China Healthcare Holdings Ltd revenue growth decelerated to 0.27% in FY2015 vs. 63.1% a year earliner
30/06/2015 • About China Healthcare Holdings Ltd (
$673) • By InTwits
China Healthcare Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Healthcare Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -19.3%
- The company operates at negative EBITDA Margin: -58.6%
- China Healthcare Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -68.9%0
- China Healthcare Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.1%. At the same time it's a lot of higher than industry average of 39.0%.
- CAPEX is quite volatile: 0.086 in FY2015, 0.0030 in FY2014, 1.5 in FY2013, 2.7 in FY2012, 4.7 in FY2011
- The company has unprofitable business model: ROIC is at -19.3%
- It operates with high leverage: Net Debt/EBITDA is -6.5x while industry average is -13.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Healthcare Holdings Ltd ($673) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 57.606 | 49.106 | 23.128 | 37.720 | 37.823 | 0.3% |
| Gross Profit | 28.930 | 32.317 | 12.060 | 10.584 | 7.526 | -28.9% |
| SG&A | | 69.109 | 43.867 | 46.425 | 31.751 | -31.6% |
| EBITDA | -18.010 | -49.073 | -26.268 | -25.903 | -22.167 | -14.4% |
| Net Income | -208.216 | -24.596 | 140.609 | -67.570 | -55.926 | -17.2% |
Balance Sheet
|
|---|
| Cash | 71.998 | 7.719 | 4.302 | 20.951 | 96.599 | 361.1% |
| Short Term Debt | 0.000 | 336.496 | 190.020 | 188.873 | 103.693 | -45.1% |
| Long Term Debt | 225.943 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 4.712 | 2.711 | 1.485 | 0.003 | 0.086 | 2,766.7% |
Ratios
|
|---|
| Revenue growth | -97.9% | -14.8% | -52.9% | 63.1% | 0.3% | |
| EBITDA growth | -26.8% | 172.5% | -46.5% | -1.4% | -14.4% | |
| Gross Margin | 50.2% | 65.8% | 52.1% | 28.1% | 19.9% | -8.2% |
| EBITDA Margin | -31.3% | -99.9% | -113.6% | -68.7% | -58.6% | 10.1% |
| Net Income Margin | -361.4% | -50.1% | 608.0% | -179.1% | -147.9% | 31.3% |
| SG&A, % of revenue | | 140.7% | 189.7% | 123.1% | 83.9% | -39.1% |
| CAPEX, % of revenue | 8.2% | 5.5% | 6.4% | 0.0% | 0.2% | 0.2% |
| ROIC | -11.8% | -33.4% | -16.8% | -25.5% | -19.3% | 6.2% |
Revenue and profitability
The company's Revenue showed almost no change in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 10.1 pp from -68.7% to -58.6% in FY2015.
Gross Margin decreased on 8.2 pp from 28.1% to 19.9% in FY2015. SG&A as a % of Revenue dropped on 39.1 pp from 123% to 83.9% in FY2015.
Net Income marign surged on 31.3 pp from -179% to -148% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 China Healthcare Holdings Ltd had CAPEX/Revenue of 0.23%. The company showed decline in CAPEX/Revenue of 5.3 pp from 5.5% in FY2012 to 0.23% in FY2015. For the last three years the average CAPEX/Revenue was 2.2%.
Leverage (Debt)
Debt level is -6.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt dropped on 45.1% in FY2015 while cash jumped on 361% in FY2015.
