Louis XIII Holdings Ltd CAPEX surged on 87.9% in 2015 and Revenue increased on 8.7%
19/06/2015 • About Louis XIII Holdings Ltd (
$577) • By InTwits
Louis XIII Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Louis XIII Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 0.3%
- EBITDA Margin is relatively stable: 0.5% in FY2015 vs. 0.7% in FY2014 vs. 1.1% in FY2011
- Louis XIII Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.7%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 1,499 in FY2015, 798 in FY2014, 2,105 in FY2013, 52.4 in FY2012, 99.2 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.3%
- It operates with high leverage: Net Debt/EBITDA is 19.1x while industry average is 4.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Louis XIII Holdings Ltd ($577) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,334 | 4,304 | 7,132 | 8,580 | 9,323 | 8.7% |
| Gross Profit | 192 | 187 | 226 | 289 | 284 | -1.7% |
| SG&A | | | | | 260 | |
| EBITDA | 49 | 41 | 60 | 58 | 50 | -14.0% |
| Net Income | 30 | 30 | 18 | -51 | -30 | -40.9% |
Balance Sheet
|
|---|
| Cash | 332 | 306 | 1,356 | 2,039 | 1,036 | -49.2% |
| Short Term Debt | 245 | 226 | 402 | 441 | 488 | 10.6% |
| Long Term Debt | 9 | 113 | 206 | 242 | 1,508 | 522.2% |
Cash flow
|
|---|
| Capex | 99 | 52 | 2,105 | 798 | 1,499 | 87.9% |
Ratios
|
|---|
| Revenue growth | 18.9% | -0.7% | 65.7% | 20.3% | 8.7% | |
| EBITDA growth | -10.0% | -17.0% | 47.3% | -2.1% | -14.0% | |
| Gross Margin | 4.4% | 4.3% | 3.2% | 3.4% | 3.0% | -0.3% |
| EBITDA Margin | 1.1% | 0.9% | 0.8% | 0.7% | 0.5% | -0.1% |
| Net Income Margin | 0.7% | 0.7% | 0.2% | -0.6% | -0.3% | 0.3% |
| SG&A, % of revenue | | | | | 2.8% | 2.8% |
| CAPEX, % of revenue | 2.3% | 1.2% | 29.5% | 9.3% | 16.1% | 6.8% |
| ROIC | 3.6% | 1.8% | 1.2% | 0.5% | 0.3% | -0.3% |
| ROE | 5.1% | 4.9% | 1.0% | -1.4% | -0.6% | 0.8% |
| Net Debt/EBITDA | -1.6x | 0.8x | -12.5x | -23.2x | 19.1x | 42.3x |
Revenue and profitability
The company's Revenue increased on 8.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.8 pp from 82.2% to 73.3% in 2015.
Gross Margin showed almost no change in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Louis XIII Holdings Ltd's CAPEX/Revenue was 16.1% in FY2015. The company showed fast CAPEX/Revenue growth of 14.9 pp from 1.2% in FY2012 to 16.1% in FY2015. It's average level of CAPEX/Revenue for the last three years was 18.3%.Louis XIII Holdings Ltd maintained rich investment policy and has spent a lot to CAPEX (2,979% of EBITDA).
Return on investment
The company operates at low but positive ROIC (0.26%) and negative ROE (-0.61%). ROIC showed almost no change in FY2015. ROE increased slightly on 0.83 pp from -1.4% to -0.61% in FY2015.
Leverage (Debt)
Debt level is 19.1x Net Debt / EBITDA and 39.7x Debt / EBITDA. Net Debt / EBITDA jumped on 42.3x from -23.2x to 19.1x in FY2015. Debt surged on 192% in FY2015 while cash dropped on 49.2% in FY2015.
