Fittec International Group Ltd revenue dropped on 36.4% while EBITDA Margin increased on 2.4 pp from -6.0% to -3.5%
29/09/2016 • About Fittec International Group Ltd (
$2662) • By InTwits
Fittec International Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Fittec International Group Ltd is a company in decline: FY2016 revenue growth was -36.4%, 5 years revenue CAGR was -23.9%
- The company operates at negative EBITDA Margin: -3.5%
- Fittec International Group 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 -0.5%0
- Fittec International Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has unprofitable business model: ROIC is at -9.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fittec International Group Ltd ($2662) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,529 | 1,169 | 1,082 | 727 | 462 | -36.4% |
| Gross Profit | 31 | 10 | -27 | -17 | 26 | |
| SG&A | 78 | 75 | 61 | 62 | 59 | -4.2% |
| EBITDA | 40 | 39 | -45 | -43 | -16 | |
| Net Income | -104 | -48 | -265 | -78 | -52 | |
Balance Sheet
|
|---|
| Cash | 256 | 279 | 247 | 193 | 148 | -23.0% |
| Short Term Debt | 18 | 9 | 2 | 0 | 0 | |
| Long Term Debt | 7 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 18 | 9 | 5 | 7 | 2 | -65.8% |
Ratios
|
|---|
| Revenue growth | -15.7% | -23.6% | -7.4% | -32.8% | -36.4% | |
| EBITDA growth | 38.9% | -3.8% | -215.4% | -2.8% | -62.4% | |
| Gross Margin | 2.0% | 0.9% | -2.5% | -2.4% | 5.6% | 7.9% |
| EBITDA Margin | 2.6% | 3.3% | -4.1% | -6.0% | -3.5% | 2.4% |
| Net Income Margin | -6.8% | -4.1% | -24.5% | -10.7% | -11.2% | -0.5% |
| SG&A, % of revenue | 5.1% | 6.4% | 5.7% | 8.5% | 12.8% | 4.3% |
| CAPEX, % of revenue | 1.2% | 0.8% | 0.5% | 0.9% | 0.5% | -0.4% |
| ROIC | -3.5% | -2.9% | -13.2% | -13.7% | -9.5% | 4.2% |
| ROE | -11.1% | -5.5% | -37.2% | -14.6% | -12.1% | 2.5% |
| Net Debt/EBITDA | -5.8x | -7.0x | | | | 0.0x |
Revenue and profitability
Fittec International Group Ltd's Revenue dropped on 36.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from -6.0% to -3.5% in FY2016.
Gross Margin increased on 7.9 pp from -2.4% to 5.6% in FY2016. SG&A as a % of Revenue increased on 4.3 pp from 8.5% to 12.8% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
Fittec International Group Ltd's CAPEX/Revenue was 0.50% in FY2016. Fittec International Group Ltd's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.63%.
Return on investment
The company operates at negative ROIC (-9.47%) and ROE (-12.07%). ROIC increased on 4.2 pp from -13.7% to -9.5% in FY2016. ROE increased on 2.5 pp from -14.6% to -12.1% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 23.0%.
