Prosperity International Holdings HK Ltd EBITDA dropped on 145% in 2015 and EBITDA Margin dropped on 11.2 pp from 6.7% to -4.6%
30/06/2015 • About Prosperity International Holdings HK Ltd (
$803) • By InTwits
Prosperity International Holdings HK Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Prosperity International Holdings HK Ltd doesn't have a profitable business model yet: FY2015 ROIC is -2.7%
- The company operates at negative EBITDA Margin: -4.6%
- Prosperity International Holdings HK Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -1.5% for the sames years0
- Prosperity International Holdings HK Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has unprofitable business model: ROIC is at -2.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Prosperity International Holdings HK Ltd ($803) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,136 | 6,190 | 3,512 | 5,452 | 3,579 | -34.4% |
| Gross Profit | 168 | 122 | 73 | 665 | 190 | -71.4% |
| SG&A | | 348 | 363 | 320 | 442 | 38.0% |
| EBITDA | -190 | -161 | -263 | 364 | -163 | -144.9% |
| Net Income | 327 | -49 | -206 | 131 | -839 | -742.2% |
Balance Sheet
|
|---|
| Cash | 1,707 | 1,395 | 1,005 | 804 | 269 | -66.5% |
| Short Term Debt | 1,348 | 1,410 | 1,007 | 1,198 | 2,294 | 91.5% |
| Long Term Debt | 149 | 438 | 666 | 825 | 1,680 | 103.7% |
Cash flow
|
|---|
| Capex | 100 | 21 | 7 | 53 | 15 | -70.9% |
Ratios
|
|---|
| Revenue growth | 217.3% | -23.9% | -43.3% | 55.2% | -34.4% | |
| EBITDA growth | -386.3% | -15.5% | 63.5% | -238.4% | -144.9% | |
| Gross Margin | 2.1% | 2.0% | 2.1% | 12.2% | 5.3% | -6.9% |
| EBITDA Margin | -2.3% | -2.6% | -7.5% | 6.7% | -4.6% | -11.2% |
| Net Income Margin | 4.0% | -0.8% | -5.9% | 2.4% | -23.5% | -25.9% |
| SG&A, % of revenue | | 5.6% | 10.3% | 5.9% | 12.4% | 6.5% |
| CAPEX, % of revenue | 1.2% | 0.3% | 0.2% | 1.0% | 0.4% | -0.5% |
| ROIC | -3.3% | -2.5% | -4.2% | 5.6% | -2.7% | -8.3% |
| ROE | 14.2% | -2.0% | -8.9% | 5.1% | -31.8% | -36.9% |
| Net Debt/EBITDA | | | | 3.3x | | -3.3x |
Revenue and profitability
Prosperity International Holdings HK Ltd's Revenue dropped on 34.4% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 11.2 pp from 6.7% to -4.6% in FY2015.
Gross Margin decreased on 6.9 pp from 12.2% to 5.3% in FY2015. SG&A as a % of Revenue increased on 6.5 pp from 5.9% to 12.4% in FY2015.
Net Income marign dropped on 25.9 pp from 2.4% to -23.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.43%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 0.54%.
Return on investment
The company operates at negative ROIC (-2.66%) and ROE (-31.78%). ROIC decreased on 8.3 pp from 5.6% to -2.7% in FY2015. ROE dropped on 36.9 pp from 5.1% to -31.8% in FY2015.
Leverage (Debt)
Debt level is -1.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 3.3x from 3.3x to in FY2015. Debt jumped on 96.5% in FY2015 while cash dropped on 66.5% in FY2015.
