Tai Shing International Holdings Ltd reports 48.5% revenue growth in FY2015 and 188 pp EBITDA Margin growth from -187% to 1.3%
13/07/2015 • About Tai Shing International Holdings Ltd (
$8103) • By InTwits
Tai Shing International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tai Shing International Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 0.3%
- Tai Shing International 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 -75.4% for the sames years0
- Tai Shing International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 38.8%.
- CAPEX is quite volatile: 0.031 in FY2015, 2.8 in FY2014, 2.3 in FY2013, 0.059 in FY2012, 0.89 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.3%
- It operates with high leverage: Net Debt/EBITDA is 82.7x while industry average is -7.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tai Shing International Holdings Ltd ($8103) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 50.167 | 80.902 | 51.857 | 49.302 | 73.210 | 48.5% |
| Gross Profit | 10.983 | 37.078 | 17.563 | 0.110 | 5.454 | 4,858.2% |
| SG&A | | 64.440 | 58.014 | 19.047 | 11.906 | -37.5% |
| EBITDA | -25.710 | -29.730 | -83.809 | -92.003 | 0.971 | -101.1% |
| Net Income | -47.550 | -22.790 | -260.531 | -207.019 | -0.460 | -99.8% |
Balance Sheet
|
|---|
| Cash | 17.490 | 23.855 | 9.725 | 6.386 | 6.880 | 7.7% |
| Short Term Debt | 12.915 | 13.344 | 25.507 | 28.093 | 61.459 | 118.8% |
| Long Term Debt | 3.397 | 2.432 | 1.264 | 22.114 | 25.729 | 16.3% |
Cash flow
|
|---|
| Capex | 0.894 | 0.059 | 2.254 | 2.819 | 0.031 | -98.9% |
Ratios
|
|---|
| Revenue growth | -26.9% | 61.3% | -35.9% | -4.9% | 48.5% | |
| EBITDA growth | -635.1% | 15.6% | 181.9% | 9.8% | -101.1% | |
| Gross Margin | 21.9% | 45.8% | 33.9% | 0.2% | 7.4% | 7.2% |
| EBITDA Margin | -51.2% | -36.7% | -161.6% | -186.6% | 1.3% | 187.9% |
| Net Income Margin | -94.8% | -28.2% | -502.4% | -419.9% | -0.6% | 419.3% |
| SG&A, % of revenue | | 79.7% | 111.9% | 38.6% | 16.3% | -22.4% |
| CAPEX, % of revenue | 1.8% | 0.1% | 4.3% | 5.7% | 0.0% | -5.7% |
| ROIC | -18.6% | -15.6% | -40.8% | -74.3% | 0.3% | 74.6% |
| ROE | -32.5% | -8.2% | -121.1% | | | 0.0% |
| Net Debt/EBITDA | | | | | 82.7x | 82.7x |
Revenue and profitability
The company's Revenue jumped on 48.5% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.2 pp from 37.0% to 33.8% in FY2015.
Gross Margin increased on 7.2 pp from 0.22% to 7.4% in FY2015. SG&A as a % of Revenue dropped on 22.4 pp from 38.6% to 16.3% in FY2015.
Net Income marign surged on 419 pp from -420% to -0.63% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Tai Shing International Holdings Ltd had CAPEX/Revenue of 0.042%. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 3.4%.
Leverage (Debt)
Debt level is 82.7x Net Debt / EBITDA and 89.8x Debt / EBITDA. Net Debt / EBITDA jumped82.7x from to 82.7x in FY2015. Debt jumped on 73.7% in FY2015 while cash increased on 7.7% in FY2015.
