Takson Holdings Ltd Net Debt / EBITDA surged on 4.0x from 11.7x to 15.7x in 2015 and Debt increased on 3.6%
29/06/2015 • About Takson Holdings Ltd (
$918) • By InTwits
Takson Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Takson 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 -0.6% for the sames years0
- Takson Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has potentially unprofitable business model: ROIC is at 2.5%
- It operates with high leverage: Net Debt/EBITDA is 15.7x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Takson Holdings Ltd ($918) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 138.8 | 76.5 | 153.5 | 183.7 | 255.1 | 38.9% |
| Gross Profit | 20.1 | 18.5 | 31.4 | 39.1 | 45.5 | 16.5% |
| SG&A | | | 28.7 | 35.0 | 44.7 | 27.7% |
| EBITDA | -12.9 | -8.1 | 4.5 | 6.3 | 5.3 | -15.2% |
| Net Income | 0.3 | -7.5 | 13.9 | 1.2 | 0.5 | -59.1% |
Balance Sheet
|
|---|
| Cash | 14.1 | 2.7 | 27.3 | 15.6 | 8.4 | -46.0% |
| Short Term Debt | 51.1 | 49.9 | 76.6 | 88.0 | 91.8 | 4.3% |
| Long Term Debt | 0.9 | 4.5 | 1.9 | 1.2 | 0.7 | -46.7% |
Cash flow
|
|---|
| Capex | 0.2 | 0.1 | 3.2 | 0.5 | 0.5 | 4.3% |
Ratios
|
|---|
| Revenue growth | 83.0% | -44.9% | 100.6% | 19.7% | 38.9% | |
| EBITDA growth | 161.3% | -37.4% | -155.2% | 41.3% | -15.2% | |
| Gross Margin | 14.5% | 24.2% | 20.4% | 21.3% | 17.8% | -3.4% |
| EBITDA Margin | -9.3% | -10.6% | 2.9% | 3.4% | 2.1% | -1.3% |
| Net Income Margin | 0.2% | -9.8% | 9.1% | 0.7% | 0.2% | -0.5% |
| SG&A, % of revenue | | | 18.7% | 19.0% | 17.5% | -1.5% |
| CAPEX, % of revenue | 0.1% | 0.2% | 2.1% | 0.3% | 0.2% | -0.1% |
| ROIC | -14.4% | -8.8% | 2.5% | 3.3% | 2.5% | -0.8% |
| ROE | 0.7% | -14.7% | 25.6% | 2.0% | 0.8% | -1.2% |
| Net Debt/EBITDA | | | 11.5x | 11.7x | 15.7x | 4.0x |
Revenue and profitability
Takson Holdings Ltd's Revenue jumped on 38.9% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 7.1 pp from -14.1% to -6.9% in FY2015.
Gross Margin decreased on 3.4 pp from 21.3% to 17.8% in FY2015. SG&A as a % of Revenue decreased slightly on 1.5 pp from 19.0% to 17.5% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Takson Holdings Ltd's CAPEX/Revenue was 0.20% in FY2015. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.84%.
Return on investment
The company operates at low ROIC (2.50%) and ROE (0.80%). ROIC decreased slightly on 0.80 pp from 3.3% to 2.5% in FY2015. ROE decreased slightly on 1.2 pp from 2.0% to 0.80% in FY2015.
Leverage (Debt)
Debt level is 15.7x Net Debt / EBITDA and 17.3x Debt / EBITDA. Net Debt / EBITDA surged on 4.0x from 11.7x to 15.7x in FY2015. Debt increased on 3.6% in FY2015 while cash dropped on 46.0% in FY2015.
Appendix 1: Peers in Distribution/Wholesale
Below we provide Takson Holdings Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| Sheng Yuan Holdings Ltd ($851) | 571.1% | -86.1% | 756.9% | 567.2% | |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 24.9% | 9.0% | 81.2% | 12.2% |
| |
|---|
| Median (37 companies) | 18.6% | 3.1% | 0.0% | 0.8% | 0.0% |
|---|
| Takson Holdings Ltd ($918) | | -44.9% | 100.6% | 19.7% | 38.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | |
| Forefront Group Ltd ($885) | | | | 69.8% | |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | |
| Sincere Watch Hong Kong Ltd ($444) | 34.2% | 35.6% | 39.7% | 38.8% | 38.3% |
| |
|---|
| Median (33 companies) | 16.4% | 17.3% | 17.1% | 18.0% | 26.9% |
|---|
| Takson Holdings Ltd ($918) | 14.5% | 24.2% | 20.4% | 21.3% | 17.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | |
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| |
|---|
| Median (37 companies) | 2.9% | 2.6% | 1.9% | 4.6% | 1.8% |
|---|
| Takson Holdings Ltd ($918) | -9.3% | -10.6% | 2.9% | 3.4% | 2.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | 0.5% |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| |
|---|
| Median (36 companies) | 1.5% | 1.4% | 1.7% | 1.7% | 2.2% |
|---|
| Takson Holdings Ltd ($918) | 0.1% | 0.2% | 2.1% | 0.3% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | 5.5% |
| |
|---|
| Median (38 companies) | 2.9% | 2.7% | 0.9% | 3.1% | 2.4% |
|---|
| Takson Holdings Ltd ($918) | -14.4% | -8.8% | 2.5% | 3.3% | 2.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | |
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | |
| Futong Technology Development Holdings Ltd ($465) | 2.2x | 5.6x | 8.6x | 6.9x | |
| |
|---|
| Median (26 companies) | -0.2x | -0.2x | -0.8x | -0.1x | -2.2x |
|---|
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
