Hua Xia Healthcare Holdings Ltd reports 68.1% EBITDA decline and 20.6% Revenue decline
29/06/2015 • About Hua Xia Healthcare Holdings Ltd (
$8143) • By InTwits
Hua Xia Healthcare Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hua Xia Healthcare Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has potentially unprofitable business model: ROIC is at 2.2%
- It operates with high leverage: Net Debt/EBITDA is 3.5x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hua Xia Healthcare Holdings Ltd ($8143) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,464 | 1,836 | 2,021 | 2,243 | 1,780 | -20.6% |
| Gross Profit | 190 | 235 | 239 | 269 | 278 | 3.2% |
| SG&A | | | 166 | 187 | 262 | 40.2% |
| EBITDA | 87 | 102 | 93 | 117 | 37 | -68.1% |
| Net Income | 31 | 50 | 43 | 22 | -506 | -2,407.2% |
Balance Sheet
|
|---|
| Cash | 77 | 109 | 80 | 92 | 89 | -3.9% |
| Short Term Debt | 76 | 82 | 55 | 124 | 140 | 12.9% |
| Long Term Debt | 198 | 202 | 197 | 76 | 78 | 2.3% |
Cash flow
|
|---|
| Capex | 4 | 16 | 9 | 10 | 21 | 105.0% |
Ratios
|
|---|
| Revenue growth | 714.2% | 25.4% | 10.1% | 11.0% | -20.6% | |
| EBITDA growth | 3,618.6% | 16.6% | -8.7% | 26.7% | -68.1% | |
| Gross Margin | 13.0% | 12.8% | 11.8% | 12.0% | 15.6% | 3.6% |
| EBITDA Margin | 5.9% | 5.5% | 4.6% | 5.2% | 2.1% | -3.1% |
| Net Income Margin | 2.1% | 2.7% | 2.1% | 1.0% | -28.4% | -29.4% |
| SG&A, % of revenue | | | 8.2% | 8.3% | 14.7% | 6.4% |
| CAPEX, % of revenue | 0.3% | 0.9% | 0.5% | 0.5% | 1.2% | 0.7% |
| ROIC | 6.7% | 7.5% | 6.5% | 8.1% | 2.2% | -5.9% |
| ROE | 6.0% | 6.7% | 4.6% | 2.6% | -107.7% | -110.3% |
| Net Debt/EBITDA | 2.3x | 1.7x | 1.9x | 0.9x | 3.5x | 2.5x |
Revenue and profitability
Hua Xia Healthcare Holdings Ltd's Revenue dropped on 20.6% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.1 pp from 5.2% to 2.1% in FY2015.
Gross Margin increased on 3.6 pp from 12.0% to 15.6% in FY2015. SG&A as a % of Revenue increased on 6.4 pp from 8.3% to 14.7% in FY2015.
Net Income marign dropped on 29.4 pp from 0.98% to -28.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Hua Xia Healthcare Holdings Ltd had CAPEX/Revenue of 1.2%. Hua Xia Healthcare Holdings Ltd showed almost no change in CAPEX/Revenue from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 0.69%.Battling declining revenue Hua Xia Healthcare Holdings Ltd invested a large share of EBITDA (55.6%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (2.18%) and negative ROE (-107.68%). ROIC decreased on 5.9 pp from 8.1% to 2.2% in FY2015. ROE dropped on 110 pp from 2.6% to -108% in FY2015.
Leverage (Debt)
Debt level is 3.5x Net Debt / EBITDA and 5.8x Debt / EBITDA. Net Debt / EBITDA surged on 2.5x from 0.9x to 3.5x in FY2015. Debt increased on 8.9% in FY2015 while cash decreased on 3.9% in FY2015.
Appendix 1: Peers in Healthcare-Services
Below you can find Hua Xia Healthcare Holdings Ltd benchmarking vs. other companies in Healthcare-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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Natural Investment Co Ltd ($8250) | 790.8% | 22.3% | -13.8% | 509.5% | |
| Town Health International Medical Group Ltd ($3886) | 10.4% | 0.7% | 3.7% | 39.5% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 29.3% | 48.8% | 17.1% | 35.9% | |
| SkyOcean International Holdings Ltd ($593) | 31.9% | 15.7% | -7.4% | -30.5% | |
| |
|---|
| Median (4 companies) | 30.6% | 19.0% | -1.8% | 37.7% | |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | | 25.4% | 10.1% | 11.0% | -20.6% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | 33.6% | 34.7% | 33.9% | 32.5% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 24.1% | 24.4% | 24.0% | 24.7% | |
| China Natural Investment Co Ltd ($8250) | 45.6% | 38.1% | 32.4% | 10.6% | |
| |
|---|
| Median (3 companies) | 33.6% | 34.7% | 32.4% | 24.7% | |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 13.0% | 12.8% | 11.8% | 12.0% | 15.6% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 21.8% | 26.5% | 26.5% | 25.8% | |
| Town Health International Medical Group Ltd ($3886) | 28.6% | -135.5% | -44.4% | -0.3% | |
| China Natural Investment Co Ltd ($8250) | -24.9% | -33.3% | -39.5% | -7.2% | |
| SkyOcean International Holdings Ltd ($593) | 18.9% | 28.4% | 31.5% | -151.1% | |
| |
|---|
| Median (4 companies) | 20.4% | -3.4% | -6.5% | -3.7% | |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 5.9% | 5.5% | 4.6% | 5.2% | 2.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | 23.5% | 5.0% | 48.6% | 16.8% | |
| SkyOcean International Holdings Ltd ($593) | 1.7% | 0.9% | 1.3% | 4.8% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 6.7% | 3.7% | 2.4% | 3.0% | |
| China Natural Investment Co Ltd ($8250) | 197.7% | 36.8% | 16.8% | 2.1% | |
| |
|---|
| Median (4 companies) | 15.1% | 4.3% | 9.6% | 3.9% | |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 0.3% | 0.9% | 0.5% | 0.5% | 1.2% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 11.9% | 17.9% | 14.3% | 14.6% | |
| Town Health International Medical Group Ltd ($3886) | 3.8% | -29.7% | -10.9% | -2.3% | |
| China Natural Investment Co Ltd ($8250) | -5.4% | -6.4% | -4.9% | -4.5% | |
| SkyOcean International Holdings Ltd ($593) | 1.5% | 2.8% | 2.4% | -5.2% | |
| |
|---|
| Median (4 companies) | 2.6% | -1.8% | -1.2% | -3.4% | |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 6.7% | 7.5% | 6.5% | 8.1% | 2.2% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | -1.2x | 0.6x | -3.8x | -3.2x | |
| |
|---|
| Median (1 company) | -1.2x | -10.0x | -2.3x | -3.2x | |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 2.3x | 1.7x | 1.9x | 0.9x | 3.5x |