Appendix 1: Peers in Internet
Below you can find Tai Shing International Holdings Ltd benchmarking vs. other companies in Internet 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 |
|---|
| China Public Procurement Ltd ($1094) | -78.5% | 5,077.0% | -67.5% | 1,258.9% | |
| China Digital Culture Group Ltd ($8175) | 320.4% | -47.9% | 180.8% | 168.8% | |
| GET Holdings Ltd ($8380) | -4.3% | 13.8% | 2,126.4% | 154.4% | |
| China Healthcare Holdings Ltd ($673) | | -14.8% | -52.9% | 63.1% | 0.3% |
| ABC Multiactive Ltd ($8131) | -1.9% | -15.2% | -13.2% | 59.4% | |
| |
|---|
| Median (19 companies) | 20.9% | 11.9% | 8.3% | 14.8% | -29.7% |
|---|
| Tai Shing International Holdings Ltd ($8103) | | 61.3% | -35.9% | -4.9% | 48.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ABC Multiactive Ltd ($8131) | 73.0% | 86.7% | 83.5% | 86.2% | |
| Sino-I Technology Ltd ($250) | 74.2% | 75.3% | 82.7% | 78.8% | |
| AcrossAsia Ltd ($8061) | 78.7% | 70.9% | 73.0% | 72.5% | |
| Pacific Online Ltd ($543) | 69.1% | 71.0% | 70.5% | 67.3% | |
| Forgame Holdings Ltd ($484) | 82.1% | 89.8% | 84.7% | 66.1% | |
| |
|---|
| Median (16 companies) | 65.2% | 65.0% | 65.5% | 61.3% | 43.5% |
|---|
| Tai Shing International Holdings Ltd ($8103) | 21.9% | 45.8% | 33.9% | 0.2% | 7.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SUNeVision Holdings Ltd ($8008) | 61.1% | 64.2% | 71.6% | 71.6% | |
| GET Holdings Ltd ($8380) | -182.0% | -237.7% | 56.8% | 66.4% | |
| AcrossAsia Ltd ($8061) | 15.4% | 20.8% | 24.2% | 44.7% | |
| Tencent Holdings Ltd ($700) | 48.2% | 38.4% | 34.7% | 42.5% | |
| China Digital Culture Group Ltd ($8175) | -12.1% | -66.7% | 22.5% | 40.8% | |
| |
|---|
| Median (20 companies) | 9.3% | 5.1% | 18.6% | 13.8% | -175.5% |
|---|
| Tai Shing International Holdings Ltd ($8103) | -51.2% | -36.7% | -161.6% | -186.6% | 1.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SUNeVision Holdings Ltd ($8008) | 14.2% | 7.6% | 10.2% | 62.8% | |
| AcrossAsia Ltd ($8061) | 61.2% | 56.6% | 65.9% | 36.3% | |
| China E-Learning Group Ltd ($8055) | 1.3% | 0.0% | 2.7% | 15.3% | |
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | 0.0% | | 12.2% | |
| Capinfo Co Ltd ($1075) | 1.6% | 17.3% | 13.1% | 9.7% | |
| |
|---|
| Median (20 companies) | 13.8% | 4.5% | 2.7% | 2.7% | 0.3% |
|---|
| Tai Shing International Holdings Ltd ($8103) | 1.8% | 0.1% | 4.3% | 5.7% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tencent Holdings Ltd ($700) | 33.4% | 29.5% | 26.7% | 29.1% | |
| Pacific Online Ltd ($543) | 41.7% | 37.9% | 36.4% | 28.6% | |
| GET Holdings Ltd ($8380) | -6.8% | -6.5% | 10.8% | 19.3% | |
| Tradelink Electronic Commerce Ltd ($536) | 19.5% | 22.4% | 18.2% | 17.4% | |
| SUNeVision Holdings Ltd ($8008) | 9.9% | 10.8% | 13.3% | 14.4% | |
| |
|---|
| Median (20 companies) | -0.8% | -2.5% | 4.0% | -2.6% | -311.7% |
|---|
| Tai Shing International Holdings Ltd ($8103) | -18.6% | -15.6% | -40.8% | -74.3% | 0.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ABC Multiactive Ltd ($8131) | | | | 9.5x | |
| AcrossAsia Ltd ($8061) | 1.7x | 2.3x | 2.9x | 1.5x | |
| Tencent Holdings Ltd ($700) | -0.1x | -0.2x | -0.2x | -0.2x | |
| China Digital Culture Group Ltd ($8175) | | | -2.2x | -0.4x | |
| GET Holdings Ltd ($8380) | | | -1.1x | -1.0x | |
| |
|---|
| Median (13 companies) | -1.8x | -1.4x | -1.3x | -1.5x | |
|---|
