Walsin Lihwa Corp EBITDA surged on 70.8% in 2016 and EBITDA Margin increased on 2.2 pp from 2.8% to 5.0%
17 Feb 2017 • About Walsin Lihwa Corp (
$WALS) • By InTwits
Walsin Lihwa Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Walsin Lihwa Corp is a company in decline: 2016 revenue growth was -4.0%, 5 years revenue CAGR was -5.5%
- EBITDA Margin is quite volatile: 5.0% in 2016, 2.8% in 2015, 3.6% in 2014, 1.9% in 2013, 3.2% in 2012
- Walsin Lihwa Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 2.2%.
- CAPEX is quite volatile: 3,248 in 2016, 1,653 in 2015, 1,402 in 2014, 2,202 in 2013, 6,298 in 2012
- The company has potentially unprofitable business model: ROIC is at 5.7%
- It operates with high leverage: Net Debt/EBITDA is 2.7x while industry average is 0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Walsin Lihwa Corp ($WALS) key annual financial indicators
| mln. TWD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 157,463 | 148,635 | 162,987 | 149,338 | 143,355 | -4.0% |
| Gross Profit | 7,539 | 4,631 | 7,563 | 5,810 | 9,563 | 64.6% |
| SG&A | 5,256 | 4,586 | 4,060 | 3,852 | 4,209 | 9.3% |
| EBITDA | 4,981 | 2,765 | 5,862 | 4,189 | 7,157 | 70.8% |
| Net Income | -3,187 | -2,689 | 2,265 | 1,602 | 4,568 | 185.2% |
Balance Sheet
|
|---|
| Cash | 6,060 | 7,556 | 6,417 | 8,888 | 7,734 | -13.0% |
| Short Term Debt | 12,903 | 19,392 | 7,937 | 6,070 | 11,699 | 92.7% |
| Long Term Debt | 19,589 | 12,104 | 21,424 | 22,119 | 15,294 | -30.9% |
Cash flow
|
|---|
| Capex | 6,298 | 2,202 | 1,402 | 1,653 | 3,248 | 96.4% |
Ratios
|
|---|
| Revenue growth | -17.1% | -5.6% | 9.7% | -8.4% | -4.0% | |
| EBITDA growth | 173.8% | -44.5% | 112.0% | -28.5% | 70.8% | |
| Gross Margin | 4.8% | 3.1% | 4.6% | 3.9% | 6.7% | 2.8% |
| EBITDA Margin | 3.2% | 1.9% | 3.6% | 2.8% | 5.0% | 2.2% |
| Net Income Margin | -2.0% | -1.8% | 1.4% | 1.1% | 3.2% | 2.1% |
| SG&A, % of revenue | 3.3% | 3.1% | 2.5% | 2.6% | 2.9% | 0.4% |
| CAPEX, % of revenue | 4.0% | 1.5% | 0.9% | 1.1% | 2.3% | 1.2% |
| ROIC | 2.3% | 0.0% | 3.7% | 2.1% | 5.7% | 3.6% |
| ROE | -5.3% | -4.6% | 3.7% | 2.6% | 7.3% | 4.7% |
| Net Debt/EBITDA | 5.3x | 8.7x | 3.9x | 4.6x | 2.7x | -1.9x |
Revenue and profitability
The company's Revenue decreased on 4.0% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 2.8% to 5.0% in 2016.
Gross Margin increased on 2.8 pp from 3.9% to 6.7% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign increased on 2.1 pp from 1.1% to 3.2% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.3% in 2016. Walsin Lihwa Corp showed small growth in CAPEX/Revenue of 0.78 pp from 1.5% in 2013 to 2.3% in 2016. It's average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at low ROIC (5.74%) and ROE (7.31%). ROIC increased on 3.6 pp from 2.1% to 5.7% in 2016. ROE increased on 4.7 pp from 2.6% to 7.3% in 2016.
Leverage (Debt)
Debt level is 2.7x Net Debt / EBITDA and 3.8x Debt / EBITDA. Net Debt / EBITDA dropped on 1.9x from 4.6x to 2.7x in 2016. Debt decreased on 4.2% in 2016 while cash dropped on 13.0% in 2016.