Appendix 1: Peers in Internet
Below we provide China Healthcare Holdings Ltd benchmarking against other companies in Internet 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 Public Procurement Ltd ($1094) | -78.5% | 5,077.0% | -67.5% | 1,258.9% | |
| China Digital Culture Group Ltd ($8175) | 320.4% | -47.9% | 180.8% | 168.8% | |
| GET Holdings Ltd ($8380) | -4.3% | 13.8% | 2,126.4% | 154.4% | |
| ABC Multiactive Ltd ($8131) | -1.9% | -15.2% | -13.2% | 59.4% | |
| Tencent Holdings Ltd ($700) | 45.0% | 54.0% | 37.7% | 30.6% | |
| |
|---|
| Median (19 companies) | 15.9% | 12.3% | 8.3% | 10.7% | -59.7% |
|---|
| China Healthcare Holdings Ltd ($673) | | -14.8% | -52.9% | 63.1% | 0.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ABC Multiactive Ltd ($8131) | 73.0% | 86.7% | 83.5% | 86.2% | |
| Sino-I Technology Ltd ($250) | 74.2% | 75.3% | 82.7% | 78.8% | |
| AcrossAsia Ltd ($8061) | 78.7% | 70.9% | 73.0% | 72.5% | |
| Pacific Online Ltd ($543) | 69.1% | 71.0% | 70.5% | 67.3% | |
| Forgame Holdings Ltd ($484) | 82.1% | 89.8% | 84.7% | 66.1% | |
| |
|---|
| Median (16 companies) | 65.2% | 61.4% | 65.5% | 61.3% | 67.1% |
|---|
| China Healthcare Holdings Ltd ($673) | 50.2% | 65.8% | 52.1% | 28.1% | 19.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SUNeVision Holdings Ltd ($8008) | 61.1% | 64.2% | 71.6% | 71.6% | |
| GET Holdings Ltd ($8380) | -182.0% | -237.7% | 56.8% | 66.4% | |
| AcrossAsia Ltd ($8061) | 15.4% | 20.8% | 24.2% | 44.7% | |
| Tencent Holdings Ltd ($700) | 48.2% | 38.4% | 34.7% | 42.5% | |
| China Digital Culture Group Ltd ($8175) | -12.1% | -66.7% | 22.5% | 40.8% | |
| |
|---|
| Median (20 companies) | 9.3% | 5.1% | 18.6% | 13.8% | -292.3% |
|---|
| China Healthcare Holdings Ltd ($673) | -31.3% | -99.9% | -113.6% | -68.7% | -58.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SUNeVision Holdings Ltd ($8008) | 14.2% | 7.6% | 10.2% | 62.8% | |
| AcrossAsia Ltd ($8061) | 61.2% | 56.6% | 65.9% | 36.3% | |
| China E-Learning Group Ltd ($8055) | 1.3% | 0.0% | 2.7% | 15.3% | |
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | 0.0% | | 12.2% | |
| Capinfo Co Ltd ($1075) | 1.6% | 17.3% | 13.1% | 9.7% | |
| |
|---|
| Median (20 companies) | 13.8% | 3.2% | 2.7% | 3.4% | 0.3% |
|---|
| China Healthcare Holdings Ltd ($673) | 8.2% | 5.5% | 6.4% | 0.0% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tencent Holdings Ltd ($700) | 33.4% | 29.5% | 26.7% | 29.1% | |
| Pacific Online Ltd ($543) | 41.7% | 37.9% | 36.4% | 28.6% | |
| GET Holdings Ltd ($8380) | -6.8% | -6.5% | 10.8% | 19.3% | |
| Tradelink Electronic Commerce Ltd ($536) | 19.5% | 22.4% | 18.2% | 17.4% | |
| SUNeVision Holdings Ltd ($8008) | 9.9% | 10.8% | 13.3% | 14.4% | |
| |
|---|
| Median (20 companies) | -0.8% | -2.5% | 4.0% | -2.6% | -604.1% |
|---|
| China Healthcare Holdings Ltd ($673) | -11.8% | -33.4% | -16.8% | -25.5% | -19.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ABC Multiactive Ltd ($8131) | | | | 9.5x | |
| AcrossAsia Ltd ($8061) | 1.7x | 2.3x | 2.9x | 1.5x | |
| Tencent Holdings Ltd ($700) | -0.1x | -0.2x | -0.2x | -0.2x | |
| China Digital Culture Group Ltd ($8175) | | | -2.2x | -0.4x | |
| GET Holdings Ltd ($8380) | | | -1.1x | -1.0x | |
| |
|---|
| Median (13 companies) | -1.8x | -1.4x | -1.3x | -1.5x | |
|---|
