Q Technology Group Co Ltd reports 198% CAPEX growth in 2016 and 127% Revenue growth
16/03/2017 • About Q Technology Group Co Ltd (
$1478) • By InTwits
Q Technology Group Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Q Technology Group Co Ltd is a fast growth stock: FY2016 revenue growth was 127%, 5 year revenue CAGR was 77.5% at FY2016 ROIC 17.1%
- EBITDA Margin is declining: 6.9% in FY2016 vs. 8.3% in FY2015 vs. 9.9% in FY2012
- Q Technology Group Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.1%. At the same time it's in pair with industry average of 13.0%.
- CAPEX is quite volatile: 409 in FY2016, 137 in FY2015, 158 in FY2014, 148 in FY2013, 85.6 in FY2012
- The company has highly profitable business model: ROIC is at 17.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Q Technology Group Co Ltd ($1478) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 638 | 1,411 | 2,161 | 2,202 | 4,991 | 126.6% |
| Gross Profit | 87 | 234 | 353 | 241 | 422 | 75.6% |
| SG&A | 10 | 18 | 45 | 34 | 51 | 51.1% |
| EBITDA | 63 | 185 | 269 | 183 | 345 | 88.2% |
| Net Income | 50 | 163 | 196 | 102 | 191 | 87.0% |
Balance Sheet
|
|---|
| Cash | 27 | 42 | 553 | 282 | 65 | -77.0% |
| Short Term Debt | 91 | 459 | 756 | 142 | 335 | 135.9% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 86 | 148 | 158 | 137 | 409 | 198.1% |
Ratios
|
|---|
| Revenue growth | 125.0% | 121.2% | 53.2% | 1.9% | 126.6% | |
| EBITDA growth | 118.0% | 191.5% | 45.5% | -32.0% | 88.2% | |
| Gross Margin | 13.6% | 16.6% | 16.3% | 10.9% | 8.5% | -2.5% |
| EBITDA Margin | 9.9% | 13.1% | 12.4% | 8.3% | 6.9% | -1.4% |
| Net Income Margin | 7.9% | 11.6% | 9.0% | 4.6% | 3.8% | -0.8% |
| SG&A, % of revenue | 1.5% | 1.3% | 2.1% | 1.5% | 1.0% | -0.5% |
| CAPEX, % of revenue | 13.4% | 10.5% | 7.3% | 6.2% | 8.2% | 2.0% |
| ROIC | 46.8% | 36.4% | 18.0% | 8.6% | 17.1% | 8.5% |
| ROE | 68.6% | 88.2% | 28.1% | 8.7% | 13.7% | 5.0% |
| Net Debt/EBITDA | 1.0x | 2.3x | 0.8x | -0.8x | 0.8x | 1.6x |
Revenue and profitability
Q Technology Group Co Ltd's Revenue surged on 127%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.3 pp from 6.8% to 9.0% in FY2016.
Gross Margin decreased on 2.5 pp from 10.9% to 8.5% in FY2016. SG&A as a % of Revenue decreased slightly on 0.51 pp from 1.5% to 1.0% in FY2016.
Net Income marign decreased slightly on 0.81 pp from 4.6% to 3.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Q Technology Group Co Ltd's CAPEX/Revenue was 8.2% in FY2016. Q Technology Group Co Ltd showed decline in CAPEX/Revenue of 2.3 pp from 10.5% in FY2013 to 8.2% in FY2016. For the last three years the average CAPEX/Revenue was 7.2%.To secure this fast growth the company made large investments to CAPEX (119% of EBITDA).
Return on investment
The company operates at good ROIC (17.10%) and ROE (13.70%). ROIC increased on 8.5 pp from 8.6% to 17.1% in FY2016. ROE increased on 5.0 pp from 8.7% to 13.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.8x and Debt / EBITDA is 1.0x. Net Debt / EBITDA surged on 1.6x from -0.8x to 0.8x in FY2016. Debt surged on 136% while cash dropped on 77.0%.
Appendix 1: Peers in Electronics
Below we provide Q Technology Group Co 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 (50 companies) | 6.5% | 3.6% | 5.0% | -1.2% | -0.5% |
|---|
| Q Technology Group Co Ltd ($1478) | | 121.2% | 53.2% | 1.9% | 126.6% |
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% | 13.9% | 15.3% | 15.2% |
|---|
| Q Technology Group Co Ltd ($1478) | 13.6% | 16.6% | 16.3% | 10.9% | 8.5% |
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% | 3.5% |
|---|
| Q Technology Group Co Ltd ($1478) | 9.9% | 13.1% | 12.4% | 8.3% | 6.9% |
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% | 3.0% | 3.7% | 2.9% | 2.6% |
|---|
| Q Technology Group Co Ltd ($1478) | 13.4% | 10.5% | 7.3% | 6.2% | 8.2% |
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% | 0.8% |
|---|
| Q Technology Group Co Ltd ($1478) | 46.8% | 36.4% | 18.0% | 8.6% | 17.1% |
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 | 0.7x |
|---|
| Q Technology Group Co Ltd ($1478) | 1.0x | 2.3x | 0.8x | -0.8x | 0.8x |
