Group Sense International Ltd revenue dropped on 35.9% in 2015 and EBITDA Margin dropped on 14.4 pp from -16.6% to -31.0%
23/06/2015 • About Group Sense International Ltd (
$601) • By InTwits
Group Sense International Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Group Sense International Ltd is a company in decline: FY2015 revenue growth was -35.9%, 5 years revenue CAGR was -19.5%
- The company operates at negative EBITDA Margin: -31.0%
- Group Sense International Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -12.3% for the sames years0
- Group Sense International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: 6.3 in FY2015, 19.6 in FY2014, 11.1 in FY2013, 30.0 in FY2012, 29.3 in FY2011
- The company has unprofitable business model: ROIC is at -27.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Group Sense International Ltd ($601) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 622.9 | 478.7 | 383.3 | 349.4 | 223.9 | -35.9% |
| Gross Profit | 176.5 | 128.3 | 89.0 | 68.4 | 43.8 | -36.0% |
| SG&A | | | 122.9 | 116.8 | 105.6 | -9.6% |
| EBITDA | -17.0 | -55.4 | -53.3 | -57.9 | -69.3 | 19.7% |
| Net Income | -31.8 | -73.2 | -75.7 | -80.4 | -107.5 | 33.6% |
Balance Sheet
|
|---|
| Cash | 163.9 | 139.0 | 80.8 | 33.5 | 112.1 | 234.5% |
| Short Term Debt | 0.0 | 20.0 | 20.0 | 23.8 | 27.8 | 16.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 42.0 | |
Cash flow
|
|---|
| Capex | 29.3 | 30.0 | 11.1 | 19.6 | 6.3 | -67.8% |
Ratios
|
|---|
| Revenue growth | -6.1% | -23.1% | -19.9% | -8.9% | -35.9% | |
| EBITDA growth | 494.5% | 226.4% | -3.8% | 8.7% | 19.7% | |
| Gross Margin | 28.3% | 26.8% | 23.2% | 19.6% | 19.5% | -0.0% |
| EBITDA Margin | -2.7% | -11.6% | -13.9% | -16.6% | -31.0% | -14.4% |
| Net Income Margin | -5.1% | -15.3% | -19.8% | -23.0% | -48.0% | -25.0% |
| SG&A, % of revenue | | | 32.1% | 33.4% | 47.1% | 13.7% |
| CAPEX, % of revenue | 4.7% | 6.3% | 2.9% | 5.6% | 2.8% | -2.8% |
| ROIC | -6.7% | -14.9% | -15.7% | -21.3% | -27.8% | -6.6% |
| ROE | -6.6% | -16.7% | -20.5% | -27.6% | -46.0% | -18.4% |
Revenue and profitability
The company's Revenue dropped on 35.9% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.1 pp from -11.1% to -4.0% in 2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue surged on 13.7 pp from 33.4% to 47.1% in FY2015.
Net Income marign dropped on 25.0 pp from -23.0% to -48.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Group Sense International Ltd's CAPEX/Revenue was 2.8% in FY2015. Group Sense International Ltd showed decline in CAPEX/Revenue of 3.4 pp from 6.3% in FY2012 to 2.8% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at negative ROIC (-27.85%) and ROE (-46.04%). ROIC decreased on 6.6 pp from -21.3% to -27.8% in FY2015. ROE dropped on 18.4 pp from -27.6% to -46.0% in FY2015.
Leverage (Debt)
Debt level is -13.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt surged on 193% in FY2015 while cash jumped on 235% in FY2015.
