Tongda Group Holdings Ltd Net Income surged on 42.8% in 2016 and EBITDA Margin increased slightly on 1.3 pp from 18.9% to 20.2%
20/03/2017 • About Tongda Group Holdings Ltd (
$698) • By InTwits
Tongda Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tongda Group Holdings Ltd is a fast growth stock: FY2016 revenue growth was 28.8%, 5 year revenue CAGR was 20.0% at FY2016 ROIC 17.8%
- EBITDA Margin is expanding: 20.2% in FY2016 vs. 18.9% in FY2015 vs. 17.1% in FY2012
- The company has highly profitable business model: ROIC is at 17.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tongda Group Holdings Ltd ($698) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,408 | 3,627 | 4,791 | 6,074 | 7,825 | 28.8% |
| Gross Profit | 731 | 798 | 1,144 | 1,512 | 1,885 | 24.7% |
| SG&A | 292 | 356 | 442 | 594 | 679 | 14.3% |
| EBITDA | 583 | 610 | 882 | 1,148 | 1,580 | 37.6% |
| Net Income | 300 | 360 | 502 | 703 | 1,004 | 42.8% |
Balance Sheet
|
|---|
| Cash | 221 | 178 | 360 | 762 | 869 | 14.0% |
| Short Term Debt | 564 | 592 | 629 | 976 | 1,490 | 52.6% |
| Long Term Debt | 89 | 258 | 351 | 1,392 | 1,486 | 6.8% |
Cash flow
|
|---|
| Capex | 266 | 178 | 547 | 986 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 8.3% | 6.4% | 32.1% | 26.8% | 28.8% | |
| EBITDA growth | 21.0% | 4.5% | 44.7% | 30.1% | 37.6% | |
| Gross Margin | 21.4% | 22.0% | 23.9% | 24.9% | 24.1% | -0.8% |
| EBITDA Margin | 17.1% | 16.8% | 18.4% | 18.9% | 20.2% | 1.3% |
| Net Income Margin | 8.8% | 9.9% | 10.5% | 11.6% | 12.8% | 1.3% |
| SG&A, % of revenue | 8.6% | 9.8% | 9.2% | 9.8% | 8.7% | -1.1% |
| CAPEX, % of revenue | 7.8% | 4.9% | 11.4% | 16.2% | | -16.2% |
| ROIC | 15.2% | 13.5% | 16.5% | 16.3% | 17.8% | 1.5% |
| ROE | 15.2% | 15.8% | 16.9% | 18.7% | 23.0% | 4.4% |
| Net Debt/EBITDA | 0.7x | 1.1x | 0.7x | 1.4x | 1.3x | -0.1x |
Revenue and profitability
Tongda Group Holdings Ltd's Revenue jumped on 28.8%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.3 pp from 18.9% to 20.2% in FY2016.
Gross Margin decreased slightly on 0.80 pp from 24.9% to 24.1% in FY2016. SG&A as a % of Revenue decreased slightly on 1.1 pp from 9.8% to 8.7% in FY2016.
Net Income marign increased slightly on 1.3 pp from 11.6% to 12.8% in FY2016.
Return on investment
The company operates at high and attractive ROE (23.01%) while ROIC is a bit lower (17.80%). ROIC increased slightly on 1.5 pp from 16.3% to 17.8% in FY2016. ROE increased on 4.4 pp from 18.7% to 23.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.9x. Net Debt / EBITDA decreased on 0.1x from 1.4x to 1.3x in FY2016. Debt jumped on 25.7% while cash jumped on 14.0%.
Appendix 1: Peers in Electronics
Below you can find Tongda Group Holdings 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) | 5.0% | 3.6% | 5.0% | -1.2% | 0.6% |
|---|
| Tongda Group Holdings Ltd ($698) | | 6.4% | 32.1% | 26.8% | 28.8% |
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% | 14.1% |
|---|
| Tongda Group Holdings Ltd ($698) | 21.4% | 22.0% | 23.9% | 24.9% | 24.1% |
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% | |
| Technovator International Ltd ($1206) | 19.0% | 19.0% | 20.8% | 18.0% | 21.2% |
| |
|---|
| Median (50 companies) | 6.5% | 6.0% | 4.6% | 4.6% | 4.1% |
|---|
| Tongda Group Holdings Ltd ($698) | 17.1% | 16.8% | 18.4% | 18.9% | 20.2% |
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) | 3.7% | 3.0% | 3.7% | 2.9% | 3.2% |
|---|
| Tongda Group Holdings Ltd ($698) | 7.8% | 4.9% | 11.4% | 16.2% | |
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% | |
| Alltronics Holdings Ltd ($833) | 13.1% | 15.2% | 19.8% | 15.6% | |
| Varitronix International Ltd ($710) | 8.7% | 17.5% | 11.4% | 11.6% | |
| |
|---|
| Median (50 companies) | 4.3% | 3.5% | 3.0% | 1.9% | 2.2% |
|---|
| Tongda Group Holdings Ltd ($698) | 15.2% | 13.5% | 16.5% | 16.3% | 17.8% |
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 | 0.2x | 0.8x |
|---|
| Tongda Group Holdings Ltd ($698) | 0.7x | 1.1x | 0.7x | 1.4x | 1.3x |
