SUNeVision Holdings Ltd CAPEX jumped on 261% and Revenue increased on 8.8%
02/09/2016 • About SUNeVision Holdings Ltd (
$8008) • By InTwits
SUNeVision Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- SUNeVision Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.8%. At the same time it's a lot of higher than industry average of 5.8%.
- CAPEX is quite volatile: 410 in FY2016, 114 in FY2015, 531 in FY2014, 78.4 in FY2013, 53.6 in FY2012
- The company has highly profitable business model: ROIC is at 15.3%
- It operates with high leverage: Net Debt/EBITDA is -0.7x while industry average is -1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SUNeVision Holdings Ltd ($8008) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 705.9 | 764.6 | 846.2 | 918.1 | 999.0 | 8.8% |
| Gross Profit | 377.9 | 462.7 | 547.8 | 601.9 | 638.4 | 6.1% |
| SG&A | | 38.9 | 41.7 | 44.3 | 50.8 | 14.8% |
| EBITDA | 453.0 | 547.2 | 606.1 | 664.5 | 688.2 | 3.6% |
| Net Income | 449.9 | 530.4 | 585.5 | 569.4 | 549.0 | -3.6% |
Balance Sheet
|
|---|
| Cash | 976.0 | 1,111.2 | 885.1 | 768.5 | 652.2 | -15.1% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 194.0 | |
Cash flow
|
|---|
| Capex | 53.6 | 78.4 | 531.1 | 113.7 | 410.3 | 260.8% |
Ratios
|
|---|
| Revenue growth | 11.9% | 8.3% | 10.7% | 8.5% | 8.8% | |
| EBITDA growth | 17.6% | 20.8% | 10.8% | 9.6% | 3.6% | |
| Gross Margin | 53.5% | 60.5% | 64.7% | 65.6% | 63.9% | -1.7% |
| EBITDA Margin | 64.2% | 71.6% | 71.6% | 72.4% | 68.9% | -3.5% |
| Net Income Margin | 63.7% | 69.4% | 69.2% | 62.0% | 55.0% | -7.1% |
| SG&A, % of revenue | | 5.1% | 4.9% | 4.8% | 5.1% | 0.3% |
| CAPEX, % of revenue | 7.6% | 10.2% | 62.8% | 12.4% | 41.1% | 28.7% |
| ROIC | 10.8% | 13.3% | 14.4% | 15.3% | 15.3% | -0.0% |
| ROE | 15.2% | 16.9% | 17.6% | 16.5% | 15.5% | -0.9% |
| Net Debt/EBITDA | -2.2x | -2.0x | -1.5x | -1.2x | -0.7x | 0.5x |
Revenue and profitability
SUNeVision Holdings Ltd's Revenue increased on 8.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.6 pp from 1.6% to 6.2% in FY2016.
Gross Margin decreased slightly on 1.7 pp from 65.6% to 63.9% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased on 7.1 pp from 62.0% to 55.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
SUNeVision Holdings Ltd's CAPEX/Revenue was 41.1% in FY2016. CAPEX/Revenue surged on 30.8 pp from 10.2% in FY2013 to 41.1% in FY2016. It's average level of CAPEX/Revenue for the last three years was 38.7%.The company invested a large share of EBITDA (59.6%) to CAPEX.
Return on investment
The company operates at good ROIC (15.33%) and ROE (15.54%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.95 pp from 16.5% to 15.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is 0.3x. Net Debt / EBITDA surged on 0.5x from -1.2x to -0.7x in FY2016. Debt jumped while cash dropped on 15.1%.
