Dingyi Group Investment Ltd revenue started to decline in FY2015: dropped 32.6% vs. 1,361% growth a year earliner
28/06/2015 • About Dingyi Group Investment Ltd (
$508) • By InTwits
Dingyi Group Investment Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dingyi Group Investment Ltd is a company in decline: FY2015 revenue growth was -32.6%, 5 years revenue CAGR was -34.5%
- The company operates at negative EBITDA Margin: -129.2%
- Dingyi Group Investment Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -30.6% for the sames years0
- Dingyi Group Investment Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.2%. At the same time it's a lot of higher than industry average of 7.6%.
- CAPEX is quite volatile: 3.1 in FY2015, 2.9 in FY2014, 0.37 in FY2013, 20.6 in FY2012, 10.8 in FY2011
- The company has unprofitable business model: ROIC is at -24.1%
- It operates with high leverage: Net Debt/EBITDA is -2.8x while industry average is -24.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dingyi Group Investment Ltd ($508) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 65.237 | 70.983 | 2.924 | 42.725 | 28.815 | -32.6% |
| Gross Profit | 49.889 | 53.792 | | 27.574 | 24.789 | -10.1% |
| SG&A | | | | 70.621 | 73.036 | 3.4% |
| EBITDA | 26.569 | -0.464 | -17.331 | -35.922 | -37.232 | 3.6% |
| Net Income | 147.534 | -24.325 | -30.091 | -140.124 | -724.363 | 416.9% |
Balance Sheet
|
|---|
| Cash | 84.638 | 103.869 | 189.922 | 40.725 | 194.020 | 376.4% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 1.385 | 15.481 | 1,017.8% |
| Long Term Debt | 0.000 | 0.000 | 40.155 | 55.144 | 79.290 | 43.8% |
Cash flow
|
|---|
| Capex | 10.842 | 20.560 | 0.367 | 2.931 | 3.146 | 7.3% |
Ratios
|
|---|
| Revenue growth | -72.6% | 8.8% | -95.9% | 1,361.2% | -32.6% | |
| EBITDA growth | -39.2% | -101.7% | 3,635.1% | 107.3% | 3.6% | |
| Gross Margin | 76.5% | 75.8% | | 64.5% | 86.0% | 21.5% |
| EBITDA Margin | 40.7% | -0.7% | -592.7% | -84.1% | -129.2% | -45.1% |
| Net Income Margin | 226.2% | -34.3% | -1,029.1% | -328.0% | -2,513.8% | -2,185.9% |
| SG&A, % of revenue | | | | 165.3% | 253.5% | 88.2% |
| CAPEX, % of revenue | 16.6% | 29.0% | 12.6% | 6.9% | 10.9% | 4.1% |
| ROIC | 0.3% | -7.0% | -10.9% | -11.2% | -24.1% | -12.8% |
| ROE | 43.0% | -11.0% | -16.8% | -46.3% | | 46.3% |
| Net Debt/EBITDA | -3.2x | | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 32.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 2.0 pp from -16.6% to -14.6% in FY2015.
Gross Margin jumped on 21.5 pp from 64.5% to 86.0% in FY2015. SG&A as a % of Revenue jumped on 88.2 pp from 165% to 253% in FY2015.
Net Income marign dropped on 2,186 pp from -328% to -2,514% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 10.9%. Dingyi Group Investment Ltd showed big decline in CAPEX/Revenue of 18.0 pp from 29.0% in FY2012 to 10.9% in FY2015. Average CAPEX/Revenue for the last three years was 10.1%.
Leverage (Debt)
Debt level is -2.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt surged on 67.7% in FY2015 while cash surged on 376% in FY2015.
Appendix 1: Peers in Commercial Services
Below you can find Dingyi Group Investment Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | 429.3% | -61.9% | -27.8% | 2,912.9% | |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Goldpac Group Ltd ($3315) | 24.4% | 52.3% | 64.4% | 36.8% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| Xiamen International Port Co Ltd ($3378) | 36.9% | 22.0% | 24.9% | 30.2% | |
| |
|---|
| Median (55 companies) | 19.6% | 6.7% | 4.5% | 8.9% | 10.2% |
|---|
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 67.1% | 66.2% | 66.8% | 62.8% | |
| Cross-Harbour Holdings Ltd/The ($32) | 55.3% | 59.2% | 60.0% | 61.1% | |
| |
|---|
| Median (52 companies) | 33.0% | 31.5% | 29.9% | 30.8% | 41.4% |
|---|
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | |
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| Dragon Crown Group Holdings Ltd ($935) | 57.8% | 67.3% | 62.9% | 60.2% | |
| |
|---|
| Median (55 companies) | 15.2% | 15.9% | 13.3% | 7.9% | -0.0% |
|---|
| Dingyi Group Investment Ltd ($508) | 40.7% | -0.7% | -592.7% | -84.1% | -129.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | |
| |
|---|
| Median (54 companies) | 3.7% | 3.2% | 4.0% | 3.4% | 2.1% |
|---|
| Dingyi Group Investment Ltd ($508) | 16.6% | 29.0% | 12.6% | 6.9% | 10.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | |
| Poly Culture Group Corp Ltd ($3636) | 48.0% | 29.1% | 33.0% | 16.3% | |
| eprint Group Ltd ($1884) | | 33.0% | 34.8% | 15.4% | 18.5% |
| |
|---|
| Median (55 companies) | 5.2% | 6.0% | 3.5% | 3.1% | -1.1% |
|---|
| Dingyi Group Investment Ltd ($508) | 0.3% | -7.0% | -10.9% | -11.2% | -24.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | |
| |
|---|
| Median (35 companies) | 0.0x | 0.0x | -0.5x | -0.5x | -2.0x |
|---|
