Novo Group Ltd/Singapore revenue decline accelerated to 17.3% in FY2015 vs. 3.9% a year earliner
30/06/2015 • About Novo Group Ltd/Singapore (
$1048) • By InTwits
Novo Group Ltd/Singapore reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Novo Group Ltd/Singapore is a company in decline: FY2015 revenue growth was -17.3%, 5 years revenue CAGR was -10.9%
- The company operates at negative EBITDA Margin: -5.0%
- Novo Group Ltd/Singapore 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 -1.3%0
- Novo Group Ltd/Singapore has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: 8.5 in FY2015, 13.7 in FY2014, 41.3 in FY2013, 10.3 in FY2012, 2.4 in FY2011
- The company has unprofitable business model: ROIC is at -14.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Novo Group Ltd/Singapore ($1048) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 501.6 | 327.8 | 284.2 | 273.0 | 225.9 | -17.3% |
| Gross Profit | 33.9 | 18.9 | 13.5 | 4.7 | -3.0 | -163.4% |
| SG&A | | | | | 12.1 | |
| EBITDA | 4.8 | -1.0 | -5.5 | -7.9 | -11.3 | 42.8% |
| Net Income | 4.5 | -1.9 | -5.6 | -13.3 | -22.1 | 66.5% |
Balance Sheet
|
|---|
| Cash | 27.7 | 15.3 | 19.1 | 46.8 | 33.5 | -28.5% |
| Short Term Debt | 18.1 | 11.6 | 45.5 | 68.5 | 71.8 | 4.9% |
| Long Term Debt | 0.0 | 5.0 | 18.7 | 0.0 | 5.4 | |
Cash flow
|
|---|
| Capex | 2.4 | 10.3 | 41.3 | 13.7 | 8.5 | -37.8% |
Ratios
|
|---|
| Revenue growth | 24.5% | -34.6% | -13.3% | -3.9% | -17.3% | |
| EBITDA growth | -68.0% | -121.0% | 446.3% | 44.3% | 42.8% | |
| Gross Margin | 6.8% | 5.8% | 4.7% | 1.7% | -1.3% | -3.0% |
| EBITDA Margin | 1.0% | -0.3% | -1.9% | -2.9% | -5.0% | -2.1% |
| Net Income Margin | 0.9% | -0.6% | -2.0% | -4.9% | -9.8% | -4.9% |
| SG&A, % of revenue | | | | | 5.3% | 5.3% |
| CAPEX, % of revenue | 0.5% | 3.2% | 14.5% | 5.0% | 3.8% | -1.2% |
| ROIC | 5.7% | -1.9% | -6.3% | -8.4% | -14.9% | -6.5% |
| ROE | 7.5% | -3.2% | -10.4% | -30.8% | -88.2% | -57.4% |
| Net Debt/EBITDA | -2.0x | | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 17.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.1 pp from -11.1% to -4.0% in 2015.
Gross Margin decreased on 3.0 pp from 1.7% to -1.3% in FY2015.
Net Income marign decreased on 4.9 pp from -4.9% to -9.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.8% in FY2015. The company's CAPEX/Revenue increased slightly on 0.61 pp from 3.2% in FY2012 to 3.8% in FY2015. Average CAPEX/Revenue for the last three years was 7.8%.
Return on investment
The company operates at negative ROIC (-14.91%) and ROE (-88.21%). ROIC decreased on 6.5 pp from -8.4% to -14.9% in FY2015. ROE dropped on 57.4 pp from -30.8% to -88.2% in FY2015.
Leverage (Debt)
Debt level is -13.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt surged on 12.8% in FY2015 while cash dropped on 28.5% in FY2015.
Appendix 1: Peers in Distribution/Wholesale
Below we provide Novo Group Ltd/Singapore 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) | 17.0% | 3.1% | 2.1% | 1.4% | 6.1% |
|---|
| Novo Group Ltd/Singapore ($1048) | | -34.6% | -13.3% | -3.9% | -17.3% |
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% | 17.5% | 18.2% | 19.3% | 24.8% |
|---|
| Novo Group Ltd/Singapore ($1048) | 6.8% | 5.8% | 4.7% | 1.7% | -1.3% |
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% | 2.5% | 4.6% | 2.0% |
|---|
| Novo Group Ltd/Singapore ($1048) | 1.0% | -0.3% | -1.9% | -2.9% | -5.0% |
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% | 1.3% | 1.7% | 1.6% | 1.8% |
|---|
| Novo Group Ltd/Singapore ($1048) | 0.5% | 3.2% | 14.5% | 5.0% | 3.8% |
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) | 2.2% | 2.7% | 1.7% | 3.2% | 2.4% |
|---|
| Novo Group Ltd/Singapore ($1048) | 5.7% | -1.9% | -6.3% | -8.4% | -14.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| 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 | |
| |
|---|
| Median (27 companies) | -0.2x | -0.2x | -0.6x | -0.0x | -1.5x |
|---|
