Ju Teng International Holdings Ltd Net Income dropped on 42.8% in 2016 and EBITDA Margin decreased on 2.3 pp from 23.8% to 21.5%
21/03/2017 • About Ju Teng International Holdings Ltd (
$964) • By InTwits
Ju Teng International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has potentially unprofitable business model: ROIC is at 5.7%
- It operates with high leverage: Net Debt/EBITDA is 1.7x while industry average is 1.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ju Teng International Holdings Ltd ($3336) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,201 | 9,257 | 9,571 | 8,936 | 8,002 | -10.4% |
| Gross Profit | 1,401 | 1,873 | 1,805 | 1,906 | 1,343 | -29.5% |
| SG&A | 624 | 683 | 790 | 759 | 727 | -4.2% |
| EBITDA | 1,386 | 1,844 | 1,852 | 2,128 | 1,723 | -19.1% |
| Net Income | 601 | 762 | 765 | 875 | 501 | -42.8% |
Balance Sheet
|
|---|
| Cash | 1,163 | 1,061 | 1,564 | 1,541 | 1,529 | -0.8% |
| Short Term Debt | 2,499 | 2,664 | 2,085 | 3,493 | 1,657 | -52.5% |
| Long Term Debt | 1,583 | 1,634 | 2,633 | 1,411 | 2,791 | 97.9% |
Cash flow
|
|---|
| Capex | 1,295 | 1,729 | 1,911 | 1,550 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 11.7% | 0.6% | 3.4% | -6.6% | -10.4% | |
| EBITDA growth | 77.0% | 33.0% | 0.4% | 14.9% | -19.1% | |
| Gross Margin | 15.2% | 20.2% | 18.9% | 21.3% | 16.8% | -4.5% |
| EBITDA Margin | 15.1% | 19.9% | 19.3% | 23.8% | 21.5% | -2.3% |
| Net Income Margin | 6.5% | 8.2% | 8.0% | 9.8% | 6.3% | -3.5% |
| SG&A, % of revenue | 6.8% | 7.4% | 8.3% | 8.5% | 9.1% | 0.6% |
| CAPEX, % of revenue | 14.1% | 18.7% | 20.0% | 17.3% | | -17.3% |
| ROIC | 8.1% | 10.1% | 8.4% | 8.8% | 5.7% | -3.1% |
| ROE | 11.9% | 13.1% | 12.0% | 13.4% | 7.8% | -5.6% |
| Net Debt/EBITDA | 2.1x | 1.8x | 1.7x | 1.6x | 1.7x | 0.1x |
Revenue and profitability
The company's Revenue dropped on 10.4%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.3 pp from 23.8% to 21.5% in FY2016.
Gross Margin decreased on 4.5 pp from 21.3% to 16.8% in FY2016. SG&A as a % of Revenue increased slightly on 0.60 pp from 8.5% to 9.1% in FY2016.
Net Income marign decreased on 3.5 pp from 9.8% to 6.3% in FY2016.
Return on investment
The company operates at low ROIC (5.70%) and ROE (7.76%). ROIC decreased on 3.1 pp from 8.8% to 5.7% in FY2016. ROE decreased on 5.6 pp from 13.4% to 7.8% in FY2016.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 2.6x Debt / EBITDA. Net Debt / EBITDA surged on 0.1x from 1.6x to 1.7x in FY2016. Debt decreased on 9.3% while cash decreased slightly on 0.81%.
Management team
Chiu Hui-Chin is a Ju Teng International Holdings Ltd's CEO. Chiu Hui-Chin has spent 1 year at the company. Ju Teng International Holdings Ltd's CFO is Tsui Yung Kwok "Raymond". Tsui Yung Kwok "Raymond" has 14 years tenure at the company.
