ASM Pacific Technology Ltd reports 53.1% Net Income growth and 2.6 pp EBITDA Margin growth from 14.5% to 17.1%
03/03/2017 • About ASM Pacific Technology Ltd (
$522) • By InTwits
ASM Pacific Technology Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has highly profitable business model: ROIC is at 18.0%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ASM Pacific Technology Ltd ($522) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10,461 | 10,841 | 14,229 | 12,977 | 14,249 | 9.8% |
| Gross Profit | 3,162 | 3,179 | 5,050 | 4,715 | 5,357 | 13.6% |
| SG&A | 1,389 | 1,459 | 1,782 | 2,033 | 2,062 | 1.4% |
| EBITDA | 1,280 | 1,123 | 2,438 | 1,880 | 2,430 | 29.3% |
| Net Income | 689 | 559 | 1,600 | 956 | 1,464 | 53.1% |
Balance Sheet
|
|---|
| Cash | 1,487 | 1,597 | 2,594 | 2,020 | 2,139 | 5.9% |
| Short Term Debt | 695 | 551 | 151 | 37 | 2,341 | 6,150.1% |
| Long Term Debt | 129 | 145 | 2,180 | 2,406 | 78 | -96.8% |
Cash flow
|
|---|
| Capex | 459 | 347 | 314 | 529 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -19.0% | 3.6% | 31.3% | -8.8% | 9.8% | |
| EBITDA growth | -64.8% | -12.2% | 117.1% | -22.9% | 29.3% | |
| Gross Margin | 30.2% | 29.3% | 35.5% | 36.3% | 37.6% | 1.3% |
| EBITDA Margin | 12.2% | 10.4% | 17.1% | 14.5% | 17.1% | 2.6% |
| Net Income Margin | 6.6% | 5.2% | 11.2% | 7.4% | 10.3% | 2.9% |
| SG&A, % of revenue | 13.3% | 13.5% | 12.5% | 15.7% | 14.5% | -1.2% |
| CAPEX, % of revenue | 4.4% | 3.2% | 2.2% | 4.1% | | -4.1% |
| ROIC | 12.3% | 9.2% | 21.9% | 13.7% | 18.0% | 4.2% |
| ROE | 10.7% | 8.2% | 20.9% | 11.8% | 17.2% | 5.4% |
| Net Debt/EBITDA | -0.5x | -0.8x | -0.1x | 0.2x | 0.1x | -0.1x |
Revenue and profitability
ASM Pacific Technology Ltd's Revenue increased on 9.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.7 pp from 13.3% to 9.6% in FY2016.
Gross Margin increased slightly on 1.3 pp from 36.3% to 37.6% in FY2016. SG&A as a % of Revenue decreased slightly on 1.2 pp from 15.7% to 14.5% in FY2016.
Net Income marign increased on 2.9 pp from 7.4% to 10.3% in FY2016.
Return on investment
The company operates at good ROIC (17.97%) and ROE (17.19%). ROIC increased on 4.2 pp from 13.7% to 18.0% in FY2016. ROE increased on 5.4 pp from 11.8% to 17.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 1.0x. Net Debt / EBITDA dropped on 0.1x from 0.2x to 0.1x in FY2016. Debt decreased slightly on 1.0% while cash increased on 5.9%.
Management team
ASM Pacific Technology Ltd's CEO is Lee Wai Kwong. Lee Wai Kwong has 11 years tenure at the company. Ng Cher Tat "Robin Gerard" is a The company's CFO. Ng Cher Tat "Robin Gerard" has spent 8 years at the company.
Appendix 1: Peers in Semiconductors
Below you can find ASM Pacific Technology 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% | 3.2% | 10.4% | 0.5% | 9.1% |
|---|
| ASM Pacific Technology Ltd ($522) | | 3.6% | 31.3% | -8.8% | 9.8% |
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% | 60.9% |
| 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) | 22.1% | 23.7% | 29.5% | 31.3% | 36.1% |
|---|
| ASM Pacific Technology Ltd ($522) | 30.2% | 29.3% | 35.5% | 36.3% | 37.6% |
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% | 34.8% |
| 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% | 32.6% |
| |
|---|
| Median (22 companies) | 7.4% | 6.1% | -0.9% | 3.9% | 28.0% |
|---|
| ASM Pacific Technology Ltd ($522) | 12.2% | 10.4% | 17.1% | 14.5% | 17.1% |
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% | 9.3% |
|---|
| ASM Pacific Technology Ltd ($522) | 4.4% | 3.2% | 2.2% | 4.1% | |
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% | 14.5% |
| Applied Materials Inc ($4336) | 4.0% | 4.6% | 15.9% | 15.2% | 19.1% |
| Hua Hong Semiconductor Ltd ($1347) | 5.3% | 4.8% | 7.8% | 6.7% | 9.1% |
| Shunfeng International Clean Energy Ltd ($1165) | -13.0% | 1.5% | 17.4% | 5.0% | |
| |
|---|
| Median (22 companies) | -2.2% | -0.4% | -0.5% | -1.1% | 9.1% |
|---|
| ASM Pacific Technology Ltd ($522) | 12.3% | 9.2% | 21.9% | 13.7% | 18.0% |
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 | 1.0x |
| |
|---|
| Median (11 companies) | 0.3x | 0.7x | 0.5x | -0.1x | -0.0x |
|---|
| ASM Pacific Technology Ltd ($522) | -0.5x | -0.8x | -0.1x | 0.2x | 0.1x |