Appendix 1: Peers in Semiconductors
Below you can find Fittec International Group Ltd benchmarking vs. other companies in Semiconductors 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 |
|---|
| Phoenitron Holdings Ltd ($8066) | -7.2% | 4.0% | 243.8% | 405.3% | |
| Jun Yang Solar Power Investments Ltd ($397) | -81.0% | 256.8% | 1.1% | 168.9% | |
| Honbridge Holdings Ltd ($8137) | -76.4% | -97.5% | 608.9% | 57.0% | |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 15.5% | 16.0% | 3.3% | 23.2% | |
| Shunfeng International Clean Energy Ltd ($1165) | -46.3% | 44.4% | 275.6% | 22.4% | |
| |
|---|
| Median (22 companies) | -11.2% | 3.8% | 11.7% | 0.5% | |
|---|
| Fittec International Group Ltd ($2662) | | -23.6% | -7.4% | -32.8% | -36.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jun Yang Solar Power Investments Ltd ($397) | 87.3% | 79.3% | 53.8% | 73.8% | |
| Intel Corp ($4335) | 62.1% | 59.8% | 63.7% | 62.6% | |
| PacMOS Technologies Holdings Ltd ($1010) | 68.8% | 65.7% | 65.7% | 57.5% | |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 47.7% | 48.7% | 47.5% | 52.9% | |
| Shenzhen Mingwah Aohan High Technology Corp Ltd ($8301) | 26.1% | 26.7% | 16.3% | 52.8% | |
| |
|---|
| Median (22 companies) | 24.5% | 26.7% | 32.2% | 32.1% | |
|---|
| Fittec International Group Ltd ($2662) | 2.0% | 0.9% | -2.5% | -2.4% | 5.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 9.1% | 37.2% | 88.0% | 78.3% | |
| Intel Corp ($4335) | 41.5% | 38.6% | 42.8% | 41.0% | |
| Jun Yang Solar Power Investments Ltd ($397) | -218.5% | -16.7% | -9.9% | 35.0% | |
| Semiconductor Manufacturing International Corp ($981) | 34.3% | 35.5% | 34.5% | 33.3% | |
| Hua Hong Semiconductor Ltd ($1347) | 38.5% | 29.7% | 31.5% | 30.0% | |
| |
|---|
| Median (22 companies) | 9.3% | 9.5% | 7.1% | 9.1% | |
|---|
| Fittec International Group Ltd ($2662) | 2.6% | 3.3% | -4.1% | -6.0% | -3.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heng Xin China Holdings Ltd ($8046) | 16.1% | 4.1% | 11.9% | 110.8% | |
| Jun Yang Solar Power Investments Ltd ($397) | 671.1% | 25.9% | 78.9% | 104.2% | |
| China Ruifeng Renewable Energy Ltd ($527) | 5.5% | 35.9% | 10.6% | 60.9% | |
| Semiconductor Manufacturing International Corp ($981) | 23.5% | 35.1% | 33.2% | 55.0% | |
| Hanergy Thin Film Power Group Ltd ($566) | 1.3% | 2.8% | 4.8% | 32.0% | |
| |
|---|
| Median (22 companies) | 4.7% | 5.5% | 7.0% | 6.8% | |
|---|
| Fittec International Group Ltd ($2662) | 1.2% | 0.8% | 0.5% | 0.9% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 25.5% | 22.7% | 21.1% | 20.9% | |
| Intel Corp ($4335) | 23.7% | 17.1% | 20.6% | 17.7% | |
| Applied Materials Inc ($4336) | 4.0% | 4.6% | 15.9% | 15.2% | |
| ASM Pacific Technology Ltd ($522) | 12.3% | 9.2% | 21.9% | 13.7% | |
| Hua Hong Semiconductor Ltd ($1347) | 5.3% | 4.8% | 7.8% | 6.7% | |
| |
|---|
| Median (22 companies) | -0.8% | 0.6% | 3.1% | 0.8% | -50.4% |
|---|
| Fittec International Group Ltd ($2662) | -3.5% | -2.9% | -13.2% | -13.7% | -9.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Solargiga Energy Holdings Ltd ($757) | | 13.8x | 4.4x | 9.0x | |
| China Ruifeng Renewable Energy Ltd ($527) | 16.4x | 6.9x | 4.9x | 7.3x | |
| Shunfeng International Clean Energy Ltd ($1165) | | 25.8x | 3.4x | 5.7x | |
| Semiconductor Manufacturing International Corp ($981) | 1.3x | 1.0x | 1.0x | 0.5x | |
| Intel Corp ($4335) | 0.2x | 0.4x | 0.5x | 0.3x | |
| |
|---|
| Median (12 companies) | 0.3x | 0.7x | 0.2x | 0.1x | |
|---|