Appendix 1: Peers in Computers
Below we provide Ju Teng International Holdings Ltd benchmarking against other companies in Computers 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 |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | -65.4% | 8.8% | 27.1% | 759.3% | |
| Beautiful China Holdings Co Ltd ($706) | -7.8% | -23.3% | -37.1% | 267.1% | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.5% | -10.3% | 18.8% | 45.0% | |
| Alibaba Health Information Technology Ltd ($241) | | -96.7% | 73.0% | 35.3% | 85.8% |
| Thiz Technology Group Ltd ($8119) | | -95.1% | 72.2% | 31.9% | 8.1% |
| |
|---|
| Median (25 companies) | -2.7% | -0.0% | 11.1% | 3.9% | 17.4% |
|---|
| Ju Teng International Holdings Ltd ($3336) | | 0.6% | 3.4% | -6.6% | -10.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Universal Technologies Holdings Ltd ($1026) | 87.3% | 79.7% | 90.3% | 98.4% | |
| Thiz Technology Group Ltd ($8119) | 8.8% | 63.8% | 86.2% | 96.0% | 96.4% |
| Computer & Technologies Holdings Ltd ($46) | 45.3% | 54.0% | 52.1% | 54.2% | |
| Alibaba Health Information Technology Ltd ($241) | 11.4% | -12.6% | 49.3% | 53.7% | 67.1% |
| CCID Consulting Co Ltd ($8235) | 43.7% | 49.1% | 51.8% | 48.7% | |
| |
|---|
| Median (25 companies) | 12.1% | 15.4% | 15.1% | 18.4% | 17.6% |
|---|
| Ju Teng International Holdings Ltd ($3336) | 15.2% | 20.2% | 18.9% | 21.3% | 16.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thiz Technology Group Ltd ($8119) | -47.4% | -847.3% | -506.6% | 74.0% | -225.0% |
| World Wide Touch Technology Holdings Ltd ($1282) | 3.4% | -6.4% | -6.4% | 35.7% | |
| Computer & Technologies Holdings Ltd ($46) | 12.9% | 19.9% | 20.1% | 23.2% | |
| PAX Global Technology Ltd ($327) | 16.5% | 17.4% | 18.8% | 22.7% | 23.7% |
| CCID Consulting Co Ltd ($8235) | 10.6% | 10.8% | 12.3% | 20.3% | |
| |
|---|
| Median (26 companies) | 3.1% | 2.3% | 1.6% | 3.9% | 1.8% |
|---|
| Ju Teng International Holdings Ltd ($3336) | 15.1% | 19.9% | 19.3% | 23.8% | 21.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Beautiful China Holdings Co Ltd ($706) | 8.4% | 2.2% | 26.2% | 743.7% | |
| North Asia Resources Holdings Ltd ($61) | 4.6% | 94.2% | 177.8% | 110.2% | |
| China Uptown Group Co Ltd ($2330) | 0.0% | 0.2% | 1.0% | 20.5% | |
| Universal Technologies Holdings Ltd ($1026) | 20.0% | 5.7% | 14.2% | 20.3% | |
| Alibaba Health Information Technology Ltd ($241) | 4.4% | 46.3% | 17.2% | 11.7% | 15.4% |
| |
|---|
| Median (26 companies) | 0.9% | 1.1% | 1.6% | 1.4% | 0.5% |
|---|
| Ju Teng International Holdings Ltd ($3336) | 14.1% | 18.7% | 20.0% | 17.3% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lenovo Group Ltd ($992) | 26.2% | 30.5% | 34.7% | 24.5% | 1.0% |
| PAX Global Technology Ltd ($327) | 12.3% | 12.8% | 18.7% | 22.4% | 20.4% |
| CCID Consulting Co Ltd ($8235) | 11.3% | 10.7% | 10.2% | 15.0% | |
| TPV Technology Ltd ($903) | 7.7% | 1.8% | 10.1% | 12.0% | 6.6% |
| Goldenmars Technology Holdings Ltd ($8036) | | 10.5% | 11.4% | 11.6% | 9.5% |
| |
|---|
| Median (26 companies) | 0.9% | 0.9% | -0.6% | 2.1% | 1.0% |
|---|
| Ju Teng International Holdings Ltd ($3336) | 8.1% | 10.1% | 8.4% | 8.8% | 5.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | -2.8x | -2.5x | -20.8x | 8.8x | |
| Thiz Technology Group Ltd ($8119) | | | | 8.2x | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.7x | 3.6x | 4.6x | 6.7x | |
| EVOC Intelligent Technology Co Ltd ($2308) | 0.5x | 5.8x | 5.7x | 5.4x | |
| Perception Digital Holdings Ltd ($1822) | | | | 1.8x | |
| |
|---|
| Median (16 companies) | -2.3x | -1.8x | -3.9x | 0.3x | -0.6x |
|---|
| Ju Teng International Holdings Ltd ($3336) | 2.1x | 1.8x | 1.7x | 1.6x | 1.7x |
