AAC Technologies Holdings Inc is an attractive growth stock: revenue grew 24.2% and EBITDA 24.5% annually over the last three years
29/03/2017 • About AAC Technologies Holdings Inc (
$2018) • By InTwits
AAC Technologies Holdings Inc is a fast-growing stock in Electronics industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
AAC Technologies Holdings Inc showed growth in the last financial year. The company's revenue surged on 32.1% in FY2016. The growth also happened in EBITDA of 36.9% for the same period.
In the last 3 years AAC Technologies Holdings Inc showed fast revenue growth of 24.2% from FY2013 to FY2016 annualy. EBITDA surged on 24.5% from FY2013 to FY2016 annualy.
AAC Technologies Holdings Inc ($2018) financials for the last 5 years
| mln. CNY | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 6,283 | 8,096 | 8,879 | 11,739 | 15,507 |
|---|
| Revenue growth, % | | 28.9% | 9.7% | 32.2% | 32.1% |
|---|
| Gross margin, % | 44.2% | 42.7% | 41.4% | 41.5% | 41.5% |
|---|
| SG&A, % | 7.38% | 6.55% | 6.04% | 6.84% | 4.92% |
|---|
| EBITDA | 2,249 | 2,900 | 3,101 | 4,083 | 5,591 |
|---|
| EBITDA growth, % | | 29.0% | 6.9% | 31.7% | 36.9% |
|---|
| EBITDA margin, % | 35.8% | 35.8% | 34.9% | 34.8% | 36.1% |
|---|
| Net Income | 1,763 | 2,578 | 2,318 | 3,107 | 4,026 |
|---|
| Net Income margin, % | 28.1% | 31.8% | 26.1% | 26.5% | 26.0% |
|---|
| |
| CAPEX | 1,176 | 707 | 1,739 | 2,164 | 0 |
|---|
| CAPEX/Revenue, % | 18.7% | 8.73% | 19.6% | 18.4% | 0% |
|---|
| Debt | 1,035 | 923 | 1,429 | 1,808 | 5,445 |
|---|
| Cash | 1,314 | 2,354 | 1,603 | 2,224 | 3,864 |
|---|
| Net Debt/EBITDA | -0.1x | -0.5x | -0.1x | -0.1x | 0.3x |
|---|
| |
| ROIC, % | 29.1% | 30.0% | 26.0% | 27.8% | 27.6% |
|---|
| ROE, % | 32.6% | 36.9% | 27.2% | 30.4% | 31.6% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. EBITDA margin increased slightly on 1.30 pp from 34.8% to 36.1% in FY2016. In the longer period EBITDA margin increased slightly on 0.300 pp from 35.8% in FY2013 to 36.1% in FY2016.
AAC Technologies Holdings Inc shows attractive ROIC at 27.6% for the last 12 months which assumes stable development model. During the last three years it decreased - it was 30.0% in FY2013. For the last three years the average ROIC was 27.1%.
Net Income margin decreased slightly on 0.500 pp from 26.5% to 26% in FY2016. If we look for the longer period Net Income margin dropped on 5.80 pp from 31.8% in FY2013 to 26% in FY2016.
AAC Technologies Holdings Inc operates at ROE of 31.6%. For the last three years the average ROE was 29.7%.
Capital expenditures (CAPEX)
In FY2016 AAC Technologies Holdings Inc had CAPEX/Revenue of 0%. AAC Technologies Holdings Inc's CAPEX/Revenue dropped on 8.73 pp from 8.73% in FY2013 to 0% in FY2016.
Leverage (Debt)
The company has low debt level at 0.3x Net Debt/EBITDA - at the same time with high growth. In the last 3 years leverage surged on 0.78x from -0.49x in FY2013 to 0.28x in FY2016.
Management team
Pan Zhengmin "Benjamin" is a CEO of AAC Technologies Holdings Inc.
Peers in Electronics
Below we provide AAC Technologies Holdings Inc 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 |
