Sunny Optical Technology Group Co Ltd demonstrated fast growth over the last few years. Will the growth continue?
20/03/2017 • About Sunny Optical Technology Group Co Ltd (
$2382) • By InTwits
Sunny Optical Technology Group Co Ltd is an attractive growth stock in Miscellaneous Manufactur industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Sunny Optical Technology Group Co Ltd showed growth in the last financial year. The company's revenue surged on 36.6% in FY2016. At the same time Sunny Optical Technology Group Co Ltd well managed its profitability and showed even faster growth in EBITDA of 60.0% for the same period.
In the last 3 years Sunny Optical Technology Group Co Ltd showed fast revenue growth of 36.0% from FY2013 to FY2016 annualy. EBITDA surged on 41.5% from FY2013 to FY2016 annualy.
Sunny Optical Technology Group Co Ltd ($2382) financials for the last 5 years
| mln. CNY | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 3,984 | 5,813 | 8,426 | 10,696 | 14,612 |
|---|
| Revenue growth, % | | 45.9% | 45.0% | 26.9% | 36.6% |
|---|
| Gross margin, % | 18.6% | 16.6% | 15.3% | 16.5% | 18.3% |
|---|
| SG&A, % | 5.38% | 4.37% | 3.80% | 3.29% | 3.32% |
|---|
| EBITDA | 485 | 635 | 830 | 1,126 | 1,802 |
|---|
| EBITDA growth, % | | 31.0% | 30.6% | 35.8% | 60.0% |
|---|
| EBITDA margin, % | 12.2% | 10.9% | 9.84% | 10.5% | 12.3% |
|---|
| Net Income | 346 | 440 | 566 | 762 | 1,271 |
|---|
| Net Income margin, % | 8.69% | 7.58% | 6.72% | 7.12% | 8.70% |
|---|
| |
| CAPEX | 249 | 244 | 274 | 283 | 0 |
|---|
| CAPEX/Revenue, % | 6.25% | 4.20% | 3.26% | 2.64% | 0% |
|---|
| Debt | 103 | 535 | 734 | 1,140 | 904 |
|---|
| Cash | 243 | 709 | 525 | 259 | 467 |
|---|
| Net Debt/EBITDA | -0.3x | -0.3x | 0.3x | 0.8x | 0.2x |
|---|
| |
| ROIC, % | 19.7% | 17.8% | 16.5% | 19.4% | 26.8% |
|---|
| ROE, % | 19.3% | 18.5% | 18.6% | 21.5% | 29.1% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. The company showed fast EBITDA margin growth of 1.80 pp from 10.5% to 12.3% in FY2016. If we look for the longer period the company showed fast EBITDA margin growth of 1.40 pp from 10.9% in FY2013 to 12.3% in FY2016.
Sunny Optical Technology Group Co Ltd shows attractive ROIC at 26.8% for the last 12 months which assumes stable development model. Three years ago it was lower at 17.8%. Average ROIC for the last three years was 20.9%.
Net Income margin surged on 1.60 pp from 7.10% to 8.70% in FY2016. In the last 3 years the company showed fast Net Income margin growth of 1.10 pp from 7.60% in FY2013 to 8.70% in FY2016.
Sunny Optical Technology Group Co Ltd operates at ROE of 29.1%. It's average ROE for the last three years was 23.1%.
Capital expenditures (CAPEX)
Sunny Optical Technology Group Co Ltd's CAPEX/Revenue was 0% in FY2016. The company showed big decline in CAPEX/Revenue of 4.20 pp from 4.20% in FY2013 to 0% in FY2016.
Leverage (Debt)
Sunny Optical Technology Group Co Ltd has low debt level at 0.2x Net Debt/EBITDA - at the same time with high growth. In the longer period the company's leverage surged on 0.52x from -0.27x in FY2013 to 0.24x in FY2016.
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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 (26 companies) | -1.7% | -0.3% | 7.5% | -5.2% | 6.3% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | | 45.9% | 45.0% | 26.9% | 36.6% |
Top companies by Gross margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 (25 companies) | 19.8% | 20.6% | 24.9% | 23.1% | 23.9% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 18.6% | 16.6% | 15.3% | 16.5% | 18.3% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 (26 companies) | 8.0% | 8.0% | 8.5% | 7.0% | 6.7% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 10.9% | 9.8% | 10.5% | 12.3% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 (26 companies) | 4.7% | 4.3% | 4.3% | 4.9% | 3.8% |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 6.2% | 4.2% | 3.3% | 2.6% | |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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% | |
| CSR Corp Ltd ($1766) | 11.1% | 11.2% | 15.3% | 11.7% | |
| |
|---|
| Median (26 companies) | 4.2% | 4.0% | 4.2% | 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
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 (23 companies) | -0.2x | -0.0x | -0.2x | -0.2x | -0.8x |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | -0.3x | -0.3x | 0.3x | 0.8x | 0.2x |
