | -11.3 | -59.7 | -68.3 | -84.2 | -86.7 | |
Balance Sheet
|
|---|
| Cash | 162.3 | 93.0 | 42.3 | 41.0 | 45.0 | 9.7% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 35.9 | 45.3 | 26.2% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 13.5 | 19.1 | 17.4 | 8.9 | 3.7 | -58.7% |
Ratios
|
|---|
| Revenue growth | -14.7% | -16.2% | 4.4% | -30.6% | -19.2% | |
| EBITDA growth | -171.6% | 48.2% | 23.7% | 55.6% | 25.6% | |
| Gross Margin | 0.4% | 0.2% | 0.7% | -4.1% | -4.6% | -0.6% |
| EBITDA Margin | -5.2% | -9.3% | -11.0% | -24.7% | -38.3% | -13.7% |
| Net Income Margin | -2.6% | -16.5% | -18.1% | -32.2% | -41.0% | -8.8% |
| SG&A, % of revenue | | 18.9% | 19.0% | 27.1% | 33.2% | 6.1% |
| CAPEX, % of revenue | 3.1% | 5.3% | 4.6% | 3.4% | 1.7% | -1.7% |
| ROIC | -10.0% | -13.1% | -16.6% | -22.3% | -27.3% | -5.0% |
| ROE | -2.3% | -13.1% | -17.4% | -23.5% | -28.2% | -4.6% |
Revenue and profitability
The company's Revenue dropped on 19.2%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 13.7 pp from -24.7% to -38.3% in FY2016.
Gross Margin decreased slightly on 0.56 pp from -4.1% to -4.6% in FY2016. SG&A as a % of Revenue increased on 6.1 pp from 27.1% to 33.2% in FY2016.
Net Income marign decreased on 8.8 pp from -32.2% to -41.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Elegance Optical International Holdings Ltd's CAPEX/Revenue was 1.7% in FY2016. The company showed decline in CAPEX/Revenue of 3.5 pp from 5.3% in FY2013 to 1.7% in FY2016. For the last three years the average CAPEX/Revenue was 3.3%.
Return on investment
The company operates at negative ROIC (-27.33%) and ROE (-28.19%). ROIC decreased on 5.0 pp from -22.3% to -27.3% in FY2016. ROE decreased on 4.6 pp from -23.5% to -28.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -6.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt surged on 26.2% while cash increased on 9.7%.
Appendix 1: Peers in Healthcare-Products
Below we provide Elegance Optical International Holdings Ltd benchmarking against other companies in Healthcare-Products industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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) | 15.0% | 15.4% | 13.0% | 5.7% | -18.4% |
|---|
| Elegance Optical International Holdings Ltd ($907) | | -16.2% | 4.4% | -30.6% | -19.2% |
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% | 45.8% |
| 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% | 21.7% |
|---|
| Elegance Optical International Holdings Ltd ($907) | 0.4% | 0.2% | 0.7% | -4.1% | -4.6% |
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% | 11.1% | 7.8% |
|---|
| Elegance Optical International Holdings Ltd ($907) | -5.2% | -9.3% | -11.0% | -24.7% | -38.3% |
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% | 56.4% |
| BBI Life Sciences Corp ($1035) | 23.6% | 6.7% | 6.4% | 20.0% | |
| |
|---|
| Median (16 companies) | 9.6% | 6.6% | 6.7% | 7.4% | 6.3% |
|---|
| Elegance Optical International Holdings Ltd ($907) | 3.1% | 5.3% | 4.6% | 3.4% | 1.7% |
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) | 10.3% | 8.4% | 5.3% | 6.2% | 1.9% |
|---|
| Elegance Optical International Holdings Ltd ($907) | -10.0% | -13.1% | -16.6% | -22.3% | -27.3% |
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 (12 companies) | -1.1x | -1.5x | -1.5x | -1.4x | 0.9x |
|---|
