North Asia Strategic Holdings Ltd reports 45.8% Net Income decline while 42.6% Revenue growth
11/06/2015 • About North Asia Strategic Holdings Ltd (
$8080) • By InTwits
North Asia Strategic Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- North Asia Strategic Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 1.9%
- North Asia Strategic Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -0.6%0
- North Asia Strategic Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has potentially unprofitable business model: ROIC is at 1.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
North Asia Strategic Holdings Ltd ($8080) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,168 | 1,035 | 734 | 908 | 1,294 | 42.6% |
| Gross Profit | 316 | 223 | 139 | 130 | 178 | 36.5% |
| SG&A | | 244 | 63 | 78 | 81 | 3.6% |
| EBITDA | 30 | -132 | 51 | -11 | 25 | -314.0% |
| Net Income | 22 | -241 | -33 | 47 | 26 | -45.8% |
Balance Sheet
|
|---|
| Cash | 984 | 884 | 556 | 573 | 487 | -14.9% |
| Short Term Debt | 234 | 62 | 17 | 3 | 17 | 555.3% |
| Long Term Debt | 12 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 49 | 13 | 3 | 5 | 5 | 4.6% |
Ratios
|
|---|
| Revenue growth | 53.4% | -52.2% | -29.1% | 23.7% | 42.6% | |
| EBITDA growth | -5.8% | -547.4% | -138.8% | -122.4% | -314.0% | |
| Gross Margin | 14.6% | 21.5% | 18.9% | 14.3% | 13.7% | -0.6% |
| EBITDA Margin | 1.4% | -12.8% | 7.0% | -1.3% | 1.9% | 3.2% |
| Net Income Margin | 1.0% | -23.3% | -4.6% | 5.2% | 2.0% | -3.2% |
| SG&A, % of revenue | | 23.5% | 8.6% | 8.6% | 6.2% | -2.3% |
| CAPEX, % of revenue | 2.3% | 1.2% | 0.4% | 0.6% | 0.4% | -0.1% |
| ROIC | -0.6% | -9.8% | 4.0% | -1.7% | 1.9% | 3.6% |
| ROE | 1.2% | -17.3% | -3.0% | 4.8% | 2.5% | -2.3% |
| Net Debt/EBITDA | -25.0x | | -10.5x | | -19.2x | -19.2x |
Revenue and profitability
North Asia Strategic Holdings Ltd's Revenue jumped on 42.6% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 2,462 pp from 2,533% to 71.2% in 2015.
Gross Margin decreased slightly on 0.61 pp from 14.3% to 13.7% in FY2015. SG&A as a % of Revenue decreased on 2.3 pp from 8.6% to 6.2% in FY2015.
Net Income marign decreased on 3.2 pp from 5.2% to 2.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.41%. North Asia Strategic Holdings Ltd's CAPEX/Revenue decreased slightly on 0.83 pp from 1.2% in FY2012 to 0.41% in FY2015. It's average CAPEX/Revenue for the last three years was 0.44%.
Return on investment
The company operates at low ROIC (1.93%) and ROE (2.49%). ROIC increased on 3.6 pp from -1.7% to 1.9% in FY2015. ROE decreased on 2.3 pp from 4.8% to 2.5% in FY2015.
Leverage (Debt)
Debt level is -19.2x Net Debt / EBITDA and 0.7x Debt / EBITDA. Net Debt / EBITDA dropped19.2x from to -19.2x in FY2015. Debt surged on 555% in FY2015 while cash dropped on 14.9% in FY2015.
