Alibaba Health Information Technology Ltd revenue growth decelerated to 35.3% in FY2015 vs. 73.0% a year earliner
01/07/2015 • About Alibaba Health Information Technology Ltd (
$241) • By InTwits
Alibaba Health Information Technology Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Alibaba Health Information Technology Ltd doesn't have a profitable business model yet: FY2015 ROIC is -13.7%
- The company operates at negative EBITDA Margin: -336.7%
- Alibaba Health Information Technology 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 -24.6%0
- Alibaba Health Information Technology Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.3%. At the same time it's a lot of higher than industry average of 12.3%.
- CAPEX is quite volatile: 4.4 in FY2015, 4.7 in FY2014, 7.4 in FY2013, 21.4 in FY2012, 7.8 in FY2011
- The company has unprofitable business model: ROIC is at -13.7%
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is -3.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Alibaba Health Information Technology Ltd ($241) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 372.1 | 481.7 | 15.9 | 27.5 | 37.2 | 35.3% |
| Gross Profit | 37.8 | 54.9 | -2.0 | 13.6 | 20.0 | 47.1% |
| SG&A | 72.8 | 88.5 | 40.9 | 41.8 | 141.2 | 237.9% |
| EBITDA | -16.3 | -20.8 | -30.7 | -36.5 | -125.2 | 243.4% |
| Net Income | -26.4 | -7.7 | -41.3 | -39.2 | -101.5 | 159.0% |
Balance Sheet
|
|---|
| Cash | 160.3 | 133.8 | 105.7 | 66.4 | 159.3 | 140.1% |
| Short Term Debt | 23.3 | 12.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 7.8 | 21.4 | 7.4 | 4.7 | 4.4 | -8.1% |
Ratios
|
|---|
| Revenue growth | 29.4% | 29.4% | -96.7% | 73.0% | 35.3% | |
| EBITDA growth | 128.0% | 27.6% | 47.6% | 18.8% | 243.4% | |
| Gross Margin | 10.1% | 11.4% | -12.6% | 49.3% | 53.7% | 4.3% |
| EBITDA Margin | -4.4% | -4.3% | -193.1% | -132.6% | -336.7% | -204.1% |
| Net Income Margin | -7.1% | -1.6% | -260.2% | -142.6% | -273.1% | -130.5% |
| SG&A, % of revenue | 19.6% | 18.4% | 257.3% | 152.1% | 379.8% | 227.7% |
| CAPEX, % of revenue | 2.1% | 4.4% | 46.3% | 17.2% | 11.7% | -5.5% |
| ROIC | -9.6% | -11.1% | -13.1% | -13.0% | -13.7% | -0.7% |
| ROE | -6.4% | -1.9% | -10.9% | -10.0% | -9.8% | 0.2% |
Revenue and profitability
Alibaba Health Information Technology Ltd's Revenue jumped on 35.3% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 40.1 pp from 32.0% to 72.1% in 2015.
Gross Margin increased on 4.3 pp from 49.3% to 53.7% in FY2015. SG&A as a % of Revenue jumped on 228 pp from 152% to 380% in FY2015.
Net Income marign dropped on 130 pp from -143% to -273% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Alibaba Health Information Technology Ltd's CAPEX/Revenue was 11.7% in FY2015. The company's CAPEX/Revenue increased on 7.3 pp from 4.4% in FY2012 to 11.7% in FY2015. Average CAPEX/Revenue for the last three years was 25.1%.
Return on investment
The company operates at negative ROIC (-13.67%) and ROE (-9.77%). ROIC decreased slightly on 0.67 pp from -13.0% to -13.7% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 140% in FY2015.