Appendix 1: Peers in Engineering&Construction
Below you can find Louis XIII Holdings 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Richly Field China Development Ltd ($313) | | | -45.0% | 464.2% | |
| Junefield Department Store Group Ltd ($758) | 22.9% | -20.3% | -24.9% | 126.6% | |
| CNQC International Holdings Ltd ($1240) | 401.9% | 21.6% | 91.0% | 103.7% | |
| Wison Engineering Services Co Ltd ($2236) | 1.2% | -2.9% | -24.9% | 90.3% | |
| China Resources and Transportation Group Ltd ($269) | | 939.8% | 3,196.3% | 87.9% | -41.6% |
| |
|---|
| Median (39 companies) | 9.2% | 10.3% | 20.8% | 10.8% | -41.6% |
|---|
| Louis XIII Holdings Ltd ($577) | | -0.7% | 65.7% | 20.3% | 8.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | 2.2% | 43.6% | 65.6% | 64.0% | |
| HNA Infrastructure Company Ltd ($357) | 61.6% | 66.4% | 62.1% | 62.4% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 50.1% | 54.1% | 54.3% | 41.5% | |
| Grand Ming Group Holdings Ltd ($1271) | 20.4% | 11.0% | 18.1% | 35.7% | 19.7% |
| China Saite Group Co Ltd ($153) | 29.4% | 32.1% | 33.7% | 29.8% | |
| |
|---|
| Median (34 companies) | 11.5% | 11.7% | 11.9% | 12.4% | 7.0% |
|---|
| Louis XIII Holdings Ltd ($577) | 4.4% | 4.3% | 3.2% | 3.4% | 3.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 46.2% | 73.8% | 77.1% | |
| HNA Infrastructure Company Ltd ($357) | 60.0% | 62.8% | 63.7% | 62.8% | |
| Beijing Capital International Airport Co Ltd ($694) | 55.1% | 53.4% | 52.9% | 50.3% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 39.8% | 31.2% | 20.6% | 36.2% | |
| Grand Ming Group Holdings Ltd ($1271) | 17.5% | 10.0% | 15.8% | 31.0% | 19.0% |
| |
|---|
| Median (40 companies) | 9.2% | 8.7% | 7.4% | 6.2% | 4.7% |
|---|
| Louis XIII Holdings Ltd ($577) | 1.1% | 0.9% | 0.8% | 0.7% | 0.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HNA Infrastructure Company Ltd ($357) | 43.3% | 36.8% | 5.7% | 85.4% | |
| PYI Corp Ltd ($498) | 6.6% | 3.7% | 4.2% | 24.5% | 13.1% |
| Shun Cheong Holdings ($650) | 7.2% | 16.4% | 8.0% | 23.9% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 6.1% | 4.2% | 7.7% | 20.2% | |
| KFM Kingdom Holdings Ltd ($3816) | 6.5% | 4.6% | 11.5% | 14.9% | |
| |
|---|
| Median (40 companies) | 4.5% | 2.5% | 2.6% | 1.7% | 2.0% |
|---|
| Louis XIII Holdings Ltd ($577) | 2.3% | 1.2% | 29.5% | 9.3% | 16.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 98.3% | 54.9% | |
| CNQC International Holdings Ltd ($1240) | 23.1% | 12.2% | 22.3% | 40.4% | |
| China Saite Group Co Ltd ($153) | 46.3% | 64.0% | 53.2% | 35.3% | |
| Excel Development Holdings Ltd ($1372) | | 33.1% | 27.2% | 16.4% | 8.6% |
| China Machinery Engineering Corp ($1829) | 35.5% | 24.9% | 20.4% | 16.0% | |
| |
|---|
| Median (41 companies) | 7.0% | 5.6% | 5.2% | 3.8% | 2.9% |
|---|
| Louis XIII Holdings Ltd ($577) | 3.6% | 1.8% | 1.2% | 0.5% | 0.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Resources and Transportation Group Ltd ($269) | | | | 66.7x | 29.7x |
| CNC Holdings Ltd ($8356) | -0.7x | | 22.0x | 21.9x | 24.3x |
| Deson Development International Holdings ($262) | 3.1x | 3.8x | 4.9x | 13.7x | |
| Chun Wo Development Holdings Ltd ($711) | | 14.3x | 8.1x | 12.6x | |
| Hsin Chong Construction Group Ltd ($404) | 4.3x | 1.8x | 8.0x | 10.2x | |
| |
|---|
| Median (33 companies) | 0.8x | 1.8x | 3.1x | 3.0x | 4.6x |
|---|
| Louis XIII Holdings Ltd ($577) | -1.6x | 0.8x | -12.5x | -23.2x | 19.1x |
