Technovator International Ltd Net Income dropped on 71.6% while EBITDA Margin increased on 3.2 pp from 18.0% to 21.2%
13/03/2017 • About Technovator International Ltd (
$1206) • By InTwits
Technovator International Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has business model with average profitability: ROIC is at 11.8%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Technovator International Ltd ($1206) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 124.2 | 166.6 | 226.3 | 269.4 | 269.0 | -0.1% |
| Gross Profit | 44.5 | 56.2 | 60.3 | 63.0 | 64.5 | 2.5% |
| SG&A | 22.8 | 29.2 | 28.7 | 34.1 | 29.8 | -12.7% |
| EBITDA | 23.6 | 31.7 | 47.0 | 48.5 | 57.0 | 17.5% |
| Net Income | 13.4 | 15.6 | 29.9 | 124.0 | 35.3 | -71.6% |
Balance Sheet
|
|---|
| Cash | 40.5 | 69.2 | 73.3 | 194.5 | 95.9 | -50.7% |
| Short Term Debt | 7.9 | 33.6 | 62.9 | 42.7 | 41.9 | -1.9% |
| Long Term Debt | 7.2 | 34.8 | 38.0 | 26.1 | 0.0 | -99.9% |
Cash flow
|
|---|
| Capex | 4.6 | 30.2 | 10.0 | 7.8 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 27.4% | 34.1% | 35.9% | 19.0% | -0.1% | |
| EBITDA growth | 26.2% | 34.0% | 48.5% | 3.1% | 17.5% | |
| Gross Margin | 35.8% | 33.8% | 26.6% | 23.4% | 24.0% | 0.6% |
| EBITDA Margin | 19.0% | 19.0% | 20.8% | 18.0% | 21.2% | 3.2% |
| Net Income Margin | 10.8% | 9.4% | 13.2% | 46.0% | 13.1% | -32.9% |
| SG&A, % of revenue | 18.3% | 17.5% | 12.7% | 12.7% | 11.1% | -1.6% |
| CAPEX, % of revenue | 3.7% | 18.1% | 4.4% | 2.9% | | -2.9% |
| ROIC | 21.2% | 16.9% | 14.2% | 9.7% | 11.8% | 2.1% |
| ROE | 18.7% | 17.3% | 20.9% | 49.5% | 11.2% | -38.3% |
| Net Debt/EBITDA | -1.1x | -0.0x | 0.6x | -2.6x | -0.9x | 1.6x |
Revenue and profitability
The company's Revenue showed almost no change in FY2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.2 pp from 18.0% to 21.2% in FY2016.
Gross Margin increased slightly on 0.62 pp from 23.4% to 24.0% in FY2016. SG&A as a % of Revenue decreased slightly on 1.6 pp from 12.7% to 11.1% in FY2016.
Net Income marign dropped on 32.9 pp from 46.0% to 13.1% in FY2016.
Return on investment
The company operates at low ROIC (11.81%) and ROE (11.18%). ROIC increased on 2.1 pp from 9.7% to 11.8% in FY2016. ROE dropped on 38.3 pp from 49.5% to 11.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.9x and Debt / EBITDA is 0.7x. Net Debt / EBITDA jumped on 1.6x from -2.6x to -0.9x in FY2016. Debt dropped on 39.1% while cash dropped on 50.7%.
Appendix 1: Peers in Electronics
Below you can find Technovator International 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) | 6.5% | 3.6% | 5.0% | -1.2% | -1.2% |
|---|
| Technovator International Ltd ($1206) | | 34.1% | 35.9% | 19.0% | -0.1% |
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) | 13.6% | 13.8% | 13.9% | 14.0% | 14.7% |
|---|
| Technovator International Ltd ($1206) | 35.8% | 33.8% | 26.6% | 23.4% | 24.0% |
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) | 6.5% | 6.0% | 4.6% | 4.6% | 2.1% |
|---|
| Technovator International Ltd ($1206) | 19.0% | 19.0% | 20.8% | 18.0% | 21.2% |
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 (50 companies) | 3.9% | 3.0% | 3.7% | 3.0% | 2.6% |
|---|
| Technovator International Ltd ($1206) | 3.7% | 18.1% | 4.4% | 2.9% | |
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) | 4.3% | 3.5% | 3.0% | 1.9% | 0.5% |
|---|
| Technovator International Ltd ($1206) | 21.2% | 16.9% | 14.2% | 9.7% | 11.8% |
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 (32 companies) | 1.1x | 1.1x | 1.0x | 0.4x | 0.8x |
|---|
| Technovator International Ltd ($1206) | -1.1x | -0.0x | 0.6x | -2.6x | -0.9x |
