Hanny Holdings Ltd revenue returned to growth in FY2015: increased 349% vs. 85.2% decline a year earliner
29/06/2015 • About Hanny Holdings Ltd (
$275) • By InTwits
Hanny Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hanny Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -2.3%
- The company operates at negative EBITDA Margin: -78.0%
- Hanny 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 -57.2% for the sames years0
- Hanny Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 28.1%. At the same time it's in pair with industry average of 33.8%.
- CAPEX is quite volatile: 0.21 in FY2015, 7.6 in FY2014, 20.9 in FY2013, 15.5 in FY2012, 18.8 in FY2011
- The company has unprofitable business model: ROIC is at -2.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hanny Holdings Ltd ($275) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 23.2 | 78.1 | 180.6 | 26.7 | 120.1 | 349.3% |
| Gross Profit | 10.3 | 13.7 | 10.5 | 13.0 | 14.8 | 13.4% |
| SG&A | | | | | 102.1 | |
| EBITDA | 104.7 | -92.0 | -103.0 | -61.2 | -93.6 | 52.9% |
| Net Income | 81.9 | -190.0 | -126.7 | -102.0 | -75.3 | -26.2% |
Balance Sheet
|
|---|
| Cash | 443.8 | 818.4 | 496.7 | 403.2 | 149.3 | -63.0% |
| Short Term Debt | 846.6 | 314.6 | 217.5 | 837.8 | 1,040.0 | 24.1% |
| Long Term Debt | 0.0 | 0.0 | 749.1 | 573.5 | 535.6 | -6.6% |
Cash flow
|
|---|
| Capex | 18.8 | 15.5 | 20.9 | 7.6 | 0.2 | -97.2% |
Ratios
|
|---|
| Revenue growth | -68.8% | 236.4% | 131.2% | -85.2% | 349.3% | |
| EBITDA growth | 114.3% | -187.8% | 11.9% | -40.5% | 52.9% | |
| Gross Margin | 44.2% | 17.6% | 5.8% | 48.8% | 12.3% | -36.5% |
| EBITDA Margin | 450.9% | -117.7% | -57.0% | -229.1% | -78.0% | 151.1% |
| Net Income Margin | 352.5% | -243.2% | -70.2% | -381.8% | -62.7% | 319.0% |
| SG&A, % of revenue | | | | | 85.1% | 85.1% |
| CAPEX, % of revenue | 80.8% | 19.8% | 11.6% | 28.3% | 0.2% | -28.1% |
| ROIC | 2.3% | -2.9% | -2.9% | -1.7% | -2.3% | -0.6% |
| ROE | 3.2% | -7.1% | -4.8% | -4.2% | -3.1% | 1.0% |
| Net Debt/EBITDA | 3.8x | | | | | 0.0x |
Revenue and profitability
The company's Revenue jumped on 349% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 18.6 pp from -6.3% to -24.9% in 2015.
Gross Margin dropped on 36.5 pp from 48.8% to 12.3% in FY2015.
Net Income marign surged on 319 pp from -382% to -62.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.18%. The company's CAPEX/Revenue dropped on 19.6 pp from 19.8% in FY2012 to 0.18% in FY2015. It's average CAPEX/Revenue for the last three years was 13.3%.
Return on investment
The company operates at negative ROIC (-2.26%) and ROE (-3.13%). ROIC decreased slightly on 0.57 pp from -1.7% to -2.3% in FY2015. ROE increased slightly on 1.0 pp from -4.2% to -3.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt jumped on 11.6% in FY2015 while cash dropped on 63.0% in FY2015.
Appendix 1: Peers in Telecommunications
Below we provide Hanny Holdings Ltd benchmarking against other companies in Telecommunications 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 |
|---|
| 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% | |
| Gold Tat Group International Ltd ($8266) | | 29.4% | 1,582.2% | 77.0% | 26.5% |
| Great World Co Holdings Ltd ($8003) | | 1,651.8% | -81.7% | 61.9% | -3.7% |
| |
|---|
| Median (49 companies) | 7.8% | 8.9% | 7.9% | 7.5% | 12.8% |
|---|
| Hanny Holdings Ltd ($275) | | 236.4% | 131.2% | -85.2% | 349.3% |
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) | 29.9% | 26.8% | 30.3% | 27.1% | 39.6% |
|---|
| Hanny Holdings Ltd ($275) | 44.2% | 17.6% | 5.8% | 48.8% | 12.3% |
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) | 14.2% | 13.2% | 7.5% | 8.9% | 6.5% |
|---|
| Hanny Holdings Ltd ($275) | 450.9% | -117.7% | -57.0% | -229.1% | -78.0% |
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% | |
| 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% | |
| China Mobile Ltd ($941) | 23.6% | 21.5% | 22.2% | 27.0% | |
| |
|---|
| Median (49 companies) | 3.0% | 2.5% | 3.7% | 3.6% | 0.9% |
|---|
| Hanny Holdings Ltd ($275) | 80.8% | 19.8% | 11.6% | 28.3% | 0.2% |
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% | 19.1% |
|---|
| Hanny Holdings Ltd ($275) | 2.3% | -2.9% | -2.9% | -1.7% | -2.3% |
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 |
|---|
