Haier Healthwise Holdings Ltd CAPEX surged on 194% in 2015 and Revenue jumped on 101%
02/07/2015 • About Haier Healthwise Holdings Ltd (
$348) • By InTwits
Haier Healthwise Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Haier Healthwise Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -3.4%
- The company operates at negative EBITDA Margin: -3.2%
- Haier Healthwise Holdings 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 -5.3%0
- Haier Healthwise Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's a lot of higher than industry average of 4.1%.
- CAPEX is quite volatile: 32.4 in FY2015, 11.0 in FY2014, 4.7 in FY2013, 2.1 in FY2012, 4.7 in FY2011
- The company has unprofitable business model: ROIC is at -3.4%
- It operates with high leverage: Net Debt/EBITDA is 5.2x while industry average is -24.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Haier Healthwise Holdings Ltd ($348) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 538.0 | 419.8 | 209.3 | 193.7 | 389.4 | 101.1% |
| Gross Profit | 88.8 | 65.4 | 53.4 | 59.6 | 111.9 | 87.9% |
| SG&A | 203.5 | 62.8 | 49.7 | 72.7 | 130.9 | 79.9% |
| EBITDA | -159.9 | 83.4 | 5.9 | -9.4 | -12.6 | 33.4% |
| Net Income | -197.5 | 77.6 | 2.2 | 5.3 | 17.0 | 222.2% |
Balance Sheet
|
|---|
| Cash | 13.7 | 7.2 | 418.2 | 116.1 | 107.0 | -7.9% |
| Short Term Debt | 21.9 | 15.5 | 45.6 | 12.1 | 24.1 | 99.0% |
| Long Term Debt | 50.6 | 50.0 | 0.0 | 7.8 | 15.1 | 92.7% |
Cash flow
|
|---|
| Capex | 4.7 | 2.1 | 4.7 | 11.0 | 32.4 | 194.4% |
Ratios
|
|---|
| Revenue growth | 33.7% | -22.0% | -50.1% | -7.5% | 101.1% | |
| EBITDA growth | 36.0% | -152.1% | -92.9% | -258.8% | 33.4% | |
| Gross Margin | 16.5% | 15.6% | 25.5% | 30.8% | 28.7% | -2.0% |
| EBITDA Margin | -29.7% | 19.9% | 2.8% | -4.9% | -3.2% | 1.6% |
| Net Income Margin | -36.7% | 18.5% | 1.1% | 2.7% | 4.4% | 1.6% |
| SG&A, % of revenue | 37.8% | 15.0% | 23.7% | 37.6% | 33.6% | -4.0% |
| CAPEX, % of revenue | 0.9% | 0.5% | 2.2% | 5.7% | 8.3% | 2.6% |
| ROIC | -65.5% | 93.8% | 0.7% | -2.5% | -3.4% | -0.9% |
| ROE | | | 0.9% | 1.0% | 2.8% | 1.8% |
| Net Debt/EBITDA | | 0.7x | -62.8x | | | 0.0x |
Revenue and profitability
Haier Healthwise Holdings Ltd's Revenue jumped on 101% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 24.4 pp from 11.7% to 36.1% in 2015.
Gross Margin decreased on 2.0 pp from 30.8% to 28.7% in FY2015. SG&A as a % of Revenue decreased on 4.0 pp from 37.6% to 33.6% in FY2015.
Net Income marign increased slightly on 1.6 pp from 2.7% to 4.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Haier Healthwise Holdings Ltd had CAPEX/Revenue of 8.3%. CAPEX/Revenue increased on 7.8 pp from 0.51% in FY2012 to 8.3% in FY2015. It's average CAPEX/Revenue for the last three years was 5.4%.
Return on investment
The company operates at negative ROIC (-3.37%) and low but positive ROE (2.83%). ROIC decreased slightly on 0.90 pp from -2.5% to -3.4% in FY2015. ROE increased slightly on 1.8 pp from 1.00% to 2.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt surged on 96.5% in FY2015 while cash decreased on 7.9% in FY2015.
Appendix 1: Peers in Commercial Services
Below we provide Haier Healthwise Holdings Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | 429.3% | -61.9% | -27.8% | 2,912.9% | |
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Goldpac Group Ltd ($3315) | 24.4% | 52.3% | 64.4% | 36.8% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| |
|---|
| Median (55 companies) | 19.1% | 7.1% | 4.5% | 9.8% | 7.1% |
|---|
| Haier Healthwise Holdings Ltd ($348) | | -22.0% | -50.1% | -7.5% | 101.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 67.1% | 66.2% | 66.8% | 62.8% | |
| |
|---|
| Median (52 companies) | 33.8% | 31.9% | 30.5% | 30.9% | 44.8% |
|---|
| Haier Healthwise Holdings Ltd ($348) | 16.5% | 15.6% | 25.5% | 30.8% | 28.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | |
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| Dragon Crown Group Holdings Ltd ($935) | 57.8% | 67.3% | 62.9% | 60.2% | |
| |
|---|
| Median (55 companies) | 16.0% | 15.7% | 13.3% | 7.9% | 2.0% |
|---|
| Haier Healthwise Holdings Ltd ($348) | -29.7% | 19.9% | 2.8% | -4.9% | -3.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | |
| |
|---|
| Median (54 companies) | 3.9% | 3.5% | 4.5% | 3.4% | 2.2% |
|---|
| Haier Healthwise Holdings Ltd ($348) | 0.9% | 0.5% | 2.2% | 5.7% | 8.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | |
| Poly Culture Group Corp Ltd ($3636) | 48.0% | 29.1% | 33.0% | 16.3% | |
| eprint Group Ltd ($1884) | | 33.0% | 34.8% | 15.4% | 18.5% |
| |
|---|
| Median (55 companies) | 5.2% | 5.3% | 3.5% | 3.1% | 0.5% |
|---|
| Haier Healthwise Holdings Ltd ($348) | -65.5% | 93.8% | 0.7% | -2.5% | -3.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | 0.8x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | |
| |
|---|
| Median (35 companies) | -0.0x | 0.0x | -0.4x | -0.5x | -2.0x |
|---|