Appendix 1: Peers in Computers
Below we provide Alibaba Health Information Technology Ltd benchmarking against other companies in Computers 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 |
|---|
| Peking University Resources Holdings Co Ltd ($618) | 16.2% | -49.6% | 11.2% | 106.0% | |
| Thiz Technology Group Ltd ($8119) | | -4.1% | -95.1% | 72.2% | 31.9% |
| Universal Technologies Holdings Ltd ($1026) | 95.5% | -47.3% | 49.8% | 67.1% | |
| PAX Global Technology Ltd ($327) | 52.5% | 19.0% | 12.1% | 61.2% | |
| EVOC Intelligent Technology Co Ltd ($2308) | -13.0% | 4.6% | 56.2% | 27.4% | |
| |
|---|
| Median (24 companies) | 12.7% | 3.8% | 0.0% | 7.2% | 14.5% |
|---|
| Alibaba Health Information Technology Ltd ($241) | | 29.4% | -96.7% | 73.0% | 35.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Universal Technologies Holdings Ltd ($1026) | 86.0% | 87.3% | 79.7% | 90.3% | |
| Thiz Technology Group Ltd ($8119) | 2.9% | 8.8% | 63.8% | 86.2% | 96.0% |
| Computer & Technologies Holdings Ltd ($46) | 27.4% | 45.3% | 54.0% | 52.1% | |
| CCID Consulting Co Ltd ($8235) | 46.5% | 43.7% | 49.1% | 51.8% | |
| North Asia Resources Holdings Ltd ($61) | 15.6% | 21.7% | 17.3% | 46.7% | |
| |
|---|
| Median (22 companies) | 13.2% | 14.2% | 17.0% | 15.4% | 19.5% |
|---|
| Alibaba Health Information Technology Ltd ($241) | 10.1% | 11.4% | -12.6% | 49.3% | 53.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Computer & Technologies Holdings Ltd ($46) | 4.8% | 12.9% | 19.9% | 20.1% | |
| Ju Teng International Holdings Ltd ($3336) | 9.5% | 15.1% | 19.9% | 19.3% | |
| PAX Global Technology Ltd ($327) | 18.9% | 16.5% | 17.4% | 18.8% | |
| CCID Consulting Co Ltd ($8235) | 19.0% | 10.6% | 10.8% | 12.3% | |
| Universal Technologies Holdings Ltd ($1026) | 29.5% | 12.8% | 1.5% | 9.9% | |
| |
|---|
| Median (24 companies) | 3.0% | 3.2% | 2.7% | 1.8% | -8.0% |
|---|
| Alibaba Health Information Technology Ltd ($241) | -4.4% | -4.3% | -193.1% | -132.6% | -336.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| North Asia Resources Holdings Ltd ($61) | 34.3% | 4.6% | 94.2% | 177.8% | |
| Beautiful China Holdings Co Ltd ($706) | 44.9% | 8.4% | 2.2% | 26.2% | |
| Ju Teng International Holdings Ltd ($3336) | 17.6% | 14.1% | 18.7% | 20.0% | |
| Universal Technologies Holdings Ltd ($1026) | 8.5% | 20.0% | 5.7% | 14.2% | |
| Powerleader Science & Technology Group Ltd ($8236) | 0.8% | 1.4% | 3.4% | 11.0% | |
| |
|---|
| Median (24 companies) | 1.3% | 1.0% | 1.3% | 1.6% | 0.9% |
|---|
| Alibaba Health Information Technology Ltd ($241) | 2.1% | 4.4% | 46.3% | 17.2% | 11.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lenovo Group Ltd ($992) | 18.9% | 26.2% | 30.5% | 34.7% | 24.5% |
| PAX Global Technology Ltd ($327) | 14.1% | 12.3% | 12.8% | 18.7% | |
| CCID Consulting Co Ltd ($8235) | 20.6% | 11.3% | 10.7% | 10.2% | |
| TPV Technology Ltd ($903) | 6.4% | 7.7% | 1.8% | 10.1% | |
| Computer & Technologies Holdings Ltd ($46) | 4.1% | 6.0% | 8.6% | 9.4% | |
| |
|---|
| Median (25 companies) | 3.9% | 2.1% | 1.4% | -0.1% | -12.7% |
|---|
| Alibaba Health Information Technology Ltd ($241) | -9.6% | -11.1% | -13.1% | -13.0% | -13.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EVOC Intelligent Technology Co Ltd ($2308) | 6.4x | 0.5x | 5.8x | 5.7x | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.0x | 2.7x | 3.6x | 4.6x | |
| Ju Teng International Holdings Ltd ($3336) | 2.5x | 2.1x | 1.8x | 1.7x | |
| Wong's International Hldgs ($99) | -1.8x | -3.5x | 2.7x | 1.4x | |
| TPV Technology Ltd ($903) | 0.5x | -0.2x | 0.6x | -0.0x | |
| |
|---|
| Median (13 companies) | -1.7x | -2.3x | -1.8x | -3.9x | 4.2x |
|---|
