Gold Tat Group International Ltd revenue surged on 26.5% in 2015 and EBITDA Margin increased slightly on 0.98 pp from -1.4% to -0.41%
28/06/2015 • About Gold Tat Group International Ltd (
$8266) • By InTwits
Gold Tat Group International Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gold Tat Group International Ltd doesn't have a profitable business model yet: FY2015 ROIC is -1.6%
- The company operates at negative EBITDA Margin: -0.4%
- Gold Tat Group International Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -2.1%0
- Gold Tat Group International Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.7%. At the same time it's a lot of higher than industry average of 33.2%.
- CAPEX is quite volatile: 4.6 in FY2015, 5.3 in FY2014, 6.2 in FY2013, 31.1 in FY2012, 0.73 in FY2011
- The company has unprofitable business model: ROIC is at -1.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gold Tat Group International Ltd ($8266) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24 | 32 | 532 | 941 | 1,191 | 26.5% |
| Gross Profit | | | | 42 | 52 | 24.4% |
| EBITDA | -6 | -10 | -22 | -13 | -5 | -62.9% |
| Net Income | -5 | -27 | -72 | -149 | -4 | -97.2% |
Balance Sheet
|
|---|
| Cash | 25 | 9 | 16 | 33 | 58 | 75.2% |
| Short Term Debt | 0 | 29 | 163 | 137 | 181 | 31.5% |
| Long Term Debt | 0 | 9 | 18 | 145 | 40 | -72.3% |
Cash flow
|
|---|
| Capex | 1 | 31 | 6 | 5 | 5 | -14.2% |
Ratios
|
|---|
| Revenue growth | 34.7% | 29.4% | 1,582.2% | 77.0% | 26.5% | |
| EBITDA growth | 358.0% | 71.9% | 114.7% | -41.7% | -62.9% | |
| Gross Margin | | | | 4.4% | 4.4% | -0.1% |
| EBITDA Margin | -24.8% | -33.0% | -4.2% | -1.4% | -0.4% | 1.0% |
| Net Income Margin | -21.3% | -84.4% | -13.5% | -15.9% | -0.3% | 15.5% |
| CAPEX, % of revenue | 3.0% | 98.4% | 1.2% | 0.6% | 0.4% | -0.2% |
| ROIC | -18.2% | -11.1% | -11.0% | -4.0% | -1.6% | 2.5% |
| ROE | -15.0% | -37.8% | -85.3% | -163.2% | -2.6% | 160.5% |
Revenue and profitability
The company's Revenue surged on 26.5% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.98 pp from -1.4% to -0.41% in FY2015.
Gross Margin showed almost no change in FY2015.
Net Income marign surged on 15.5 pp from -15.9% to -0.35% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Gold Tat Group International Ltd's CAPEX/Revenue was 0.39% in FY2015. Gold Tat Group International Ltd showed big decline in CAPEX/Revenue of 98.0 pp from 98.4% in FY2012 to 0.39% in FY2015. It's average CAPEX/Revenue for the last three years was 0.71%.
Return on investment
The company operates at negative ROIC (-1.58%) and ROE (-2.65%). ROIC increased on 2.5 pp from -4.0% to -1.6% in FY2015. ROE surged on 161 pp from -163% to -2.6% in FY2015.
Leverage (Debt)
Debt level is -47.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt dropped on 21.7% in FY2015 while cash surged on 75.2% in FY2015.
