Yunbo Digital Synergy Group Ltd revenue returned to growth in FY2015: increased 348% vs. 31.9% decline a year earliner
12/06/2015 • About Yunbo Digital Synergy Group Ltd (
$8050) • By InTwits
Yunbo Digital Synergy Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yunbo Digital Synergy Group Ltd doesn't have a profitable business model yet: FY2015 ROIC is -2.2%
- The company operates at negative EBITDA Margin: -1.4%
- Yunbo Digital Synergy Group 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 -9.3%0
- Yunbo Digital Synergy Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has unprofitable business model: ROIC is at -2.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yunbo Digital Synergy Group Ltd ($8050) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 102.0 | 15.7 | 53.7 | 36.6 | 163.9 | 348.0% |
| Gross Profit | 67.3 | 5.6 | 3.4 | 8.5 | 30.4 | 257.3% |
| SG&A | | | 15.5 | 19.3 | 34.0 | 76.0% |
| EBITDA | -6.2 | -4.4 | -11.5 | -10.3 | -2.3 | -77.9% |
| Net Income | -6.8 | 6.2 | -11.9 | -10.5 | -2.8 | -73.1% |
Balance Sheet
|
|---|
| Cash | 26.6 | 65.8 | 28.2 | 112.1 | 133.0 | 18.7% |
| Short Term Debt | 0.0 | 60.0 | 10.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.5 | 0.0 | 0.6 | 1.0 | 0.1 | -91.8% |
Ratios
|
|---|
| Revenue growth | 14.5% | -84.6% | 241.6% | -31.9% | 348.0% | |
| EBITDA growth | -43.0% | -28.5% | 160.4% | -10.9% | -77.9% | |
| Gross Margin | 65.9% | 35.6% | 6.4% | 23.3% | 18.6% | -4.7% |
| EBITDA Margin | -6.1% | -28.1% | -21.4% | -28.1% | -1.4% | 26.7% |
| Net Income Margin | -6.7% | 39.6% | -22.1% | -28.7% | -1.7% | 26.9% |
| SG&A, % of revenue | | | 28.9% | 52.9% | 20.8% | -32.1% |
| CAPEX, % of revenue | 0.5% | 0.2% | 1.2% | 2.6% | 0.0% | -2.6% |
| ROIC | -18.5% | -8.3% | -21.8% | -12.9% | -2.2% | 10.8% |
| ROE | -15.5% | 27.4% | -66.5% | -13.6% | -2.3% | 11.3% |
Revenue and profitability
The company's Revenue surged on 348% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 11.1 pp from -5.0% to 6.1% in 2015.
Gross Margin decreased on 4.7 pp from 23.3% to 18.6% in FY2015. SG&A as a % of Revenue dropped on 32.1 pp from 52.9% to 20.8% in FY2015.
Net Income marign surged on 26.9 pp from -28.7% to -1.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.048% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 1.3%.
Return on investment
The company operates at negative ROIC (-2.15%) and ROE (-2.33%). ROIC surged on 10.8 pp from -12.9% to -2.2% in FY2015. ROE surged on 11.3 pp from -13.6% to -2.3% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 18.7% in FY2015.
Appendix 1: Peers in Software
Below we provide Yunbo Digital Synergy Group Ltd benchmarking against other companies in Software 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pizu Group Holdings Ltd ($8053) | -55.1% | 40.3% | -42.9% | 1,742.9% | |
| China City Railway Transportation Technology Holdings Co Ltd ($1522) | 194.6% | 164.0% | 33.6% | 100.5% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | -16.7% | 393.7% | -6.6% | 92.2% | |
| Epicurean and Co Ltd ($8213) | -38.5% | 177.0% | 185.7% | 62.6% | |
| China Bio Cassava Holdings Ltd ($8129) | -15.0% | -14.2% | 38.8% | 55.1% | |
| |
|---|
| Median (30 companies) | 14.3% | 10.6% | 11.1% | 21.5% | |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | | -84.6% | 241.6% | -31.9% | 348.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.2% | 90.4% | 97.4% | 98.4% | |
| NetDragon Websoft Inc ($777) | 90.1% | 93.4% | 90.8% | 89.3% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | 19.4% | 6.5% | 45.3% | 84.8% | |
| Kingdee International Software Group Co Ltd ($268) | 70.1% | 65.0% | 75.3% | 82.5% | |
| Kingsoft Corp Ltd ($3888) | 85.5% | 86.8% | 86.3% | 82.4% | |
| |
|---|
| Median (29 companies) | 41.6% | 38.7% | 38.6% | 37.2% | |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | 65.9% | 35.6% | 6.4% | 23.3% | 18.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sinosoft Technology Group Ltd ($1297) | 55.5% | 62.6% | 54.9% | 57.2% | |
| International Entertainment Corp ($1009) | 235.1% | 50.8% | 64.0% | 54.9% | |
| Microsoft Corp ($4338) | 42.8% | 33.5% | 39.2% | 38.0% | |
| Kingdee International Software Group Co Ltd ($268) | 19.5% | 7.8% | 33.2% | 37.2% | |
| TravelSky Technology Ltd ($696) | 43.3% | 38.1% | 35.8% | 31.9% | |
| |
|---|
| Median (30 companies) | 10.3% | 7.8% | 10.9% | 7.4% | |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | -6.1% | -28.1% | -21.4% | -28.1% | -1.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NetDragon Websoft Inc ($777) | 13.3% | 21.1% | 34.6% | 54.6% | |
| China Eco-Farming Ltd ($8166) | 0.3% | 0.6% | 0.7% | 18.1% | |
| TravelSky Technology Ltd ($696) | 5.8% | 8.9% | 21.7% | 18.1% | |
| Kingsoft Corp Ltd ($3888) | 6.8% | 4.3% | 3.8% | 14.3% | |
| Sing Lee Software Group Ltd ($8076) | 19.4% | 3.3% | 0.2% | 14.0% | |
| |
|---|
| Median (29 companies) | 3.1% | 2.6% | 2.8% | 3.6% | |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | 0.5% | 0.2% | 1.2% | 2.6% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Microsoft Corp ($4338) | 43.4% | 28.6% | 30.3% | 26.2% | |
| Sinosoft Technology Group Ltd ($1297) | 31.6% | 34.0% | 21.9% | 20.2% | |
| Boyaa Interactive International Ltd ($434) | 100.4% | 75.3% | 21.3% | 20.0% | |
| ITE Holdings Ltd ($8092) | -19.6% | -15.0% | 10.6% | 16.8% | |
| TravelSky Technology Ltd ($696) | 16.2% | 15.0% | 13.8% | 12.5% | |
| |
|---|
| Median (30 companies) | 4.9% | 1.4% | 4.7% | -0.4% | |
|---|
| Yunbo Digital Synergy Group Ltd ($8050) | -18.5% | -8.3% | -21.8% | -12.9% | -2.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pizu Group Holdings Ltd ($8053) | | | | 346.1x | |
| Epicurean and Co Ltd ($8213) | 2.9x | 2.3x | 4.7x | 12.3x | |
| Sing Lee Software Group Ltd ($8076) | | | | 6.2x | |
| China Technology Solar Power Holdings Ltd ($8111) | | | 7.4x | 3.3x | |
| Chinasoft International Ltd ($354) | -1.3x | -0.7x | 0.7x | 1.5x | |
| |
|---|
| Median (19 companies) | -0.9x | -0.7x | -1.3x | -0.8x | |
|---|