Appendix 1: Peers in Machinery-Diversified
Below you can find North Asia Strategic Holdings Ltd benchmarking vs. other companies in Machinery-Diversified 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 |
|---|
| Sun East Technology Holdings Ltd ($365) | 85.7% | -25.1% | -10.7% | 39.3% | |
| Shanghai Prime Machinery Co Ltd ($2345) | 30.3% | 2.6% | -8.9% | 37.3% | |
| Sinoref Holdings Ltd ($1020) | 1.5% | -0.2% | -42.2% | 29.2% | |
| Asia Tele-Net & Technology Corp Ltd ($679) | 3.5% | -36.9% | 23.0% | 18.6% | |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 1.4% | 7.8% | -23.2% | 10.6% | |
| |
|---|
| Median (21 companies) | 26.8% | -3.6% | -4.2% | -2.6% | |
|---|
| North Asia Strategic Holdings Ltd ($8080) | | -52.2% | -29.1% | 23.7% | 42.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jingwei Textile Machinery ($350) | 38.3% | 49.1% | 51.7% | 54.9% | |
| Renheng Enterprise Holdings Ltd ($3628) | 36.4% | 44.3% | 44.8% | 45.4% | |
| Haitian International Holdings Ltd ($1882) | 29.7% | 30.1% | 31.6% | 32.4% | |
| CHTC Fong's Industries Co Ltd ($641) | 26.5% | 24.4% | 30.0% | 32.3% | |
| Good Friend International Holdings Inc ($2398) | 23.3% | 20.1% | 22.9% | 26.5% | |
| |
|---|
| Median (21 companies) | 23.8% | 23.8% | 21.5% | 18.7% | |
|---|
| North Asia Strategic Holdings Ltd ($8080) | 14.6% | 21.5% | 18.9% | 14.3% | 13.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jingwei Textile Machinery ($350) | 18.5% | 24.0% | 26.9% | 28.0% | |
| Haitian International Holdings Ltd ($1882) | 20.5% | 19.7% | 20.7% | 21.9% | |
| Renheng Enterprise Holdings Ltd ($3628) | 22.9% | 24.7% | 23.9% | 20.7% | |
| Good Friend International Holdings Inc ($2398) | 11.7% | 6.7% | 9.1% | 12.9% | |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 12.9% | 12.9% | 6.5% | 12.3% | |
| |
|---|
| Median (21 companies) | 9.7% | 8.7% | 8.6% | 8.5% | |
|---|
| North Asia Strategic Holdings Ltd ($8080) | 1.4% | -12.8% | 7.0% | -1.3% | 1.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China High Precision Automation Group Ltd ($591) | 33.0% | 20.5% | 9.1% | 18.4% | |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 14.9% | 20.5% | 20.3% | 11.6% | |
| LK Technology Holdings Ltd ($558) | 7.6% | 9.3% | 10.2% | 9.1% | |
| First Tractor Co Ltd ($38) | 6.3% | 4.9% | 4.3% | 7.3% | |
| Greens Holdings Ltd ($1318) | 9.3% | 8.9% | 3.1% | 7.1% | |
| |
|---|
| Median (21 companies) | 6.3% | 4.2% | 4.3% | 4.5% | |
|---|
| North Asia Strategic Holdings Ltd ($8080) | 2.3% | 1.2% | 0.4% | 0.6% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Haitian International Holdings Ltd ($1882) | 26.8% | 19.8% | 21.2% | 19.4% | |
| Jingwei Textile Machinery ($350) | 23.3% | 19.4% | 20.9% | 17.4% | |
| Good Friend International Holdings Inc ($2398) | 20.0% | 6.5% | 8.7% | 12.1% | |
| China CNR Corp Ltd ($6199) | 11.1% | 7.9% | 9.3% | 10.6% | |
| Shanghai Electric Group Co Ltd ($2727) | 9.8% | 10.9% | 8.6% | 8.9% | |
| |
|---|
| Median (21 companies) | 9.9% | 7.1% | 3.1% | 2.6% | |
|---|
| North Asia Strategic Holdings Ltd ($8080) | -0.6% | -9.8% | 4.0% | -1.7% | 1.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First Tractor Co Ltd ($38) | 1.1x | 0.5x | 2.5x | 9.2x | |
| Shanghai Prime Machinery Co Ltd ($2345) | -0.0x | -0.6x | 0.3x | 6.0x | |
| Shandong Molong Petroleum Machinery Co Ltd ($568) | 1.9x | 3.0x | 11.4x | 5.6x | |
| Honghua Group Ltd ($196) | 0.1x | 1.2x | 3.2x | 5.2x | |
| LK Technology Holdings Ltd ($558) | 0.9x | 2.5x | 5.1x | 4.9x | |
| |
|---|
| Median (18 companies) | -0.2x | -1.6x | 0.3x | 0.2x | |
|---|
