PYI Corp Ltd reports 71.9% CAPEX decline and 47.6% Revenue decline
19/06/2015 • About PYI Corp Ltd (
$498) • By InTwits
PYI Corp Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- PYI Corp Ltd is a company in decline: FY2015 revenue growth was -47.6%, 5 years revenue CAGR was -34.2%
- The company operates at negative EBITDA Margin: -20.7%
- PYI Corp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.4%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 68.6 in FY2015, 244 in FY2014, 270 in FY2013, 192 in FY2012, 353 in FY2011
- The company has unprofitable business model: ROIC is at -2.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
PYI Corp Ltd ($498) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,357 | 5,159 | 6,498 | 999 | 524 | -47.6% |
| Gross Profit | 441 | 416 | 329 | 163 | 126 | -22.4% |
| SG&A | | 417 | 401 | 290 | 267 | -8.0% |
| EBITDA | 197 | 105 | -8 | -80 | -108 | 36.0% |
| Net Income | 200 | 334 | 262 | 86 | 86 | 0.5% |
Balance Sheet
|
|---|
| Cash | 1,029 | 1,008 | 1,236 | 753 | 636 | -15.5% |
| Short Term Debt | 1,258 | 1,699 | 1,703 | 1,487 | 1,535 | 3.2% |
| Long Term Debt | 758 | 1,000 | 823 | 711 | 747 | 5.2% |
Cash flow
|
|---|
| Capex | 353 | 192 | 270 | 244 | 69 | -71.9% |
Ratios
|
|---|
| Revenue growth | 25.7% | -3.7% | 25.9% | -84.6% | -47.6% | |
| EBITDA growth | 45.0% | -46.7% | -107.2% | 956.6% | 36.0% | |
| Gross Margin | 8.2% | 8.1% | 5.1% | 16.3% | 24.1% | 7.8% |
| EBITDA Margin | 3.7% | 2.0% | -0.1% | -8.0% | -20.7% | -12.7% |
| Net Income Margin | 3.7% | 6.5% | 4.0% | 8.6% | 16.4% | 7.9% |
| SG&A, % of revenue | | 8.1% | 6.2% | 29.1% | 51.0% | 21.9% |
| CAPEX, % of revenue | 6.6% | 3.7% | 4.2% | 24.5% | 13.1% | -11.4% |
| ROIC | 0.9% | 0.3% | -0.9% | -2.0% | -2.1% | -0.1% |
| ROE | 4.6% | 7.3% | 5.6% | 1.8% | 1.8% | 0.0% |
| Net Debt/EBITDA | 5.0x | 16.1x | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 47.6% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 12.7 pp from -8.0% to -20.7% in FY2015.
Gross Margin increased on 7.8 pp from 16.3% to 24.1% in FY2015. SG&A as a % of Revenue jumped on 21.9 pp from 29.1% to 51.0% in FY2015.
Net Income marign increased on 7.9 pp from 8.6% to 16.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 13.1% in FY2015. CAPEX/Revenue increased on 9.4 pp from 3.7% in FY2012 to 13.1% in FY2015. It's average CAPEX/Revenue for the last three years was 13.9%.
Return on investment
The company operates at negative ROIC (-2.11%) and low but positive ROE (1.76%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt increased on 3.8% in FY2015 while cash dropped on 15.5% in FY2015.
Appendix 1: Peers in Engineering&Construction
Below you can find PYI Corp 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% | 11.7% | 8.7% |
|---|
| PYI Corp Ltd ($498) | | -3.7% | 25.9% | -84.6% | -47.6% |
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% | 11.6% | 6.2% |
|---|
| PYI Corp Ltd ($498) | 8.2% | 8.1% | 5.1% | 16.3% | 24.1% |
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% |
|---|
| PYI Corp Ltd ($498) | 3.7% | 2.0% | -0.1% | -8.0% | -20.7% |
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% | |
| 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% | |
| China Resources and Transportation Group Ltd ($269) | 474.4% | 19.2% | 1.1% | 14.0% | 0.5% |
| |
|---|
| Median (40 companies) | 4.4% | 2.4% | 2.6% | 1.7% | 2.0% |
|---|
| PYI Corp Ltd ($498) | 6.6% | 3.7% | 4.2% | 24.5% | 13.1% |
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% |
|---|
| PYI Corp Ltd ($498) | 0.9% | 0.3% | -0.9% | -2.0% | -2.1% |
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 (34 companies) | 0.7x | 1.7x | 2.5x | 2.8x | 5.9x |
|---|
