TeleEye Holdings Ltd revenue decreased on 9.9% and EBITDA Margin decreased on 7.6 pp from -14.6% to -22.2%
30/09/2016 • About TeleEye Holdings Ltd (
$8051) • By InTwits
TeleEye Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TeleEye Holdings Ltd is a company in decline: FY2016 revenue growth was -9.9%, 5 years revenue CAGR was -10.6%
- The company operates at negative EBITDA Margin: -22.2%
- TeleEye 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 -15.2% for the sames years0
- TeleEye Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has unprofitable business model: ROIC is at -10.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TeleEye Holdings Ltd ($8051) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 37.425 | 39.159 | 37.513 | 28.941 | 26.070 | -9.9% |
| Gross Profit | 16.476 | 16.468 | 14.442 | 10.702 | 10.650 | -0.5% |
| SG&A | 18.156 | 17.401 | 17.140 | 16.556 | 16.608 | 0.3% |
| EBITDA | -5.452 | -4.096 | -6.216 | -4.219 | -5.791 | |
| Net Income | -6.182 | -5.268 | -6.548 | -7.843 | -8.693 | |
Balance Sheet
|
|---|
| Cash | 14.431 | 14.692 | 7.844 | 68.715 | 66.282 | -3.5% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.144 | 0.089 | 0.138 | 0.221 | 0.012 | -94.6% |
Ratios
|
|---|
| Revenue growth | -18.1% | 4.6% | -4.2% | -22.9% | -9.9% | |
| EBITDA growth | -436.5% | -24.9% | 51.8% | -32.1% | 37.3% | |
| Gross Margin | 44.0% | 42.1% | 38.5% | 37.0% | 40.9% | 3.9% |
| EBITDA Margin | -14.6% | -10.5% | -16.6% | -14.6% | -22.2% | -7.6% |
| Net Income Margin | -16.5% | -13.5% | -17.5% | -27.1% | -33.3% | -6.2% |
| SG&A, % of revenue | 48.5% | 44.4% | 45.7% | 57.2% | 63.7% | 6.5% |
| CAPEX, % of revenue | 0.4% | 0.2% | 0.4% | 0.8% | 0.0% | -0.7% |
| ROIC | -18.4% | -16.2% | -23.2% | -10.9% | -10.2% | 0.7% |
| ROE | -16.4% | -15.2% | -20.1% | -14.5% | -11.6% | 2.8% |
Revenue and profitability
The company's Revenue decreased on 9.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 44.8 pp from 44.2% to 89.0% in FY2016.
Gross Margin increased on 3.9 pp from 37.0% to 40.9% in FY2016. SG&A as a % of Revenue increased on 6.5 pp from 57.2% to 63.7% in FY2016.
Net Income marign decreased on 6.2 pp from -27.1% to -33.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.046% in FY2016. TeleEye Holdings Ltd's CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 0.39%.
Return on investment
The company operates at negative ROIC (-10.22%) and ROE (-11.63%). ROIC increased slightly on 0.72 pp from -10.9% to -10.2% in FY2016. ROE increased on 2.8 pp from -14.5% to -11.6% in FY2016.
Leverage (Debt)
The company has no debt. Cash decreased on 3.5%.
Appendix 1: Peers in Electronics
Below we provide TeleEye 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) | 5.0% | 3.6% | 7.2% | 0.9% | -1.2% |
|---|
| TeleEye Holdings Ltd ($8051) | | 4.6% | -4.2% | -22.9% | -9.9% |
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% | |
| 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% | |
| China Automation Group Ltd ($569) | 39.1% | 35.9% | 32.4% | 30.3% | |
| |
|---|
| Median (47 companies) | 13.6% | 13.8% | 13.9% | 14.1% | 13.5% |
|---|
| TeleEye Holdings Ltd ($8051) | 44.0% | 42.1% | 38.5% | 37.0% | 40.9% |
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% | 5.4% | 5.5% | -1.3% |
|---|
| TeleEye Holdings Ltd ($8051) | -14.6% | -10.5% | -16.6% | -14.6% | -22.2% |
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% | 0.0% |
| 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% |
|---|
| TeleEye Holdings Ltd ($8051) | 0.4% | 0.2% | 0.4% | 0.8% | 0.0% |
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% |
|---|
| TeleEye Holdings Ltd ($8051) | -18.4% | -16.2% | -23.2% | -10.9% | -10.2% |
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 | 1.2x |
|---|
