C Y Foundation Group Ltd revenue growth accelerated from 5.9% in FY2014 to 215% in FY2015
25/05/2015 • About C Y Foundation Group Ltd (
$1182) • By InTwits
C Y Foundation Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- C Y Foundation Group Ltd doesn't have a profitable business model yet: FY2015 ROIC is -15.6%
- The company operates at negative EBITDA Margin: -7.8%
- C Y Foundation Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -21.9% for the sames years0
- C Y Foundation Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.8%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: 16.8 in FY2015, 47.0 in FY2014, 2.8 in FY2013, 3.9 in FY2012, 14.2 in FY2011
- The company has unprofitable business model: ROIC is at -15.6%
- It operates with high leverage: Net Debt/EBITDA is 9.3x while industry average is -0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
C Y Foundation Group Ltd ($1182) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 145.1 | 157.2 | 54.0 | 57.2 | 180.0 | 214.6% |
| Gross Profit | 53.7 | 46.8 | 0.1 | 17.4 | 48.4 | 178.6% |
| SG&A | | 103.7 | 48.8 | 54.4 | 98.1 | 80.3% |
| EBITDA | -20.9 | -45.0 | -45.0 | -4.9 | -14.0 | 187.5% |
| Net Income | -303.0 | -73.5 | -65.2 | -11.8 | -47.3 | 302.4% |
Balance Sheet
|
|---|
| Cash | 36.6 | 19.7 | 28.8 | 79.1 | 73.7 | -6.9% |
| Short Term Debt | 6.2 | 15.3 | 19.7 | 2.1 | 1.9 | -9.9% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 50.0 | 50.5 | 0.9% |
Cash flow
|
|---|
| Capex | 14.2 | 3.9 | 2.8 | 47.0 | 16.8 | -64.3% |
Ratios
|
|---|
| Revenue growth | 23.8% | 8.3% | -65.6% | 5.9% | 214.6% | |
| EBITDA growth | -67.1% | 115.7% | -0.0% | -89.2% | 187.5% | |
| Gross Margin | 37.0% | 29.7% | 0.2% | 30.4% | 26.9% | -3.5% |
| EBITDA Margin | -14.4% | -28.6% | -83.3% | -8.5% | -7.8% | 0.7% |
| Net Income Margin | -208.8% | -46.8% | -120.7% | -20.6% | -26.3% | -5.7% |
| SG&A, % of revenue | | 66.0% | 90.4% | 95.1% | 54.5% | -40.6% |
| CAPEX, % of revenue | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% | -72.9% |
| ROIC | -7.8% | -18.7% | -20.4% | -5.9% | -15.6% | -9.7% |
| ROE | -75.5% | -32.6% | -35.7% | -6.6% | -27.4% | -20.9% |
Revenue and profitability
C Y Foundation Group Ltd's Revenue jumped on 215% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.89 pp from 77.1% to 76.2% in 2015.
Gross Margin decreased on 3.5 pp from 30.4% to 26.9% in FY2015. SG&A as a % of Revenue dropped on 40.6 pp from 95.1% to 54.5% in FY2015.
Net Income marign decreased on 5.7 pp from -20.6% to -26.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
C Y Foundation Group Ltd's CAPEX/Revenue was 9.3% in FY2015. CAPEX/Revenue increased on 6.9 pp from 2.5% in FY2012 to 9.3% in FY2015. It's average level of CAPEX/Revenue for the last three years was 32.2%.
Return on investment
The company operates at negative ROIC (-15.62%) and ROE (-27.42%). ROIC decreased on 9.7 pp from -5.9% to -15.6% in FY2015. ROE dropped on 20.9 pp from -6.6% to -27.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 9.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt showed almost no change in FY2015 while cash decreased on 6.9% in FY2015.
Appendix 1: Peers in Distribution/Wholesale
Below you can find C Y Foundation Group Ltd benchmarking vs. other companies in Distribution/Wholesale 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| Sheng Yuan Holdings Ltd ($851) | 571.1% | -86.1% | 756.9% | 567.2% | |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| China-Hongkong Photo Products Holdings Ltd ($1123) | 2.5% | 24.9% | 9.0% | 81.2% | |
| |
|---|
| Median (36 companies) | 16.5% | 2.7% | 3.6% | -0.5% | |
|---|
| C Y Foundation Group Ltd ($1182) | | 8.3% | -65.6% | 5.9% | 214.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | |
| Forefront Group Ltd ($885) | | | | 69.8% | |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | |
| Sincere Watch Hong Kong Ltd ($444) | 34.2% | 35.6% | 39.7% | 38.8% | |
| |
|---|
| Median (32 companies) | 16.1% | 17.4% | 18.5% | 18.7% | |
|---|
| C Y Foundation Group Ltd ($1182) | 37.0% | 29.7% | 0.2% | 30.4% | 26.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | |
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| |
|---|
| Median (36 companies) | 3.4% | 2.8% | 2.9% | 4.9% | |
|---|
| C Y Foundation Group Ltd ($1182) | -14.4% | -28.6% | -83.3% | -8.5% | -7.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| Victory Group Ltd ($1139) | | 0.7% | 0.1% | 6.1% | |
| |
|---|
| Median (36 companies) | 1.4% | 1.3% | 1.7% | 1.6% | |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | |
| |
|---|
| Median (37 companies) | 3.1% | 3.0% | 1.8% | 3.3% | |
|---|
| C Y Foundation Group Ltd ($1182) | -7.8% | -18.7% | -20.4% | -5.9% | -15.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | |
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | |
| |
|---|
| Median (26 companies) | -0.2x | -0.2x | -0.6x | -0.1x | |
|---|
