GreaterChina Professional Services Ltd Net Income dropped on 508% in 2015 and Revenue dropped on 48.3%
26/06/2015 • About GreaterChina Professional Services Ltd (
$8193) • By InTwits
GreaterChina Professional Services Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- GreaterChina Professional Services Ltd doesn't have a profitable business model yet: FY2015 ROIC is -39.8%
- GreaterChina Professional Services Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 1.2 in FY2015, 0.30 in FY2014, 0.28 in FY2013, 0.86 in FY2012, 1.1 in FY2011
- The company has unprofitable business model: ROIC is at -39.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
GreaterChina Professional Services Ltd ($8193) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 55.626 | 68.336 | 96.231 | 88.871 | 45.983 | -48.3% |
| Gross Profit | 41.694 | 48.340 | 66.711 | 65.907 | 25.578 | -61.2% |
| SG&A | | | 36.420 | 38.770 | 46.219 | 19.2% |
| EBITDA | 28.851 | 13.368 | 34.220 | 27.210 | -91.046 | -434.6% |
| Net Income | 25.427 | 10.323 | 26.929 | 31.282 | -127.602 | -507.9% |
Balance Sheet
|
|---|
| Cash | 8.708 | 37.073 | 19.458 | 4.024 | 17.004 | 322.6% |
| Short Term Debt | 0.000 | 0.144 | 0.162 | 0.167 | 1.644 | 884.4% |
| Long Term Debt | 0.000 | 0.342 | 0.167 | 0.000 | 96.217 | |
Cash flow
|
|---|
| Capex | 1.091 | 0.857 | 0.282 | 0.298 | 1.191 | 299.7% |
Ratios
|
|---|
| Revenue growth | 9.3% | 22.8% | 40.8% | -7.6% | -48.3% | |
| EBITDA growth | -14.4% | -53.7% | 156.0% | -20.5% | -434.6% | |
| Gross Margin | 75.0% | 70.7% | 69.3% | 74.2% | 55.6% | -18.5% |
| EBITDA Margin | 51.9% | 19.6% | 35.6% | 30.6% | -198.0% | -228.6% |
| Net Income Margin | 45.7% | 15.1% | 28.0% | 35.2% | -277.5% | -312.7% |
| SG&A, % of revenue | | | 37.8% | 43.6% | 100.5% | 56.9% |
| CAPEX, % of revenue | 2.0% | 1.3% | 0.3% | 0.3% | 2.6% | 2.3% |
| ROIC | 84.1% | 18.1% | 29.2% | 19.1% | -39.8% | -58.8% |
| ROE | 82.5% | 15.6% | 25.0% | 23.5% | -89.0% | -112.5% |
| Net Debt/EBITDA | -0.3x | -2.7x | -0.6x | -0.1x | | 0.1x |
Revenue and profitability
GreaterChina Professional Services Ltd's Revenue dropped on 48.3% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 229 pp from 30.6% to -198% in FY2015.
Gross Margin dropped on 18.5 pp from 74.2% to 55.6% in FY2015. SG&A as a % of Revenue jumped on 56.9 pp from 43.6% to 101% in FY2015.
Net Income marign dropped on 313 pp from 35.2% to -277% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 2.6%. CAPEX/Revenue increased slightly on 1.3 pp from 1.3% in FY2012 to 2.6% in FY2015. Average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at negative ROIC (-39.76%) and ROE (-89.05%). ROIC dropped on 58.8 pp from 19.1% to -39.8% in FY2015. ROE dropped on 113 pp from 23.5% to -89.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -88.5x and Debt / EBITDA is . Net Debt / EBITDA jumped on 0.1x from -0.1x to in FY2015. Debt surged on 58,499% in FY2015 while cash surged on 323% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below you can find GreaterChina Professional Services Ltd benchmarking vs. other companies in Diversified Finan Serv 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 |
|---|
| China New Energy Power Group Ltd ($1041) | | 100.0% | 0.0% | 64,246.0% | |
| ReOrient Group Ltd ($376) | 63.3% | 112.8% | 75.1% | 1,106.9% | |
| Global Strategic Group Ltd ($8007) | 2.2% | -3.9% | 2.1% | 806.3% | |
| AID Partners Capital Holdings Ltd ($8088) | -38.7% | 0.9% | -79.5% | 655.2% | |
| Willie International Holdings Ltd ($273) | | | | 543.9% | |
| |
|---|
| Median (62 companies) | 5.7% | 0.9% | 12.9% | 26.5% | 24.9% |
|---|
| GreaterChina Professional Services Ltd ($8193) | | 22.8% | 40.8% | -7.6% | -48.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| |
|---|
| Median (12 companies) | 86.7% | 57.7% | 84.4% | 89.9% | 94.3% |
|---|
| GreaterChina Professional Services Ltd ($8193) | 75.0% | 70.7% | 69.3% | 74.2% | 55.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | 17.9% |
| Roma Group Ltd ($8072) | 81.4% | 18.1% | 36.8% | 143.0% | 44.7% |
| First China Financial Network Holdings Ltd ($8123) | -231.6% | -329.2% | -211.2% | 124.3% | |
| Willie International Holdings Ltd ($273) | | | 75.3% | 95.2% | |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | 83.9% |
| |
|---|
| Median (63 companies) | 29.5% | 14.0% | 36.2% | 47.2% | 44.7% |
|---|
| GreaterChina Professional Services Ltd ($8193) | 51.9% | 19.6% | 35.6% | 30.6% | -198.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gemini Investments Holdings Ltd ($174) | 14.9% | 479.1% | 37.3% | 216.0% | |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | |
| Chinese Strategic Holdings Ltd ($8089) | 93.2% | 376.0% | 5.7% | 32.6% | |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | |
| Asian Capital Holdings Ltd ($8295) | 2.3% | 0.1% | 0.2% | 15.6% | |
| |
|---|
| Median (63 companies) | 2.3% | 1.9% | 1.8% | 1.1% | 1.2% |
|---|
| GreaterChina Professional Services Ltd ($8193) | 2.0% | 1.3% | 0.3% | 0.3% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| Convoy Financial Holdings Ltd ($1019) | 31.1% | 3.4% | 39.3% | 47.3% | |
| Willie International Holdings Ltd ($273) | -28.1% | -9.5% | 4.7% | 30.9% | |
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | |
| |
|---|
| Median (65 companies) | 4.6% | 3.4% | 4.0% | 4.7% | 3.6% |
|---|
| GreaterChina Professional Services Ltd ($8193) | 84.1% | 18.1% | 29.2% | 19.1% | -39.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cash Financial Services Group Ltd ($510) | -1.1x | 7.8x | | 67.5x | |
| Far East Horizon Ltd ($3360) | 17.8x | 16.9x | 21.7x | 20.0x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x |
| China Cinda Asset Management Co Ltd ($1359) | 2.1x | 5.0x | 7.7x | 8.4x | |
| Aeon Credit Service Asia Co Ltd ($900) | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x |
| |
|---|
| Median (45 companies) | -1.1x | -0.7x | 0.3x | 0.1x | 0.6x |
|---|
| GreaterChina Professional Services Ltd ($8193) | -0.3x | -2.7x | -0.6x | -0.1x | |