Appendix 1: Peers in Electronic & Electrical Equipment
Below we provide Walsin Lihwa Corp benchmarking against other companies in Electronic & Electrical Equipment 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 |
|---|
| Stadium Group ($SDM) | -8.8% | 3.0% | -1.1% | 29.0% | |
| Flowgroup ($FLOW) | -92.9% | 125,263.6% | 141.9% | 21.1% | |
| Solid State ($SSP) | | 21.7% | 1.9% | 13.9% | 20.6% |
| Zytronic ($ZYT) | | -15.4% | 9.3% | 12.6% | -0.8% |
| Apc Technology Group ($APC) | | 58.7% | -4.7% | 10.4% | -21.2% |
| |
|---|
| Median (13 companies) | -8.8% | -4.9% | -3.8% | -1.1% | 0.4% |
|---|
| Walsin Lihwa Corp ($WALS) | | -5.6% | 9.7% | -8.4% | -4.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zytronic ($ZYT) | 36.3% | 30.8% | 36.6% | 41.9% | 42.8% |
| Elektron Technology ($EKT) | 40.6% | 37.5% | 34.8% | 35.6% | 37.2% |
| Solid State ($SSP) | 27.8% | 26.1% | 29.2% | 30.5% | 31.8% |
| Maruwa Co Ltd ($MAW) | 31.6% | 28.6% | 32.8% | 30.0% | 35.9% |
| Lpa Group ($LPA) | 28.3% | 27.2% | 29.6% | 27.4% | 29.3% |
| |
|---|
| Median (11 companies) | 27.8% | 27.2% | 29.2% | 25.0% | 31.8% |
|---|
| Walsin Lihwa Corp ($WALS) | 4.8% | 3.1% | 4.6% | 3.9% | 6.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zytronic ($ZYT) | 25.3% | 18.8% | 22.9% | 27.8% | 25.6% |
| Maruwa Co Ltd ($MAW) | 22.3% | 17.7% | 17.8% | 14.7% | 19.6% |
| Dewhurst ($DWHA) | 12.9% | 12.6% | 13.7% | 14.7% | 13.4% |
| Morgan Advanced Materials ($BA29) | 13.7% | 13.1% | 9.8% | 12.8% | 14.6% |
| Stadium Group ($SDM) | 6.1% | 7.1% | 9.9% | 12.1% | |
| |
|---|
| Median (13 companies) | 6.7% | 5.4% | 5.7% | 7.2% | 10.3% |
|---|
| Walsin Lihwa Corp ($WALS) | 3.2% | 1.9% | 3.6% | 2.8% | 5.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Morgan Advanced Materials ($BA29) | 2.9% | 3.8% | 3.7% | 7.0% | 4.0% |
| Maruwa Co Ltd ($MAW) | 23.8% | 15.3% | 7.6% | 6.5% | 4.4% |
| Zytronic ($ZYT) | 3.6% | 2.8% | 1.4% | 4.7% | 1.8% |
| Stadium Group ($SDM) | 1.0% | 0.8% | 0.5% | 2.7% | |
| Dewhurst ($DWHA) | 2.7% | 1.3% | 0.9% | 1.9% | 1.9% |
| |
|---|
| Median (13 companies) | 2.9% | 2.7% | 1.4% | 1.4% | 1.9% |
|---|
| Walsin Lihwa Corp ($WALS) | 4.0% | 1.5% | 0.9% | 1.1% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dewhurst ($DWHA) | 29.2% | 20.7% | 24.5% | 27.3% | 24.6% |
| Zytronic ($ZYT) | 23.0% | 11.9% | 17.0% | 22.7% | 18.1% |
| Solid State ($SSP) | 22.3% | 19.7% | 44.5% | 20.0% | 23.0% |
| Stadium Group ($SDM) | 16.5% | 17.6% | 17.3% | 19.3% | |
| Morgan Advanced Materials ($BA29) | 17.9% | 16.3% | 10.9% | 18.4% | 21.9% |
| |
|---|
| Median (13 companies) | 16.5% | 6.8% | 7.0% | 7.8% | 11.2% |
|---|
| Walsin Lihwa Corp ($WALS) | 2.3% | 0.0% | 3.7% | 2.1% | 5.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Morgan Advanced Materials ($BA29) | 1.4x | 1.5x | 2.3x | 1.8x | 1.7x |
| Lpa Group ($LPA) | 1.9x | 0.7x | 1.5x | 3.8x | 1.3x |
| Solid State ($SSP) | 1.4x | 1.2x | 0.4x | 0.7x | 0.7x |
| Elektron Technology ($EKT) | 0.7x | 1.7x | 3.8x | 0.8x | 0.5x |
| Volex ($VLX) | -0.1x | 1.9x | 10.2x | -0.7x | 0.3x |
| |
|---|
| Median (8 companies) | 0.3x | 0.3x | 0.8x | 0.3x | 0.4x |
|---|
| Walsin Lihwa Corp ($WALS) | 5.3x | 8.7x | 3.9x | 4.6x | 2.7x |
