Wing Tai Investment Holdings Ltd revenue started to decline in FY2016: dropped 52.5% vs. 8.9% growth a year earliner
19/03/2017 • About Wing Tai Investment Holdings Ltd (
$876) • By InTwits
Wing Tai Investment Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wing Tai Investment Holdings Ltd is a company in decline: FY2016 revenue growth was -52.5%, 5 years revenue CAGR was -12.2%
- Wing Tai Investment 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 -1.4% for the sames years0
- It operates with high leverage: Net Debt/EBITDA is 3.0x while industry average is -21.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wing Tai Investment Holdings Ltd ($876) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 368.8 | 316.0 | 363.5 | 395.7 | 188.1 | -52.5% |
| Gross Profit | 120.4 | 78.8 | 60.4 | 61.5 | | -100.0% |
| SG&A | 82.5 | 91.4 | 122.6 | 100.8 | | -100.0% |
| EBITDA | 66.3 | 20.6 | -78.1 | -30.8 | | |
| Net Income | 312.8 | -35.5 | -90.0 | -30.6 | -20.3 | |
Balance Sheet
|
|---|
| Cash | 71.4 | 73.0 | 28.0 | 130.2 | | -100.0% |
| Short Term Debt | 30.0 | 20.0 | 1.6 | 1.1 | | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | | |
Cash flow
|
|---|
| Capex | 49.7 | 18.5 | 22.9 | 4.0 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 2.1% | -14.3% | 15.0% | 8.9% | -52.5% | |
| EBITDA growth | 1.5% | -68.9% | -479.1% | -60.5% | | |
| Gross Margin | 32.6% | 24.9% | 16.6% | 15.5% | | -15.5% |
| EBITDA Margin | 18.0% | 6.5% | -21.5% | -7.8% | 0.0% | 7.8% |
| Net Income Margin | 84.8% | -11.2% | -24.8% | -7.7% | -10.8% | -3.0% |
| SG&A, % of revenue | 22.4% | 28.9% | 33.7% | 25.5% | | -25.5% |
| CAPEX, % of revenue | 13.5% | 5.9% | 6.3% | 1.0% | | -1.0% |
| ROIC | 3.2% | -1.3% | -32.4% | -8.9% | | 8.9% |
| ROE | 32.0% | -4.9% | -37.8% | -9.4% | | 9.4% |
| Net Debt/EBITDA | -0.6x | -2.6x | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 52.5%.
Net Income marign decreased on 3.0 pp from -7.7% to -10.8% in FY2016.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Wing Tai Investment Holdings Ltd benchmarking against other companies in Electrical Compo&Equip 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 |
|---|
| Applied Development Holdings Ltd ($519) | | | | 850.5% | 187.4% |
| Jimei International Entertainment Group Ltd ($1159) | 100.6% | 652.0% | -31.2% | 273.5% | |
| FDG Electric Vehicles Ltd ($729) | | -7.0% | 54.0% | 270.8% | 19.7% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | | 8.7% | 44.1% | 69.8% | |
| Sun King Power Electronics Group ($580) | | 29.0% | -30.1% | 51.2% | 9.6% |
| |
|---|
| Median (34 companies) | 1.7% | 8.7% | 16.1% | 5.8% | 1.5% |
|---|
| Wing Tai Investment Holdings Ltd ($876) | | -14.3% | 15.0% | 8.9% | -52.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Titans Energy Technology Group Co Ltd ($2188) | 41.4% | 27.3% | 33.7% | 36.6% | |
| Boer Power Holdings Ltd ($1685) | 36.8% | 36.0% | 35.3% | 35.7% | |
| Sun King Power Electronics Group ($580) | 25.4% | 30.0% | 30.8% | 34.1% | 38.9% |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 24.4% | 24.9% | 24.8% | 32.5% | |
| CEC International Holdings Ltd ($759) | 23.6% | 27.9% | 29.9% | 31.8% | 33.4% |
| |
|---|
| Median (32 companies) | 18.6% | 16.7% | 15.9% | 18.1% | 26.4% |
|---|
| Wing Tai Investment Holdings Ltd ($876) | 32.6% | 24.9% | 16.6% | 15.5% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shougang Concord Technology Holdings ($521) | 12.3% | 28.1% | 31.9% | 45.8% | |
| Boer Power Holdings Ltd ($1685) | 26.3% | 27.8% | 28.5% | 28.6% | |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 20.2% | 19.2% | 20.8% | 26.3% | |
| China Titans Energy Technology Group Co Ltd ($2188) | 10.8% | -11.9% | 2.0% | 16.5% | |
| Sun King Power Electronics Group ($580) | 8.4% | 13.8% | 2.2% | 15.8% | 21.5% |
| |
|---|
| Median (34 companies) | 7.3% | 7.2% | 4.7% | 6.4% | 7.3% |
|---|
| Wing Tai Investment Holdings Ltd ($876) | 18.0% | 6.5% | -21.5% | -7.8% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| FDG Electric Vehicles Ltd ($729) | 374.3% | 82.3% | 71.1% | 417.0% | 311.5% |
| Applied Development Holdings Ltd ($519) | 79.7% | | 1,285.3% | 89.8% | 683.8% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.1% | 50.7% | 13.5% | 22.8% | |
| Jimei International Entertainment Group Ltd ($1159) | 0.1% | 15.2% | 0.6% | 7.3% | |
| CEC International Holdings Ltd ($759) | 8.8% | 10.1% | 4.3% | 6.9% | 2.8% |
| |
|---|
| Median (34 companies) | 5.7% | 4.9% | 3.8% | 2.7% | 8.3% |
|---|
| Wing Tai Investment Holdings Ltd ($876) | 13.5% | 5.9% | 6.3% | 1.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Boer Power Holdings Ltd ($1685) | 18.0% | 17.0% | 21.2% | 19.5% | |
| Tianneng Power International Ltd ($819) | 20.0% | 4.5% | -3.6% | 14.9% | |
| Jiangnan Group Ltd ($1366) | 14.9% | 14.1% | 13.5% | 12.8% | 9.3% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 1.8% | 3.0% | 10.4% | 12.0% | |
| Johnson Electric Holdings Ltd ($179) | 11.7% | 11.6% | 12.7% | 11.2% | 7.4% |
| |
|---|
| Median (34 companies) | 2.7% | 3.0% | 1.7% | 2.9% | 0.8% |
|---|
| Wing Tai Investment Holdings Ltd ($876) | 3.2% | -1.3% | -32.4% | -8.9% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wai Chi Holdings Co Ltd ($1305) | 3.4x | 3.1x | 2.0x | 11.8x | |
| Coslight Technology International Group Co Ltd ($1043) | 51.9x | 8.7x | 54.7x | 7.7x | |
| Guodian Technology & Environment Group Corp Ltd ($1296) | 6.3x | 7.6x | 6.8x | 6.9x | |
| Leoch International Technology Ltd ($842) | 9.3x | 16.3x | 4.7x | 5.0x | |
| CEC International Holdings Ltd ($759) | 3.9x | 6.1x | 4.1x | 4.9x | 6.0x |
| |
|---|
| Median (26 companies) | 1.6x | 1.8x | 2.2x | 1.0x | 0.8x |
|---|
