Truly International Holdings Ltd Debt surged on 65.0% in 2016 and EBITDA increased on 8.5%
17/03/2017 • About Truly International Holdings Ltd (
$732) • By InTwits
Truly International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Truly International Holdings Ltd is a growth stock: FY2016 revenue growth was 13.6%, 5 year revenue CAGR was 16.0% at FY2016 ROIC 10.2%
- The company has business model with average profitability: ROIC is at 10.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.3x while industry average is 2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Truly International Holdings Ltd ($732) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 12,374 | 20,681 | 21,416 | 19,427 | 22,072 | 13.6% |
| Gross Profit | 1,557 | 2,892 | 2,486 | 2,122 | 2,196 | 3.5% |
| SG&A | 571 | 805 | 825 | 843 | 834 | -1.0% |
| EBITDA | 1,600 | 2,711 | 2,416 | 2,179 | 2,364 | 8.5% |
| Net Income | 710 | 1,620 | 1,118 | 845 | 582 | -31.2% |
Balance Sheet
|
|---|
| Cash | 1,331 | 2,806 | 3,662 | 2,128 | 2,539 | 19.3% |
| Short Term Debt | 2,249 | 2,949 | 4,569 | 2,883 | 3,795 | 31.6% |
| Long Term Debt | 906 | 935 | 869 | 2,000 | 4,260 | 113.0% |
Cash flow
|
|---|
| Capex | 799 | 1,184 | 2,179 | 1,487 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 17.8% | 67.1% | 3.6% | -9.3% | 13.6% | |
| EBITDA growth | 29.6% | 69.4% | -10.9% | -9.8% | 8.5% | |
| Gross Margin | 12.6% | 14.0% | 11.6% | 10.9% | 9.9% | -1.0% |
| EBITDA Margin | 12.9% | 13.1% | 11.3% | 11.2% | 10.7% | -0.5% |
| Net Income Margin | 5.7% | 7.8% | 5.2% | 4.4% | 2.6% | -1.7% |
| SG&A, % of revenue | 4.6% | 3.9% | 3.9% | 4.3% | 3.8% | -0.6% |
| CAPEX, % of revenue | 6.5% | 5.7% | 10.2% | 7.7% | | -7.7% |
| ROIC | 12.7% | 21.1% | 13.6% | 9.8% | 10.2% | 0.4% |
| ROE | 15.2% | 27.3% | 16.0% | 11.9% | 8.4% | -3.5% |
| Net Debt/EBITDA | 1.1x | 0.4x | 0.7x | 1.3x | 2.3x | 1.1x |
Revenue and profitability
The company's Revenue jumped on 13.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.60 pp from 28.0% to 27.4% in FY2016.
Gross Margin decreased slightly on 0.97 pp from 10.9% to 9.9% in FY2016. SG&A as a % of Revenue decreased slightly on 0.56 pp from 4.3% to 3.8% in FY2016.
Net Income marign decreased slightly on 1.7 pp from 4.4% to 2.6% in FY2016.
Return on investment
The company operates at low ROIC (10.21%) and ROE (8.43%). ROIC showed almost no change in FY2016. ROE decreased on 3.5 pp from 11.9% to 8.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.3x and Debt / EBITDA is 3.4x. Net Debt / EBITDA jumped on 1.1x from 1.3x to 2.3x in FY2016. Debt jumped on 65.0% while cash jumped on 19.3%.
Appendix 1: Peers in Electronics
Below we provide Truly International Holdings 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) | 5.7% | 3.6% | 7.2% | 0.4% | -0.1% |
|---|
| Truly International Holdings Ltd ($732) | | 67.1% | 3.6% | -9.3% | 13.6% |
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% | 14.1% | 15.3% | 14.7% |
|---|
| Truly International Holdings Ltd ($732) | 12.6% | 14.0% | 11.6% | 10.9% | 9.9% |
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% | 3.8% |
|---|
| Truly International Holdings Ltd ($732) | 12.9% | 13.1% | 11.3% | 11.2% | 10.7% |
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% | 3.2% |
|---|
| Truly International Holdings Ltd ($732) | 6.5% | 5.7% | 10.2% | 7.7% | |
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% | 1.5% |
|---|
| Truly International Holdings Ltd ($732) | 12.7% | 21.1% | 13.6% | 9.8% | 10.2% |
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 (32 companies) | 1.0x | 1.1x | 1.0x | 0.2x | 0.7x |
|---|
| Truly International Holdings Ltd ($732) | 1.1x | 0.4x | 0.7x | 1.3x | 2.3x |
