Yau Lee Holdings Ltd revenue jumped on 44.6% in 2015 and EBITDA Margin decreased slightly on 0.65 pp from 2.4% to 1.8%
24/06/2015 • About Yau Lee Holdings Ltd (
$406) • By InTwits
Yau Lee Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yau Lee Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 1.5%
- EBITDA Margin is relatively stable: 1.8% in FY2015 vs. 2.4% in FY2014 vs. 0.9% in FY2011
- EBITDA Margin is quite volatile: 1.8% in FY2015, 2.4% in FY2014, 2.7% in FY2013, 1.0% in FY2012, 0.9% in FY2011
- Yau Lee Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's in pair with industry average of 4.7%.
- CAPEX is quite volatile: 160 in FY2015, 107 in FY2014, 164 in FY2013, 466 in FY2012, 157 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.5%
- It operates with high leverage: Net Debt/EBITDA is 9.2x while industry average is 5.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yau Lee Holdings Ltd ($406) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,573 | 4,665 | 4,197 | 6,553 | 9,476 | 44.6% |
| Gross Profit | 207 | 249 | 397 | 442 | 456 | 3.1% |
| SG&A | | 257 | 360 | 390 | 416 | 6.8% |
| EBITDA | 34 | 47 | 112 | 157 | 166 | 5.7% |
| Net Income | 72 | 41 | 65 | 39 | 76 | 97.0% |
Balance Sheet
|
|---|
| Cash | 320 | 450 | 651 | 1,001 | 929 | -7.2% |
| Short Term Debt | 372 | 614 | 719 | 1,170 | 1,600 | 36.8% |
| Long Term Debt | 437 | 756 | 1,016 | 1,281 | 851 | -33.5% |
Cash flow
|
|---|
| Capex | 157 | 466 | 164 | 107 | 160 | 49.3% |
Ratios
|
|---|
| Revenue growth | 3.2% | 30.5% | -10.0% | 56.1% | 44.6% | |
| EBITDA growth | -35.9% | 40.0% | 137.3% | 40.7% | 5.7% | |
| Gross Margin | 5.8% | 5.3% | 9.5% | 6.7% | 4.8% | -1.9% |
| EBITDA Margin | 0.9% | 1.0% | 2.7% | 2.4% | 1.8% | -0.6% |
| Net Income Margin | 2.0% | 0.9% | 1.6% | 0.6% | 0.8% | 0.2% |
| SG&A, % of revenue | | 5.5% | 8.6% | 6.0% | 4.4% | -1.6% |
| CAPEX, % of revenue | 4.4% | 10.0% | 3.9% | 1.6% | 1.7% | 0.1% |
| ROIC | 0.0% | -0.0% | 1.2% | 1.7% | 1.5% | -0.2% |
| ROE | 5.3% | 2.9% | 4.4% | 2.5% | 4.9% | 2.3% |
| Net Debt/EBITDA | 14.6x | 19.5x | 9.7x | 9.2x | 9.2x | -0.1x |
Revenue and profitability
The company's Revenue jumped on 44.6% 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 decreased slightly on 1.9 pp from 6.7% to 4.8% in FY2015. SG&A as a % of Revenue decreased slightly on 1.6 pp from 6.0% to 4.4% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.7% in FY2015. CAPEX/Revenue decreased on 8.3 pp from 10.0% in FY2012 to 1.7% in FY2015. For the last three years the average CAPEX/Revenue was 2.4%.The company invested a big chunk of EBITDA (96.3%) to CAPEX to secure its growth.
Return on investment
The company operates at low ROIC (1.55%) and ROE (4.86%). ROIC showed almost no change in FY2015. ROE increased on 2.3 pp from 2.5% to 4.9% in FY2015.
Leverage (Debt)
Debt level is 9.2x Net Debt / EBITDA and 14.8x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from 9.2x to 9.2x in FY2015. Debt showed almost no change in FY2015 while cash decreased on 7.2% in FY2015.
Appendix 1: Peers in Engineering&Construction
Below you can find Yau Lee 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) | 15.2% | 9.2% | 21.3% | 10.8% | 11.3% |
|---|
| Yau Lee Holdings Ltd ($406) | | 30.5% | -10.0% | 56.1% | 44.6% |
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% | 12.4% | 9.5% |
|---|
| Yau Lee Holdings Ltd ($406) | 5.8% | 5.3% | 9.5% | 6.7% | 4.8% |
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% | 3.7% |
|---|
| Yau Lee Holdings Ltd ($406) | 0.9% | 1.0% | 2.7% | 2.4% | 1.8% |
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% | 2.4% | 2.6% | 2.2% | 2.4% |
|---|
| Yau Lee Holdings Ltd ($406) | 4.4% | 10.0% | 3.9% | 1.6% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 98.3% | 54.9% | 43.7% |
| 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% | 0.8% |
|---|
| Yau Lee Holdings Ltd ($406) | 0.0% | -0.0% | 1.2% | 1.7% | 1.5% |
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 | 47.0x |
| 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) | 0.7x | 1.7x | 1.9x | 2.6x | 5.9x |
|---|
| Yau Lee Holdings Ltd ($406) | 14.6x | 19.5x | 9.7x | 9.2x | 9.2x |
