China Smarter Energy Group Holdings Ltd revenue jumped on 1,860% in 2015 and EBITDA Margin surged on 1,737 pp from -1,525% to 212%
19/06/2015 • About China Smarter Energy Group Holdings Ltd (
$1004) • By InTwits
China Smarter Energy Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Smarter Energy Group Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -91.4% for the sames years0
- China Smarter Energy Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has highly profitable business model: ROIC is at 22.5%
- It operates with high leverage: Net Debt/EBITDA is 3.0x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Smarter Energy Group Holdings Ltd ($1004) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 109.4 | 105.0 | 80.7 | 10.2 | 200.7 | 1,860.5% |
| Gross Profit | -3.6 | 6.5 | 3.2 | 4.8 | 194.6 | 3,950.7% |
| SG&A | 26.3 | 30.3 | 30.7 | 27.5 | 62.4 | 126.7% |
| EBITDA | -134.4 | -296.9 | -301.2 | -156.1 | 425.9 | -372.8% |
| Net Income | -114.1 | -184.5 | -214.5 | -118.1 | -28.8 | -75.6% |
Balance Sheet
|
|---|
| Cash | 18.9 | 32.9 | 22.7 | 20.5 | 138.0 | 574.4% |
| Short Term Debt | 33.6 | 0.1 | 14.9 | 37.8 | 12.5 | -67.0% |
| Long Term Debt | 0.0 | 37.7 | 63.8 | 0.0 | 1,400.1 | |
Cash flow
|
|---|
| Capex | 1.7 | 1.2 | 0.7 | 0.0 | 0.1 | 1,166.7% |
Ratios
|
|---|
| Revenue growth | -22.4% | -4.0% | -23.1% | -87.3% | 1,860.5% | |
| EBITDA growth | -38.9% | 120.9% | 1.5% | -48.2% | -372.8% | |
| Gross Margin | -3.3% | 6.2% | 4.0% | 46.9% | 96.9% | 50.0% |
| EBITDA Margin | -122.8% | -282.7% | -373.2% | -1,524.9% | 212.2% | 1,737.0% |
| Net Income Margin | -104.2% | -175.6% | -265.7% | -1,153.3% | -14.3% | 1,138.9% |
| SG&A, % of revenue | 24.1% | 28.9% | 38.0% | 268.9% | 31.1% | -237.8% |
| CAPEX, % of revenue | 1.5% | 1.1% | 0.9% | 0.1% | 0.1% | -0.0% |
| ROIC | -8.2% | -19.4% | -23.0% | -14.0% | 22.5% | 36.4% |
| ROE | -11.2% | -19.9% | -27.8% | -18.1% | -3.7% | 14.4% |
| Net Debt/EBITDA | | | | | 3.0x | 3.0x |
Revenue and profitability
The company's Revenue surged on 1,860% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from -9.1% to -7.5% in FY2015.
Gross Margin surged on 50.0 pp from 46.9% to 96.9% in FY2015. SG&A as a % of Revenue dropped on 238 pp from 269% to 31.1% in FY2015.
Net Income marign jumped on 1,139 pp from -1,153% to -14.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
China Smarter Energy Group Holdings Ltd's CAPEX/Revenue was 0.057% in FY2015. The company showed small CAPEX/Revenue decline of 1.1 pp from 1.1% in FY2012 to 0.057% in FY2015. It's average level of CAPEX/Revenue for the last three years was 0.36%.
Return on investment
The company operates at low but positive ROIC (22.49%) and negative ROE (-3.73%). ROIC jumped on 36.4 pp from -14.0% to 22.5% in FY2015. ROE surged on 14.4 pp from -18.1% to -3.7% in FY2015.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and 3.3x Debt / EBITDA. Net Debt / EBITDA surged3.0x from to 3.0x in FY2015. Debt surged on 3,634% in FY2015 while cash jumped on 574% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide China Smarter Energy Group Holdings Ltd benchmarking against other companies in Diversified Finan Serv 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 |
|---|
| China New Energy Power Group Ltd ($1041) | | 100.0% | 0.0% | 64,246.0% | |
| ReOrient Group Ltd ($376) | 63.3% | 112.8% | 75.1% | 1,106.9% | |
| Global Strategic Group Ltd ($8007) | 2.2% | -3.9% | 2.1% | 806.3% | |
| AID Partners Capital Holdings Ltd ($8088) | -38.7% | 0.9% | -79.5% | 655.2% | |
| Willie International Holdings Ltd ($273) | | | | 543.9% | |
| |
|---|
| Median (62 companies) | 6.3% | 1.2% | 14.7% | 26.5% | 26.2% |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | | -4.0% | -23.1% | -87.3% | 1,860.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| |
|---|
| Median (12 companies) | 86.7% | 70.7% | 84.4% | 89.9% | 95.2% |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -3.3% | 6.2% | 4.0% | 46.9% | 96.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | 17.9% |
| Roma Group Ltd ($8072) | 81.4% | 18.1% | 36.8% | 143.0% | 44.7% |
| First China Financial Network Holdings Ltd ($8123) | -231.6% | -329.2% | -211.2% | 124.3% | |
| Willie International Holdings Ltd ($273) | | | 75.3% | 95.2% | |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | 83.9% |
| |
|---|
| Median (63 companies) | 30.3% | 16.4% | 36.2% | 47.2% | 44.4% |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -122.8% | -282.7% | -373.2% | -1,524.9% | 212.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gemini Investments Holdings Ltd ($174) | 14.9% | 479.1% | 37.3% | 216.0% | |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | |
| Chinese Strategic Holdings Ltd ($8089) | 93.2% | 376.0% | 5.7% | 32.6% | |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | |
| Asian Capital Holdings Ltd ($8295) | 2.3% | 0.1% | 0.2% | 15.6% | |
| |
|---|
| Median (63 companies) | 2.3% | 1.9% | 1.8% | 1.1% | 0.7% |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | 1.5% | 1.1% | 0.9% | 0.1% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| Convoy Financial Holdings Ltd ($1019) | 31.1% | 3.4% | 39.3% | 47.3% | |
| Willie International Holdings Ltd ($273) | -28.1% | -9.5% | 4.7% | 30.9% | |
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | |
| |
|---|
| Median (65 companies) | 4.9% | 3.9% | 4.0% | 4.8% | 4.8% |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -8.2% | -19.4% | -23.0% | -14.0% | 22.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cash Financial Services Group Ltd ($510) | -1.1x | 7.8x | | 67.5x | |
| Far East Horizon Ltd ($3360) | 17.8x | 16.9x | 21.7x | 20.0x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | |
| China Cinda Asset Management Co Ltd ($1359) | 2.1x | 5.0x | 7.7x | 8.4x | |
| Aeon Credit Service Asia Co Ltd ($900) | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x |
| |
|---|
| Median (46 companies) | -1.1x | -1.0x | 0.1x | -0.0x | 0.4x |
|---|
