Asia Standard International Group Ltd reports 776% CAPEX growth and 2.9% Revenue growth
24/06/2015 • About Asia Standard International Group Ltd (
$129) • By InTwits
Asia Standard International Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asia Standard International Group Ltd doesn't have a profitable business model yet: FY2015 ROIC is -3.5%
- The company operates at negative EBITDA Margin: -53.4%
- EBITDA Margin is quite volatile: -53.4% in FY2015, 73.7% in FY2014, 93.8% in FY2013, -72.1% in FY2012, 109.6% in FY2011
- Asia Standard International Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 29.6%. At the same time it's in pair with industry average of 17.9%.
- CAPEX is quite volatile: 1,304 in FY2015, 149 in FY2014, 223 in FY2013, 17.2 in FY2012, 80.0 in FY2011
- The company has unprofitable business model: ROIC is at -3.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asia Standard International Group Ltd ($129) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,065 | 1,174 | 962 | 1,220 | 1,256 | 2.9% |
| Gross Profit | 674 | 811 | 779 | 976 | 1,024 | 4.8% |
| SG&A | | | 199 | 185 | 203 | 9.6% |
| EBITDA | 1,167 | -846 | 902 | 900 | -671 | -174.6% |
| Net Income | 2,235 | 383 | 2,476 | 1,400 | 967 | -30.9% |
Balance Sheet
|
|---|
| Cash | 315 | 398 | 409 | 1,461 | 1,066 | -27.0% |
| Short Term Debt | 1,616 | 1,527 | 479 | 938 | 1,038 | 10.6% |
| Long Term Debt | 2,270 | 2,364 | 2,899 | 4,460 | 5,499 | 23.3% |
Cash flow
|
|---|
| Capex | 80 | 17 | 223 | 149 | 1,304 | 776.5% |
Ratios
|
|---|
| Revenue growth | -42.9% | 10.2% | -18.1% | 26.8% | 2.9% | |
| EBITDA growth | -42.6% | -172.5% | -206.6% | -0.3% | -174.6% | |
| Gross Margin | 63.3% | 69.1% | 81.0% | 80.0% | 81.5% | 1.5% |
| EBITDA Margin | 109.6% | -72.1% | 93.8% | 73.7% | -53.4% | -127.1% |
| Net Income Margin | 209.8% | 32.6% | 257.3% | 114.8% | 77.0% | -37.8% |
| SG&A, % of revenue | | | 20.7% | 15.2% | 16.2% | 1.0% |
| CAPEX, % of revenue | 7.5% | 1.5% | 23.2% | 12.2% | 103.8% | 91.6% |
| ROIC | 8.5% | -6.4% | 5.1% | 4.3% | -3.5% | -7.9% |
| ROE | 26.3% | 3.8% | 21.7% | 10.5% | 6.7% | -3.8% |
| Net Debt/EBITDA | 3.1x | | 3.3x | 4.4x | | -4.4x |
Revenue and profitability
Asia Standard International Group Ltd's Revenue increased on 2.9% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 127 pp from 73.7% to -53.4% in FY2015.
Gross Margin increased slightly on 1.5 pp from 80.0% to 81.5% in FY2015. SG&A as a % of Revenue increased slightly on 0.98 pp from 15.2% to 16.2% in FY2015.
Net Income marign dropped on 37.8 pp from 115% to 77.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 104%. CAPEX/Revenue surged on 102 pp from 1.5% in FY2012 to 104% in FY2015. It's average level of CAPEX/Revenue for the last three years was 46.4%.
Return on investment
The company operates at negative ROIC (-3.54%) and low but positive ROE (6.68%). ROIC decreased on 7.9 pp from 4.3% to -3.5% in FY2015. ROE decreased on 3.8 pp from 10.5% to 6.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.9x and Debt / EBITDA is . Net Debt / EBITDA dropped on 4.4x from 4.4x to in FY2015. Debt jumped on 21.1% in FY2015 while cash dropped on 27.0% in FY2015.
