Sunny Optical Technology Group Co Ltd reports 66.8% Net Income growth and 36.6% Revenue growth
13/03/2017 • About Sunny Optical Technology Group Co Ltd (
$2382) • By InTwits
Sunny Optical Technology Group Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sunny Optical Technology Group Co Ltd is a fast growth stock: FY2016 revenue growth was 36.6%, 5 year revenue CAGR was 42.4% at FY2016 ROIC 26.8%
- The company has highly profitable business model: ROIC is at 26.8%
- It operates with high leverage: Net Debt/EBITDA is 0.2x while industry average is -3.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sunny Optical Technology Group Co Ltd ($2382) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,984 | 5,813 | 8,426 | 10,696 | 14,612 | 36.6% |
| Gross Profit | 741 | 967 | 1,289 | 1,763 | 2,680 | 52.0% |
| SG&A | 214 | 254 | 320 | 352 | 485 | 37.9% |
| EBITDA | 485 | 635 | 830 | 1,126 | 1,802 | 60.0% |
| Net Income | 346 | 440 | 566 | 762 | 1,271 | 66.8% |
Balance Sheet
|
|---|
| Cash | 243 | 709 | 525 | 259 | 467 | 80.5% |
| Short Term Debt | 103 | 535 | 734 | 1,140 | 904 | -20.7% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 249 | 244 | 274 | 283 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 59.5% | 45.9% | 45.0% | 26.9% | 36.6% | |
| EBITDA growth | 61.5% | 31.0% | 30.6% | 35.8% | 60.0% | |
| Gross Margin | 18.6% | 16.6% | 15.3% | 16.5% | 18.3% | 1.9% |
| EBITDA Margin | 12.2% | 10.9% | 9.8% | 10.5% | 12.3% | 1.8% |
| Net Income Margin | 8.7% | 7.6% | 6.7% | 7.1% | 8.7% | 1.6% |
| SG&A, % of revenue | 5.4% | 4.4% | 3.8% | 3.3% | 3.3% | 0.0% |
| CAPEX, % of revenue | 6.2% | 4.2% | 3.3% | 2.6% | | -2.6% |
| ROIC | 19.7% | 17.8% | 16.5% | 19.4% | 26.8% | 7.4% |
| ROE | 19.3% | 18.5% | 18.6% | 21.5% | 29.1% | 7.6% |
| Net Debt/EBITDA | -0.3x | -0.3x | 0.3x | 0.8x | 0.2x | -0.5x |
Revenue and profitability
Sunny Optical Technology Group Co Ltd's Revenue jumped on 36.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 23.8% to 26.0% in FY2016.
Gross Margin increased slightly on 1.9 pp from 16.5% to 18.3% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased slightly on 1.6 pp from 7.1% to 8.7% in FY2016.
Return on investment
The company operates at high and attractive ROIC (26.85%) and ROE (29.12%). ROIC increased on 7.4 pp from 19.4% to 26.8% in FY2016. ROE increased on 7.6 pp from 21.5% to 29.1% in FY2016.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 0.8x to 0.2x in FY2016. Debt dropped on 20.7% while cash jumped on 80.5%.
Appendix 1: Peers in Miscellaneous Manufactur
Below you can find Sunny Optical Technology Group Co Ltd benchmarking vs. other companies in Miscellaneous Manufactur 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 |
|---|
| Karrie International Hldgs ($1050) | | 0.1% | -11.3% | 27.4% | 11.8% |
| TK Group Holdings Ltd ($2283) | | 9.3% | 11.8% | 20.0% | 1.3% |
| AMCO United Holding Ltd ($2970) | | 10.8% | 53.9% | 16.8% | 31.1% |
| Yusei Holdings Ltd ($96) | 18.4% | -9.3% | 6.7% | 15.6% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 1.5% | 22.2% | 43.2% | 11.7% | |
| |
|---|
| Median (25 companies) | -7.3% | -0.7% | 6.7% | -5.6% | 6.3% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | | 45.9% | 45.0% | 26.9% | 36.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Man Sang International Ltd ($938) | 42.4% | 32.8% | 60.3% | 78.6% | 56.4% |
| Time Watch Investments Ltd ($2033) | 60.2% | 60.6% | 65.0% | 68.1% | 68.5% |
| China Environmental Energy Investment Ltd ($986) | 14.0% | 1.2% | 9.0% | 49.2% | 40.4% |
| Lee & Man Chemical Co Ltd ($746) | 34.3% | 35.7% | 41.9% | 39.6% | 36.3% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 33.2% | 35.1% | 37.4% | 38.7% | |
| |
|---|
| Median (24 companies) | 19.8% | 20.8% | 24.9% | 23.9% | 23.9% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 18.6% | 16.6% | 15.3% | 16.5% | 18.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 30.4% | 31.3% | 38.4% | 37.6% | 37.0% |
| Man Sang International Ltd ($938) | 24.9% | 15.4% | 37.0% | 33.8% | 40.4% |
| IPE Group Ltd ($929) | 25.6% | 22.5% | 29.5% | 29.1% | |
| DeTeam Co Ltd ($65) | 8.0% | 3.9% | -1.3% | 24.3% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 18.4% | 19.8% | 20.6% | 24.2% | |
| |
|---|
| Median (25 companies) | 7.9% | 7.8% | 7.4% | 6.1% | 6.7% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 10.9% | 9.8% | 10.5% | 12.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Environmental Energy Investment Ltd ($986) | 6.1% | 0.4% | 17.9% | 47.6% | 6.2% |
| DeTeam Co Ltd ($65) | 6.7% | 47.0% | 5.6% | 33.1% | |
| Lee & Man Chemical Co Ltd ($746) | 5.8% | 51.1% | 33.7% | 22.8% | |
| China International Marine Containers Group Co Ltd ($2039) | 3.9% | 12.1% | 18.5% | 21.2% | |
| IPE Group Ltd ($929) | 6.3% | 13.3% | 12.3% | 13.3% | |
| |
|---|
| Median (25 companies) | 4.6% | 4.2% | 4.2% | 5.6% | 3.8% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 6.2% | 4.2% | 3.3% | 2.6% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Time Watch Investments Ltd ($2033) | 34.5% | 27.1% | 27.8% | 27.9% | 18.6% |
| TK Group Holdings Ltd ($2283) | 36.8% | 31.1% | 29.4% | 27.6% | 26.0% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 16.9% | 17.7% | 20.0% | 21.1% | |
| Yusei Holdings Ltd ($96) | 4.2% | 7.0% | 13.6% | 14.1% | |
| AMCO United Holding Ltd ($2970) | | 10.5% | 11.4% | 11.6% | 9.5% |
| |
|---|
| Median (25 companies) | 3.2% | 3.6% | 3.9% | 1.5% | 9.0% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 19.7% | 17.8% | 16.5% | 19.4% | 26.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Continental Holdings Ltd ($513) | | 20.1x | 92.9x | 4,203.6x | |
| South China China Ltd ($413) | | 37.5x | 2,842.3x | 27.3x | |
| Launch Tech Co Ltd ($2488) | 7.6x | 2.4x | 3.9x | 14.5x | |
| China International Marine Containers Group Co Ltd ($2039) | 4.0x | 4.7x | 5.8x | 9.8x | |
| VS International Group Ltd ($1002) | 5.1x | 6.5x | 4.4x | 3.3x | 4.6x |
| |
|---|
| Median (22 companies) | -0.2x | 0.2x | -0.2x | 0.1x | -0.8x |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | -0.3x | -0.3x | 0.3x | 0.8x | 0.2x |
