ABC Communications Holdings Ltd revenue decreased on 5.9% in 2015 while EBITDA Margin jumped on 33.1 pp from -39.0% to -5.9%
01/07/2015 • About ABC Communications Holdings Ltd (
$30) • By InTwits
ABC Communications Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- ABC Communications Holdings Ltd is a company in decline: FY2015 revenue growth was -5.9%, 5 years revenue CAGR was -15.4%
- The company operates at negative EBITDA Margin: -5.9%
- ABC Communications 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 -13.4% for the sames years0
- ABC Communications Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.8%. At the same time it's in pair with industry average of 8.1%.
- CAPEX is quite volatile: 1.8 in FY2015, 1.9 in FY2014, 0.11 in FY2013, 42.2 in FY2012, 0.72 in FY2011
- The company has unprofitable business model: ROIC is at -5.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ABC Communications Holdings Ltd ($30) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 103.4 | 115.0 | 68.7 | 60.0 | 56.4 | -5.9% |
| Gross Profit | 17.0 | 28.4 | 16.3 | 14.7 | 13.5 | -8.6% |
| SG&A | | | 35.2 | 40.7 | 46.3 | 13.7% |
| EBITDA | -9.3 | -1.0 | -17.1 | -23.4 | -3.3 | -85.8% |
| Net Income | -23.1 | 12.6 | -22.3 | -23.5 | -82.3 | 250.9% |
Balance Sheet
|
|---|
| Cash | 29.1 | 31.3 | 31.4 | 40.9 | 97.9 | 139.5% |
| Short Term Debt | 14.8 | 37.1 | 0.0 | 0.0 | 7.1 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 27.7 | 65.2 | 135.8% |
Cash flow
|
|---|
| Capex | 0.7 | 42.2 | 0.1 | 1.9 | 1.8 | -9.7% |
Ratios
|
|---|
| Revenue growth | -20.6% | 11.2% | -40.2% | -12.8% | -5.9% | |
| EBITDA growth | 814.7% | -89.7% | 1,692.5% | 37.1% | -85.8% | |
| Gross Margin | 16.4% | 24.7% | 23.7% | 24.6% | 23.9% | -0.7% |
| EBITDA Margin | -9.0% | -0.8% | -24.8% | -39.0% | -5.9% | 33.1% |
| Net Income Margin | -22.4% | 10.9% | -32.4% | -39.1% | -145.9% | -106.8% |
| SG&A, % of revenue | | | 51.3% | 67.9% | 82.0% | 14.1% |
| CAPEX, % of revenue | 0.7% | 36.6% | 0.2% | 3.2% | 3.1% | -0.1% |
| ROIC | -6.6% | -1.1% | -4.4% | -5.1% | -5.7% | -0.6% |
| ROE | -29.0% | 8.3% | -9.4% | -7.4% | -25.8% | -18.4% |
Revenue and profitability
The company's Revenue decreased on 5.9% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 33.1 pp from -39.0% to -5.9% in FY2015.
Gross Margin decreased slightly on 0.68 pp from 24.6% to 23.9% in FY2015. SG&A as a % of Revenue surged on 14.1 pp from 67.9% to 82.0% in FY2015.
Net Income marign dropped on 107 pp from -39.1% to -146% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 ABC Communications Holdings Ltd had CAPEX/Revenue of 3.1%. CAPEX/Revenue dropped on 33.5 pp from 36.6% in FY2012 to 3.1% in FY2015. Average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at negative ROIC (-5.72%) and ROE (-25.85%). ROIC decreased slightly on 0.62 pp from -5.1% to -5.7% in FY2015. ROE dropped on 18.4 pp from -7.4% to -25.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -5.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt jumped on 161% in FY2015 while cash jumped on 140% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide ABC Communications Holdings Ltd benchmarking against other companies in Diversified Finan Serv 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 New Energy Power Group Ltd ($1041) | | 100.0% | 0.0% | 64,246.0% | |
| ReOrient Group Ltd ($376) | 63.3% | 112.8% | 75.1% | 1,106.9% | |
| Global Strategic Group Ltd ($8007) | 2.2% | -3.9% | 2.1% | 806.3% | |
| AID Partners Capital Holdings Ltd ($8088) | -38.7% | 0.9% | -79.5% | 655.2% | |
| Willie International Holdings Ltd ($273) | | | | 543.9% | |
| |
|---|
| Median (62 companies) | 6.9% | 0.9% | 14.7% | 26.5% | 23.1% |
|---|
| ABC Communications Holdings Ltd ($30) | | 11.2% | -40.2% | -12.8% | -5.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| |
|---|
| Median (12 companies) | 86.7% | 70.7% | 84.4% | 89.9% | 91.7% |
|---|
| ABC Communications Holdings Ltd ($30) | 16.4% | 24.7% | 23.7% | 24.6% | 23.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | 17.9% |
| Roma Group Ltd ($8072) | 81.4% | 18.1% | 36.8% | 143.0% | 44.7% |
| First China Financial Network Holdings Ltd ($8123) | -231.6% | -329.2% | -211.2% | 124.3% | |
| Willie International Holdings Ltd ($273) | | | 75.3% | 95.2% | |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | 83.9% |
| |
|---|
| Median (63 companies) | 30.3% | 16.4% | 36.2% | 47.2% | 41.1% |
|---|
| ABC Communications Holdings Ltd ($30) | -9.0% | -0.8% | -24.8% | -39.0% | -5.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gemini Investments Holdings Ltd ($174) | 14.9% | 479.1% | 37.3% | 216.0% | |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | |
| Chinese Strategic Holdings Ltd ($8089) | 93.2% | 376.0% | 5.7% | 32.6% | |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | |
| Asian Capital Holdings Ltd ($8295) | 2.3% | 0.1% | 0.2% | 15.6% | |
| |
|---|
| Median (63 companies) | 2.3% | 1.8% | 1.8% | 1.1% | 1.5% |
|---|
| ABC Communications Holdings Ltd ($30) | 0.7% | 36.6% | 0.2% | 3.2% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| Convoy Financial Holdings Ltd ($1019) | 31.1% | 3.4% | 39.3% | 47.3% | |
| Willie International Holdings Ltd ($273) | -28.1% | -9.5% | 4.7% | 30.9% | |
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | |
| |
|---|
| Median (65 companies) | 4.9% | 3.9% | 4.0% | 4.8% | 3.5% |
|---|
| ABC Communications Holdings Ltd ($30) | -6.6% | -1.1% | -4.4% | -5.1% | -5.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cash Financial Services Group Ltd ($510) | -1.1x | 7.8x | | 67.5x | |
| Far East Horizon Ltd ($3360) | 17.8x | 16.9x | 21.7x | 20.0x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x |
| China Cinda Asset Management Co Ltd ($1359) | 2.1x | 5.0x | 7.7x | 8.4x | |
| Aeon Credit Service Asia Co Ltd ($900) | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x |
| |
|---|
| Median (46 companies) | -1.1x | -1.0x | 0.1x | -0.0x | 0.6x |
|---|