Appendix 1: Peers in Real Estate
Below we provide Asia Standard International Group Ltd benchmarking against other companies in Real Estate 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 |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | -0.9% | -0.5% | 1.9% | 4,120.2% | |
| Landsea Green Properties Co Ltd ($106) | -91.1% | -35.1% | -51.2% | 3,097.3% | |
| LVGEM China Real Estate Invest ($95) | -0.1% | -27.5% | -21.9% | 3,008.3% | |
| Rivera Holdings Ltd ($281) | 222.2% | 197.1% | -89.9% | 2,067.2% | |
| Ceneric Holdings Ltd ($542) | -94.0% | -73.9% | -49.8% | 1,922.5% | |
| |
|---|
| Median (172 companies) | 15.0% | 15.6% | 13.1% | 5.0% | 3.9% |
|---|
| Asia Standard International Group Ltd ($129) | | 10.2% | -18.1% | 26.8% | 2.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tern Properties Co Ltd ($277) | 96.9% | 96.7% | 98.4% | 98.4% | 98.7% |
| GR Properties Ltd ($108) | 37.4% | 39.3% | | 98.2% | |
| Renhe Commercial Holdings Co Ltd ($1387) | 71.1% | 79.0% | 95.2% | 97.9% | |
| YT Realty Group Ltd ($75) | 91.5% | 94.4% | 96.6% | 96.7% | |
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | |
| |
|---|
| Median (154 companies) | 43.4% | 41.9% | 40.0% | 38.9% | 36.9% |
|---|
| Asia Standard International Group Ltd ($129) | 63.3% | 69.1% | 81.0% | 80.0% | 81.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ITC Properties Group Ltd ($199) | 24.0% | -125.5% | -2,995.7% | 1,685.3% | |
| Beijing Properties Holdings Ltd ($925) | 33.2% | -606.3% | 2,162.6% | 224.3% | |
| Chinese Estates Holdings Ltd ($127) | 340.9% | 356.2% | 91.6% | 195.5% | |
| Zall Development Group Ltd ($2098) | 73.6% | 105.3% | 133.1% | 143.2% | |
| Ceneric Holdings Ltd ($542) | -5.9% | -382.7% | -1,024.0% | 126.8% | |
| |
|---|
| Median (172 companies) | 35.2% | 28.9% | 27.9% | 26.4% | 25.8% |
|---|
| Asia Standard International Group Ltd ($129) | 109.6% | -72.1% | 93.8% | 73.7% | -53.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 0.0% | 18.0% | 27,965.5% | |
| ITC Properties Group Ltd ($199) | 25.6% | 56.2% | 4,202.4% | 1,304.7% | |
| Wanda Hotel Development Co Ltd ($169) | | 5.9% | 24.1% | 1,091.1% | |
| Pacific Century Premium Developments Ltd ($432) | 6.5% | 2.9% | 323.1% | 351.2% | |
| Liu Chong Hing Investment Ltd ($194) | 9.4% | 18.5% | 6.1% | 269.7% | |
| |
|---|
| Median (173 companies) | 5.9% | 5.6% | 6.1% | 4.5% | 1.2% |
|---|
| Asia Standard International Group Ltd ($129) | 7.5% | 1.5% | 23.2% | 12.2% | 103.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rykadan Capital Ltd ($2288) | 17.2% | -1.8% | -2.6% | 48.4% | -3.7% |
| LVGEM China Real Estate Invest ($95) | 0.2% | -0.2% | -1.1% | 22.1% | |
| Zall Development Group Ltd ($2098) | 39.0% | 19.2% | 17.6% | 18.7% | |
| China Overseas Land & Investment Ltd ($688) | 18.0% | 18.4% | 15.1% | 18.5% | |
| Hong Kong Ferry Holdings Co Ltd ($50) | 4.7% | 3.8% | 0.6% | 18.0% | |
| |
|---|
| Median (176 companies) | 4.6% | 4.0% | 3.8% | 3.8% | 1.9% |
|---|
| Asia Standard International Group Ltd ($129) | 8.5% | -6.4% | 5.1% | 4.3% | -3.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Properties Group Ltd ($1838) | 16.9x | 43.0x | 21.4x | 1,523.0x | |
| SRE Group Ltd ($1207) | 10.6x | 14.1x | 24.7x | 1,184.6x | |
| Cheuk Nang Holdings Ltd ($131) | 53.2x | | 177.3x | 901.7x | |
| Tian An China Investment Co Ltd ($28) | 2.4x | 13.2x | 15.1x | 486.6x | |
| Greenland Hong Kong Holdings Ltd ($337) | 3.7x | | 6.2x | 49.3x | |
| |
|---|
| Median (139 companies) | 2.1x | 2.4x | 2.7x | 3.0x | 0.7x |
|---|
| Asia Standard International Group Ltd ($129) | 3.1x | | 3.3x | 4.4x | |
