South China China Ltd reports 9.5% revenue growth in FY2016
23/03/2017 • About South China China Ltd (
$413) • By InTwits
South China China Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 2.0x while industry average is -6.5x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
South China China Ltd ($413) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,354 | 3,014 | 3,160 | 3,407 | 3,731 | 9.5% |
| Gross Profit | 305 | 383 | 384 | 504 | | -100.0% |
| SG&A | 398 | 441 | 517 | 579 | | -100.0% |
| EBITDA | -15 | 51 | 1 | 118 | | -100.0% |
| Net Income | 329 | 286 | 190 | 157 | 152 | -2.9% |
Balance Sheet
|
|---|
| Cash | 256 | 392 | 320 | 486 | | -100.0% |
| Short Term Debt | 1,046 | 991 | 2,039 | 1,959 | | -100.0% |
| Long Term Debt | 749 | 1,315 | 1,314 | 1,741 | | -100.0% |
Cash flow
|
|---|
| Capex | 109 | 129 | 144 | 65 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -24.0% | 28.0% | 4.9% | 7.8% | 9.5% | |
| EBITDA growth | -109.1% | -441.0% | -97.9% | 10,915.4% | | |
| Gross Margin | 13.0% | 12.7% | 12.1% | 14.8% | | -14.8% |
| EBITDA Margin | -0.6% | 1.7% | 0.0% | 3.5% | 0.0% | -3.5% |
| Net Income Margin | 14.0% | 9.5% | 6.0% | 4.6% | 4.1% | -0.5% |
| SG&A, % of revenue | 16.9% | 14.6% | 16.3% | 17.0% | | -17.0% |
| CAPEX, % of revenue | 4.6% | 4.3% | 4.6% | 1.9% | | -1.9% |
| ROIC | -1.3% | -0.2% | -1.2% | 0.2% | | -0.2% |
| ROE | 9.9% | 7.0% | 4.3% | 3.1% | | -3.1% |
| Net Debt/EBITDA | | 37.5x | 2,842.3x | 27.3x | | -27.3x |
Revenue and profitability
The company's Revenue increased on 9.5%.
Net Income marign decreased slightly on 0.52 pp from 4.6% to 4.1% in FY2016.
Appendix 1: Peers in Miscellaneous Manufactur
Below you can find South China China 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, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Karrie International Hldgs ($1050) | | 0.1% | -11.3% | 27.4% | 11.8% |
| Sunny Optical Technology Group Co Ltd ($2382) | | 45.9% | 45.0% | 26.9% | 36.6% |
| 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% | |
| |
|---|
| Median (25 companies) | 9.9% | -0.7% | 8.2% | -5.6% | 3.1% |
|---|
| South China China Ltd ($413) | | 28.0% | 4.9% | 7.8% | 9.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 (24 companies) | 19.8% | 20.8% | 24.9% | 23.9% | 23.9% |
|---|
| South China China Ltd ($413) | 13.0% | 12.7% | 12.1% | 14.8% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 (25 companies) | 8.0% | 9.8% | 9.8% | 7.9% | 9.0% |
|---|
| South China China Ltd ($413) | -0.6% | 1.7% | 0.0% | 3.5% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 (25 companies) | 4.7% | 4.2% | 3.8% | 5.6% | 3.8% |
|---|
| South China China Ltd ($413) | 4.6% | 4.3% | 4.6% | 1.9% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 19.7% | 17.8% | 16.5% | 19.4% | 26.8% |
| Yusei Holdings Ltd ($96) | 4.2% | 7.0% | 13.6% | 14.1% | |
| |
|---|
| Median (25 companies) | 4.3% | 4.4% | 4.4% | 1.6% | 9.0% |
|---|
| South China China Ltd ($413) | -1.3% | -0.2% | -1.2% | 0.2% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Continental Holdings Ltd ($513) | | 20.1x | 92.9x | 4,203.6x | |
| 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 |
| Lee & Man Chemical Co Ltd ($746) | -0.2x | 1.5x | 2.2x | 2.5x | 2.6x |
| |
|---|
| Median (22 companies) | -0.2x | -0.2x | -0.2x | 0.1x | -0.7x |
|---|
| South China China Ltd ($413) | | 37.5x | 2,842.3x | 27.3x | |