Appendix 1: Peers in Telecommunications
Below you can find Gold Tat Group International Ltd benchmarking vs. other companies in Telecommunications 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 Energine International Holdings Ltd ($1185) | -41.8% | 143.6% | 34.3% | 103.1% | |
| MOBI Development Co Ltd ($947) | -23.4% | -13.8% | 29.1% | 85.6% | |
| Vodatel Networks Holdings Ltd ($8033) | 34.4% | -5.9% | -4.6% | 81.7% | |
| Great World Co Holdings Ltd ($8003) | -99.1% | 1,651.8% | -81.7% | 61.9% | |
| TCL Communication Technology Holdings Ltd ($2618) | 22.4% | 12.9% | 60.9% | 58.5% | |
| |
|---|
| Median (49 companies) | 7.5% | 8.9% | 7.9% | 6.9% | 16.5% |
|---|
| Gold Tat Group International Ltd ($8266) | | 29.4% | 1,582.2% | 77.0% | 26.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Synertone Communication Corp ($1613) | 65.4% | 68.1% | 64.1% | 70.5% | |
| Zhi Cheng Holdings Ltd ($8130) | 61.6% | 45.9% | 41.0% | 64.0% | |
| APT Satellite Holdings Ltd ($1045) | 52.3% | 58.7% | 64.1% | 62.5% | |
| Hong Kong Television Network Ltd ($1137) | | -59.6% | -101.3% | 59.7% | |
| Cisco Systems Inc ($4333) | 61.4% | 61.2% | 60.6% | 58.9% | |
| |
|---|
| Median (43 companies) | 31.8% | 26.8% | 29.0% | 29.1% | 39.6% |
|---|
| Gold Tat Group International Ltd ($8266) | | | | 4.4% | 4.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 83.5% | 86.5% | 85.8% | 81.6% | |
| APT Satellite Holdings Ltd ($1045) | 76.7% | 81.0% | 78.9% | 77.5% | |
| Synertone Communication Corp ($1613) | 49.5% | 44.9% | 48.5% | 49.4% | |
| PCCW Ltd ($8) | 31.4% | 32.0% | 31.9% | 39.2% | |
| China Mobile Ltd ($941) | 47.1% | 43.7% | 38.2% | 36.9% | |
| |
|---|
| Median (49 companies) | 14.5% | 13.2% | 7.5% | 8.9% | 19.8% |
|---|
| Gold Tat Group International Ltd ($8266) | -24.8% | -33.0% | -4.2% | -1.4% | -0.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong Television Network Ltd ($1137) | | 12,435.9% | 504.9% | 1,283.5% | |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 61.8% | 93.8% | 71.7% | 75.0% | |
| Hanny Holdings Ltd ($275) | 80.8% | 19.8% | 11.6% | 28.3% | |
| APT Satellite Holdings Ltd ($1045) | 155.2% | 74.3% | 2.5% | 27.2% | |
| China Electronics Corp Holdings Co Ltd ($85) | 1.5% | 1.8% | 8.3% | 27.1% | |
| |
|---|
| Median (49 companies) | 3.4% | 2.5% | 3.9% | 4.7% | 1.5% |
|---|
| Gold Tat Group International Ltd ($8266) | 3.0% | 98.4% | 1.2% | 0.6% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VTech Holdings Ltd ($303) | 40.5% | 37.6% | 39.5% | 40.0% | 39.8% |
| Telecom Service One Holdings Ltd ($8145) | | 95.0% | 5.4% | 26.7% | 39.8% |
| TCL Communication Technology Holdings Ltd ($2618) | 6.4% | -1.6% | 6.0% | 17.2% | |
| China Fiber Optic Network System Group Ltd ($3777) | 23.1% | 18.8% | 17.6% | 16.6% | |
| China U-Ton Holdings Ltd ($6168) | 69.5% | 35.7% | 25.0% | 16.2% | |
| |
|---|
| Median (49 companies) | 7.2% | 6.1% | 5.8% | 6.6% | 39.8% |
|---|
| Gold Tat Group International Ltd ($8266) | -18.2% | -11.1% | -11.0% | -4.0% | -1.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CCT Land Holdings Ltd ($261) | | 10.1x | 23.8x | 48.4x | |
| China Energine International Holdings Ltd ($1185) | | | | 13.3x | |
| China Electronics Corp Holdings Co Ltd ($85) | -2.1x | -2.0x | -1.3x | 12.5x | |
| China All Access Holdings Ltd ($633) | -1.0x | 0.9x | 1.8x | 5.2x | |
| Synertone Communication Corp ($1613) | -0.3x | -0.4x | -2.2x | 4.8x | |
| |
|---|
| Median (36 companies) | -0.2x | -0.2x | 0.3x | 0.7x | -0.4x |
|---|
