Topsearch International Holdings Ltd Net Income surged on 890% and EBITDA Margin surged on 33.9 pp from -15.0% to 18.9%
10/03/2017 • About Topsearch International Holdings Ltd (
$2323) • By InTwits
Topsearch International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Topsearch 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 -2.0% for the sames years0
- The company has business model with low profitability: ROIC is at 9.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Topsearch International Holdings Ltd ($2323) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 817.0 | 720.4 | 610.3 | 566.6 | 803.2 | 41.7% |
| Gross Profit | 12.2 | 99.0 | 10.0 | 29.2 | 333.9 | 1,041.7% |
| SG&A | 158.2 | 142.4 | 129.6 | 153.4 | 203.4 | 32.6% |
| EBITDA | -68.6 | 10.4 | -77.8 | -85.2 | 151.7 | |
| Net Income | 96.3 | -90.4 | -161.9 | 17.9 | 177.2 | 889.9% |
Balance Sheet
|
|---|
| Cash | 63.9 | 85.9 | 94.7 | 97.0 | 992.8 | 923.6% |
| Short Term Debt | 385.2 | 103.0 | 105.7 | 250.5 | 843.9 | 236.8% |
| Long Term Debt | 104.8 | 103.7 | 173.7 | 0.6 | 281.3 | 48,910.8% |
Cash flow
|
|---|
| Capex | 34.5 | 14.6 | 7.0 | 6.4 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -28.0% | -11.8% | -15.3% | -7.2% | 41.7% | |
| EBITDA growth | 33.7% | -115.1% | -851.1% | 9.5% | -278.1% | |
| Gross Margin | 1.5% | 13.7% | 1.6% | 5.2% | 41.6% | 36.4% |
| EBITDA Margin | -8.4% | 1.4% | -12.7% | -15.0% | 18.9% | 33.9% |
| Net Income Margin | 11.8% | -12.5% | -26.5% | 3.2% | 22.1% | 18.9% |
| SG&A, % of revenue | 19.4% | 19.8% | 21.2% | 27.1% | 25.3% | -1.7% |
| CAPEX, % of revenue | 4.2% | 2.0% | 1.1% | 1.1% | | -1.1% |
| ROIC | -12.5% | -2.7% | -15.7% | -18.6% | 9.2% | 27.8% |
| ROE | 15.7% | -15.3% | -34.6% | 4.9% | 23.3% | 18.4% |
| Net Debt/EBITDA | | 11.7x | | | 0.9x | 0.9x |
Revenue and profitability
The company's Revenue surged on 41.7%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 33.9 pp from -15.0% to 18.9% in FY2016.
Gross Margin surged on 36.4 pp from 5.2% to 41.6% in FY2016. SG&A as a % of Revenue decreased slightly on 1.7 pp from 27.1% to 25.3% in FY2016.
Net Income marign surged on 18.9 pp from 3.2% to 22.1% in FY2016.
Return on investment
The company operates at good ROE (23.32%) while ROIC is low (9.17%). ROIC surged on 27.8 pp from -18.6% to 9.2% in FY2016. ROE surged on 18.4 pp from 4.9% to 23.3% in FY2016.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and 7.4x Debt / EBITDA. Net Debt / EBITDA surged0.9x from to 0.9x in FY2016. Debt surged on 348% while cash jumped on 924%.
Appendix 1: Peers in Electronics
Below you can find Topsearch International Holdings Ltd benchmarking vs. other companies in Electronics 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 |
|---|
| 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 (50 companies) | 7.9% | 4.1% | 7.2% | 0.4% | -1.2% |
|---|
| Topsearch International Holdings Ltd ($2323) | | -11.8% | -15.3% | -7.2% | 41.7% |
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% | 40.9% |
| Hi Sun Technology China Ltd ($818) | 28.1% | 37.4% | 33.3% | 34.7% | 30.8% |
| Datronix Holdings Ltd ($889) | 32.9% | 32.0% | 34.1% | 34.6% | |
| |
|---|
| Median (48 companies) | 14.1% | 13.8% | 14.1% | 15.3% | 13.5% |
|---|
| Topsearch International Holdings Ltd ($2323) | 1.5% | 13.7% | 1.6% | 5.2% | 41.6% |
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 (50 companies) | 7.4% | 7.6% | 5.4% | 5.1% | -1.3% |
|---|
| Topsearch International Holdings Ltd ($2323) | -8.4% | 1.4% | -12.7% | -15.0% | 18.9% |
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 (50 companies) | 3.7% | 3.2% | 4.2% | 3.0% | 2.1% |
|---|
| Topsearch International Holdings Ltd ($2323) | 4.2% | 2.0% | 1.1% | 1.1% | |
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 (50 companies) | 4.6% | 4.1% | 3.7% | 2.4% | -3.3% |
|---|
| Topsearch International Holdings Ltd ($2323) | -12.5% | -2.7% | -15.7% | -18.6% | 9.2% |
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 | 0.2x |
|---|
