Code Agriculture Holdings Ltd EBITDA dropped on 113% in 2015 and EBITDA Margin dropped on 37.6 pp from 25.4% to -12.1%
29/06/2015 • About Code Agriculture Holdings Ltd (
$8153) • By InTwits
Code Agriculture Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Code Agriculture Holdings Ltd is a company in decline: FY2015 revenue growth was -72.3%, 5 years revenue CAGR was -9.9%
- EBITDA Margin is quite volatile: -12.1% in FY2015, 25.4% in FY2014, 4.0% in FY2013, 17.4% in FY2012, 6.9% in FY2011
- Code Agriculture Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has unprofitable business model: ROIC is at -6.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Code Agriculture Holdings Ltd ($8153) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 598.1 | 663.9 | 734.7 | 473.5 | 131.1 | -72.3% |
| Gross Profit | 135.6 | 229.4 | 234.1 | 142.7 | 40.4 | -71.7% |
| SG&A | | 216.0 | 262.7 | 181.8 | 63.4 | -65.2% |
| EBITDA | 41.1 | 115.8 | 29.0 | 120.4 | -15.9 | -113.2% |
| Net Income | -225.0 | 50.5 | -248.8 | -247.7 | -133.5 | -46.1% |
Balance Sheet
|
|---|
| Cash | 47.5 | 160.8 | 11.3 | 2.8 | 8.0 | 183.5% |
| Short Term Debt | 401.2 | 740.9 | 496.7 | 993.2 | 344.9 | -65.3% |
| Long Term Debt | 645.3 | 793.5 | 758.1 | 52.6 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 16.4 | 3.9 | 2.5 | 1.2 | 0.7 | -42.9% |
Ratios
|
|---|
| Revenue growth | 170.9% | 11.0% | 10.7% | -35.5% | -72.3% | |
| EBITDA growth | 268.3% | 181.7% | -74.9% | 314.5% | -113.2% | |
| Gross Margin | 22.7% | 34.6% | 31.9% | 30.1% | 30.8% | 0.7% |
| EBITDA Margin | 6.9% | 17.4% | 4.0% | 25.4% | -12.1% | -37.6% |
| Net Income Margin | -37.6% | 7.6% | -33.9% | -52.3% | -101.8% | -49.5% |
| SG&A, % of revenue | | 32.5% | 35.8% | 38.4% | 48.3% | 9.9% |
| CAPEX, % of revenue | 2.7% | 0.6% | 0.3% | 0.3% | 0.5% | 0.3% |
| ROIC | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% | -14.1% |
| ROE | -27.9% | 13.5% | | | | 0.0% |
| Net Debt/EBITDA | 24.3x | 11.9x | 42.8x | 8.7x | | -8.7x |
Revenue and profitability
The company's Revenue dropped on 72.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 80.9 pp from -7.3% to 73.6% in FY2015.
Gross Margin increased slightly on 0.70 pp from 30.1% to 30.8% in FY2015. SG&A as a % of Revenue increased on 9.9 pp from 38.4% to 48.3% in FY2015.
Net Income marign dropped on 49.5 pp from -52.3% to -102% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.54% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 0.38%.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 8.7x from 8.7x to in FY2015. Debt dropped on 67.0% in FY2015 while cash surged on 183% in FY2015.
Appendix 1: Peers in Holding Companies-Divers
Below we provide Code Agriculture Holdings Ltd benchmarking against other companies in Holding Companies-Divers industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | -79.6% |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | 20.3% | -57.4% | -12.4% | 106.4% | |
| |
|---|
| Median (42 companies) | 11.7% | 12.2% | 3.3% | 15.7% | 14.5% |
|---|
| Code Agriculture Holdings Ltd ($8153) | | 11.0% | 10.7% | -35.5% | -72.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | |
| |
|---|
| Median (39 companies) | 29.5% | 32.9% | 36.0% | 34.4% | 39.0% |
|---|
| Code Agriculture Holdings Ltd ($8153) | 22.7% | 34.6% | 31.9% | 30.1% | 30.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 5.2% | 1.7% | 1.9% | 5.6% | 10.4% |
|---|
| Code Agriculture Holdings Ltd ($8153) | 6.9% | 17.4% | 4.0% | 25.4% | -12.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.9% | 2.7% | 3.8% | 7.0% | 32.1% |
|---|
| Code Agriculture Holdings Ltd ($8153) | 2.7% | 0.6% | 0.3% | 0.3% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| Lippo Ltd ($226) | -0.7% | -0.5% | -0.8% | 7.5% | |
| |
|---|
| Median (44 companies) | 0.6% | -0.2% | 0.2% | 0.5% | 1.2% |
|---|
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| China Renji Medical Group Ltd/Hong Kong ($648) | 0.7x | -0.3x | -0.1x | 6.2x | |
| |
|---|
| Median (26 companies) | 2.7x | 2.4x | 2.9x | 2.9x | 7.2x |
|---|
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
