QPL International Holdings Ltd revenue started to decline in FY2016: dropped 94.0% vs. 31.0% growth a year earliner
28/07/2016 • About QPL International Holdings Ltd (
$243) • By InTwits
QPL International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- QPL International Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -7.1%
- The company operates at negative EBITDA Margin: -9.0%
- QPL International Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -0.3% for the sames years0
- QPL International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: 0.046 in FY2016, 0.015 in FY2015, 2.9 in FY2014, 2.3 in FY2013, 7.5 in FY2012
- The company has unprofitable business model: ROIC is at -7.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
QPL International Holdings Ltd ($243) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 279.1 | 217.2 | 262.7 | 262.3 | 287.0 | 9.4% |
| EBITDA | 8.2 | 5.4 | 14.3 | -6.1 | -25.7 | |
| Net Income | -6.5 | -6.1 | 1.7 | -46.7 | -11.0 | |
Balance Sheet
|
|---|
| Cash | 13.9 | 8.7 | 9.6 | 4.7 | 641.7 | 13,593.3% |
| Short Term Debt | 13.0 | 15.0 | 40.1 | 29.8 | 37.6 | 26.3% |
| Long Term Debt | 0.1 | 0.0 | 0.0 | 0.0 | 1.0 | |
Cash flow
|
|---|
| Capex | 7.0 | 10.7 | 12.9 | 9.2 | 10.7 | 16.7% |
Ratios
|
|---|
| Revenue growth | -21.1% | -22.2% | 21.0% | -0.2% | 9.4% | |
| EBITDA growth | 51.9% | -34.3% | 163.5% | -142.7% | 321.9% | |
| EBITDA Margin | 3.0% | 2.5% | 5.4% | -2.3% | -9.0% | -6.6% |
| Net Income Margin | -2.3% | -2.8% | 0.6% | -17.8% | -3.8% | 14.0% |
| CAPEX, % of revenue | 2.5% | 4.9% | 4.9% | 3.5% | 3.7% | 0.2% |
| ROIC | -4.2% | -7.7% | 1.0% | -22.0% | -7.1% | 14.9% |
| ROE | -7.8% | -7.8% | 2.2% | -90.2% | -2.8% | 87.4% |
| Net Debt/EBITDA | -0.1x | 1.2x | 2.1x | | | 0.0x |
Revenue and profitability
QPL International Holdings Ltd's Revenue increased on 9.4%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 6.6 pp from -2.3% to -9.0% in FY2016.
Net Income marign jumped on 14.0 pp from -17.8% to -3.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
QPL International Holdings Ltd's CAPEX/Revenue was 3.7% in FY2016. QPL International Holdings Ltd showed small CAPEX/Revenue decline of 1.2 pp from 4.9% in FY2013 to 3.7% in FY2016. It's average CAPEX/Revenue for the last three years was 4.0%.
Return on investment
The company operates at negative ROIC (-7.09%) and ROE (-2.83%). ROIC surged on 14.9 pp from -22.0% to -7.1% in FY2016. ROE jumped on 87.4 pp from -90.2% to -2.8% in FY2016.
Leverage (Debt)
Debt level is -6.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt surged on 29.5% while cash surged on 13,593%.
Appendix 1: Peers in Electronics
Below we provide QPL International Holdings Ltd benchmarking against other companies in Electronics 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 |
|---|
| 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) | 3.5% | 4.1% | 5.0% | 0.9% | -0.9% |
|---|
| QPL International Holdings Ltd ($243) | | -22.2% | 21.0% | -0.2% | 9.4% |
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 (48 companies) | 13.6% | 13.8% | 14.0% | 15.3% | 13.5% |
|---|
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% | -53.6% |
| 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% | 4.6% | 5.5% | 3.5% |
|---|
| QPL International Holdings Ltd ($243) | 3.0% | 2.5% | 5.4% | -2.3% | -9.0% |
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% | 3.0% | 3.7% | 2.9% | 2.1% |
|---|
| QPL International Holdings Ltd ($243) | 2.5% | 4.9% | 4.9% | 3.5% | 3.7% |
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% | 0.8% |
|---|
| QPL International Holdings Ltd ($243) | -4.2% | -7.7% | 1.0% | -22.0% | -7.1% |
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) | 1.1x | 1.1x | 0.8x | 0.2x | 1.2x |
|---|
