Long Success International Holdings Ltd reports 34.7% revenue growth in FY2015 and 10.1 pp EBITDA Margin growth from -45.5% to -35.4%
28/06/2015 • About Long Success International Holdings Ltd (
$8017) • By InTwits
Long Success International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -35.4%
- Long Success International Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -5.8% for the sames years0
- Long Success International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.8%. At the same time it's a lot of higher than industry average of 6.1%.
- CAPEX is quite volatile: 0 in FY2015, 0.90 in FY2014, 6.9 in FY2013, 63.6 in FY2012, 16.3 in FY2011
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Long Success International Holdings Ltd ($8017) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 289.0 | 241.2 | 189.7 | 25.7 | 34.6 | 34.7% |
| Gross Profit | 27.0 | 23.5 | -23.5 | 0.9 | 2.7 | 207.2% |
| SG&A | | | 34.3 | | 15.3 | |
| EBITDA | 3.5 | 5.4 | -30.4 | -11.7 | -12.3 | 4.9% |
| Net Income | -26.9 | -42.8 | -426.4 | -37.0 | -22.9 | -38.2% |
Balance Sheet
|
|---|
| Cash | 24.6 | 7.9 | 14.7 | 3.5 | 2.0 | -43.5% |
| Short Term Debt | 161.6 | 335.8 | 358.3 | 0.0 | 0.0 | |
| Long Term Debt | 6.9 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 16.3 | 63.6 | 6.9 | 0.9 | 0.0 | -100.0% |
Ratios
|
|---|
| Revenue growth | 84.4% | -16.5% | -21.4% | -86.5% | 34.7% | |
| EBITDA growth | -407.7% | 53.2% | -661.1% | -61.5% | 4.9% | |
| Gross Margin | 9.3% | 9.7% | -12.4% | 3.4% | 7.8% | 4.4% |
| EBITDA Margin | 1.2% | 2.2% | -16.0% | -45.5% | -35.4% | 10.1% |
| Net Income Margin | -9.3% | -17.7% | -224.8% | -144.1% | -66.1% | 78.0% |
| SG&A, % of revenue | | | 18.1% | | 44.1% | 44.1% |
| CAPEX, % of revenue | 5.6% | 26.4% | 3.7% | 3.5% | 0.0% | -3.5% |
| ROIC | -4.2% | -4.3% | -9.2% | -8.5% | | 8.5% |
| ROE | -10.2% | -11.5% | | | | 0.0% |
| Net Debt/EBITDA | 40.7x | 60.6x | | | | 0.0x |
Revenue and profitability
The company's Revenue jumped on 34.7% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 34.1 pp from -574% to -540% in 2015.
Gross Margin increased on 4.4 pp from 3.4% to 7.8% in FY2015.
Net Income marign jumped on 78.0 pp from -144% to -66.1% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 43.5% in FY2015.
Appendix 1: Peers in Software
Below you can find Long Success International Holdings Ltd benchmarking vs. other companies in Software 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 |
|---|
| Pizu Group Holdings Ltd ($8053) | -55.1% | 40.3% | -42.9% | 1,742.9% | |
| China City Railway Transportation Technology Holdings Co Ltd ($1522) | 194.6% | 164.0% | 33.6% | 100.5% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | -16.7% | 393.7% | -6.6% | 92.2% | |
| Epicurean and Co Ltd ($8213) | | 177.0% | 185.7% | 62.6% | 22.0% |
| China Bio Cassava Holdings Ltd ($8129) | -15.0% | -14.2% | 38.8% | 55.1% | |
| |
|---|
| Median (30 companies) | 15.8% | 10.6% | 11.4% | 21.5% | 25.2% |
|---|
| Long Success International Holdings Ltd ($8017) | | -16.5% | -21.4% | -86.5% | 34.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.2% | 90.4% | 97.4% | 98.4% | |
| NetDragon Websoft Inc ($777) | 90.1% | 93.4% | 90.8% | 89.3% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | 19.4% | 6.5% | 45.3% | 84.8% | |
| Kingdee International Software Group Co Ltd ($268) | 70.1% | 65.0% | 75.3% | 82.5% | |
| Kingsoft Corp Ltd ($3888) | 85.5% | 86.8% | 86.3% | 82.4% | |
| |
|---|
| Median (29 companies) | 43.5% | 40.0% | 38.6% | 37.2% | 39.2% |
|---|
| Long Success International Holdings Ltd ($8017) | 9.3% | 9.7% | -12.4% | 3.4% | 7.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sinosoft Technology Group Ltd ($1297) | 55.5% | 62.6% | 54.9% | 57.2% | |
| International Entertainment Corp ($1009) | 235.1% | 50.8% | 64.0% | 54.9% | 62.0% |
| Microsoft Corp ($4338) | 42.8% | 33.5% | 39.2% | 38.0% | |
| Kingdee International Software Group Co Ltd ($268) | 19.5% | 7.8% | 33.2% | 37.2% | |
| TravelSky Technology Ltd ($696) | 43.3% | 38.1% | 35.8% | 31.9% | |
| |
|---|
| Median (30 companies) | 10.3% | 7.8% | 10.9% | 7.4% | 5.7% |
|---|
| Long Success International Holdings Ltd ($8017) | 1.2% | 2.2% | -16.0% | -45.5% | -35.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| NetDragon Websoft Inc ($777) | 13.3% | 21.1% | 34.6% | 54.6% | |
| China Eco-Farming Ltd ($8166) | 0.3% | 0.6% | 0.7% | 18.1% | |
| TravelSky Technology Ltd ($696) | 5.8% | 8.9% | 21.7% | 18.1% | |
| Kingsoft Corp Ltd ($3888) | 6.8% | 4.3% | 3.8% | 14.3% | |
| Sing Lee Software Group Ltd ($8076) | 19.4% | 3.3% | 0.2% | 14.0% | |
| |
|---|
| Median (29 companies) | 2.4% | 1.4% | 2.6% | 3.6% | 1.3% |
|---|
| Long Success International Holdings Ltd ($8017) | 5.6% | 26.4% | 3.7% | 3.5% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Microsoft Corp ($4338) | 43.4% | 28.6% | 30.3% | 26.2% | |
| Sinosoft Technology Group Ltd ($1297) | 31.6% | 34.0% | 21.9% | 20.2% | |
| Boyaa Interactive International Ltd ($434) | 100.4% | 75.3% | 21.3% | 20.0% | |
| ITE Holdings Ltd ($8092) | -19.6% | -15.0% | 10.6% | 16.8% | 19.8% |
| TravelSky Technology Ltd ($696) | 16.2% | 15.0% | 13.8% | 12.5% | |
| |
|---|
| Median (30 companies) | 4.9% | 1.4% | 4.7% | -0.4% | 0.0% |
|---|
| Long Success International Holdings Ltd ($8017) | -4.2% | -4.3% | -9.2% | -8.5% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pizu Group Holdings Ltd ($8053) | | | | 346.1x | |
| Epicurean and Co Ltd ($8213) | 2.9x | 2.3x | 4.7x | 12.3x | 12.0x |
| Sing Lee Software Group Ltd ($8076) | | | | 6.2x | |
| China Technology Solar Power Holdings Ltd ($8111) | | | 7.4x | 3.3x | 0.2x |
| Chinasoft International Ltd ($354) | -1.3x | -0.7x | 0.7x | 1.5x | |
| |
|---|
| Median (19 companies) | -1.0x | -0.9x | -1.3x | -0.8x | -1.3x |
|---|
