PYI Corp Ltd reports 446% Net Income decline in 2016 while 14.7 pp EBITDA Margin growth from -20.7% to -6.1%
17/06/2016 • About PYI Corp Ltd (
$498) • By InTwits
PYI Corp Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- PYI Corp Ltd is a company in decline: FY2016 revenue growth was -6.8%, 5 years revenue CAGR was -38.1%
- The company operates at negative EBITDA Margin: -6.1%
- PYI Corp Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -0.9% for the sames years0
- PYI Corp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.0%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 96.3 in FY2016, 68.6 in FY2015, 244 in FY2014, 270 in FY2013, 192 in FY2012
- The company has unprofitable business model: ROIC is at -1.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
PYI Corp Ltd ($498) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,159 | 6,498 | 999 | 524 | 488 | -6.8% |
| Gross Profit | 416 | 329 | 163 | 126 | 152 | 20.2% |
| SG&A | 417 | 401 | 290 | 267 | 236 | -11.6% |
| EBITDA | 105 | -8 | -80 | -108 | -30 | |
| Net Income | 334 | 262 | 86 | 86 | -298 | -446.3% |
Balance Sheet
|
|---|
| Cash | 1,008 | 1,236 | 753 | 636 | 609 | -4.3% |
| Short Term Debt | 1,699 | 1,703 | 1,487 | 1,535 | 1,289 | -16.0% |
| Long Term Debt | 1,000 | 823 | 711 | 747 | 740 | -1.0% |
Cash flow
|
|---|
| Capex | 192 | 270 | 244 | 69 | 96 | 40.2% |
Ratios
|
|---|
| Revenue growth | -3.7% | 25.9% | -84.6% | -47.6% | -6.8% | |
| EBITDA growth | -46.7% | -107.2% | 956.6% | 36.0% | -72.8% | |
| Gross Margin | 8.1% | 5.1% | 16.3% | 24.1% | 31.1% | 7.0% |
| EBITDA Margin | 2.0% | -0.1% | -8.0% | -20.7% | -6.1% | 14.7% |
| Net Income Margin | 6.5% | 4.0% | 8.6% | 16.4% | -61.0% | -77.5% |
| SG&A, % of revenue | 8.1% | 6.2% | 29.1% | 51.0% | 48.4% | -2.6% |
| CAPEX, % of revenue | 3.7% | 4.2% | 24.5% | 13.1% | 19.7% | 6.6% |
| ROIC | 0.3% | -0.9% | -2.0% | -2.1% | -1.5% | 0.6% |
| ROE | 7.3% | 5.6% | 1.8% | 1.8% | -6.5% | -8.3% |
| Net Debt/EBITDA | 16.1x | | | | | 0.0x |
Revenue and profitability
The company's Revenue decreased on 6.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 14.7 pp from -20.7% to -6.1% in FY2016.
Gross Margin increased on 7.0 pp from 24.1% to 31.1% in FY2016. SG&A as a % of Revenue decreased on 2.6 pp from 51.0% to 48.4% in FY2016.
Net Income marign dropped on 77.5 pp from 16.4% to -61.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 19.7% in FY2016. PYI Corp Ltd showed fast CAPEX/Revenue growth of 15.6 pp from 4.2% in FY2013 to 19.7% in FY2016. For the last three years the average CAPEX/Revenue was 19.1%.
Return on investment
The company operates at negative ROIC (-1.52%) and ROE (-6.52%). ROIC increased slightly on 0.60 pp from -2.1% to -1.5% in FY2016. ROE decreased on 8.3 pp from 1.8% to -6.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 11.1% while cash decreased on 4.3%.
