Lippo Ltd reports 563% Net Income growth while 55.8% Revenue decline
30/06/2015 • About Lippo Ltd (
$226) • By InTwits
Lippo Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lippo Ltd doesn't have a profitable business model yet: FY2015 ROIC is -1.4%
- The company operates at negative EBITDA Margin: -4.9%
- The company has unprofitable business model: ROIC is at -1.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lippo Ltd ($226) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 338 | 429 | 3,536 | 6,732 | 2,974 | -55.8% |
| Gross Profit | 300 | 334 | 1,710 | 3,175 | 1,377 | -56.6% |
| SG&A | | | 1,155 | 983 | 1,042 | 6.0% |
| EBITDA | -94 | -71 | -25 | 1,521 | -145 | -109.5% |
| Net Income | 698 | 74 | -10 | 112 | 744 | 563.1% |
Balance Sheet
|
|---|
| Cash | 1,636 | 2,816 | 2,894 | 4,378 | 4,731 | 8.0% |
| Short Term Debt | 411 | 999 | 653 | 1,207 | 1,310 | 8.5% |
| Long Term Debt | 2,294 | 2,314 | 2,329 | 133 | 487 | 265.7% |
Cash flow
|
|---|
| Capex | | | 165 | 156 | 155 | -1.2% |
Ratios
|
|---|
| Revenue growth | -14.9% | 26.8% | 724.4% | 90.4% | -55.8% | |
| EBITDA growth | 550.1% | -24.6% | -64.5% | -6,128.9% | -109.5% | |
| Gross Margin | 88.7% | 78.0% | 48.4% | 47.2% | 46.3% | -0.8% |
| EBITDA Margin | -27.9% | -16.6% | -0.7% | 22.6% | -4.9% | -27.5% |
| Net Income Margin | 206.5% | 17.2% | -0.3% | 1.7% | 25.0% | 23.3% |
| SG&A, % of revenue | | | 32.7% | 14.6% | 35.0% | 20.4% |
| CAPEX, % of revenue | | | 4.7% | 2.3% | 5.2% | 2.9% |
| ROIC | -0.7% | -0.5% | -0.8% | 7.5% | -1.4% | -9.0% |
| ROE | 8.9% | 0.8% | -0.1% | 1.3% | 8.2% | 6.9% |
| Net Debt/EBITDA | | | | -2.0x | | 2.0x |
Revenue and profitability
Lippo Ltd's Revenue dropped on 55.8% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 27.5 pp from 22.6% to -4.9% in FY2015.
Gross Margin decreased slightly on 0.85 pp from 47.2% to 46.3% in FY2015. SG&A as a % of Revenue jumped on 20.4 pp from 14.6% to 35.0% in FY2015.
Net Income marign jumped on 23.3 pp from 1.7% to 25.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Lippo Ltd had CAPEX/Revenue of 5.2%. The company showed CAPEX/Revenue growth5.2 pp from in FY2012 to 5.2% in FY2015. It's average CAPEX/Revenue for the last three years was 4.1%.
Return on investment
The company operates at negative ROIC (-1.45%) and low but positive ROE (8.21%). ROIC decreased on 9.0 pp from 7.5% to -1.4% in FY2015. ROE increased on 6.9 pp from 1.3% to 8.2% in FY2015.
Leverage (Debt)
Debt level is -0.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 2.0x from -2.0x to in FY2015. Debt surged on 34.1% in FY2015 while cash increased on 8.0% in FY2015.
Appendix 1: Peers in Holding Companies-Divers
Below we provide Lippo 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) | 16.9% | 11.4% | 3.3% | 12.6% | 9.6% |
|---|
| Lippo Ltd ($226) | | 26.8% | 724.4% | 90.4% | -55.8% |
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) | 27.9% | 32.9% | 34.6% | 30.8% | 39.0% |
|---|
| Lippo Ltd ($226) | 88.7% | 78.0% | 48.4% | 47.2% | 46.3% |
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) | 6.3% | 2.8% | 2.8% | 5.6% | 7.8% |
|---|
| Lippo Ltd ($226) | -27.9% | -16.6% | -0.7% | 22.6% | -4.9% |
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) | 4.7% | 2.5% | 3.6% | 7.0% | 26.4% |
|---|
| Lippo Ltd ($226) | | | 4.7% | 2.3% | 5.2% |
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% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| |
|---|
| Median (44 companies) | 0.6% | 0.1% | 0.2% | 0.5% | 0.3% |
|---|
| Lippo Ltd ($226) | -0.7% | -0.5% | -0.8% | 7.5% | -1.4% |
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 |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (26 companies) | 3.0x | 2.5x | 3.1x | 3.2x | 7.2x |
|---|
| Lippo Ltd ($226) | | | | -2.0x | |
