AAC Technologies Holdings Inc reports 36.9% EBITDA growth and 32.1% Revenue growth
22/03/2017 • About AAC Technologies Holdings Inc (
$2018) • By InTwits
AAC Technologies Holdings Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AAC Technologies Holdings Inc is a fast growth stock: FY2016 revenue growth was 32.1%, 5 year revenue CAGR was 30.7% at FY2016 ROIC 27.6%
- EBITDA Margin is relatively stable: 36.1% in FY2016 vs. 34.8% in FY2015 vs. 35.8% in FY2012
- The company has highly profitable business model: ROIC is at 27.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
AAC Technologies Holdings Inc ($2018) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,283 | 8,096 | 8,879 | 11,739 | 15,507 | 32.1% |
| Gross Profit | 2,774 | 3,459 | 3,678 | 4,872 | 6,443 | 32.2% |
| SG&A | 464 | 530 | 537 | 803 | 763 | -5.0% |
| EBITDA | 2,249 | 2,900 | 3,101 | 4,083 | 5,591 | 36.9% |
| Net Income | 1,763 | 2,578 | 2,318 | 3,107 | 4,026 | 29.6% |
Balance Sheet
|
|---|
| Cash | 1,314 | 2,354 | 1,603 | 2,224 | 3,864 | 73.8% |
| Short Term Debt | 1,035 | 908 | 1,418 | 1,159 | 4,656 | 301.7% |
| Long Term Debt | 0 | 14 | 11 | 649 | 789 | 21.6% |
Cash flow
|
|---|
| Capex | 1,176 | 707 | 1,739 | 2,164 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 54.8% | 28.9% | 9.7% | 32.2% | 32.1% | |
| EBITDA growth | 57.2% | 29.0% | 6.9% | 31.7% | 36.9% | |
| Gross Margin | 44.2% | 42.7% | 41.4% | 41.5% | 41.5% | 0.0% |
| EBITDA Margin | 35.8% | 35.8% | 34.9% | 34.8% | 36.1% | 1.3% |
| Net Income Margin | 28.1% | 31.8% | 26.1% | 26.5% | 26.0% | -0.5% |
| SG&A, % of revenue | 7.4% | 6.6% | 6.0% | 6.8% | 4.9% | -1.9% |
| CAPEX, % of revenue | 18.7% | 8.7% | 19.6% | 18.4% | | -18.4% |
| ROIC | 29.1% | 30.0% | 26.0% | 27.8% | 27.6% | -0.2% |
| ROE | 32.6% | 36.9% | 27.2% | 30.4% | 31.6% | 1.2% |
| Net Debt/EBITDA | -0.1x | -0.5x | -0.1x | -0.1x | 0.3x | 0.4x |
Revenue and profitability
AAC Technologies Holdings Inc's Revenue jumped on 32.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 23.8% to 26.0% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue decreased slightly on 1.9 pp from 6.8% to 4.9% in FY2016.
Net Income marign decreased slightly on 0.51 pp from 26.5% to 26.0% in FY2016.
Return on investment
The company operates at high and attractive ROIC (27.59%) and ROE (31.58%). ROIC showed almost no change in FY2016. ROE increased slightly on 1.2 pp from 30.4% to 31.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 1.0x. Net Debt / EBITDA jumped on 0.4x from -0.1x to 0.3x in FY2016. Debt jumped on 201% while cash jumped on 73.8%.
Management team
The company's CEO is Pan Zhengmin "Benjamin". Pan Zhengmin "Benjamin" has 25 years tenure at the company.
Appendix 1: Peers in Electronics
Below you can find AAC Technologies Holdings Inc 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% | |
| Ningbo Wanhao Holdings Co Ltd ($8249) | 5.7% | 412.4% | -6.9% | 28.9% | |
| Tongda Group Holdings Ltd ($698) | | 6.4% | 32.1% | 26.8% | 28.8% |
| |
|---|
| Median (50 companies) | 1.3% | 3.6% | 5.0% | -1.2% | -0.5% |
|---|
| AAC Technologies Holdings Inc ($2018) | | 28.9% | 9.7% | 32.2% | 32.1% |
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% | |
| 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% | |
| China Automation Group Ltd ($569) | 39.1% | 35.9% | 32.4% | 30.3% | |
| |
|---|
| Median (48 companies) | 13.6% | 13.8% | 13.9% | 14.0% | 14.7% |
|---|
| AAC Technologies Holdings Inc ($2018) | 44.2% | 42.7% | 41.4% | 41.5% | 41.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | 20.2% |
| 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% | 5.2% |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.8% | 35.8% | 34.9% | 34.8% | 36.1% |
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% |
| AKM Industrial Co Ltd ($1639) | 5.0% | 17.4% | 25.2% | 18.0% | |
| |
|---|
| Median (50 companies) | 3.7% | 3.0% | 3.7% | 2.9% | 3.2% |
|---|
| AAC Technologies Holdings Inc ($2018) | 18.7% | 8.7% | 19.6% | 18.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | 17.8% |
| 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% | 2.8% |
|---|
| AAC Technologies Holdings Inc ($2018) | 29.1% | 30.0% | 26.0% | 27.8% | 27.6% |
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 | 0.4x | 0.8x |
|---|
| AAC Technologies Holdings Inc ($2018) | -0.1x | -0.5x | -0.1x | -0.1x | 0.3x |