Appendix 1: Peers in Engineering&Construction
Below you can find PYI Corp Ltd benchmarking vs. other companies in Engineering&Construction 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 |
|---|
| CNQC International Holdings Ltd ($1240) | 21.6% | 91.0% | 103.7% | 807.4% | |
| China National Culture Group Ltd ($745) | -39.1% | -76.8% | -55.8% | 592.3% | |
| Vision Fame International Holding Ltd ($1315) | -9.9% | 45.9% | -10.5% | 105.6% | |
| Sino Credit Holdings Ltd ($628) | -13.8% | | | 97.4% | |
| Grand Ming Group Holdings Ltd ($1271) | | -26.9% | -37.4% | 74.8% | 14.3% |
| |
|---|
| Median (40 companies) | 12.9% | 22.8% | 20.8% | 10.3% | 2.7% |
|---|
| PYI Corp Ltd ($498) | | 25.9% | -84.6% | -47.6% | -6.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HNA Infrastructure Company Ltd ($357) | 66.4% | 62.1% | 62.4% | 61.1% | |
| Huayu Expressway Group Ltd ($1823) | 43.6% | 65.6% | 64.0% | 58.9% | |
| Broad Greenstate International Co Ltd ($1253) | 20.1% | 28.7% | 35.8% | 36.7% | |
| China National Culture Group Ltd ($745) | 0.9% | 12.1% | 10.3% | 32.3% | |
| Kingbo Strike Ltd ($1421) | 32.4% | 44.4% | 40.3% | 30.7% | |
| |
|---|
| Median (35 companies) | 17.5% | 16.9% | 15.3% | 15.6% | 14.4% |
|---|
| PYI Corp Ltd ($498) | 8.1% | 5.1% | 16.3% | 24.1% | 31.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huayu Expressway Group Ltd ($1823) | 46.2% | 73.8% | 77.1% | 76.2% | |
| HNA Infrastructure Company Ltd ($357) | 62.8% | 63.7% | 62.8% | 61.7% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 31.2% | 20.6% | 36.2% | 60.9% | |
| Beijing Capital International Airport Co Ltd ($694) | 53.4% | 52.9% | 50.3% | 51.6% | |
| China National Culture Group Ltd ($745) | -30.4% | -72.7% | -279.2% | 45.3% | |
| |
|---|
| Median (40 companies) | 10.0% | 9.6% | 9.1% | 8.3% | 4.3% |
|---|
| PYI Corp Ltd ($498) | 2.0% | -0.1% | -8.0% | -20.7% | -6.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HNA Infrastructure Company Ltd ($357) | 36.8% | 5.7% | 85.4% | 155.4% | |
| Grand Ming Group Holdings Ltd ($1271) | 0.0% | 16.1% | 8.7% | 33.8% | 14.0% |
| Beijing Capital International Airport Co Ltd ($694) | 3.5% | 6.6% | 7.2% | 28.2% | |
| Louis XIII Holdings Ltd ($577) | 1.2% | 29.5% | 9.3% | 16.1% | 47.3% |
| KFM Kingdom Holdings Ltd ($3816) | 4.6% | 11.5% | 14.9% | 9.6% | |
| |
|---|
| Median (40 companies) | 2.3% | 2.5% | 1.6% | 2.0% | 3.8% |
|---|
| PYI Corp Ltd ($498) | 3.7% | 4.2% | 24.5% | 13.1% | 19.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | 98.3% | 54.9% | 43.7% | |
| Ngai Shun Holdings Ltd ($1246) | 68.8% | 77.2% | 45.2% | 31.0% | |
| Broad Greenstate International Co Ltd ($1253) | 33.2% | 85.1% | 51.2% | 26.0% | |
| China Saite Group Co Ltd ($153) | 64.0% | 53.2% | 35.3% | 24.5% | |
| CNQC International Holdings Ltd ($1240) | 12.2% | 22.3% | 40.4% | 21.8% | |
| |
|---|
| Median (42 companies) | 6.5% | 5.5% | 4.1% | 4.4% | 3.4% |
|---|
| PYI Corp Ltd ($498) | 0.3% | -0.9% | -2.0% | -2.1% | -1.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Deson Development International Holdings ($262) | 3.8x | 4.9x | 13.7x | 47.0x | |
| Hsin Chong Construction Group Ltd ($404) | 1.8x | 8.0x | 10.2x | 41.7x | |
| China Resources and Transportation Group Ltd ($269) | | | 66.7x | 29.7x | |
| CNC Holdings Ltd ($8356) | | 22.0x | 21.9x | 24.3x | 2.7x |
| Louis XIII Holdings Ltd ($577) | 0.8x | -12.5x | -23.2x | 19.1x | |
| |
|---|
| Median (35 companies) | 0.9x | 0.3x | 0.5x | 2.2x | 4.3x |
|---|