Appendix 1: Peers in Internet
Below we provide SUNeVision Holdings Ltd benchmarking against other companies in Internet 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 |
|---|
| Asian Capital Resources Holdings Ltd ($8025) | -5.6% | | | 1,114.6% | |
| China Public Procurement Ltd ($1094) | 5,077.0% | -67.5% | 1,258.9% | 105.7% | |
| Ourgame International Holdings Ltd ($6899) | 33.7% | 14.8% | 101.3% | 61.8% | |
| Media Asia Group Holdings Ltd ($8075) | 1,124.6% | 275.6% | 3.6% | 55.9% | |
| Tai Shing International Holdings Ltd ($8103) | | -35.9% | -4.9% | 48.5% | -13.6% |
| |
|---|
| Median (20 companies) | 12.7% | 8.2% | 13.0% | 7.0% | -5.3% |
|---|
| SUNeVision Holdings Ltd ($8008) | | 8.3% | 10.7% | 8.5% | 8.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino-I Technology Ltd ($250) | 75.3% | 82.7% | 78.8% | 82.8% | |
| ABC Multiactive Ltd ($8131) | 86.7% | 83.5% | 86.2% | 82.1% | |
| China Digital Culture Group Ltd ($8175) | 64.3% | 78.6% | 65.2% | 72.7% | |
| Prosten Technology Holdings Ltd ($8026) | 52.4% | 47.8% | 50.8% | 67.1% | 53.8% |
| Pacific Online Ltd ($543) | 71.0% | 70.5% | 67.3% | 64.8% | |
| |
|---|
| Median (17 companies) | 68.0% | 70.5% | 61.7% | 45.7% | 28.6% |
|---|
| SUNeVision Holdings Ltd ($8008) | 53.5% | 60.5% | 64.7% | 65.6% | 63.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Digital Culture Group Ltd ($8175) | -66.7% | 22.5% | 40.8% | 46.6% | |
| Tradelink Electronic Commerce Ltd ($536) | 38.6% | 33.8% | 33.1% | 31.1% | |
| GET Holdings Ltd ($8380) | -237.7% | 56.8% | 66.4% | 28.5% | |
| Media Asia Group Holdings Ltd ($8075) | -30.8% | 18.6% | 13.4% | 25.1% | |
| Ourgame International Holdings Ltd ($6899) | 23.3% | 24.8% | 23.3% | 22.7% | |
| |
|---|
| Median (20 companies) | 4.3% | 16.9% | 13.4% | 7.1% | -111.9% |
|---|
| SUNeVision Holdings Ltd ($8008) | 64.2% | 71.6% | 71.6% | 72.4% | 68.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AcrossAsia Ltd ($8061) | 56.6% | 65.9% | 36.3% | 45.8% | |
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | | 12.2% | 14.0% | |
| Ourgame International Holdings Ltd ($6899) | 1.8% | 3.1% | 1.7% | 6.4% | |
| Sino-I Technology Ltd ($250) | 9.3% | 12.7% | 4.0% | 6.0% | |
| Capinfo Co Ltd ($1075) | 17.3% | 13.1% | 9.7% | 4.3% | |
| |
|---|
| Median (20 companies) | 3.1% | 2.5% | 1.7% | 0.8% | 2.0% |
|---|
| SUNeVision Holdings Ltd ($8008) | 7.6% | 10.2% | 62.8% | 12.4% | 41.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Online Ltd ($543) | 37.9% | 36.4% | 28.6% | 21.6% | |
| Tradelink Electronic Commerce Ltd ($536) | 22.4% | 18.2% | 17.4% | 16.7% | |
| Ourgame International Holdings Ltd ($6899) | 42.8% | 33.3% | 17.5% | 12.7% | |
| China Digital Culture Group Ltd ($8175) | -11.2% | 4.0% | 11.7% | 8.2% | |
| GET Holdings Ltd ($8380) | -6.5% | 10.8% | 19.3% | 6.7% | |
| |
|---|
| Median (21 companies) | -6.3% | 3.0% | -2.9% | -0.5% | -41.0% |
|---|
| SUNeVision Holdings Ltd ($8008) | 10.8% | 13.3% | 14.4% | 15.3% | 15.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tai Shing International Holdings Ltd ($8103) | | | | 82.7x | |
| AcrossAsia Ltd ($8061) | 2.3x | 2.9x | 1.5x | 7.7x | |
| Sino-I Technology Ltd ($250) | | 9.4x | | 4.1x | |
| GET Holdings Ltd ($8380) | | -1.1x | -1.0x | 0.7x | |
| China Digital Culture Group Ltd ($8175) | | -2.2x | -0.4x | -1.5x | |
| |
|---|
| Median (13 companies) | -1.4x | -1.1x | -1.5x | -2.0x | |
|---|
| SUNeVision Holdings Ltd ($8008) | -2.2x | -2.0x | -1.5x | -1.2x | -0.7x |