Appendix 1: Peers in Building Materials
Below you can find Prosperity International Holdings HK Ltd benchmarking vs. other companies in Building Materials 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Summit Ascent Holdings Ltd ($102) | -18.8% | -86.4% | -19.6% | 177.1% | |
| Pacific Plywood Hldg Ltd ($767) | | -34.9% | -14.5% | 119.5% | |
| Luoyang Glass Co Ltd ($1108) | -21.4% | -40.3% | -32.3% | 76.2% | |
| China Singyes Solar Technologies Holdings Ltd ($750) | 35.0% | 28.7% | 34.0% | 20.7% | |
| Far East Global Group Ltd ($830) | -2.2% | 52.9% | 9.5% | 18.6% | |
| |
|---|
| Median (23 companies) | 31.5% | -2.8% | 9.7% | 4.3% | -89.7% |
|---|
| Prosperity International Holdings HK Ltd ($803) | | -23.9% | -43.3% | 55.2% | -34.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 95.0% | 91.4% | 82.0% | 97.2% | |
| Dongpeng Holdings Co Ltd ($3386) | 28.7% | 35.6% | 37.1% | 38.5% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 37.6% | 37.2% | 36.9% | 37.0% | |
| Anhui Conch Cement Co Ltd ($914) | 39.4% | 27.3% | 32.5% | 33.2% | |
| China Resources Cement Holdings Ltd ($1313) | 31.1% | 24.1% | 28.5% | 31.3% | |
| |
|---|
| Median (23 companies) | 26.3% | 20.6% | 22.1% | 20.9% | 55.2% |
|---|
| Prosperity International Holdings HK Ltd ($803) | 2.1% | 2.0% | 2.1% | 12.2% | 5.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 53.6% | 12.6% | -19.8% | 50.5% | |
| Anhui Conch Cement Co Ltd ($914) | 38.8% | 27.1% | 31.1% | 32.1% | |
| TCC International Holdings Ltd ($1136) | 26.5% | 19.2% | 26.1% | 29.0% | |
| Asia Cement China Holdings Corp ($743) | 30.3% | 20.6% | 24.9% | 27.0% | |
| China Tianrui Group Cement Co Ltd ($1252) | 32.4% | 28.5% | 23.7% | 26.7% | |
| |
|---|
| Median (23 companies) | 18.6% | 15.8% | 17.2% | 18.2% | -1,312.6% |
|---|
| Prosperity International Holdings HK Ltd ($803) | -2.3% | -2.6% | -7.5% | 6.7% | -4.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 40.4% | 11.9% | 32.1% | 23.6% | |
| West China Cement Ltd ($2233) | 54.8% | 17.2% | 13.9% | 15.9% | |
| China Glass Holdings Ltd ($3300) | 37.2% | 19.6% | 12.5% | 12.4% | |
| China Shanshui Cement Group Ltd ($691) | 13.5% | 18.9% | 21.1% | 12.1% | |
| China Lesso Group Holdings Ltd ($2128) | 12.0% | 13.6% | 9.1% | 11.8% | |
| |
|---|
| Median (23 companies) | 6.9% | 9.8% | 8.6% | 7.5% | 0.1% |
|---|
| Prosperity International Holdings HK Ltd ($803) | 1.2% | 0.3% | 0.2% | 1.0% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 49.7% | 37.1% | 35.8% | 27.2% | |
| Anhui Conch Cement Co Ltd ($914) | 27.2% | 12.7% | 17.5% | 18.4% | |
| China Lesso Group Holdings Ltd ($2128) | 26.8% | 20.5% | 19.4% | 18.2% | |
| China Singyes Solar Technologies Holdings Ltd ($750) | 21.1% | 18.6% | 19.9% | 16.0% | |
| China Resources Cement Holdings Ltd ($1313) | 14.0% | 8.0% | 9.6% | 13.0% | |
| |
|---|
| Median (23 companies) | 13.3% | 5.8% | 6.9% | 4.0% | -47.5% |
|---|
| Prosperity International Holdings HK Ltd ($803) | -3.3% | -2.5% | -4.2% | 5.6% | -2.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sustainable Forest Holdings Ltd ($723) | 0.9x | | | 9.6x | |
| China National Building Material Co Ltd ($3323) | 3.9x | 6.7x | 6.8x | 6.3x | |
| BBMG Corp ($2009) | 4.4x | 4.6x | 5.0x | 6.1x | |
| China Tianrui Group Cement Co Ltd ($1252) | 3.0x | 4.2x | 5.1x | 5.2x | |
| China Shanshui Cement Group Ltd ($691) | 1.8x | 3.0x | 4.1x | 4.8x | |
| |
|---|
| Median (19 companies) | 0.9x | 3.0x | 2.7x | 2.0x | |
|---|
| Prosperity International Holdings HK Ltd ($803) | | | | 3.3x | |
