Varitronix International Ltd Net Income dropped on 83.2% and Revenue decreased on 9.7%
27/03/2017 • About Varitronix International Ltd (
$710) • By InTwits
Varitronix International 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 5.8x while industry average is 2.7x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Varitronix International Ltd ($710) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,222 | 2,604 | 2,613 | 2,488 | 2,247 | -9.7% |
| EBITDA | 238 | 432 | 342 | 341 | | -100.0% |
| Net Income | 171 | 243 | 250 | 301 | 51 | -83.2% |
Balance Sheet
|
|---|
| Cash | 464 | 555 | 575 | 767 | | -100.0% |
| Short Term Debt | 188 | 243 | 184 | 136 | | -100.0% |
| Long Term Debt | 129 | 59 | 44 | 9 | | -100.0% |
Cash flow
|
|---|
| Capex | 295 | 118 | 109 | 36 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 4.3% | 17.2% | 0.3% | -4.8% | -9.7% | |
| EBITDA growth | -15.4% | 81.4% | -20.7% | -0.5% | | |
| EBITDA Margin | 10.7% | 16.6% | 13.1% | 13.7% | 0.0% | -13.7% |
| Net Income Margin | 7.7% | 9.3% | 9.6% | 12.1% | 2.2% | -9.8% |
| CAPEX, % of revenue | 13.3% | 4.5% | 4.2% | 1.4% | | -1.4% |
| ROIC | 8.7% | 17.5% | 11.4% | 11.6% | | -11.6% |
| ROE | 11.4% | 14.8% | 14.2% | 16.3% | | -16.3% |
| Net Debt/EBITDA | -0.6x | -0.6x | -1.0x | -1.8x | | 1.8x |
Revenue and profitability
Varitronix International Ltd's Revenue decreased on 9.7%.
Net Income marign decreased on 9.8 pp from 12.1% to 2.2% in FY2016.
Appendix 1: Peers in Electronics
Below we provide Varitronix International Ltd benchmarking against other companies in Electronics 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 |
|---|
| 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) | | 28.9% | 9.7% | 32.2% | 32.1% |
| Ningbo Wanhao Holdings Co Ltd ($8249) | 5.7% | 412.4% | -6.9% | 28.9% | |
| |
|---|
| Median (50 companies) | -1.7% | 3.6% | 7.2% | 0.4% | 0.1% |
|---|
| Varitronix International Ltd ($710) | | 17.2% | 0.3% | -4.8% | -9.7% |
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% | 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 (49 companies) | 13.6% | 13.8% | 14.0% | 14.1% | 15.2% |
|---|
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% | 36.1% |
| 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% |
| |
|---|
| Median (50 companies) | 6.5% | 6.0% | 4.6% | 4.6% | 6.2% |
|---|
| Varitronix International Ltd ($710) | 10.7% | 16.6% | 13.1% | 13.7% | |
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% | 3.0% | 3.2% |
|---|
| Varitronix International Ltd ($710) | 13.3% | 4.5% | 4.2% | 1.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AAC Technologies Holdings Inc ($2018) | 29.1% | 30.0% | 26.0% | 27.8% | 27.6% |
| Cowell e Holdings Inc ($1415) | 12.5% | 27.1% | 24.4% | 25.8% | 8.2% |
| 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% | |
| |
|---|
| Median (50 companies) | 4.3% | 3.5% | 3.0% | 1.9% | 3.8% |
|---|
| Varitronix International Ltd ($710) | 8.7% | 17.5% | 11.4% | 11.6% | |
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 | 0.7x |
|---|
| Varitronix International Ltd ($710) | -0.6x | -0.6x | -1.0x | -1.8x | |