Appendix 1: Peers in Computers
Below you can find Group Sense International Ltd benchmarking vs. other companies in Computers 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 |
|---|
| Peking University Resources Holdings Co Ltd ($618) | 16.2% | -49.6% | 11.2% | 106.0% | |
| Alibaba Health Information Technology Ltd ($241) | 29.4% | 29.4% | -96.7% | 73.0% | |
| Thiz Technology Group Ltd ($8119) | 136.4% | -4.1% | -95.1% | 72.2% | |
| Universal Technologies Holdings Ltd ($1026) | 95.5% | -47.3% | 49.8% | 67.1% | |
| PAX Global Technology Ltd ($327) | 52.5% | 19.0% | 12.1% | 61.2% | |
| |
|---|
| Median (24 companies) | 13.0% | 6.5% | 0.0% | 11.0% | 19.6% |
|---|
| Group Sense International Ltd ($601) | | -23.1% | -19.9% | -8.9% | -35.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Universal Technologies Holdings Ltd ($1026) | 86.0% | 87.3% | 79.7% | 90.3% | |
| Thiz Technology Group Ltd ($8119) | 2.9% | 8.8% | 63.8% | 86.2% | |
| Computer & Technologies Holdings Ltd ($46) | 27.4% | 45.3% | 54.0% | 52.1% | |
| CCID Consulting Co Ltd ($8235) | 46.5% | 43.7% | 49.1% | 51.8% | |
| Alibaba Health Information Technology Ltd ($241) | 10.1% | 11.4% | -12.6% | 49.3% | |
| |
|---|
| Median (22 companies) | 11.0% | 12.7% | 16.0% | 15.4% | 14.4% |
|---|
| Group Sense International Ltd ($601) | 28.3% | 26.8% | 23.2% | 19.6% | 19.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Computer & Technologies Holdings Ltd ($46) | 4.8% | 12.9% | 19.9% | 20.1% | |
| Ju Teng International Holdings Ltd ($3336) | 9.5% | 15.1% | 19.9% | 19.3% | |
| PAX Global Technology Ltd ($327) | 18.9% | 16.5% | 17.4% | 18.8% | |
| CCID Consulting Co Ltd ($8235) | 19.0% | 10.6% | 10.8% | 12.3% | |
| Universal Technologies Holdings Ltd ($1026) | 29.5% | 12.8% | 1.5% | 9.9% | |
| |
|---|
| Median (24 companies) | 3.0% | 3.2% | 2.7% | 1.8% | 3.9% |
|---|
| Group Sense International Ltd ($601) | -2.7% | -11.6% | -13.9% | -16.6% | -31.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| North Asia Resources Holdings Ltd ($61) | 34.3% | 4.6% | 94.2% | 177.8% | |
| Beautiful China Holdings Co Ltd ($706) | 44.9% | 8.4% | 2.2% | 26.2% | |
| Ju Teng International Holdings Ltd ($3336) | 17.6% | 14.1% | 18.7% | 20.0% | |
| Alibaba Health Information Technology Ltd ($241) | 2.1% | 4.4% | 46.3% | 17.2% | |
| Universal Technologies Holdings Ltd ($1026) | 8.5% | 20.0% | 5.7% | 14.2% | |
| |
|---|
| Median (24 companies) | 1.3% | 1.0% | 1.3% | 1.6% | 1.5% |
|---|
| Group Sense International Ltd ($601) | 4.7% | 6.3% | 2.9% | 5.6% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lenovo Group Ltd ($992) | 18.9% | 26.2% | 30.5% | 34.7% | 24.5% |
| PAX Global Technology Ltd ($327) | 14.1% | 12.3% | 12.8% | 18.7% | |
| CCID Consulting Co Ltd ($8235) | 20.6% | 11.3% | 10.7% | 10.2% | |
| TPV Technology Ltd ($903) | 6.4% | 7.7% | 1.8% | 10.1% | |
| Computer & Technologies Holdings Ltd ($46) | 4.1% | 6.0% | 8.6% | 9.4% | |
| |
|---|
| Median (25 companies) | 3.9% | 2.1% | 1.4% | -0.1% | 24.5% |
|---|
| Group Sense International Ltd ($601) | -6.7% | -14.9% | -15.7% | -21.3% | -27.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EVOC Intelligent Technology Co Ltd ($2308) | 6.4x | 0.5x | 5.8x | 5.7x | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.0x | 2.7x | 3.6x | 4.6x | |
| Ju Teng International Holdings Ltd ($3336) | 2.5x | 2.1x | 1.8x | 1.7x | |
| Wong's International Hldgs ($99) | -1.8x | -3.5x | 2.7x | 1.4x | |
| TPV Technology Ltd ($903) | 0.5x | -0.2x | 0.6x | -0.0x | |
| |
|---|
| Median (13 companies) | -1.7x | -2.3x | -1.8x | -3.9x | 0.1x |
|---|
